Shares of Jeld-Wen Holding tumbled 27% in morning trading Tuesday after the Charlotte-based maker of doors and windows posted a quarterly loss and lowered its full-year guidance for profit, revenue and cash flow.
The distributor of Jeld-Wen, LaCantina and Dana products in North America and Europe announced plans to close facilities in Alabama and Denmark and “optimize’’ UK production, according to a presentation accompanying the company’s conference call with analysts Nov. 5. It operates facilities in 16 countries on the two continents and employs about 18,000 people.
Shares declined to less than $10 for the first time since December 2022 before rallying. Jeld-Wen has traded as high as $21.75 in the past year.
Jeld-Wen posted a net loss from continuing operations of $73 million, or 86 cents a share, compared with net income from continuing operations of $16.9 million, or 20 cents a share, a year earlier. Removing one-time items, per-share earnings totaled 32 cents in the three months ended Sept. 28, missing analysts’ expectations of 40 cents, according to FactSet estimates reported by Dow Jones.
“Market conditions continue to deteriorate which have significantly impacted volume/mix in the near-term,’’ CEO William Christiansen said in the company’s earnings statement late Monday, Nov. 4, after markets had closed. He said the company continues “to work diligently to align our costs with the softer market conditions while also preparing for future growth.’’
Jeld-Wen relocated its headquarters to Charlotte from Oregon a decade ago. This past April, the company announced plans to close two window-manufacturing plants in Vista, California, and Hawkins, Wisconsin, in a streamlining of product offerings and to position the company for profitable growth, officials said.
In Tuesday’s presentation, the company cited shifting demand “toward entry-level price point’’ in its forecast for “low double-digit’’ volume declines in North America and Europe.
In North America, the company predicted new single-family construction will increase by “low single-digits” and the repair and remodel market will sink by “mid-to-high single-digits.’’ It forecasts a decline of more than 25% for multifamily construction in Canada, while projecting declines in residential construction and commercial projects in Europe.
The company cited higher labor and materials costs that were partially offset by lower expenses and improved productivity.
Quarterly revenue also missed analysts’ expectations, sinking 13.2% to $934.7 million from $1.08 billion a year earlier.
The company lowered its guidance for 2024. It projected revenue of $3.7 billion to $3.75 billion, down from a forecast of $3.9 billion to $4.1 billion in May. It expects full-year adjusted EBITDA of $265 to $280 million, down from its previous outlook of $340 million to $380 million.
