The following is a summary of the JELD-WEN Holding, Inc. (JELD) Q1 2024 Earnings Call Transcript:
Financial Performance:
JELD-WEN's Q1 revenues were $959 million, down 11% YoY due to expected volume declines in North America and Europe.
Adjusted EBITDA of $69 million represents a YoY decline of $10 million, resulting in a margin of 7.2%.
North America segment sales decreased 11% from the previous year to $680 million due to lower volume mix.
Europe's revenue decreased by 12% YoY to $279 million mainly due to reduced volume mix.
Adjusted EBITDA fell 130 basis points to 9% primarily due to reduced volumes.
Business Progress:
JELD-WEN announced the closure of two North American window facilities to streamline the manufacturing footprint.
There's an ongoing transformational journey with a goal of $100 million in cost savings this year.
Capital expenditure increased by about $10 million YoY focusing on operational improvements.
The closure of the California facility is expected to result in an annual EBITDA saving of $11 million.
Company continues to target $100 million in savings, managing costs related to recent structural changes.
JELD-WEN is pruning certain product lines that aren't meeting profit expectations, investing in more profitable business segments.
Company expects to remain neutral on price-cost for the full year in spite of some inflation.
The shutdown of Auraline is part of the company's strategy to redirect capital and resources to more promising projects.
Emphasis is being placed on a culture change with a focus on accountability and decision-making.
More details: JELD-WEN Holding IR
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