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Core growth achieved by Jeld-Wen in Europe alone

27.11.2019 − 

Sales revenue generated by Jeld-Wen fell in the third quarter of 2019 by 3.9 % to 1.092bn US$. Sales revenue had already developed downhill in the second quarter too after the first quarter had closed with an increase. The company attributes the reduction mainly to lost sales in North America and in the Asian-Pacific region.

The “Europe” division was the only one to achieve organic growth. The core growth recorded by Jeld-Wen, which arises from the development in selling prices, the sales volume, and the product mix, amounted to roughly +3 % in Europe. This growth was blanketed by adverse currency effects to the extent that sales revenue in Europe fell by a total of 1.8 % to 287.7m US$. It was only in this division too that Jeld-Wen managed to improve EBITDA adjusted for non-recurring items; the result rose by 8.9 % to 30.2m US$. The adjusted EBITDA margin amounted to 10.5 %.

Jeld-Wen recorded total sales revenue of 3.221bn US$ for the first nine months of this year, falling 1.0 % short of last year’s figure. Regressive core sales revenue (-2 %) and currency effects (-3 %) were partly compensated for by the effects of acquisitions (+4 %). Adjusted EBITDA was also down at 325.8m US$, as was the appropriate margin at 10.1 %. Group profit almost halved to 55.2m US$. Jeld-Wen recently made a downward adjustment in its forecast for 2019 as a whole. As such, the company is anticipating a 2 % reduction in sales revenue. Adjusted EBITDA will probably be in the region of 419-429m US$ and thus fall short of last year’s figure of 459.2m US$ as well. When the half-year figures were released in August, the company was still holding out the prospect of sales revenue at last year’s level. The group had originally been predicting growth of 1-5 % for 2019 and core growth of approximately 2 %.

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