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JELD-WEN (JELD) Completes $446M Sale of Australasia Business
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JELD-WEN Holding, Inc. (JELD - Free Report) completed the sale of its Australasia business to Platinum Equity, a global investment firm. This transaction marks a significant milestone in the company's ongoing strategy to simplify operations and maximize shareholder value.
With the completion of the Australasia business sale, JELD is now poised to concentrate its efforts on its primary regions, North America and Europe, bolstering its financial position. The transaction generated nearly $446 million in net proceeds for the company, which will be utilized to repay debt.
In fiscal 2022, JELD-WEN reported $4.5 billion net revenues, with the North America and Europe segments accounting for 72% and 28%, respectively, excluding the Australasia business.
Focus on North America & Europe Regions
During first-quarter fiscal 2023, JELD surpassed internal expectations with strong sales and earnings performance. The positive outcome was primarily attributed to favorable volume and price cost outcomes, particularly in the North American market. Additionally, lower cost inflation in Europe contributed to improved earnings during the period.
The North America segment reported sales of $768 million in the first quarter, up 6% compared with prior-year quarter’s levels. The segment's adjusted EBITDA rose 18% to $79 million, with margins improving by 100 basis points to 10.3%, driven by positive price cost results.
The company's Europe segment reported $312 million revenues and adjusted EBITDA of $18 million marking a 20% increase from the year-ago quarter’s levels. This resulted in a significant 110 basis points improvement in EBITDA margin attributed to positive price cost and productivity gains.
The company is reviewing the go-to-market structure, including people, process and systems as well as end markets served, in Europe. The objective is to achieve sales and customer service efficiency targets, and enhance pricing strategies through country-level analysis.
Furthermore, JELD-WEN continues its efforts to optimize network footprint, focusing on enhancing production planning and execution. In North America's interior door business, it reallocated production sites closer to customers to optimize production efficiencies. JELD anticipates such opportunities across its product categories.
Image Source: Zacks Investment Research
Shares of JELD have increased 49.5% in the past three months compared with the Zacks Building Products - Wood industry’s rise of 14.9%.
Zacks Rank & Key Picks
JELD-WEN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Construction sector are:
The Zacks Consensus Estimate for DY’s 2024 sales and earnings per share (EPS) indicates a rise of 8.3% and 41%, respectively, from the year-ago period’s levels.
Eagle Materials Inc. (EXP - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 6.5%, on average. Shares of EXP have increased 66% in the past year.
The Zacks Consensus Estimate for EXP’s 2024 sales and EPS indicates a rise of 2% and 8.4%, respectively, from the year-ago period’s levels.
Vulcan Materials Company (VMC - Free Report) flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 7.1%, on average. Shares of VMC have increased 58.2% in the past year.
The Zacks Consensus Estimate for VMC’s 2023 sales and EPS indicates a rise of 5.9% and 26.2%, respectively, from the year-ago period’s levels.
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JELD-WEN (JELD) Completes $446M Sale of Australasia Business
JELD-WEN Holding, Inc. (JELD - Free Report) completed the sale of its Australasia business to Platinum Equity, a global investment firm. This transaction marks a significant milestone in the company's ongoing strategy to simplify operations and maximize shareholder value.
With the completion of the Australasia business sale, JELD is now poised to concentrate its efforts on its primary regions, North America and Europe, bolstering its financial position. The transaction generated nearly $446 million in net proceeds for the company, which will be utilized to repay debt.
In fiscal 2022, JELD-WEN reported $4.5 billion net revenues, with the North America and Europe segments accounting for 72% and 28%, respectively, excluding the Australasia business.
Focus on North America & Europe Regions
During first-quarter fiscal 2023, JELD surpassed internal expectations with strong sales and earnings performance. The positive outcome was primarily attributed to favorable volume and price cost outcomes, particularly in the North American market. Additionally, lower cost inflation in Europe contributed to improved earnings during the period.
The North America segment reported sales of $768 million in the first quarter, up 6% compared with prior-year quarter’s levels. The segment's adjusted EBITDA rose 18% to $79 million, with margins improving by 100 basis points to 10.3%, driven by positive price cost results.
The company's Europe segment reported $312 million revenues and adjusted EBITDA of $18 million marking a 20% increase from the year-ago quarter’s levels. This resulted in a significant 110 basis points improvement in EBITDA margin attributed to positive price cost and productivity gains.
The company is reviewing the go-to-market structure, including people, process and systems as well as end markets served, in Europe. The objective is to achieve sales and customer service efficiency targets, and enhance pricing strategies through country-level analysis.
Furthermore, JELD-WEN continues its efforts to optimize network footprint, focusing on enhancing production planning and execution. In North America's interior door business, it reallocated production sites closer to customers to optimize production efficiencies. JELD anticipates such opportunities across its product categories.
Image Source: Zacks Investment Research
Shares of JELD have increased 49.5% in the past three months compared with the Zacks Building Products - Wood industry’s rise of 14.9%.
Zacks Rank & Key Picks
JELD-WEN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Construction sector are:
Dycom Industries, Inc. (DY - Free Report) sports a Zacks Rank #1 (Strong Buy). DY has a trailing four-quarter earnings surprise of 153.7%, on average. Shares of DY have gained 20.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DY’s 2024 sales and earnings per share (EPS) indicates a rise of 8.3% and 41%, respectively, from the year-ago period’s levels.
Eagle Materials Inc. (EXP - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 6.5%, on average. Shares of EXP have increased 66% in the past year.
The Zacks Consensus Estimate for EXP’s 2024 sales and EPS indicates a rise of 2% and 8.4%, respectively, from the year-ago period’s levels.
Vulcan Materials Company (VMC - Free Report) flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 7.1%, on average. Shares of VMC have increased 58.2% in the past year.
The Zacks Consensus Estimate for VMC’s 2023 sales and EPS indicates a rise of 5.9% and 26.2%, respectively, from the year-ago period’s levels.