CHARLOTTE, N.C. - JELD-WEN (NYSE:JELD) Holding, Inc. (NYSE: JELD), a global manufacturer of building products, announced today the closure of two of its manufacturing facilities as part of a strategy to simplify operations and boost profitability. The affected sites are located in Vista, California, and Hawkins (NASDAQ:HWKN), Wisconsin, which focus on composite and wood window production respectively.
The Vista facility, employing roughly 110 workers, will cease operations due to competitive market challenges that have rendered its composite windows product line unsustainable. JELD-WEN will discontinue this product line and fulfill orders placed within the next 90 days. The closure is expected to result in one-time costs of about $21 million, with anticipated annual pre-tax income improvements of at least $4 million upon completion.
In Wisconsin, the Hawkins plant, which employs about 340 workers, will have its production consolidated into the company's Rantoul, Illinois facility. The consolidation is estimated to cost approximately $24 million, mostly incurred in 2024, and is projected to improve annual pre-tax income by at least $7 million post-completion.
Overall, JELD-WEN anticipates one-time expenses of around $45 million due to these changes, with projected annual pre-tax income enhancements of at least $11 million. Further details regarding the closures will be discussed in the company's upcoming quarterly earnings call on May 7, 2024.
JELD-WEN is a leading designer, manufacturer, and distributor of doors, windows, and related products, operating in 15 countries across North America and Europe with a workforce of approximately 18,000 associates. The company's portfolio includes various brands like JELD-WEN, LaCantina, VPI, Swedoor, and DANA.
InvestingPro Insights
As JELD-WEN Holding, Inc. (NYSE: JELD) navigates through operational changes with the closure of two manufacturing facilities, the company's financial health and stock performance remain a focal point for investors. According to real-time data from InvestingPro, JELD-WEN has a market capitalization of $1.72 billion, with a P/E ratio standing at a significant 27.22. This valuation reflects a market sentiment that prices the company at a premium, considering its earnings.
InvestingPro Tips suggest that JELD-WEN is expected to see net income growth this year, which could be a positive signal for investors looking for profitability. Furthermore, analysts predict that despite the recent operational shifts, the company will remain profitable in the current fiscal year. It's noteworthy that JELD-WEN's liquid assets exceed its short-term obligations, indicating a degree of financial stability in meeting its immediate liabilities.
Investors should also be aware of the stock's recent performance, as JELD-WEN has experienced a large price uptick over the last six months, with a 58.99% return. This could be indicative of market confidence in the company's strategic decisions and future prospects. For those interested in a deeper dive into the company's financials and stock performance, InvestingPro offers additional insights. There are 10 more InvestingPro Tips available, which can provide a more comprehensive analysis of JELD-WEN's financial health and market position. To access these tips, visit InvestingPro's JELD-WEN page and consider using the promo code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.