JELD-WEN Reacts to Latest District Court Ruling in Ongoing Dispute
April 10 2020 - 11:00PM
Business Wire
Steves & Sons continues to pursue unfair
market advantage
Today, the U.S. District Court for the Eastern
District of Virginia granted a motion by Steves and Sons, Inc.
seeking a preliminary injunction against JELD-WEN Holding, Inc.
(NYSE: JELD). The injunction order will not take effect until
further briefing before the Court. JELD-WEN is disappointed in the
Court’s ruling and intends to seek an immediate appeal and stay
once the injunction becomes effective. A trial on this matter is
expected this summer.
The Court’s order relates to the provisions of the supply
agreement between JELD-WEN and Steves that govern situations when
demand for molded doorskins in North America exceeds JELD-WEN’s
capacity to supply its customers. Late last year, there was a
significant increase in demand in the doorskins market, and Steves
suddenly and significantly increased its doorskin orders from
JELD-WEN beyond what it had previously ordered. JELD-WEN then
announced that all doorskin customers, and JELD-WEN itself, would
be allocated a proportional share of available products, as
JELD-WEN contends is allowed under its agreements with its
customers. Steves demanded that JELD-WEN nevertheless supply all
the products Steves ordered, to the detriment of all of JELD-WEN’s
other doorskin customers and before JELD-WEN’s own needs. Steves
was the only JELD-WEN customer to make such a demand.
“We are disappointed in the court’s decision which provides an
unfair market advantage to Steves at the expense of our other
customers, JELD-WEN, and the rest of the door market,” said
JELD-WEN President and CEO Gary S. Michel. “This latest lawsuit by
Steves underscores its disregard for the letter and spirit of our
agreement. Steves’ unusual commercial behavior made it necessary
for us to invoke allocation in the first place. Steves’
unreasonable behavior is anti-competitive and unfair to JELD-WEN’s
other customers and to JELD-WEN itself.”
JELD-WEN remains committed to its customers and the door and
doorskin markets and has invested hundreds of millions of dollars
building door and doorskin capacity over the last several years.
“While JELD-WEN was investing in its business, Steves has not built
its own domestic doorskin production capabilities. Instead, Steves
continues in its efforts to unfairly benefit from JELD-WEN’s
investment at the expense of other door competitors,” Michel
stated.
About JELD-WEN
JELD-WEN, founded in 1960, is one of the world’s largest door
and window manufacturers, operating manufacturing facilities in 20
countries located primarily in North America, Europe and Australia.
Headquartered in Charlotte, N.C., JELD-WEN designs, produces and
distributes an extensive range of interior and exterior doors,
wood, vinyl and aluminum windows and related products for use in
the new construction and repair and remodeling of residential homes
and non-residential buildings. JELD-WEN is a recognized leader in
manufacturing energy-efficient products and has been an ENERGY
STAR® Partner since 1998. Our products are marketed globally under
the JELD-WEN® brand, along with several market-leading regional
brands such as Swedoor® and DANA® in Europe and Corinthian®,
Stegbar®, and Trend® in Australia. For more information visit
www.jeld-wen.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200410005224/en/
Investor Relations: Chris Teachout, +1.704.378.7007 or
investors@jeldwen.com Media Relations: Noreen Pratscher,
+1.704.526.4146 or corporate@jeldwen.com
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