Trex impacted by Q1 production problems
Trex, the decking and railing manufacturer, reported first quarter 2019 consolidated net sales increased 5% to $180 million from sales of $172 in the first quarter 2018.
Trex Residential Products net sales increased 7% to $165 million while Commercial Products contributed an additional $14 million, compared to $16 million in the year ago-quarter.
The Winchester, Va.-based manufacturer also reported a net income of $32 million for the quarter, down more than 13% from a net income of $37 million during the same period last year.
Revenue growth during the quarter was supported by strong demand for Trex’s legacy and new residential decking and railing products, the company said.
But startup costs and related manufacturing inefficiencies associated with production of Trex Enhance Naturals and Basics decking impacted residential gross profit by approximately $10 million and significantly reduced throughput during the quarter, according to Trex CEO and President James Cline.
Additional production obstacles included two equipment failures at the company’s Nevada facility during the first quarter which resulted in the loss of two production lines for more than 30 days each.
“We will experience reduced throughput in Nevada during the second quarter as well, but we expect the reduced throughput and related expenses to be behind us by the end of June,” Cline said.
Trex Residential Products net sales increased 7% to $165 million while Commercial Products contributed an additional $14 million, compared to $16 million in the year ago-quarter.
The Winchester, Va.-based manufacturer also reported a net income of $32 million for the quarter, down more than 13% from a net income of $37 million during the same period last year.
Revenue growth during the quarter was supported by strong demand for Trex’s legacy and new residential decking and railing products, the company said.
But startup costs and related manufacturing inefficiencies associated with production of Trex Enhance Naturals and Basics decking impacted residential gross profit by approximately $10 million and significantly reduced throughput during the quarter, according to Trex CEO and President James Cline.
Additional production obstacles included two equipment failures at the company’s Nevada facility during the first quarter which resulted in the loss of two production lines for more than 30 days each.
“We will experience reduced throughput in Nevada during the second quarter as well, but we expect the reduced throughput and related expenses to be behind us by the end of June,” Cline said.