Trex Q4 fueled by strong residential product sales
Composite decking and accessories manufacturer Trex, reported consolidated net sales of $165 million for the fourth quarter 2019, increasing 18% from sales of $140 million for the fourth quarter 2018.
Residential product sales increased 25% to $153 million for the quarter.
Net sales in 2019 were up 9% to $745 million from sales of $684 million in 2018. Residential product sales rose 13% to $694 million for the year.
The Winchester, Va.-based manufacturer posted a net income of $35 million for the fourth quarter, up $41% from a fourth quarter 2018 net income of $25 million. Trex’s net income for all of 2019 was $145 million, rising 7.4% from a net income of $135 million in the prior year.
Trex also announced a leadership succession plan with Bryan Fairbanks being named as the company’s next president and CEO. Current Trex CEO James Cline announced he will retire and move to chairman of the board, effective April 29.
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The Bottom Line: Lead by strong residential product sales, Trex enjoys double-digit sales and profit growth in the fourth quarter.
What the CEO said: "Fourth quarter results were in line with our expectations for strong double-digit sales growth and sequential gross margin expansion,” said James Cline, president and CEO of Trex. “Our brand leadership and strong demand for our product line-up resulted in positive comparisons with the similar period in 2018 when sales benefitted from a very strong early buy season.”
“Macro and company-specific factors support our confidence in Trex Company’s growth prospects for 2020. We continue to operate in a strong economic environment, with healthy repair and remodel sentiment, and high consumer confidence. At the same time, demand for Trex Residential Products continues to be robust, indicating that we are capturing conversion from the large wood market.”
Company info: The fourth quarter and full-year 2019 report from Trex can be viewed here.
Residential product sales increased 25% to $153 million for the quarter.
Net sales in 2019 were up 9% to $745 million from sales of $684 million in 2018. Residential product sales rose 13% to $694 million for the year.
The Winchester, Va.-based manufacturer posted a net income of $35 million for the fourth quarter, up $41% from a fourth quarter 2018 net income of $25 million. Trex’s net income for all of 2019 was $145 million, rising 7.4% from a net income of $135 million in the prior year.
Trex also announced a leadership succession plan with Bryan Fairbanks being named as the company’s next president and CEO. Current Trex CEO James Cline announced he will retire and move to chairman of the board, effective April 29.
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The Bottom Line: Lead by strong residential product sales, Trex enjoys double-digit sales and profit growth in the fourth quarter.
What the CEO said: "Fourth quarter results were in line with our expectations for strong double-digit sales growth and sequential gross margin expansion,” said James Cline, president and CEO of Trex. “Our brand leadership and strong demand for our product line-up resulted in positive comparisons with the similar period in 2018 when sales benefitted from a very strong early buy season.”
“Macro and company-specific factors support our confidence in Trex Company’s growth prospects for 2020. We continue to operate in a strong economic environment, with healthy repair and remodel sentiment, and high consumer confidence. At the same time, demand for Trex Residential Products continues to be robust, indicating that we are capturing conversion from the large wood market.”
Company info: The fourth quarter and full-year 2019 report from Trex can be viewed here.