Trex sales rise 32%
Trex, the decking and railing manufacturer, reported third quarter 2017 net sales of $140 million, a 32% increase from net sales of $106 million in the third quarter 2016.
Trex residential product sales were up 23% to $131 million. The Winchester, Va.-based company also reported a third quarter net income of $20.1 million compared to a net income of $7.8 million. Third quarter net earnings improved by 34% after adjusting for the effects of the prior year warranty reserve, the company said.
“Our organic revenue growth in the third quarter reflected strong demand for Trex residential products, as we continue to successfully gain market share from the traditional wood market and reinforce our leadership position in the outdoor living category. At the same time, gross margin continued to benefit from our ongoing process improvement programs, lower input costs and increased capacity utilization,” James Cline, Trex president and CEO said in a statement released by the company this afternoon.
“Our acquisition of SC Company, which was completed in the third quarter, forms the core of Trex Commercial Products and provides us with access to an important growth market as well as end market sales diversification. The integration is progressing according to plan, the segment’s third quarter revenue and earnings contribution were in line with our expectations, and it was accretive to EBITDA.”
Total net sales for the first nine months of 2017 were $443 million, a 15% increase over prior year, with Trex Residential Products sales up 13% to $434 million. Net income for the first nine months of 2017 was $76.8 million, up from $55.2 million in the prior year.
