Trex says sales slip, but future looks bright
Net sales at Winchester, Va.-based Trex declined slightly to $206.5 million in the second quarter, down from $206.7 million in the same quarter a year ago.
Sales of residential products increased 2% year over year, as the company continued its roll out of Enhance Naturals and Basics decking products – new products for which start-up costs have receded. “We continued to experience strong demand across our residential product portfolio and sales channels in the second quarter,” said CEO James Cline.
The company pointed to improvements in production rates and operating efficiencies along with investments in its facilities in Winchester, Va., and Fernley, Nev.
The company said it expects sales to increase 25% in the third quarter.
The company’s share price shot up nearly 20% following the earnings release.
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The bottom line: Second quarter net income declined from $42.8 million to $35.7 million.
What the CEO said: "The continued improvement in production rates and operating efficiencies has set the stage for solid double-digit year-on-year sales comparisons in the second half of this year,” said CEO James Cline. “Demand trends indicate that the conversion from wood has accelerated at a faster pace than expected, which has caused us to move up our planned capacity expansion.”
More company information: Read the full earnings release here.
Sales of residential products increased 2% year over year, as the company continued its roll out of Enhance Naturals and Basics decking products – new products for which start-up costs have receded. “We continued to experience strong demand across our residential product portfolio and sales channels in the second quarter,” said CEO James Cline.
The company pointed to improvements in production rates and operating efficiencies along with investments in its facilities in Winchester, Va., and Fernley, Nev.
The company said it expects sales to increase 25% in the third quarter.
The company’s share price shot up nearly 20% following the earnings release.
# # #
The bottom line: Second quarter net income declined from $42.8 million to $35.7 million.
What the CEO said: "The continued improvement in production rates and operating efficiencies has set the stage for solid double-digit year-on-year sales comparisons in the second half of this year,” said CEO James Cline. “Demand trends indicate that the conversion from wood has accelerated at a faster pace than expected, which has caused us to move up our planned capacity expansion.”
More company information: Read the full earnings release here.