Trex, the wood-alternative decking and accessories manufacturer, reported fourth quarter 2021 sales increased 33% to $304 million from sales of $228.3 million in the fourth quarter 2020.
Residential sales jumped 35% to $288 million, with Trex Commercial contributing $16 million to net sales.
The Winchester, Va.-based manufacturer attributed the increase in net sales to volume growth and a favorable impact from pricing actions in Trex Residential, offsetting inflation and higher transportation costs.
Sales for the year reached a company record of $1.2 billion, rising 36% above sales for the previous year.
Trex posted a net income of $25 million for the fourth quarter, falling more than 42% from a net income of $43.3 million for the same period a year ago.
During the quarter, Trex recorded a $54 million goodwill impairment charge at Trex Commercial due to a reduction in project commitments, which adversely impacted its project backlog. Excluding the goodwill impairment charge and a gain on insurance proceeds, net income was $64 million for the fourth quarter.
Trex reported a full-year net income $208.7 million, rising 19% from a net income of $175.6 million in the prior fiscal year.
The company has nearly complete capacity expansion initiatives at its Virginia and Nevada facilities with total capacity increasing by nearly 85% above 2019 volume levels. Trex also recently announced plans to develop a third U.S.-based Trex Residential manufacturing facility on approximately 300 acres in Little Rock, Arkansas.
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