Trex sales soar in Q4
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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The Bottom Line: While Trex sees record sales of $1.2 billion for the year, providing the high demand for decking products, profits in the fourth quarter fall 42% to $25 million.
What the CEO said: “We closed 2021 on a very strong note with all-time record sales of $1.2 billion for the full year driven by continued robust demand in the outdoor living category coupled with our expanded manufacturing capacity to service our Trex Residential distributors and dealers,” said Bryan Fairbanks, Trex president and CEO. “With strong growth across our product lines and channel partners, Trex continues to benefit from strong-trending consumer interest in our environmentally friendly, low maintenance product portfolio that transforms and enhances the outdoor living experience.
Company info: Click here to read the full fourth quarter 2021 report from Trex.
