Despite a dip, Trex has ‘strong’ quarter
Posted: February 21, 2013
The Winchester Star
WINCHESTER — Trex Co. Inc., the Winchester-based manufacturer of non-wood decking and outdoor products, Tuesday reported fourth quarter net sales of $46.2 million, compared to net sales of $51.5 million during the same period of 2011.
Despite the slip from 2011, CEO Ronald W. Kaplan said the quarter was strong.
“We brought 2012 to a successful close with a solid fourth quarter,” he said in a news release. “We exceeded our revenue guidance for the period and achieved sales growth of 15 percent for the year. This, coupled with continued growth in Trex dealers and contractors, indicates that we continued to advance our industry-leading market share.”
The company reported a fourth quarter net loss of $3.6 million, or 22 cents per diluted share, compared to a net loss of $18.3 million, or $1.18 per diluted share, during the fourth quarter of 2011.
During the 2012 fourth quarter, Trex recognized a $1.5 million provision for costs related to a mold class action. Prior to that charge, the quarter’s net loss was $2.1 million, or 13 cents per diluted share.
During the 2011 fourth quarter, the company recognized a $10 million increase to the warranty reserve for decking material manufactured at its Nevada plant prior to 2007.
For all of 2012, Trex reported net sales of $307.4 million, compared to net sales of $266.8 million for 2011. The company reported a 2012 net income of $2.7 million, or 16 cents per share, compared to a net loss of $11.6 million, or 75 cents per share, for 2011.
Kaplan expects Trex to sales to improve in 2013.
“We believe we are well positioned for 2013, during which we expect to benefit from the growing momentum in the housing sector,” he said.
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