Trex 3Q net sales up 4 percent from 2011
Posted: November 9, 2012
The Winchester Star
WINCHESTER — Trex Co. Inc., the Winchester-based manufacturer of non-wood decking and outdoor products, Thursday reported third quarter net sales of $70.8 million, a 4 percent increase from the same period in 2011.
CEO Ronald W. Kaplan attributed the better numbers to the company’s sales strategy and the popularity of some low-maintenance products.
“Trex turned in another strong operating performance,” Kaplan said in a press release. “...We are confident that our newest product offerings and sales strategies provide a solid platform for growth.”
The company reported a net loss of $14.3 million, or 86 cents per diluted share, during the third quarter of 2012 compared to a net loss of $0.5 million, or 3 cents per diluted share, during the same prior-year period.
The net loss was because the company recognized a $20 million pretax increase to its warranty reserve for decking material manufactured at its plant in Fernley, Nev., from 2002 and 2006. Prior to the warranty reserve increase, net income was $6.2 million, or 36 cents per diluted share.
Kaplan expects net sales to total approximately $45 million in the fourth quarter, which would yield 14.5 percent sales growth for 2012.
The company reported net sales of $261.2 million during the first nine months of 2012, compared with $215.3 million during the same time in 2011.
Net income during the first nine months of 2012 was $6.3 million, or 37 cents per diluted share, compared to $6.7 million, or 41 cents per diluted share from January to November of 2011.
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