The 2014 deck-building season got off to a late start, and Trex felt the impact in its first-quarter results.
The Winchester, Virginia-based company reported net sales of $100.6 million, down from $107.9 million in last year's first quarter. Net income for the wood-alternative decking giant was $12.3 million, down from $21.6 million in the same period last year.
“The severe weather experienced throughout the country during the first quarter delayed the start of outdoor living project activity," said Ronald W. Kaplan, chairman, president and CEO. "Trex was affected by this trend. The impact was especially evident in March, when winter storms and low temperatures persisted throughout the month. Except for the weather-related impact to our sales, we are pleased with our first-quarter financial performance and remain confident about our strategy for the year."
Trex expects to bounce back in the second quarter with net sales of $125 million, marking a 27% increase for the quarter and an anticipated 9% gain for the first six months.
“In 2014, we are continuing the high-profile Engineered Artistry branding campaign we successfully launched last year," Kaplan said. "Macroeconomic indicators, including rising consumer confidence and the strengthening home remodeling market, bode well for our prospects."