Composite deck maker Trex has announced preliminary second-quarter results, predicting lower-than-expected revenues of $78 million, as opposed to previous expectations of $115 million.
In a prepared statement, chairman, president and CEO Ronald Kaplan commented: "Sales did not materialize as expected during the second quarter. Poor weather and, to a lesser extent, the unfavorable macroeconomic environment caused the lower-than-expected revenue performance. Many parts of the country experienced major winter storms through April, which were then followed by heavier-than-normal precipitation during most of May, further delaying the start of the decking season. As a result, our trailing nine-month revenue through June was down approximately 4% compared with the prior year. We believe that the external factors influencing our sales are also impacting the overall market and that we continue to expand Trex's industry-leading market share.”
Kaplan also noted that sales order activity in June exceeded order activity in June 2010 by 15%, and order activity in the first week of July is outpacing July of last year. “As we move further through the month, we will be in a better position to provide more detailed third-quarter revenue guidance when we report our second-quarter financial results on Aug. 1, 2011," Kaplan said.