Winchester, Va.-based Trex Company President and CEO James Cline had some strong metrics to report in his company’s first quarter. And along with the numbers, he pointed to positive trends in the general decking market.
Trex’s net sales for the first quarter of 2017 were $144.8 million, 10% above the $131.7 million reported in last year’s first quarter. Net income increased 17.9% to $27.9 million.
“This was another strong quarter for Trex, with double-digit sales growth, favorable gross margin impacts and relatively stable SG&A as a percent of revenue, resulting in record revenues and earnings,” Cline said.
Production efficiencies in the first quarter combined with continued focus on cost reduction initiatives including ongoing success with our revised procurement strategies and increased capacity utilization drove solid gross margin expansion.
Meanwhile, the company expects demand for “functional outdoor living spaces” to increase, Cline said. He was also bullish on wood-alternative decking and railing in general.
Visits to the company website also hit record levels, he said.