Earnings drop 65.3 percent at Trex
Trex, the decking, railing and fencing manufacturer, said net earnings for the second quarter were $2.6 million, down 65.3 percent from $7.5 million a year earlier.
Sales were $118.8 million, down 2.3 percent from sales of $121.6 million in last year’s second quarter.
Chairman and CEO Anthony Cavanna said the company’s sales have managed to hold up well in a difficult market, in spite of weakness in the home-building sector and declining lumber prices.
“In the second quarter, we successfully launched our new consumer brand building campaign, and sales of our new decking products, Trex Brasilia and Trex Contours, were strong,” Cavanna said.
The company saw higher plant labor costs and overhead expenses resulting from quality initiatives, according to Cavanna, who added, “Net income was adversely affected by increasing product replacement and consumer relations costs related to product quality.”
Winchester, Va.-based Trex is one of the country’s largest makers of composite decking, railing and fencing.
Toro recalls leaf blowers
Toro will voluntarily recall about 900,000 electric leaf blowers sold through Home Depot, Lowe’s, Target and Kmart from January 2000 through December 2002.
According to the Consumer Product Safety Commission, the leaf blowers can experience problems with a faulty rotating component that can break, causing shards of plastic to fly out of the blower. No serious injuries have been reported, but the company has received 154 reports of the component breaking and 21 reports of minor cuts and bruises.
The recall involves electric blower model 51586, with serial numbers ranging between 000055100 and 220255609. The products were sold for about $32.
The black impeller fan, which causes the problem, can be seen through the air inlet screen on the bottom of the unit. The blowers feature two decals; one reads “TORO Power Sweep” and another features the model and serial numbers.
Hickory Hardware realigns sales force
Hickory Hardware, designer, manufacturer and marketer of decorative hardware, has announced a “strategic realignment” of the company’s sales force, with the aim of better serving customers and providing simpler product purchasing, shipment and payment.
The company has restructured its sales organization into a network of sales representatives with responsibility for specific accounts and regions.
“In the past, Hickory Hardware customers might have had to go through several sales representatives to get everything they needed from the product line,” explained John Pelka, vp-marketing for Hickory Hardware. “Now they can place a single order with Hickory Hardware, get what they need in one shipment and communicate through a single point of contact.”
Jon Valsvik, Hickory Hardware vp-retail sales, now will head a team of sales executives who will service the largest Hickory Hardware chain store, co-op and independent retail accounts, as well as the company’s four North American sales regions. Reporting to this executive sales team is a group of regional managers who will oversee relationships with the company’s manufacturer’s rep organizations.
As part of the new structure, Dale Enos, Hickory Hardware special projects representative, will manage chain store home channel accounts. Sales director Clair Tripp will serve the western and Midwestern United States accounts, as well as the company’s co-op accounts. Hickory Hardware sales director David Siebert will represent the eastern and southeastern United States and Canadian accounts.