Trex posts strong earnings for Q2
Trex Company’s second-quarter results showed strong growth in sales and earnings, up 4.5% in sale and up 57% increase in earnings per share.
“Our 2013 strategy of providing a full line-up of high-performance decking and railing products made a strong contribution to our growth in sales," said chairman, president and CEO Ronald W. Kaplan. "These improved results indicate that our product innovation, sales programs and low-cost manufacturing strategies continue to contribute to our goal of increasing shareholder value. At the same time, our strong cash generation is further bolstering our capital structure, giving us an even stronger foundation and more flexibility to grow our business and pursue strategic opportunities."
The results, announced Tuesday for the second quarter ended June 30, highlighted net sales of of $98.6 million, compared to $94.3 million a year ago.
Net income totaled $13.2 million, or $0.76 per diluted share, compared to $8.4 million ($0.48 per share) during 2012’s second quarter.
Kaplan stated that the company expects net sales of $72 million in Q3.
Littlejohn & Co. wraps up Handy Hardware deal
Littlejohn & Co., LLC has wrapped up the acquisition and recapitalization of Handy Hardware Wholesale, which filed for Chapter 11 bankruptcy last January and was sold in April.
Littlejohn, a private investment firm based in Greenwich, Connecticut, has a stake in wholesale distribution as well as hardware.
The Houston-based Handy Hardware was founded 60 years ago as a wholesale hardware distributor to independent retailers. Its nearly 50,000 items reach about 1,000 customers in nine U.S. states, primarily in the South. Its specialities run the gamut from plumbing and electrical to hardware, paint, hand and power tools, lawn and garden care, automotive and office supplies.
Under the deal reached in April, Handy will maintain its brand but will no longer function as a member-owned co-op.
Handy Hardware’s August markt will take place in San Antonio, Texas, Aug. 15-17.
LP swings to profit as sales rise 34%
Nashville, Tenn.-based Louisiana-Pacific Corp. (LP) reported second-quarter sales of $573 million, up 34% compared with the year-ago quarter.
“This was another good quarter for LP as the U.S. housing market continues to recover,” said CEO Curt Stevens. “While OSB prices moderated during the second quarter, this segment showed good earnings. Strong demand in siding and South America also added to our results.”
Net income was $94.1 million, compared with a net loss of $37.3 million in last year’s second quarter.
LP’s siding segment consists of LP SmartSide siding as well as LP’s prefinished CanExel siding line. These products are used in new construction, as well as in the repair and remodeling markets.
LP’s Siding segment — LP SmartSide siding as well as LP’s prefinished CanExel siding line — reported net sales of $153 million in the second quarter of 2013, an increase of 11% from $137 million in the year-ago second quarter. Engineered Wood Products increased from $52 million reported last year, to $61 million in the second quarter of 2013.
“Housing starts appear to have been constrained by weather, labor and financing issues in the second quarter,” said Stevens. “We will continue to be agile in our operations as the weather improves and builders address these issues. The consensus projection for housing starts for this year is a 25% increase over 2012, with starts projected to increase at least another 25% in 2014. We will be ready to respond.”