Trex sees net income gains
Trex, maker of decking, railing, fencing and trim products, saw second-quarter net income more than double to $7.9 million from $2.6 million in the same period last year. Net sales fell 20 percent to $95 million from $118.8 million in the year-ago period.
The Winchester, Va.-based company credited expanded distribution capabilities for the gains, as well as success with new products, such as Escapes decking and Seclusions fencing products.
“We also continued to improve our productivity and reduce costs,” said president and CEO Ronald Kaplan. “In addition, we continued to manage liquidity well.”
Kaplan further outlined company predictions for further sales growth in the rest of the year, including an increase in sales by 12 percent to 21 percent in the third quarter.
Net income drops 28 percent at Simpson
Simpson Manufacturing, maker of Simpson Strong-Tie and Simpson Dura-Vent products, saw net income drop 28 percent in the second quarter to $20.38 million from $28.3 million in the year-ago period. Sales were down 5 percent to $219.33 million from $231.3 million last year.
In the second quarter of 2008, sales declined throughout the United States, with the exception of the northeastern and midwestern regions of the country. California and the western states had the largest decrease in sales, the company said in a statement.
Those declines were in part offset by strong sales in Canada and mainland Europe, which “increased significantly.” Sales declined in the United Kingdom.
In the company’s Strong-Tie division, sales fell 4.9 percent, while Dura-Vent sales fell 10.2 percent. The company noted that while sales of its Dura-Vent’s pellet vent and chimney products increased, sales of gas vent and Direct-Vent product lines decreased.
Simpson Manufacturing is based in Pleasanton, Calif.
Builders FirstSource posts $46 million loss
Builders FirstSource reported a net loss of $45.9 million for the second quarter, which ended on June 30, 2008, swinging from net income of $8.4 million for the second quarter of 2007. The Dallas-based pro dealer posted $307.3 million in sales for its second quarter, a 34 percent decline from $465.1 million during the same period last year.
For the first six months of 2008, Builders FirstSource reported sales of $577.7 million, versus $876.2 million last year. The company lost $61.7 million during the first two quarters of the year. Last year, Builders FirstSource posted a profit of $8.6 million for the same period.
Commenting on the financial results, CEO Floyd Sherman said that housing starts in his company’s markets — primarily the eastern and southeastern United States — fell 43.1 percent in the second quarter of 2008 compared to the previous year. Builders FirstSource was able to offset the declines, he said, by gaining an estimated 8.2 percent of market share.
The company’s liquidity is “strong at over $210 million,” according to CFO Charles Horn.
In a prepared statement, the company said it “expects the difficult market conditions to negatively affect operating results throughout the remainder of 2008 and 2009.”