Trex swings to loss in the third quarter
Decking and fencing company Trex swung to a loss in the third quarter, showing $41.2 million of losses compared with earnings of $4.6 million in the same period last year.
Sales fell 18.1 percent to $63.97 million from $78.1 million in the year-ago period.
The company’s financial results were hurt by a $45 million charge related to a product defect in certain decking materials manufactured at the company’s Nevada plant between 2003 and mid-2006.
The company also had a one-time $9.4 million charge for inventory adjustment related to discontinued products.
Trex CEO Andrew Ferrari called the current housing downturn “severe.”
“We are taking the decisive actions necessary to return Trex to improved profitability and positive operating cash flow,” he said. “We are very pleased with the improvement we have made in our manufacturing operations. Our sales and market share have increased in all three categories in which we compete: decking, railing and fencing.”
Trex is one of the country’s largest manufacturers of composite decking, railing and fencing, as well as PVC trim products.
Hunter issues humidifier recall
Hunter Fan, in cooperation with The U.S. Consumer Product Safety Commission, announced a recall of their “Warm Mist Carefree” humidifiers yesterday.
The recall affects 84,000 units that were made in China and sold at Wal-Mart and Lowe’s retail stores, as well as online.
The company received four reports about the water leaks and one report of a fire that caused minor property damage. No injuries have been reported.
Orchard Supply Hardware appoints real estate and legal executives
Orchard Supply Hardware (OSH), the San Jose, Calif.-based home improvement and garden retail chain, appointed Eric Kelly as vp-real estate and store planning, and Roger Smith as chief legal counsel.
“With the additions of Eric Kelly and Roger Smith, I am pleased that we have a solid and complete senior leadership team in place,” OSH president and CEO Rob Lynch said. “Eric and Roger bring deep experience in retail, law and real estate and will play pivotal roles in helping us achieve our company’s goals.”
Kelly comes to OSH from L.A. Fitness, where he had been senior vp-real estate, responsible for strategic planning, site analysis and financial pro forma development. Kelly has also served in senior real estate and construction roles with 24-Hour Fitness, and Beverages and More.
Smith, whose appointment becomes effective Nov. 26, served as associate general counsel at Sears Holdings, providing legal guidance and oversight for OSH and other specialty retail businesses. His legal experience spans commercial and contract law, corporate law and governance, regulatory compliance, distribution, marketing and advertising, acquisitions, and real estate and construction, OSH said.
OSH, which began as a farmers’ co-op in 1931, now has 85 home improvement/garden retail stores throughout California.