Trex profits soar in Q3
Wood alternative deck maker Trex reported third quarter 2019 consolidated net sales of $195 million, a 17% increase from sales of $166 million for the third quarter 2018.
Trex Residential Products net sales increased 24% to $183 million, or 20% when excluding the impact of the $6 million charge to net sales in last year’s third quarter. Trex Commercial Products contributed $12 million to consolidated third quarter sales, the company reported.
The Winchester, Va.-based company also posted a third quarter net income of $42 million, nearly a 49% increase from a net income of $29 million for the same period last year.
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The bottom line: Residential sales shot up 24% for the third quarter.
What the CEO said: “We continued to experience robust demand for our residential decking products in the third quarter. Growth was led by the appeal of the Trex brand and the value proposition our products represent, strong demand for the new Enhance product line and positive market conditions. We achieved strong double-digit growth despite softer than expected sales in the Trex Commercial Products segment,” said James Cline, Trex president and CEO. “The 170 point sequential expansion in Residential Products gross margin that was achieved in the third quarter reflected improved production performance that has enhanced our ability to deliver product to our customers. The margin improvement was driven by cost savings initiatives and higher capacity utilization that was partially offset by added material costs for the Enhance product line.”
Company info: The full third quarter 2019 report from Trex can be read here.
Trex Residential Products net sales increased 24% to $183 million, or 20% when excluding the impact of the $6 million charge to net sales in last year’s third quarter. Trex Commercial Products contributed $12 million to consolidated third quarter sales, the company reported.
The Winchester, Va.-based company also posted a third quarter net income of $42 million, nearly a 49% increase from a net income of $29 million for the same period last year.
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The bottom line: Residential sales shot up 24% for the third quarter.
What the CEO said: “We continued to experience robust demand for our residential decking products in the third quarter. Growth was led by the appeal of the Trex brand and the value proposition our products represent, strong demand for the new Enhance product line and positive market conditions. We achieved strong double-digit growth despite softer than expected sales in the Trex Commercial Products segment,” said James Cline, Trex president and CEO. “The 170 point sequential expansion in Residential Products gross margin that was achieved in the third quarter reflected improved production performance that has enhanced our ability to deliver product to our customers. The margin improvement was driven by cost savings initiatives and higher capacity utilization that was partially offset by added material costs for the Enhance product line.”
Company info: The full third quarter 2019 report from Trex can be read here.