Sales, profits fade at Trex
Composite decking giant Trex reported first quarter 2023 sales declined 29.5% to $239 million from sales of $339 million in the first quarter last year.
The Winchester, Virginia-based manufacturer’s first quarter results do not include revenue from Trex Commerical. The division was sold to Sightline Commerical Solutions, LLC for $8.25 million in January.
Residential sales at Trex were $327 million in the first quarter of 2022.
Trex attributed the decline in revenue to a decrease in volume due to “softening economic conditions.”
Net income for the quarter was $41 million, dropping 42% compared to net income of $71 million for the same period a year ago.
The company said expects a second quarter comeback with sales projected to reach $310 million to $320 million.
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The Bottom Line: Trex profits fall 42% to $41 million as sales decline nearly 30% in the first quarter.
What the CEO said: “First quarter results were broadly consistent with our plan as channel inventory levels and market demand aligned with our expectations,” said Bryan Fairbanks, Trex president and CEO.
“Year-to-date market demand has been consistent with our expectations and aligned with the repair and remodel sector, which historically has been more resilient than other sectors,” Fairbanks added.
Company Info: The full first quarter 2023 financial report from Trex is available here.
