Earnings drop 65.3 percent at Trex
Trex, the decking, railing and fencing manufacturer, said net earnings for the second quarter were $2.6 million, down 65.3 percent from $7.5 million a year earlier.
Sales were $118.8 million, down 2.3 percent from sales of $121.6 million in last year's second quarter.
Chairman and CEO Anthony Cavanna said the company's sales have managed to hold up well in a difficult market, in spite of weakness in the home-building sector and declining lumber prices.
"In the second quarter, we successfully launched our new consumer brand building campaign, and sales of our new decking products, Trex Brasilia and Trex Contours, were strong," Cavanna said.
The company saw higher plant labor costs and overhead expenses resulting from quality initiatives, according to Cavanna, who added, "Net income was adversely affected by increasing product replacement and consumer relations costs related to product quality."
Winchester, Va.-based Trex is one of the country's largest makers of composite decking, railing and fencing.