Sales down 5.6 percent at Trex in fourth quarter
Winchester, Va.-based Trex, manufacturer and distributor of decking, railing, fencing and trim products, reported a net loss of $40.1 million for the fourth quarter compared with a loss of $13.8 million for the same quarter in 2006. Net sales for the quarter were $30.3 million, down 5.6 percent from $32.1 million from the same quarter in 2006.
For the year, the company reported a net loss of $75.9 million, compared to net income of $2.3 million in 2006. In sales for the full year, the company reported $328.9 million, down 2.3 percent from $336.9 million in 2006.
"We are extremely disappointed with 2007 financial results, which were burdened with charges stemming from poor control over manufacturing operations, quality and fixed asset management,” said president and CEO Ronald Kaplan, who joined the company as chief executive on Jan. 7. The company recently cut salaried work force by approximately 30 people, according to Trex.
“Nevertheless, Trex’s steady sales illustrate our success in improving product quality, the strength of the Trex brand and the expansion of our distribution network,” he added. “We are pleased with the company’s sales performance considering the soft market conditions and overall downturn in the building materials industry.”