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.