Trex Company, Inc. reported financial results for the 2Q ended June 30, 2019. Consolidated net sales for the 2Q 2019 of $206 million were in-line with the comparable period in 2018, as the company said in the press release received by Lesprom Network.
Net income for the 2Q 2019 was $36 million, or $0.61 per diluted share. Exclusive of a severance charge of $2 million, 2Q diluted earnings per share was $0.64. This compares to net income of $43 million, or $0.73 per diluted share, reported for last year’s 2Q.
“We continued to experience strong demand across our residential product portfolio and sales channels in the second quarter. Significant sequential improvement in production throughput increased our ability to convert this demand into sales growth, and we continue to work towards reducing order lead-times. Start-up costs related to new Enhance Naturals and Basics decking products weighed on our gross margin performance, but to a much lesser extent than in this year’s 1Q. These startup costs, excluding the cost of added material to improve throughput, are largely behind us. During the quarter, we increased marketing and brand spending in line with seasonality and to support our wood conversion strategy,” noted James E. Cline, President and CEO.
Net sales for the first half of 2019 were $386 million, 2% above the $378 million reported for the comparable period in 2018. Net income was $67 million, or $1.14 per diluted share, for the first half of 2019, compared to net income of $80 million, or $1.35 per diluted share, for the first half of 2018.
Trex Company is the world’s largest manufacturer of high performance wood-alternative decking and railing.
