Trex Company, Inc. (NYSE: TWP), manufacturer of Trex® decking, railing and fencing, announced financial results for the first quarter ended March 31, 2007. Net sales totaled $115.9 million, up from $105.3 million for Q106. Net income totaled $3.7 million ($0.25 per diluted share), down from $4.1 million ($0.27 per diluted share) for Q106.
Chairman and Chief CEO Anthony Cavanna commented, “Our ‘early buy’ program was successful in the first quarter, and fulfilled our goal of positioning Trex well for the coming decking season. During the quarter, we also began shipping our new Trex Contours(TM) line of decking and Trex Seclusions®, our new privacy fencing system.
“While we are pleased with our shipment volume in the first quarter, our bottom-line results were negatively impacted by lower-than-expected plant productivity and higher-than-expected plant overhead expenses as we continue to emphasize quality and introduce new products. Selling, general and administrative expenses were favorably impacted as a result of a $3.25 million legal settlement. Increased interest expense, driven by higher debt levels reflecting an increase in working capital, also negatively affected our results.
“Despite many positives, we remain cautious about market conditions for 2007 due to uncertain economic conditions related to the overall activity in the homebuilding and remodeling sectors. We have therefore reviewed and adjusted our guidance for 2007. For the full year 2007, we now expect net sales to be in the range of $340 to $360 million and earnings per diluted share to be between $0.65 and $0.75. For the first half of 2007, we expect net sales to be in the range of $220 to $230 million and earnings per diluted share to be between $0.60 and $0.70.”
Trex Company is the nation’s largest manufacturer of composite decking, railing and fencing.
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