Composite deck maker Trex announced net sales for the second quarter of 2011 of $78.4 million, compared with net sales of $115.5 million for the 2010 second quarter. Net income for the quarter, which ended June 30, 2011, was $2.1 million, compared with $4.8 million a year ago. The Winchester, Va., company reported $13.3 million of non-cash charges during the 2010 period, which included a $9.0 million increase to its warranty reserve, a $1.9 million charge related to supply contracts and a $2.4 million charge related to its joint venture for recycling waste polyethylene in Spain. Without these one-time charges, net income for the second quarter of 2010 was $18.0 million.
In a prepared statement, chairman, president and CEO Ronald Kaplan said: "As previously announced, second-quarter sales were less than expected due to poor weather in much of the country and, to a lesser extent, the challenging macroeconomic environment. The severe winter storms that impacted many parts of the U.S. through April were followed by heavier-than-normal precipitation during most of May, delaying the start of the deck-building season and negatively affecting the sell-through of our products.”
Kaplan added that Trex is focusing on dealer conversions in an effort to take more market share, as well as expanding its product portfolio to include products such as porch flooring and Trex trim and molding.