Trex swings to Q1 2011 net income of US$5M compared with net loss of US$5.5M a year ago, announces plans to buy Denver-based competitor Iron Deck and expand into low-maintenance deck sector
May 2, 2011
– Deck manufacturer Trex Company Inc. returned to a profitable first quarter and announced Monday that it will buy a Denver-based competitor.
Trex, based in northern Virginia, is buying Iron Deck Corp. in a bid to expand into the low-maintenance deck sector. Iron Deck makes steel frames for decks.
Trex's net income was a big change from a year ago, when it lost $5.5 million as it spent money to kick off new products. The company also benefited from trimming costs and "a favorable resolution of uncertain tax positions," but didn't give details.
Trex posted net income of net income of $5 million, or 30 cents per share. Excluding the tax benefit, the company earned 15 cents per share, trouncing the 6 cents that analysts had predicted, according to a poll by the research firm FactSet.
Revenue rose 4 percent to $69 million, which was slightly lower than the $70.5 million that analysts had expected.
© 2021 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.