Trex Profit Triples
From Bloomberg News
*Trex shares gained the most since the company's 1999 initial public offering after it said second-quarter earnings tripled and forecasting third-quarter sales above analysts' estimates. Trex climbed $2.40, or 21 percent, to $13.90 as of 11:40 a.m.
The Winchester-based company's said profit was $7.9 million (52 cents a share), up from $2.59 million (17 cents) in the comparable period a year earlier. The largest U.S. maker of composite decking and fencing materials said revenue fell 20 percent, to $95 million.
Trex fired 30 employees in February to reduce costs as the U.S. housing slump hurt demand. The company projects third- quarter sales of at least $90 million. The average of seven analyst estimates compiled by Bloomberg was for revenue of $72.1 million.
"Our third quarter orders are currently robust, making us cautiously optimistic about revenue despite the underlying macroeconomic conditions," CEO Ronald Kaplan said in a statement.
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