TREX is one of the nations largest manufacturer of Fence and Deck material and has seen its stock price fall from $27.70 back in February to the current price of $8.00 on Nov 9, 2007. Trex had already lowered 2007 earnings estimates citing a significant effect from the construction slowdown. But the Fence Wizard is focused on the announcement of the massive $45million charge to create a reserve for defective product replacement. If you install or own a TREX product - please comment and let us know what is going on with this company and how you have been affected. Is Trex paying for labor to replace defective products?
© 2007 The Associated Press
WINCHESTER, Va. — Trex Co. Inc., which makes decking, railing and fencing products, said Tuesday it swung to a loss in its third quarter due mainly to a large reserve for replacing defective decking material manufactured at one of its plants.
For the quarter ended Sept. 30, the company reported a loss of $41.2 million, or $2.77 per share, compared to a profit of $4.6 million, or 31 cents per share, in the prior year quarter.
Analysts polled by Thomson Financial expected a profit of 11 cents per share. Trex said its profit was hurt by a $45 million increase to a product defect reserve for the replacement of decking material manufactured at its Nevada plant between 2003 and 2006 and a $9.4 million inventory adjustment. Revenue fell 18 percent to $64 million from $78.1 million in the third quarter of 2006. Analysts predicted revenue of $75.9 million.
Trex Warranty Infomation
Trex Press Release addresses Defect Issue
1 comment:
How doe you know if your Trex product is part of that problem? Is the code on the trex boards the telltale, and if so , what is the codes? Trex will not tell me.
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