Trex Company's 4Q 2019 consolidated net sales were $165 million, 18% ahead of the comparable period in 2018. Net income for the 4Q 2019 was $35 million, or $0.61 per diluted share, representing increases of 41% and 42%, respectively, from net income of $25 million, or $0.43 per diluted share, reported for last year’s 4Q.
“4Q results were in line with our expectations for strong double-digit sales growth and sequential gross margin expansion. Our brand leadership and strong demand for our product line-up resulted in positive comparisons with the similar period in 2018 when sales benefitted from a very strong early buy season. Sequentially, our consolidated gross margin expanded 80 basis points, and Trex Residential gross margin improved by 120 basis points, resulting in operating leverage that was further enhanced by reduced SG&A spend. This enabled us to convert 18% sales growth into a 42% increase in per share earnings,” noted James E. Cline, President and CEO.
Net sales in 2019 were $745 million, 9% above the $684 million reported in 2018.
FY 2019 net income totaled $145 million, or $2.47 per diluted share, compared to net income of $135 million, or $2.28 per diluted share, for 2018. During the year, the company repurchased 500,000 shares of its outstanding common stock at an average price of $77 per share.
Trex Company is the world’s largest manufacturer of high performance wood-alternative decking and railing with more than 25 years of product experience.
