Inventory Drawdowns Squeeze Trex Sales

Trex Company, Inc. had consolidated sales of $188 million for the third quarter of 2022, a decrease from consolidated net sales of $336 million in the third quarter of 2021. Residential net sales were $178 million compared to $319 million in the prior-year period, due to a decline in volume. Consolidated gross profit as a percentage of net sales was 24.5 per cent in the third quarter compared to 38.2 per cent in the year-ago quarter. This decrease is primarily due to reduced production at Trex residential resulting from inventory drawdowns by distribution. Net income for the quarter was $14 million, down from $74 million in the year-ago period and earnings before taxes were $31 million with a margin of 16.4 per cent.