Trex jumps 22% after tripling Q2 earnings
Decking and fencing manufacturer Trex Company Inc. (NYSE:TWP) said ahead of today’s opening that its second-quarter earnings had more than tripled from the previous year. The earnings sent shares up more than 22% today. Net income for the quarter ended June 30 was $7.9 million, or $0.52 per share, compared with $2.6 million, or $0.17 per share, for the same period a year ago. Net sales were $95 million, compared to $118.8 million for the year-ago quarter.
“We continued to improve our productivity and reduce costs. These improvements helped boost our gross margin by 500 basis points over last year’s same period. In addition, we continued to manage liquidity well, ending the 2008 second quarter with a net cash balance of $17.7 million,” said Ronald W. Kaplan, president and CEO, in a statement.
Shares of the Winchester, Va.-based company are at $14.09 at 10:17 a.m. ET, up $2.59 from Tuesday’s close. The stock has ranged from $5.34 to $20.25 during the past year.
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