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Trex Adjusts Revenue Guidance After Decking-Plant Fire

Trex says it expects 'minimal impact' on its overall business as a result of a fire at a Virginia complex.
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Trex Co.  (TREX) - Get Trex Company, Inc. Report said Monday it expected first-quarter revenue on the lower end of its previous guidance after a recent fire at its Winchester, Va., complex.

Shares of the composite decking and railing company at last check were down 1% at $89.54.

The company said no one was injured during the March 13 blaze at a manufacturing building. Trex said all repairs would be completed this month.

“We anticipate minimal impact on our overall business as a result of this incident," Bryan Fairbanks, president and CEO, said in a statement.

Based on the projected production loss, Fairbanks said, first-quarter revenue will be on the lower end of its February guidance at about $235 million, with lost production volume expected to be recovered during the second quarter.

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Trex had said in February it expected first-quarter sales of $235 million to $245 million.

Analysts surveyed by FactSet are expecting the company to report first-quarter profit of 39 cents a share on sales of $240.8 million.

While repairs are under way, the company said it expects production at its other facilities in Virginia and Nevada to continue as normal. 

The company continues to expansion capacity at the Virginia site. Trex said it also recently improved production capabilities and capacity at its manufacturing site in Nevada, where new lines were installed and started output last year.

This was the second fire at the facility in about a month, the Winchester Star reported. 

On Feb. 9, firefighters extinguished a small fire on the roof of a building at the plant that was caused by an equipment malfunction.