Trex Company reports strong sales performance coupled with low earnings

Winchester, VA— Trex Company, Inc., manufacturer of Trex® decking and railing, announced its financial results for the third quarter ended September 30, 2005.

Net sales for the third quarter of 2005 totaled $77.4 million, compared to $64.4 million for the third quarter of 2004.

The Company reported net income for the 2005 third quarter of $5.2 million, or $0.35 per diluted share, compared to net income of $7.1 million, or $0.48 per diluted share, for the 2004 third quarter.

Chairman and chief executive officer Anthony J. Cavanna said, “Sales in the third quarter of 2005 rose 20% over the same period in 2004, driven by strong acceptance of our premium decking products, Trex Accents® and Trex Brasilia™.

This strong sales performance also indicates that the high trade inventory levels we experienced earlier this year are behind us. Our earnings, however, continue to be negatively affected by increases in the price of plastic raw materials and unabsorbed fixed manufacturing costs.”