Trex Expanding Mid-Atlantic Footprint - Analyst Blog

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Trex Co. Inc. ( TREX ) has announced its expansion in the Mid-Atlantic region. The extension is through the inclusion of Babcock Lumber Company in the company's distribution network to provide the optimum level of service to the dealers.

Pittsburgh-based Babcock Lumber Company is a leading manufacturer of quality wood products. The company has a wide range of product offerings and is the sole supplier to the lumber, building materials, and kitchen and bath industries. In addition, it is renowned for its commitment to customers.

With the addition of Babcock Lumber to Trex's distribution network, the Mid-Atlantic traders will get Trex products that require low maintenance. The expansion is in sync with Trex's commitment to international expansion.

Babcock Lumber's experienced staff, high-quality, robust inventory and timely delivery will also add value to Trex's performance. Babcock will supply dealers across western and central Pennsylvania, western New York and West Virginia.

Trex, which belongs to the building and construction industry along with Armstrong World Industries, Inc. ( AWI ), expects sales of $72 million for the third quarter of 2013, indicating a year over year increase of 2%. SG&A spending is expected to be down more than $1 million from the prior-year quarter.

Trex's strategy to go beyond the WPC market and offer products that compete in the PVC and aluminum railing segments is showing early signs of success. The company now offers an unparalleled portfolio of 1,200 different decking and railing combinations. The company has also initiated a stock repurchase program.

Moreover, Trex will be benefited by its strong financial condition and better rapport with distributors, dealers and contractors.

Winchester, VA-based Trex manufactures and distributes wood/plastic composite products and related accessories, primarily for residential and commercial decking and railing applications in the U.S. The stock currently retains a Zacks Rank #3 (Hold).

Other stocks in the same industry with favorable Zacks rank include CaesarStone Sdot-Yam Ltd. ( CSTE ) with a Zacks Rank #1 (Strong Buy) and Masco Corp. ( MAS ) with a Zacks Rank #2 (Buy).



ARMSTRONG WORLD (AWI): Free Stock Analysis Report

CAESAR STONE SD (CSTE): Free Stock Analysis Report

MASCO (MAS): Free Stock Analysis Report

TREX COMPANY (TREX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AWI , CSTE , MAS , TREX

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