Tuesday, November 13, 2007

Trex - Defective?

I wouldn't want to be in the composite decking business this year. Costs have about doubled for raw material, trucking is higher and the Canadian manufacturers have seen their currency jump about 40% in the last year. They are calling our dollar a commodity indicator because it just doesn't make sense.

We are going to take a look at the Trex warranty soon, I just want to try to keep the majority of posts positive--so sorry, there is less space for composite info at the moment. I'd love to see some positive info about composites, but there seems to be a shortage of late.

What I know about Trex is that they tell us that Mold is not covered by their warranty because it is environmental in source. What I know for certain is that pulp lumber (like what is ground up into trex), gets slimy and mold covered when left for a few weeks in a pile outside your back door. Just a coinkidink.

Here's the headline--

Nov. 6, 2007, 7:48AM

3Q Loss for Deck and Fence Maker Trex

© 2007 The Associated Press

WINCHESTER, Va. — Trex Co. Inc., which makes decking, railing and fencing products, said Tuesday it swung to a loss in its third quarter due mainly to a large reserve for replacing defective decking material manufactured at one of its plants.

...Trex said its profit was hurt by a $45 million increase to a product defect reserve for the replacement of decking material manufactured at its Nevada plant between 2003 and 2006 and a $9.4 million inventory adjustment...

To read the whole story please click this link http://www.chron.com/disp/story.mpl/ap/fn/5277086.html

Now, what was wrong with the materials leaving that plant if they don't see mold as a problem?

Yikes. L

ps. To read more about Composite Decking issues (click)
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