Trex announced today that senior vice president and chief financial officer James E. Cline will become the company's president and chief executive officer on Aug. 17, succeeding Ronald W. Kaplan, who is retiring from active duties but will remain board chairman. Also today, Trex reported its net income jumped 44% in the first quarter from the year-earlier period to total $17.6 million on a 20% rise in net sales to $120.8 million.
Cline has been CFO of Winchester, Va.-based Trex since March 2008. Prior to that, he served for three years as president of Harsco GasServ, a manufacturer of containment and control equipment for the global gas industry. He also was director of finance at the True Temper Hardwar subsidiary of Huffy Corp. Fairbanks joined Trex in 2004 following 10 years at Ford Motor Co.
As for the financial statement, gross profit margin rose to 39.9% from 37.9% in the January-to-March 2014 quarter, while selling, general, and administrative expenses rose 13% to $20.6 million. With sales growth outpacing back-office cost increases, operating income leaped 39% higher to $27.7 million.
“We are pleased to be off to such a strong start in 2015," Kaplan said in a statement. "This solidifies our view that our annual record-setting performance in 2014 was a springboard for our future prospects. We expect Q2 revenue to set a Company record for the quarter at approximately