Simpson Manufacturing profits slip

4/30/2019
Simpson Manufacturing, the parent company of Simpson Strong-Tie, reported first quarter 2019 net sales of $259.2 million – nearly a 6% increase from sales of $244.8 million for the same period last year.

The Pleasanton, Calif.-based structural connectors and fasteners manufacturer posted a net income of $22.7 million for the period, falling nearly 11% from a net income of $25.4 million in the first quarter 2018.

The sales increase was primarily driven by higher average selling prices, according to Simpson President and CEO Karen Colonias.

“On a year-over-year basis, sales volume for our concrete products was up nicely due to the roll–out of our mechanical anchor products into The Home Depot stores,” Colonias said.

But sales volume for Simpson’s connector products was down year–over–year due to poor weather impacting housing permits and starts.

“Looking ahead to the second quarter, we expect demand to improve with the month of April already off to a strong start on better weather conditions,” Colonias said.

In the meantime, the company is “cautiously optimistic” U.S. housing starts will gain momentum and enable healthier demand levels, she added.
X
This ad will auto-close in 10 seconds