Simpson Manufacturing profits jump in Q3
Simpson Manufacturing, the parent company of Simpson Strong-Tie, reported that third quarter consolidated net sales increased 17.5% to $364.3 million from sales of $309.9 million in the third quarter last year.
The Pleasanton, Calif.-based company also reported an income from continuing operations of $91.3 million, rising nearly 50% from $61 million in the previous third quarter.
The manufacturer and building solution provider posted a net income of $67.05 million, climbing more than 53% from a net income of $43.7 million for the third quarter 2019.
North America net sales of $316.9 million increased 19.4% from $265.5 million due to higher sales volumes to the home center channel, primarily due to the return of a home center customer (Lowe’s) and increased repair and remodel activity, as well as from other sales distributor channels, which experienced increased new housing starts and repair and remodel activity, the company said.
During the quarter, Simpson Manufacturing paid down $75 million of the $150 million borrowed from its $300 million revolving credit facility.
The Bottom Line: The manufacturer’s income from continuing operations jumps nearly 50% to $91.3 million as sales grow 17.5% in the third quarter.
What the CEO said: "Our sales volume improved primarily due to ongoing momentum in our home center and co-op customers as we have continued to benefit from the shift in consumer behavior toward home renovations as a result of the COVID-19 pandemic,” said Karen Colonias, Simpson Manufacturing president and CEO. “Sales volumes were supported by the return of Lowe's as a home center customer in the second quarter of 2020.”
Colonias also said that Simpson products are expected to be at nearly 1,737 Lowe’s stores by the end of October.
Company info: The full third quarter financial report from Simpson Manufacturing is available here.