Simpson Manufacturing sales rise in Q4
Simpson Manufacturing, the parent company of Simpson Strong-Tie, reported fourth quarter sales 2023 increased 5.5% to $501.7 million from sales of $475.6 million in the fourth quarter 2022.
North American net sales of $387.8 million increased 5.3% from $368.1 million, primarily due to higher sales volumes, partly offset by price decreases, the company reported.
For the full year, consolidated net sales at Simpson increased 4.6% to $2.2 billion from sales of $2.1 billion for the full year 2022.
Consolidated income from operations of $71.6 million decreased 9.1% compared to $78.7 million. The decrease was primarily due to higher operating expenses, including increased personnel costs resulting from more employees supporting production, engineering and sales activities; elevated professional fees; and variable compensation, which was partly offset by higher gross profits, Simpson said.
Earnings decreased for the fourth quarter as Simpson reported a net income was $54.8 million compared to net income of $57.6 million for the same period a year ago.
The Pleasanton, California-based manufacturer’s net income for the full year was $354, moving ahead from a net income of $334 million in the prior fiscal year.
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The Bottom Line: As profits slip in the fourth quarter, Simpson Manufacturing sees its net income rise 6% for the year.
What the CEO said: "We achieved above market growth and strong profitability in 2023 with $2.2 billion in annual net sales, a 21.5% operating income margin and $8.26 of earnings per diluted share," said Mike Olosky, president and Chief Executive Officer of Simpson Manufacturing. "Our topline performance was driven by continued share gains across all of our end markets and product lines.
"While 2023 U.S. housing starts finished below 2022 levels, we still believe this is an attractive market given the estimated shortage of approximately 2 million homes in the U.S. coupled with the modestly improved outlook for 2024,” Olosky added. “We continue to see a lot of variability on a month-to-month basis and continue to believe the market for the first half of the year will be more challenging than the market for the second half of the year."
Company info: Click here to read the full fourth quarter 2023 and year-end financial report from Simpson Manufacturing.
