Simpson Manufacturing sees profits surge in Q2
Simpson Manufacturing, the parent company of fasteners and building solutions provider Simpson Strong-Tie, reported second quarter consolidated net sales increased 7% to $326.1 million as compared to second quarter 2019 consolidated net sales of $304.9 million.
Sales in North America net sales of $286.8 million increased 10.7% to $286.8 million for the quarter from $259.1 million in the same period a year ago. The Pleasanton, Calif.-based company said the rise was primarily due to higher sales volumes from “the return of a home center customer.”
Last April, Lowe’s revealed plans to offer the widest selection of Simpson Strong-Tie hardware products in the marketplace.
Net sales in Europe decreased 14.4% to $37.4 million from sales of $43.6 million, primarily due to lower sales volumes related to COVID-19 plant closures, the company said.
Simpson Manufacturing reported a net income of $53.5 million for the second quarter, a 35% increase from a net income of $39.6 million for the corresponding period last year.
The Bottom Line: Second quarter sales rise 7% to $326.1 million as profits surge 35% to $53.5 million.
What the CEO said: “Our sales volume improved primarily due to the addition of Lowe’s, a returning home center customer, which resulted in considerably higher demand associated with the initial product rollout into stores,” said Karen Colonias, president and CEO of Simpson Manufacturing.
“We also experienced improved sales in the repair and remodel market as a result of a shift in consumer behavior toward home renovations which we believe stemmed from the COVID-19 pandemic and ongoing shelter-in-place orders,” Colonias noted.
Company info: Simpson Manufacturing’s full second quarter 2020 financial report is available here.