Simpson Manufacturing grows sales in Q3
Simpson Manufacturing reported third quarter 2019 net sales of $309.9 million, up 9.1% from third quarter 2018 sales of $284.2 million.
The parent company of Simpson Strong-Tie also reported a third quarter consolidated income from operations of $61 million, up 2.2% from $59.7 million for the same period a year ago. The Pleasanton, Calif.-based company said the decrease in income from operations was primarily due to increased general and administrative expenses and research and development and engineering costs, including $4.9 million in higher consulting and legal fees.
Additionally, Simpson posted a third quarter consolidated net income of $43.7 million, a 1.6% drop from a consolidated net income of $44.4 million for the corresponding quarter last year.
North America net sales of $265.5 million increased by 10.7% from $239.9 million, primarily due to increased sales volume and higher average product prices. Canada's net sales were negatively affected by foreign currency translation. Europe net sales of $42.2 million increased 0.5% from $42.0 million despite approximately $2.3 million of negative foreign currency translations resulting from some Europe currencies weakening against the United States dollar.
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The bottom line: Sales were boosted by higher volume but profits are nearly flat for the fastener, structural connectors and building solutions provider.
What the CEO said: "Our 2019 third quarter net sales of $309.9 million were up 9% year-over-year primarily due to higher sales volume throughout almost all areas of our company and despite the strike at our Stockton facility during the month of September," said Karen Colonias, president and CEO of Simpson Manufacturing Co. "U.S. housing starts, which are a leading indicator for approximately 60% of our business, grew by approximately 4.1% versus the comparable period last year. Notably, in the south where we provide a meaningful amount of content into homes, starts grew 8.3% year-over-year. We also experienced an increase in volumes over the second quarter of 2019 due primarily to unusually wet and cold weather conditions across the U.S. in the first half of 2019."
Company info: The full third quarter 2019 report from Simpson Manufacturing can be read here.
The parent company of Simpson Strong-Tie also reported a third quarter consolidated income from operations of $61 million, up 2.2% from $59.7 million for the same period a year ago. The Pleasanton, Calif.-based company said the decrease in income from operations was primarily due to increased general and administrative expenses and research and development and engineering costs, including $4.9 million in higher consulting and legal fees.
Additionally, Simpson posted a third quarter consolidated net income of $43.7 million, a 1.6% drop from a consolidated net income of $44.4 million for the corresponding quarter last year.North America net sales of $265.5 million increased by 10.7% from $239.9 million, primarily due to increased sales volume and higher average product prices. Canada's net sales were negatively affected by foreign currency translation. Europe net sales of $42.2 million increased 0.5% from $42.0 million despite approximately $2.3 million of negative foreign currency translations resulting from some Europe currencies weakening against the United States dollar.
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The bottom line: Sales were boosted by higher volume but profits are nearly flat for the fastener, structural connectors and building solutions provider.
What the CEO said: "Our 2019 third quarter net sales of $309.9 million were up 9% year-over-year primarily due to higher sales volume throughout almost all areas of our company and despite the strike at our Stockton facility during the month of September," said Karen Colonias, president and CEO of Simpson Manufacturing Co. "U.S. housing starts, which are a leading indicator for approximately 60% of our business, grew by approximately 4.1% versus the comparable period last year. Notably, in the south where we provide a meaningful amount of content into homes, starts grew 8.3% year-over-year. We also experienced an increase in volumes over the second quarter of 2019 due primarily to unusually wet and cold weather conditions across the U.S. in the first half of 2019."Company info: The full third quarter 2019 report from Simpson Manufacturing can be read here.