Simpson Manufacturing Q4 sales growth fueled by acquisitions
Simpson Manufacturing reported fourth quarter 2017 consolidated net sales of $231.7 million, a 16% increase compared to $200.2 million in the fourth quarter 2016.
Recently acquired businesses as a whole accounted for $8.3 million (26%) of the increased net sales, the Pleasanton, Calif.-based building products manufacturer said.
For the full year, Simpson reported consolidated net sales of $977 million, up 14% from consolidated net sales of $860.7 million in 2016. Acquired businesses accounted for nearly $48 million of increased net sales.
The company also reported a net income of $13.1 million for the quarter, nearly a 25% drop from a consolidated net income of $17.4 million in the fourth quarter a year ago.
Simpson reported that recently acquired businesses as a whole recorded a net loss of $3.4 million in the fourth quarter 2017.
Simpson’s consolidated net income for all of 2017 was $92.6 million, a 3% increase from $89.7 million in 2016. Recently acquired businesses contributed a net income of $1.8 million for the year.
Looking ahead, Karen Colonias, president and CEO of Simpson Manufacturing, said, “We feel we are well positioned to achieve an 8% compound annual growth rate in net sales through 2020 supported by anticipated mid-single digit growth in U.S. housing starts, the $30 million opportunity for our mechanical anchor product line in The Home Depot stores, our increased market share and profitability in Europe and our market share gains in both truss and concrete product offerings."
