Simpson Manufacturing Q1 profits soar
Simpson Manufacturing, the structural connectors manufacturer and building solutions provider, reported first quarter 2020 sales of $283.7 million – rising 9.4% from first quarter 2019 sales of $259.2 million.
The Pleasanton, Calif.-based company also posted a first quarter net income of $36.8 million, rising 62% from a net income of $22.7 million for the same period last year. Simpson’s operating profit increased by more than 64% to $49.4 million year-over-year.
North America net sales of $249.1 million for the quarter increased 12.5% from $221.4 million in the corresponding quarter last year, primarily due to higher sales volume. Net sales of $32.7 million in Europe decreased 8.5% from $35.8 million due to lower sales volumes, the company reported.
During the quarter the COVID-19 pandemic forced facilities in the United Kingdom and France to cease nearly all operations with employees being furloughed. Simpson said it has full intentions to bring the employees back to work “when the timing is right.”
Simpson, the parent company of Simpson Strong-Tie, also repurchased $62.7 million of the company's common stock during the quarter.
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The Bottom Line: Profits at Simpson Manufacturing soar 62% to $36.8 million.
What the CEO said: "We delivered a solid first quarter both operationally and financially with sales of $283.7 million improving 9.4% year-over-year on higher sales volume in North America," said Karen Colonias, president and CEO of Simpson Manufacturing.
Regarding the COVID-19 crisis, Colonias said, “While government authorities in the countries and states where we operate have issued various and differing shelter in place and other similar governmental orders, in many of those locations our products and services are classified as an essential business and all of our North America manufacturing and distribution facilities continue to operate in accordance with those orders.”
Company info: The full first quarter 2020 report from Simpson Manufacturing is available here.
The Pleasanton, Calif.-based company also posted a first quarter net income of $36.8 million, rising 62% from a net income of $22.7 million for the same period last year. Simpson’s operating profit increased by more than 64% to $49.4 million year-over-year.
North America net sales of $249.1 million for the quarter increased 12.5% from $221.4 million in the corresponding quarter last year, primarily due to higher sales volume. Net sales of $32.7 million in Europe decreased 8.5% from $35.8 million due to lower sales volumes, the company reported.During the quarter the COVID-19 pandemic forced facilities in the United Kingdom and France to cease nearly all operations with employees being furloughed. Simpson said it has full intentions to bring the employees back to work “when the timing is right.”
Simpson, the parent company of Simpson Strong-Tie, also repurchased $62.7 million of the company's common stock during the quarter.
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The Bottom Line: Profits at Simpson Manufacturing soar 62% to $36.8 million.
What the CEO said: "We delivered a solid first quarter both operationally and financially with sales of $283.7 million improving 9.4% year-over-year on higher sales volume in North America," said Karen Colonias, president and CEO of Simpson Manufacturing.
Regarding the COVID-19 crisis, Colonias said, “While government authorities in the countries and states where we operate have issued various and differing shelter in place and other similar governmental orders, in many of those locations our products and services are classified as an essential business and all of our North America manufacturing and distribution facilities continue to operate in accordance with those orders.”
Company info: The full first quarter 2020 report from Simpson Manufacturing is available here.