Simpson Manufacturing sales climb 14%

Simpson Manufacturing Co., the parent company of Simpson Strong-Tie, reported consolidated net sales of $262.5 million for third quarter 2017, up 14% compared to sales of $231 million in third quarter 2016.

The Pleasanton, Calif.-based manufacturer, also reported earnings of $28.2 million for the third quarter, down from a third quarter 2016 net income of $29.8 million. Simpson said recently acquired businesses, as a whole, recorded a net loss of $2.0 million in the third quarter of 2017, primarily due to a $2.1 million reduction of the Gbo Fastening Systems AB bargain purchase gain initially recognized in the first quarter of 2017.

On Jan. 3, 2017, through its subsidiary Simpson Strong-Tie Company Inc. and its subsidiaries, Simpson Manufacturing purchased all the equity in Gbo Fastening Systems AB for approximately $10.2 million. As a result of incompatibility with Simpson's market strategy, on Sept. 29, 2017, the company completed the sale of all of the equity in Gbo Fastening Systems' Poland subsidiary ("Gbo Poland") for approximately $10.2 million, resulting in a gain of $0.4 million, the company said.

Looking ahead, Simpson reported that it will look to reduce its total operating expenses as a percent of net sales from 31.8% in fiscal 2016 to a range of 26% to 27% by fiscal 2020 and improve its consolidated income from operations as a percentage of net sales from 16.2% in fiscal 2016 to reach approximately 21% to 22% by fiscal 2020.