Simpson touts 14% sales increase in Q2
Simpson Manufacturing Co. raked in a 14.4% net sales gain in the second quarter, which was largely thanks to the impact of acquisitions.
Net sales came in at $263.0 million, up 14.4% year-over-year. Roughly 45% of that increase was due to the impact of recently acquired businesses.
Consolidated gross profit of $123.5 million increased 11%, and net income was $28.2 million, up from $26.2 million last year.
"Our second quarter financial results, while fundamentally strong, reflect the various investments we have been making in our business, including the development of our truss software offering, growing our market share in Europe with the associated recent acquisitions and working to deepen our foothold in the concrete repair and protection space," commented Karen Colonias, President and Chief Executive Officer of Simpson Manufacturing Co., Inc.
"Beyond these initiatives, with an industry-leading position in the U.S. connector market, the wood construction products are core to our operations and we remain dedicated to continuing to grow our offering in the single and multi-family residential and commercial space."
"We continue to have a strong financial position which affords us the flexibility and capability to continue investing in our long-term strategy to increase shareholder value and to return capital to our valued shareholders," she concluded. "Despite maintaining an industry-leading gross profit margin and operating income margin, the investments we have been making in our strategic initiatives have yet to fully materialize and reflect the operating leverage and earnings power that Simpson Manufacturing strives to achieve. Over the coming quarters, we plan to provide additional metrics and targets to help our investors to better measure our success and progress on these initiatives."
Simpson's outlook is predicated on its uncertainty that the market price of steel will remain stable during the third quarter. Having said that, the company reiterated its outlook for gross profit margin in the range of 45% to 46% for the full year ending December 31, 2017.