Simpson Manufacturing profits jump in Q2
Simpson Manufacturing, the parent company of Simpson Strong-Tie, reported second quarter 2023 net sales moved forward by 0.7% to $597.6 million from net sales of $593.2 million in the second quarter of 2022.
The company released its latest financial report following the close of today's market.
Sales in North America increased 2% for the quarter to $465.5 million from $456.4 million in the prior second quarter. The Pleasanton, California-based building materials, fasteners, structural connectors, and solutions provider attributed the increase to higher volumes.
Conversely, lower volumes in Europe resulted in a 4.1% decrease as sales fell to $127.8 million for the period in comparison to $133.2 million in the corresponding period a year ago.
Simpson Manufacturing also posted a net income of $107.2 million for the quarter, rising nearly 15% from a net income of $93.6 million in the second quarter last year.
Consolidated income from operations of $145 million increased 9.0% from $133.1 million. Income from operations in North America rose 4.4% to $143.4 million.
Simpson Manufacturing also posted a net income of $107.2 million for the quarter, rising nearly 15% from a net income of $93.6 million in the second quarter last year.
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The Bottom Line: Higher volume leads to a slight increase in sales and a 14.5% increase in net income.
What the CEO said: “We delivered a solid performance in a difficult operating environment with our second quarter net sales of $597.6 million increasing 0.7% year-over-year led by improved volumes in our North America segment, most notably in the building technology and national retail end-use markets," Mike Olosky, president and CEO of Simpson Manufacturing, said in a prepared statement. "While 2023 housing starts will finish below 2022 levels, the market continues to improve relative to our earlier outlook, in part due to the high share of new single-family homes as a percentage of all single-family sales. We continue to believe in the sustainable strength of the housing market in the mid to long-term given the shortage of new housing.”
Olosky also noted that Simpson Manufacturing has growth on its agenda. The CEO said the company is making investments to strengthen its business model and expand operations.
“To that end, we have identified a greenfield opportunity to replace our facility in Gallatin, Tennessee to expand our manufacturing capacity and supply chain efficiencies to enhance our customer service,” Olosky said.
Company info: Click here to read the full second quarter 2023 financial report from Simpson Manufacturing.
