Simpson Manufacturing Q1 sales soar

Simpson Manufacturing, the parent company of Simpson Strong-Tie, reported first quarter net sales increased 22.6% to $347.6 million from first quarter 2020 sales of $283.7 million.

North America net sales of $300.6 million increased 20.7% from $249.1 million due to higher sales volumes to the home center distribution channel, primarily due to the return of Lowe's in the second quarter of 2020 and increased repair and remodel activity, as well as from other distribution channels, which experienced an increase in new housing starts and repair and remodel activity. 

Sales in Europe jumped 35.3% to $32.7 million due to higher sales volume.

Simpson also posted a net income of $50.4 million for the first quarter, rising 37% from a net income of $36.8 million in the prior first quarter.

Simpson Manufacturing produces structural connectors and fasteners along building solutions. The company is based in Pleasanton, Calif.

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The Bottom Line: Higher volume and last year’s return to Lowe’s helps raise sales by 22.6% to $347.6 million as earnings soar 37% to $50.4 million.

What the CEO said: “Our net sales grew 22.6% year-over-year to $347.6 million on significantly higher sales volume driven by ongoing momentum in the home center distribution channel where sales increased over 60% year-over-year due to higher activity in the repair and remodel space along with the return of Lowe's as a home center customer in the second quarter of 2020,” said Karen Colonias, president and CEO of Simpson Manufacturing. “Our sales further benefited from solid U.S. housing starts and strong demand trends in Europe as we continued to meet our customers' needs due to our solid inventory management practices amid broader supply chain shortages.”

Company info: The full first quarter report from Simpson Manufacturing can be accessed here.