Simpson Manufacturing sales rise in Q4
Simpson Manufacturing, the parent company of Simpson Strong-Tie, reported fourth quarter 2022 consolidated net sales increased 13.6% to $475.6 from sales of $418.6 million in the fourth quarter 2021.
North American net sales of $368.1 million decreased 1.4% from $373.2 million, primarily due to lower sales volumes, partly offset by prior year product price increases. North America net sales were negatively impacted by $1.3 million in foreign currency translation, the Pleasanton, California-based company reported.
Consolidated sales for the full year jumped 34.5% to $2.12 billion from sales of $1.57 billion in 2021. The company attributed the growth to roduct price increases and the acquisition of ETANCO, which contributed $212.6 million in net sales.
Simpson Manufacturing’s net income for the fourth quarter decreased more than 17% to $57.6 from a net income of $69.8 million for the same period a year ago.
But the manufacturer and building solution provider’s net income for the year jumped more than 25% to $334 million from $266.4 million in 2021.
###
The Bottom Line: While sales move ahead nearly 14% in the fourth quarter, profits fade better than 17% to $57.6 million for the period.
What the CEO said: "2022 marked a year of strong financial and operational performance for Simpson despite a challenging operating environment," said Mike Olosky, president and CEO of Simpson Manufacturing Co., Inc. "Our 2022 net sales reflect the impact of product price increases implemented throughout 2021 to offset rising material costs as well as a $212.6 million contribution from the ETANCO acquisition. Our performance further demonstrates strong operational execution as we continued to integrate ETANCO and advance our key growth initiatives forward. Those initiatives enabled us to grow our North America volumes above U.S. housing starts for the year."
"Looking ahead, we are confident in the trajectory of our business despite the softer market forecasts for U.S. housing starts. We continue to believe Simpson remains well positioned for success given our ongoing focus on expansion of our growth initiatives into new markets, including commercial, OEM, national retail and building technology, the majority of which are not directly tied to U.S. housing starts.” Olosky added.
Company info: Click here to read the full fourth quarter 2022 financial report from Simpson Manufacturing.