Simpson sales and profits move ahead in Q3
Simpson Manufacturing, the parent company of Simpson Strong-Tie fasteners and building solutions, reported third quarter consolidated net sales increased 8.9% to $396.7 million from $364.3 million in the previous third quarter.
North America net sales of $338.6 million increased 6.8% from $316.9 million due primarily to product price increases that took effect in April, June, and August of 2021 in an effort to offset rising material costs, and were partially offset by lower sales volumes, primarily in the home center channel.
Sales in Europe increased 22.5% to $54.8 million from $44.8 million, primarily due to higher sales volumes, and were positively affected by approximately $0.9 million in foreign currency translation related to Europe's currencies strengthening against the United States dollar.
Simpson also posted a net income of $73.8 million, up 9.9%, compared to a net income of $67.1 million for the same period a year ago.
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The Bottom Line: Simpson Manufacturing sales move ahead nearly 9% to about $397 million while profits increase nearly 10% $73.8 million.
What the CEO said: “During the third quarter, we experienced lighter sales volumes in North America in the distribution channels we serve,” said Karen Colonias, president and CEO of Simpson Manufacturing.
“We believe our customers are adopting a more cautious stance in regard to their inventory levels given tightening labor and supply chain conditions and the potential impact on the building industry. Sales volumes also reflected an as expected decline year-over-year in our home center channel related to the load-in of our products at Lowe's during the third quarter of 2020 following their return as a home center customer. We expect volume levels in the home center channel to begin normalizing in the fourth quarter as demand increases and we lap the elevated volumes from our Lowe's product load-ins."
Company info: Click here to read the full third quarter financial report from Simpson Manufacturing.