4/28/2014 12:42:00 AM
NEWS BRIEFS
Simpson Mfg. Reports Solid Sales Growth
Simpson Manufacturing Co., Inc. reported sales, including fasteners, increased 9.1% to $168.3 million for the first quarter of 2014, with North America contributing the largest increase in dollars.
“North America and Europe sales benefited from improved economic activity, while Europe and parts of the United States benefited from a mild winter,” the company stated.
Concrete construction product sales, which have a lower gross profit margin than wood construction product sales, remained flat at 13% of North America sales.
Gross profit grew 20.2% to $77.8 million in Q1. Gross profit as a percentage of net sales increased to 46.2% in Q1 from 41.9% in the first quarter of 2013. Simpson estimates that its full year 2014 gross profit margin will be between 44% and 45%.
In North America, the company’s gross profit margin increased to 49.2% in the first quarter of 2014 from 44.7% in the first quarter of 2013, as a result of decreases in all elements of costs as a percentage of sales, with the largest decreases as a percentage of sales in factory overhead elements on increased volumes and in material. The gross profit margin also benefited from a one-time $2.5 million correction to worker compensation expense in states where the company is not self-insured.
In Europe, gross profit margin increased to 35.3% in the first quarter of 2014 from 30.5% in the first quarter of 2013, as a result of decreases in all elements of costs as a percentage of sales, with the largest decrease as a percentage of sales in factory overhead on increased volumes and in material.
Concrete construction product net sales in Europe rose one percentage point to 13% of Europe net sales in Q1.
R&D expenses increased 16.8% to $9.7 million in Q1. ©2014 GlobalFastenerNews.com
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