10/29/2010 2:24:00 PM
Simpson Q3 Sales Up Despite Western U.S. Declines
SimpSon Strong-Tie materials demonstration laboratory at Cal Poly
Simpson Manufacturing Co. Inc. reported third quarter 2010 net sales rose 2.4% from 2009 to $146.4 million this year. Q3 income rose from $12.2m for 2009 to $18.4m this year.
In the first nine months of 2010, sales increased in most of North America and Europe. U.S. sales grew in the midwestern and northeastern regions, while sales in California and the western region declined slightly as compared to the first nine months of 2009. Canadian sales increased significantly. Sales to dealer distributors and lumber dealers increased, while sales to contractor distributors and home centers decreased over the same period.
Income from operations increased over 140% in the first nine months of 2009 to $80.3 million for the same period this year. Gross margins increased from 35.8% in the first nine months of 2009 to 45.1% for 2010.
Simpson attributed the margin increase to lower manufacturing costs, due to lower costs of material, labor and overhead, and increased absorption of fixed overhead, as a result of higher production volumes.
In August, Simpson completed the sale of Simpson Dura-Vent Company Inc. to M&G Holding B.V. and M&G Dura-Vent Inc.
Simpson Strong-Tie sales include fasteners and anchor systems. Sales during 2009 fell 22%, with sales to distributors and home centers contracting due to continued weakness in the U.S. housing market.
In 2007 Simpson Strong-Tie acquired Swan Secure Products, which makes and distributes stainless steel fasteners. Pleasanton, CA-based Simpson Strong-Tie designs and manufactures wood-to-wood, wood-to-concrete and wood-to-masonry connectors and fastening systems and pre-fabricated shearwalls. ©2010 GlobalFastenerNews.com
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