5/16/2011 9:14:00 PM
HEADLINES
SIMPSON MFG.

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Simpson Strong-Tie sales, including fasteners and anchor systems, increased 3.9% to $119.6 million during the fourth quarter of 2010. 
 

Losses from operations increased 82.8% from $1.0 million in the fourth quarter of 2009 to $1.9 million in the fourth quarter of 2010, primarily due to increased operating expenses, including increased stock options expense of $1.7 million associated with stock options expected to be granted in 2011 and a goodwill impairment charge of $6.3 million, partly offset by increased gross profit. 
 

Q4 sales were mixed throughout North America and increased slightly in Europe. Sales increased in the U.S. with above average increases in the midwestern, southeastern and northeastern regions as compared to the fourth quarter of 2009, partly offset by decreases in the western region and California. 
 

Sales in Canada decreased, while sales grew in France and the United Kingdom, partly offset by a decrease in Germany. 
 

For 2010 net sales increased 5.5% to $555.5 million. Income from operations soared 149% to $78.4 million in 2010, primarily due to increased gross profit, partly offset by increased operating expenses, including the goodwill impairment charge taken in the fourth quarter and increased stock option expense of $1.6 million. 
 

Simpson recorded a loss from discontinued operations, net of tax, of $16.2 million for 2010.
 

In 2010 sales increased throughout most of North America and Europe. The growth in the U.S. was strongest in the midwestern and northeastern regions, while sales in California and the western region declined slightly as compared to 2009. 
 

Sales in Canada increased significantly.
 

Gross margins increased to 44% in 2010, primarily due to lower manufacturing costs, including lower costs of material, labor and overhead, and increased absorption of fixed overhead, as a result of higher production volumes.
 

Simpson Strong-Tie designs and manufactures wood-to-wood, wood-to-concrete and wood-to-masonry connectors and fastening systems and pre-fabricated shearwalls. 
 

Corporate Office: 5956 W. Las Positas Blvd., Pleasanton, CA 94588. Tel: 925 560-9000 Web: simpsonmfg.com

CEO: Thomas Fitzmyers

Key fastener executive: Phillip “Terry” Kingsfather, president and COO of Simpson Strong-Tie

Employees: 2,504