4/26/2012
NEWS BRIEFS
Mild U.S. Winter Boosts Simpson Mfg. Sales
Simpson Manufacturing Co. Inc. reported net sales, including fasteners, jumped 19.8% to $158.7 million in the first quarter of 2012, while income rose slightly to $7.2 million.
The company said the revenue increase was due in part to a mild winter in the U.S., as well as a contribution from its recent European acquisition.
“Sales increases were above average in all regions of the United States, except California, as compared to the first quarter of 2011.”
Sales to all distribution channels increased, with “above-average” increases in sales to contractor distributors and lumber dealers as compared to first quarter 2011.
“The sales increase was broad-based across most of the Company’s major product lines as compared to the first quarter of 2011,” Simpson stated.
Gross margins increased slightly to 43.7% in the Q1, boosted by lower warehouse and shipping costs as a percentage of sales.
Material and labor costs increased as a percentage of sales but were offset by a lower proportion of fixed overhead costs to total costs, resulting primarily from the increased sales volume.
Steel prices increased in the first quarter due to increased steel market demand.
R&D and engineering expenses increased 53.5% to $9.2 million, driven by an increase in professional fees of $2.4 million and personnel costs of $300,000. ©2012 GlobalFastenerNews.com
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