10/26/2012 10:20:00 AM
NEWS BRIEFS
Simpson Mfg. Profit Slips Despite Sales Gain
Simpson Mfg. reported sales increased 6% to $172.1 million in the third quarter of 2012, primarily through acquisitions and volume. Net income declined 33% to $13 million.
Q3 sales increased in North America, with an above-average increase in the U.S., due in part to recent acquisitions.
Sales in Europe were flat, primarily due to sales from the recent European acquisition offset by decreases throughout the rest of the Company’s European operations. Effects due to foreign currency translation were not significant.
Sales to contractor distributors and lumber dealers increased in the third quarter of 2012, compared to the third quarter of 2011, while sales to dealer distributors and to home centers decreased over the same period.
Wood construction product sales, including connectors, truss plates, fastening systems, fasteners and shearwalls, represented 85% of total company sales, down from 89% in the third quarter of 2011. Concrete construction product sales, including adhesives, chemicals, mechanical anchors, powder actuated tools and reinforcing fiber materials, as a percentage of total sales increased to 15% in the third quarter of 2012, from 11% in the third quarter of 2011.
In September the company revealed plans to close its heavy-duty anchor production facility in Ireland. The closure may be completed as early as December 2012.
Sales in the first nine months of 2012 increased 8.4% to $512.5 million, with net income dropping 21.7% to $36 million.
Nine-month sales in North America increased, with an above-average increase in the U.S., primarily due to increases in volume and recent acquisitions. Sales in the first nine months of 2012 in Europe increased slightly due to the recent European acquisition, partly offset by decreases throughout the rest of the Simpson’s European operations. ©2012 GlobalFastenerNews.com
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