Simpson Manufacturing reported sales, including fasteners, increased 10% to $219.9 million in the opening quarter of 2017. Recent acquisitions, including the $10.2 million purchase of Sweden-based Gunnebo Fastening Systems AB, accounted for $12.6 million of the increase in net sales.

Wood construction product net sales, including fasteners, represented 87% of Simpson’s total net sales in Q1. Concrete construction product net sales, including sales of adhesives, chemicals, mechanical anchors, powder actuated tools and reinforcing fiber materials, represented 13% sales.

Sales in North America increased 5%, mostly due to increased average net sales unit prices in the U.S. as well as an increase in sales volumes. Canada’s net sales increased, primarily due to increased sales volumes on flat average net sales unit prices.

Q1 sales in Europe grew 45%, most due to acquisitions.

Q1 gross profit rose 8.3% to $100.2 million, with a margin of 46%. Recent acquisitions had an average gross profit margin of 30%.

Net income jumped 42% to $23.1 million.

During the quarter, R&D expenses increased 15% to $13.1 million, primarily due to an increase of $1.3 million in personnel costs, primarily related to the recent North America acquisition as well as the addition of staff and pay rate increases instituted on January 1, 2017. Web: strongtie.com