Simpson Mfg. reported sales, including fasteners, increased 9.1% to $309.9 million on stronger sales volumes during the third quarter of 2019.

Sales in North America rose 10.7% to $265.5 million due to “increased sales volume and higher average product prices.” Sales in Europe improved 0.5% to $42.2 million.

Q3 gross profit gained 2.8% to $137.6 million, while gross margin decreased to 44.4% from 47.1% “primarily due to increases in material costs, factory and overhead costs (on lower production) and labor costs, each as a percentage of net sales” in North America. 

Consolidated operating margin decreased to 19.7% from 21%, while net income dropped 1.6% to $43.7 million during the quarter.

During the first nine months of 2019, consolidated net sales increased 4.4% to $874 million. Sales in North America rose 5.7% to $746 million “primarily due to increased average product prices, partly offset by lower sales volumes.” Nine-month sales in Europe fell 2% to $121.6 million, hurt by some European currencies weakening against the U.S. dollar.

Nine-month gross profit was flat at $382.1 million, while gross margin decreased to 43.7% from 45.7%. Operating margin decreased to 16.5% from 18.4% during the period.

Nine-month net income declined 7% to $105.9 million. Web: SimpsonMfg.com