Simpson Mfg. reported sales, including fasteners, increased 7% to $326.1 million in the second quarter of 2020.

Q2 sales in North America rose 10.7% to $286.8 million due to higher volumes from the return of Lowe’s as a customer.

“We also experienced improved sales in the repair and remodel market as a result of a shift in consumer behavior toward home renovations which we believe stemmed from the COVID-19 pandemic and ongoing shelter-in-place orders,” stated CEO Karen Colonias.

Sales in Europe fell 14.4% to $37.4 million, primarily due to lower sales volumes related to COVID-19 plant closures, while sales in Asia dipped 9.3% to $3.8 million.

Consolidated gross profit increased 11.6% to $149.8 million during the quarter, with margin rising to 45.9%.  Margins in North America rose to 47.4% on lower material costs, partly offset by higher labor, warehouse and shipping costs.  Gross margins in Europe slipped to 35.1% amid lower production volume.

Consolidated operating income increased 34.6% to $72.2 million, boosted by lower operating expenses.  Net income improved 35% to $53.5 million, while Q2 capital expenditures declined 7.8% to $14.1 million.

Six-month sales gained 8% to $609.7 million, with operating income up 45% to $121.6 million and net up growing 45% to $90.3 million.  Web: SimpsonMfg.com