4/25/2016 1:41:00 AM
NEWS BRIEFS
Simpson Mfg. Sales Rise in U.S. & EU

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Simpson Manufacturing Co. reported net sales, including fasteners, increased 13% to $199.5 million in the opening quarter of 2016. The company had net income of $16.3 million compared to $10.1 million. Diluted net income per common share was $0.34 compared to $0.20. 

Simpson’s sales increased in both the North America and Europe segments. 

North America net sales increased 16% to $174.4 million due to increased unit sales volumes in the U.S. on improved economic activity, partly offset by a slight decrease in average sales prices. Canada’s net sales were negatively affected by the Canadian dollar weakening against the U.S. dollar. Segment gross profit improved 22% to $83.7 million, primarily as a result of a decrease in factory overhead (on increased production volumes) and a small reduction in material costs, both as a percentage of net sales.

Net sales in Europe increased 4% to $23.7 million, mostly due to increased unit sales volumes, partly offset by a decrease in average sales prices. Europe’s net sales were negatively affected by the European currencies weakening against the U.S. dollar. Segment gross profit declined 2% to $8.6 million as a result of increases in material, labor and shipping costs, all as a percentage of sales, partly offset by decrease in factory costs (on increased production volumes), as a percentage of sales.

Asia/Pacific net sales decreased 59%to $1.4 million, primarily due to the closing of sales offices in China, Thailand and Dubai late in the first quarter of 2015, which accounted for approximately a $2.2 million decrease in consolidated net sales. 

Net sales to dealer distributors, lumber dealers, contractor distributors and home centers increased, primarily due to increased home construction activity. 

Research and development and engineering expense increased 12% to $11.4 million from $10.2 million, primarily due to increases of $0.6 million in cash profit sharing expense on increased profits, $0.2 million in personnel costs and $0.2 million in computer costs, all of which occurred in the North America segment.

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