2/4/2011 1:08:00 AM
NEWS BRIEFS
Simpson Strong Tie Sales Rise
Simpson Strong-Tie materials demonstration laboratory at Cal Poly
Simpson Strong-Tie sales, including fasteners and anchor systems, increased 3.9% to $119.6 million during the fourth quarter of 2010.
Losses from operations increased 82.8% from $1.0 million in the fourth quarter of 2009 to $1.9 million in the fourth quarter of 2010, primarily due to increased operating expenses, including increased stock options expense of $1.7 million associated with stock options expected to be granted in 2011 and a goodwill impairment charge of $6.3 million, partly offset by increased gross profit.
Q4 sales were mixed throughout North America and increased slightly in Europe. Sales increased in the U.S. with above average increases in the midwestern, southeastern and northeastern regions as compared to the fourth quarter of 2009, partly offset by decreases in the western region and California.
Sales in Canada decreased compared to the fourth quarter of 2009.
The sales increase in Europe comprised increases in France and the United Kingdom, partly offset by a decrease in Germany. S
Gross margins increased to 39.8% in the fourth quarter of 2010, primarily due to lower manufacturing costs, including lower costs of material, labor and overhead. Steel prices increased from their levels in mid-2010, as steel mills have been raising prices as demand returns to global steel markets.
For 2010 net sales increased 5.5% to $555.5 million. Income from operations soared 149% to $78.4 million in 2010, primarily due to increased gross profit, partly offset by increased operating expenses, including the goodwill impairment charge taken in the fourth quarter and increased stock option expense of $1.6 million.
Simpson recorded a loss from discontinued operations, net of tax, of $16.2 million for 2010, primarily as a result of a pre-tax impairment charge of $21.4 million recorded in the second quarter.
In 2010 sales increased throughout most of North America and Europe. The growth in the U.S. was strongest in the midwestern and northeastern regions, while sales in California and the western region declined slightly as compared to 2009.
Sales in Canada increased significantly.
Gross margins increased to 44% in 2010, primarily due to lower manufacturing costs, including lower costs of material, labor and overhead, and increased absorption of fixed overhead, as a result of higher production volumes.
Research and development and engineering expense increased 12.6% to $21.1 million in 2010.
Pleasanton, CA-based Simpson Strong-Tie designs and manufactures wood-to-wood, wood-to-concrete and wood-to-masonry connectors and fastening systems and pre-fabricated shearwalls. ©2011 GlobalFastenerNews.com
Related Links:
Share: