Feb 02, 2017, 17:00 ET
PLEASANTON, Calif., Feb. 2, 2017 /PRNewswire/ — Simpson Manufacturing Co., Inc. (the “Company”) (NYSE: SSD) today announced its fourth quarter 2016 results.
Results of Operations for the Three Months Ended December 31, 2016, Compared with the Three Months Ended December 31, 2015
Unless otherwise stated, the results announced below, when providing comparisons (which are generally indicated by words such as “increased,” “decreased,” “remained” or “compared to”), compare the results of operations for the three months ended December 31, 2016, against the results of operations for the three months ended December 31, 2015.
To avoid fractional percentages, all percentages presented below were rounded to the nearest whole number except for the estimate for the full-year 2017 gross profit margin below.
Overview
Net sales increased 8% to $200.2 million from $184.8 million. The Company had net income of $17.4 million compared to $14.7 million. Diluted net income per common share was $0.36 compared to $0.30.
Net sales
The Company’s net sales increased in all segments.
Segment net sales:
North America – Net sales increased 9% mostly due to increased unit sales volumes in the United States on improved economic activity as well as an increase in average net sales unit prices. Canada’s net sales were not significantly affected by foreign currency translation.
Europe – Net sales increased 1% mostly due to increased unit sales volumes as average net sales unit prices were relatively flat. Europe’s net sales were negatively affected by approximately $1.1 million in foreign currency translations, primarily due to the weakening of the British pound against the United States dollar.
Consolidated net sales channels and product groups:
Net sales to dealer distributors, contractor distributors and lumber dealers increased, primarily due to increased home construction activity, while net sales to home centers decreased.
Wood construction product net sales, including sales of connectors, truss plates, fastening systems, fasteners and shearwalls, represented 85% and 84% of the Company’s total net sales in the fourth quarters of 2016 and 2015, respectively.
Concrete construction product sales, including sales of adhesives, chemicals, mechanical anchors, powder actuated tools and reinforcing fiber materials, represented 15% and 16% of the Company’s net sales in the fourth quarters of 2016 and 2015, respectively.
Gross profitGross profit increased to $95.0 million from $82.8 million. Gross profit as a percentage of net sales increased to 47% from 45%.
North America – Gross profit margin increased to 49% from 47%, primarily due to a decrease in material costs and an increase in average net sales unit price, partly offset by increases in factory overhead, primarily due to expenses related to the build out of the West Chicago facility, and labor, each as a percentage of sales.
Europe – Gross profit margin increased to 37% from 34%, as a result of decreases in material costs and shipping costs, partly offset by an increase in labor costs, each as a percentage of net sales.
Product group – The gross profit margins, including some inter-segment expenses, that are eliminated in consolidation, and excluding other expenses that are not allocated according to product group, increased to 48% from 45% for wood construction products and increased to 32% from 29% for concrete construction products.
Steel prices – The Company currently anticipates that, subject to changing economic conditions, it is possible that steel prices will rise during the first quarter of 2017.
Based on current information and subject to future events and circumstances, the Company estimates that its full-year 2017 gross profit margin will be between approximately 46.5% and 47.5%.Research and development and engineering expense (…)
via Simpson Manufacturing Co., Inc. Announces Fourth Quarter Results.