Simpson Strong-Tie owner sees sales and profits rise despite currency headwinds

Simpson Manufacturing, including subsidiary Simpson Strong-Tie, saw net sales grow 5.4% year-on-year to $1.14 billion in 2019.

Despite the negative impact of currency exchange, profits were up too, by 2.5% to $492.1 million (2018: $480.3 million). Gross profit as a percentage of net sales decreased to 43.3% from 44.5%.

North America saw sales rise 6.8% to $972.8 million (2018: $910.6 million), thanks largely to sales volumes and average unit prices. Net sales in Canada were down approx $1.2 million due to foreign currency translation - in local currency, Canada net sales were up thanks to sales volume.

Like Canada, Europe net sales were down too - by 2.4% to $155.1 million (2018: $155.1 million), largely due to negative foreign currency translations of some European currencies versus the US dollar. In local currency, Europe net sales increased in sales volume and average unit prices.

Gross profits in North America decreased from 46.3% to 44.8% from 46.3%, primarily due to increased material and labour costs. Likewise, Europe gross profit margin decreased to 34.7% from 35.3%, primarily due to increased factory and overhead, labour and warehouse costs.

Q4 net sales were up for the engineered structural connectors and building solutions company too, by 8.5% to $262.5 million, year-on-year.

Simpson Manufacturing Company entered the connector business in 1956 and through its subsidiary Simpson Strong-Tie designs, engineers and manufactures structural connectors, anchors and other products for new construction and DIY markets.

Back in 2018, Simpson Strong-Tie acquired building software firm LotSpec and in the year previous bought Sweden-headquartered Gunnebo Fastening Systems.

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