Simpson Manufacturing Sales Slow to Incremental Growth in 2Q - Modern Distribution Management

Log In

Simpson Manufacturing Sales Slow to Incremental Growth in 2Q

Structural connector and building solution manufacturer Simpson recorded consolidated net sales of $597.6 million, an increase of 0.7% YoY.
Simpson Manufacturing Co., Inc. Logo (PRNewsfoto/Simpson Manufacturing Co., Inc.)

Structural connector and building solution manufacturer Simpson Manufacturing recorded consolidated net sales of $597.6 million, an increase of 0.7% from $593.2 in the same quarter last year, but down significantly from first-quarter’s 8.3% growth. 

High sales volumes — most notably in the building technology and national retail end markets —  lead to North American net sales of $465.5 million, an increase of 10.8% year-over-year, Pleasanton, California-based Simpson noted in its 2023 2Q financial result statement published July 24. This growth follows low North American volumes in the first quarter, which led to decreased sales in that market.

Gross profit in 2Q was $287.5 million, an increase of 10.8% year-over-year. Gross margin increased from 48.1% to 43.7%, lead by an increase in the North American gross margin to 51.2%. This increase was attributed primarily to lower raw material costs and offset by higher factory and tooling costs.

Income from operations increased 9% year-over-year to $145 million, and diluted earnings per share increased 15.7% to $2.50.

2023 Outlook & Operation Expansion Plans

Based on demand trends, raw material costs and operating expenses, the company updated its 2023 financial outlook. Operating margin is now estimated to be in the range of 20.5% to 21.5%, and capital expenditures are estimated to be in the range of $105.0 million to $115.0 million.

“While 2023 housing starts will finish below 2022 levels, the market continues to improve relative to our earlier outlook, in part due to the high share of new single-family homes as a percentage of all single-family sales,” said Simpson President and CEO Mike Olosky. “We continue to believe in the sustainable strength of the housing market in the mid to long-term given the shortage of new housing.”

Olosky said key attributes of the company’s business model, including a diverse portfolio, long-standing relationships, innovation, and other efforts, will help stem some of the short-term downward pressure.

The company said it has identified a greenfield opportunity to replace a facility in Gallatin, Tennessee, to expand its manufacturing capacity and supply chain efficiencies in an effort to enhance its customer service.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.