Posted July 30, 2010
Simpson Mfg. profit declines
Simpson Manufacturing Co. reported a decline in net profit for the second quarter, hurt mainly by higher expenses, as well as a huge asset impairment charge.
The building products maker had net income of $6.7 million in the second quarter of 2010, or 14 cents per share, compared to $10.7 million, or 22 cents per share, in the second quarter of 2009.
It reported a loss from discontinued operations of $14.4 million compared to a loss of $0.5 million for the second quarter of 2009.
Second-quarter net sales increased 8.8% to $165.6 million compared to $152.2 million for the second quarter of 2009.
As a result of the sale of Simpson Dura-Vent, Simpson recorded a pre-tax impairment charge of $21.4 million in discontinued operations.
During the quarter, sales growth in the United States was strongest in the midwestern and northeastern regions, while sales in both California and the western region declined slightly as compared to the second quarter of 2009. Sales in Asia, although relatively small, have increased as the company has recently expanded its presence in the region. Sales to dealer distributors increased, while sales to contractor distributors were flat and sales to home centers decreased over the same period. Sales increased across most of the company's major product lines.
