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Jun 30, 2023
Simpson Q2 2023 Earnings Report
Simpson's financial performance improved in Q2 2023, driven by increased sales and improved gross margins.
Key Takeaways
Simpson Manufacturing Co. reported a 0.7% increase in net sales to $597.6 million in Q2 2023. Income from operations increased by 9.0% to $145.0 million, and diluted earnings per share rose by 15.7% to $2.50. The company's performance was driven by improved volumes in North America and a focus on innovation and growth initiatives.
Consolidated net sales increased by 0.7% year-over-year, reaching $597.6 million.
North America net sales increased by 2.0%, driven by higher volumes.
Consolidated gross profit increased by 10.8% to $287.5 million, with gross margin rising to 48.1%.
Net income increased to $107.2 million, or $2.50 per diluted share, compared to $93.6 million, or $2.16 per diluted share in the previous year.
Simpson
Simpson
Simpson Revenue by Segment
Simpson Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
The Company has updated its 2023 financial outlook based on two quarters of financial information to reflect its latest expectations regarding demand trends, raw material costs and operating expenses.
Positive Outlook
- Operating margin is now estimated to be in the range of 20.5% to 21.5%.
- The effective tax rate is estimated to be in the range of 25% to 26%, including both federal and state income tax rates and assuming no tax law changes are enacted.
- Capital expenditures are estimated to be in the range of $105.0 million to $115.0 million.
- The Company continues to make progress on its efforts to integrate ETANCO into its operations
- Management continues to believe the Company remains well positioned to capture meaningful benefits from these synergies
Challenges Ahead
- The market continues to improve relative to our earlier outlook
- 2023 housing starts will finish below 2022 levels
- Europe net sales were down 4.1% year-over-year on lower volumes
- These efforts will continue to result in additional costs in 2023 that have been planned since the Company announced the transaction.
- macroeconomic changes, which are expected to delay realization of some of the offensive synergy opportunities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income