Global Fastener News

Simpson Strong-Tie Sales Drop; Buys Ahorn of Germany

Jason Sandefur

Simpson Strong-Tie’s second quarter sales, including fasteners, decreased 4.9%, parent company Simpson Manufacturing Co. reports. Simpson Strong-Tie’s sales to contractor distributors had the largest percentage rate decrease, but sales to dealer distributors and home centers also decreased. Sales decreased across all of Simpson Strong-Tie’s major product lines, particularly those used in new home construction.

Sales of the Swan Secure product line, acquired in July 2007, accounted for approximately 4.5% of Simpson Strong-Tie’s second quarter sales.

In July 2008, Simpson Strong-Tie purchased 100% of the equity of Ahorn-Gerate & Werkzeuge Vertriebs GmbH (Ahorn), a German company, and its subsidiaries in the Czech Republic and China. The $8.5 million acquisition will broaden Simpson Strong-Tie’s collated fastener product line and add production capacity in both Europe and China.

Overall Q2 sales decreased 5.2% to $219.3 million, while net income dropped 28% to $20.4 million.

In the first half of 2008, Simpson Strong-Tie sales decreased 9%. Sales of the Swan Secure product line accounted for 4.8% of Simpson Strong-Tie’s first half sales.

Overall net sales decreased 8.8% to $386.9 million during the first six months of 2008, with net income declining 37% to $28.7 million. Simpson said sales declined throughout the U.S., with the exception of the northeastern region of the country. California and the western states had the largest decrease in sales.

However, sales in Canada and in continental Europe increased significantly, while sales were down in the United Kingdom. Web: simpsonmfg.com �2008 FastenerNews.com