Simpson Manufacturing Co. Inc. (SSD, Financial) filed Annual Report for the period ended 2011-12-31.
Simpson Mfg Inc has a market cap of $1.49 billion; its shares were traded at around $30.44 with a P/E ratio of 29.2 and P/S ratio of 2.5. The dividend yield of Simpson Mfg Inc stocks is 1.6%.
We have substantial sales to a few large customers. Loss of all or part of our sales to a large customer would have a material adverse effect on our revenues and profits. Our largest customer accounted for 10%, 11% and 12% of net sales for the years ended December 31, 2011, 2010 and 2009, respectively. See Note 14 to the Companys Consolidated Financial Statements. This customer may endeavor to replace, in some or all markets, our products with lower-priced products supplied by others or may otherwise reduce its purchases of our products. We also might reduce our dependence on our largest customer by reducing or terminating sales to one or more of the customers subsidiaries. Any reduction in, or termination of, our sales to this customer would at least temporarily, and possibly longer, cause a material reduction in our net sales, income from operations and net income. A reduction in or elimination of our sales to our largest customer, or another of our larger customers, would increase our relative dependence on our remaining large customers.
annual impairment test resulted in goodwill impairment charge of $1.3 million associated with assets acquired in England in 1999 as part of our U.K. reporting unit. The carrying value of each of these two reporting units exceeded their respective fair values, primarily due to reduced future expected net cash flows from weakening profit margins. If current adverse conditions in the home-building industry, the financial markets or the economy generally should continue longer than we expect, we may need to take further charges for impairment, which we are not now able to estimate, but which may be substantial.
In 2011, net sales increased 8.6% to $603.4 million as compared to net sales of $555.5 million in 2010. Sales in the North American segment increased 6.8% from $444.6 million in 2010 to $474.7 million in 2011, which accounted for 62.8% of the total Companys overall increase. The North American segment accounted for 78.7% of the Companys total sales in 2011, a decrease from 80.0% in 2010. The increase in net sales in North America resulted from increases in both sales volume and increased prices as average prices increased 5.2%. In 2011, sales increased throughout most of North America. The growth in the United States was strongest in the south/southeastern region. Sales to contractor and dealer distributors and lumber dealers increased. Sales in the European segment increased 16.7% from $101.3 million in 2010 to $118.2 million in 2011, which was 35.3% of the Companys overall increase. The European segment accounted for 19.6% of the Companys total sales in 2011, a slight increase from 18.2% in 2010. The increase in net sales in Europe resulted from an increase in sales volume as average prices were flat. Sales in Asia and Australia, although relatively small, have increased as the Company has recently expanded its presence in the region. The increase in Admin and All Other is due a full year of lease revenues on the building in Vacaville, California. Sales increased across most of the Companys major product lines.
In 2010, net sales increased 5.5% to $555.5 million as compared to net sales of $526.5 million in 2009. Sales in the North American segment increased 4.0% from $427.4 million in 2009 to $444.6 million in 2010, which was 59.4% of the total Companys overall increase. The North American segment accounted for 80.0% of the Companys total sales in 2010, a slight decrease from 81.2% in 2009. The increase in net sales in North America resulted from an increase in sales volume as average prices were flat. In 2010, sales increased throughout most of North America. The growth in the United States was strongest in the midwestern and northeastern regions, while sales in California and the western region declined slightly as compared to 2009. Sales in Canada increased significantly. Sales to dealer distributors and lumber dealers increased, while sales to contractor distributors and home centers decreased over the same period. Sales in the European segment increased 8.2% from $93.6 million in 2009 to $101.3 million in 2010, which was 26.6% of the Companys overall increase. The European segment accounted for 18.2% of the Companys total sales in 2010, a slight increase from 17.8% in 2009. The increase in net sales in Europe resulted from an increase in sales volume as average prices were flat. Sales in Asia and Australia, although relatively small, have increased as the Company has recently expanded its presence in the region. Sales increased across most of the Companys major product lines.
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Simpson Mfg Inc has a market cap of $1.49 billion; its shares were traded at around $30.44 with a P/E ratio of 29.2 and P/S ratio of 2.5. The dividend yield of Simpson Mfg Inc stocks is 1.6%.
Highlight of Business Operations:
SST commits substantial resources to new product development. The majority of SSTs products have been developed through its internal research and development program. SSTs research and development expense for the three years ended December 31, 2011, 2010 and 2009, was $6.1 million, $6.5 million, and $5.9 million, respectively. SST is the only known United States manufacturer with the capability to test multi-story wall systems, thus enabling testing rather than calculations alone to prove system performance. SST engineering, sales, product management, and marketing teams work together with architects, engineers, building inspectors, code officials and customers in the new product development process.We have substantial sales to a few large customers. Loss of all or part of our sales to a large customer would have a material adverse effect on our revenues and profits. Our largest customer accounted for 10%, 11% and 12% of net sales for the years ended December 31, 2011, 2010 and 2009, respectively. See Note 14 to the Companys Consolidated Financial Statements. This customer may endeavor to replace, in some or all markets, our products with lower-priced products supplied by others or may otherwise reduce its purchases of our products. We also might reduce our dependence on our largest customer by reducing or terminating sales to one or more of the customers subsidiaries. Any reduction in, or termination of, our sales to this customer would at least temporarily, and possibly longer, cause a material reduction in our net sales, income from operations and net income. A reduction in or elimination of our sales to our largest customer, or another of our larger customers, would increase our relative dependence on our remaining large customers.
annual impairment test resulted in goodwill impairment charge of $1.3 million associated with assets acquired in England in 1999 as part of our U.K. reporting unit. The carrying value of each of these two reporting units exceeded their respective fair values, primarily due to reduced future expected net cash flows from weakening profit margins. If current adverse conditions in the home-building industry, the financial markets or the economy generally should continue longer than we expect, we may need to take further charges for impairment, which we are not now able to estimate, but which may be substantial.
In 2011, net sales increased 8.6% to $603.4 million as compared to net sales of $555.5 million in 2010. Sales in the North American segment increased 6.8% from $444.6 million in 2010 to $474.7 million in 2011, which accounted for 62.8% of the total Companys overall increase. The North American segment accounted for 78.7% of the Companys total sales in 2011, a decrease from 80.0% in 2010. The increase in net sales in North America resulted from increases in both sales volume and increased prices as average prices increased 5.2%. In 2011, sales increased throughout most of North America. The growth in the United States was strongest in the south/southeastern region. Sales to contractor and dealer distributors and lumber dealers increased. Sales in the European segment increased 16.7% from $101.3 million in 2010 to $118.2 million in 2011, which was 35.3% of the Companys overall increase. The European segment accounted for 19.6% of the Companys total sales in 2011, a slight increase from 18.2% in 2010. The increase in net sales in Europe resulted from an increase in sales volume as average prices were flat. Sales in Asia and Australia, although relatively small, have increased as the Company has recently expanded its presence in the region. The increase in Admin and All Other is due a full year of lease revenues on the building in Vacaville, California. Sales increased across most of the Companys major product lines.
In 2010, net sales increased 5.5% to $555.5 million as compared to net sales of $526.5 million in 2009. Sales in the North American segment increased 4.0% from $427.4 million in 2009 to $444.6 million in 2010, which was 59.4% of the total Companys overall increase. The North American segment accounted for 80.0% of the Companys total sales in 2010, a slight decrease from 81.2% in 2009. The increase in net sales in North America resulted from an increase in sales volume as average prices were flat. In 2010, sales increased throughout most of North America. The growth in the United States was strongest in the midwestern and northeastern regions, while sales in California and the western region declined slightly as compared to 2009. Sales in Canada increased significantly. Sales to dealer distributors and lumber dealers increased, while sales to contractor distributors and home centers decreased over the same period. Sales in the European segment increased 8.2% from $93.6 million in 2009 to $101.3 million in 2010, which was 26.6% of the Companys overall increase. The European segment accounted for 18.2% of the Companys total sales in 2010, a slight increase from 17.8% in 2009. The increase in net sales in Europe resulted from an increase in sales volume as average prices were flat. Sales in Asia and Australia, although relatively small, have increased as the Company has recently expanded its presence in the region. Sales increased across most of the Companys major product lines.
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