Simpson Manufacturing Co., Inc. (SSD) has repurchased 342,300 shares for an average price of $28.70 per share since late May, spending roughly $9.8 million. It was a part of the $50 million share repurchase program authorized by its Board in Feb 2013.
Though the company is not planning to repurchase additional shares in the near future, the authorization will remain open for rest of the year.
Simpson, which belongs to the building and construction industry along with Owens Corning (OC), PGT, Inc. (PGTI) and Aegion Corporation (AEGN), posted first-quarter 2013 earnings of 10 cents per share, down 33% year over year. It fell short of the Zacks Consensus Estimate of 21 cents as well.
Simpson’s net sales edged down 2.6% year over year to $155 million, missing the Zacks Consensus Estimate of $169 million. The decline was primarily attributable to reduced home center sales, lower selling prices and severe weather condition.
Simpson had cash and short-term investments of $142 million as of Mar 31, 2013, compared with $160 million as of Mar 31, 2012. The company had no debt on its balance sheet at the end of the quarter.
Simpson is expects to benefit from its ongoing investments in strategic initiatives, which include an expanded offering of concrete and reinforcing products and systems, particularly specialty chemicals and software offerings.
Pleasanton, CA-based Simpson is a leading manufacturer of wood construction products which includes connectors, truss plates, fastening systems, fasteners and shearwalls. The company through its subsidiary, Simpson Strong-Tie Company Inc., designs and engineers concrete construction products comprising adhesives, specialty chemicals, mechanical anchors and powder actuated tools.
Simpson currently has a Zacks Rank #5 (Strong Sell).
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