Q2 2018

“We had an excellent second quarter with our net sales up 17% year-over-year to $308.0 million,” commented Karen Colonias,
President and Chief Executive Officer of Simpson Manufacturing Co., Inc. “Positive demand trends, supported by strong North
American housing starts, resulted in high growth in sales volume throughout almost all areas of our company. We do not believe our growth in second quarter sales volume was a result of significant pre-buying activity in advance of the 11.5% average price increase for a majority of our U.S. wood connector products which became effective on July 1, 2018. So far in the third quarter, demand remains strong.”
Mrs. Colonias continued, “During the quarter, we continued to execute against our key operating initiatives, many of which stem from the 2020 Plan we unveiled three quarters ago to provide more clarity into our longer-term strategy andfinancial objectives. I am pleased to reiterate our 2020 financial targets as part of this plan today. In addition, we made important headway in the second quarter with our third-party consultants in regard to identifying improvements to our cost structure and working capital and these
improvements are expected to be realized in the future. We also continued to concentrate on growing our market share and improving our technologies and systems to provide best-in-class service to our customers, an important part of our longstanding, trusted reputation, and what sets the Simpson Strong-Tie brand apart. We remain confident in our ability to execute based on current market conditions and believe our key objectives will provide additional runway to continue returning capital to shareholders.”

http://www.simpsonmfg.com/docs/EARN218.pdf