PLEASANTON, Calif. - Simpson Manufacturing Co., Inc. (NYSE: NYSE:SSD), a key player in the structural connectors and building solutions sector, has announced the appointment of Matt Dunn as Chief Financial Officer and Treasurer, effective January 1, 2025. Dunn, who has been serving as the company's Senior Vice President of Finance since June 2024, will succeed Brian Magstadt. Magstadt will continue to serve as CFO until the end of 2024 and will then act as an Executive Advisor to facilitate the transition until his retirement on June 30, 2025.
Dunn's responsibilities as CFO will include overseeing Simpson's financial operations, strategic planning, and risk management. He will also manage capital requests and allocations, budgeting processes, cash balances and forecasts, and investment strategies. His role extends to leading the finance, audit, and tax teams and evaluating potential mergers and acquisitions in line with the company's growth objectives.
Bringing over 23 years of financial management experience, Dunn has previously held leadership roles at various high-profile brands. Before joining Simpson, he served as Senior Vice President of Finance for North America at Helen of Troy, overseeing financial performance for the company's largest region. Dunn's background also includes a stint leading the retaining wall division at Inventure Group and 12 years in finance at Procter & Gamble, following three years in operations finance at Kimberly-Clark (NYSE:KMB). He is a graduate of Cedarville University, holding Bachelor of Arts degrees in Finance and Accounting.
Mike Olosky, President and CEO of Simpson, expressed confidence in Dunn's capabilities, citing his impressive track record and contributions to the company. Olosky also thanked Magstadt for his 20 years of service. Dunn himself acknowledged the company's strong business model and brand recognition, stating his commitment to furthering Simpson's mission and success for stakeholders.
Simpson Manufacturing, based in Pleasanton, California, is recognized for designing and manufacturing a variety of construction products. The company's offerings include wood and concrete construction products, which are supplied to residential and commercial markets in North America and Europe. Its common stock is traded on the New York Stock Exchange.
This news is based on a press release statement from Simpson Manufacturing Co., Inc.
In other recent news, Simpson Manufacturing reported a slight increase in net sales to $587.2 million in Q3 2024, despite challenges in the U.S. and European housing markets. The company also announced the upcoming retirement of CFO Brian Magstadt and highlighted the potential impact of recent acquisitions and facility investments on future growth. However, the company saw a decrease in gross margin and operating income. DA Davidson, while maintaining a Neutral rating, noted a downward revision of the operating margin outlook but acknowledged the company's strong competitive position.
Simpson Manufacturing's North American sales slightly increased to $461.4 million, and European sales rose by 1.8%. The company is also investing in new facilities in Ohio and Tennessee. Despite a forecasted decline in U.S. housing starts in 2023, the company remains optimistic about a modest growth of around 3% to 4% in 2025. European growth is expected to be flat to slightly positive, with significant growth not anticipated until 2026. These are among the recent developments for Simpson Manufacturing.
InvestingPro Insights
As Simpson Manufacturing Co., Inc. (NYSE: SSD) prepares for this significant leadership transition, it's worth examining some key financial metrics and insights from InvestingPro that shed light on the company's current position.
According to InvestingPro data, Simpson Manufacturing boasts a market capitalization of $7.82 billion, reflecting its substantial presence in the structural connectors and building solutions sector. The company's price-to-earnings (P/E) ratio stands at 24.26, indicating that investors are willing to pay a premium for its earnings, possibly due to its strong market position and growth prospects.
One of the InvestingPro Tips highlights that Simpson Manufacturing has maintained dividend payments for 21 consecutive years, demonstrating a commitment to shareholder returns that aligns with the company's long-term stability. This track record of consistent dividends could be reassuring for investors as the company undergoes this leadership change in its finance department.
Another relevant InvestingPro Tip notes that the company operates with a moderate level of debt. This prudent financial management could provide Matt Dunn, the incoming CFO, with flexibility in strategic decision-making and capital allocation as he takes on his new role.
It's also worth noting that Simpson Manufacturing has shown strong profitability, with a gross profit margin of 45.96% for the last twelve months as of Q3 2024. This robust margin could give the new CFO a solid foundation to work with as he aims to further the company's financial success.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 10 more InvestingPro Tips available for Simpson Manufacturing, which could provide valuable context for understanding the company's financial health and future prospects as it enters this new chapter of leadership.
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