8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 26, 2007

Simpson Manufacturing Co., Inc.

(Exact name of registrant as specified in its charter)

Delaware	0-23804	94-3196943
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	file number)	Identification No.)

5956 W. Las Positas Boulevard, Pleasanton, CA 94588

(Address of principal executive offices)

(Registrant’s telephone number, including area code): (925) 560-9000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-2)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240. 13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On April 26, 2007, Simpson Manufacturing Co., Inc. announced its first quarter 2007 earnings in a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by this reference.

Item 9.01 (d) Financial Statement and Exhibits

Exhibit 99.1 Press release dated April 26, 2007.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		Simpson Manufacturing Co., Inc. (Registrant)
DATE:April 26, 2007	By	/s/ Michael J. Herbert
		Michael J. Herbert
		Chief Financial Officer

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EX-99.1

Exhibit 99.1

SIMPSON MANUFACTURING CO., INC.

ANNOUNCES FIRST QUARTER EARNINGS

Pleasanton, CA - Simpson Manufacturing Co., Inc. (the “Company”) announced today that its first quarter 2007 net sales decreased 10.4% to $193.2 million as compared to net sales of $215.7 million for the first quarter of 2006. Net income decreased 31.3% to $17.3 million for the first quarter of 2007 as compared to net income of $25.2 million for the first quarter of 2006. Diluted net income per common share was $0.35 for the first quarter of 2007 as compared to $0.51 for the first quarter of 2006.

In the first quarter of 2007, sales declined throughout all regions of the United States except for California, which was up slightly. Sales in continental Europe and the United Kingdom increased significantly during the quarter. Simpson Strong-Tie’s first quarter sales decreased 8.3% from the same quarter last year, while Simpson Dura-Vent’s sales decreased 31.2%. Sales to dealer and contractor distributors had the largest percentage rate decreases reflecting slower homebuilding activity while sales to homecenters increased. Sales decreased across all of Simpson Strong-Tie’s major product lines, particularly those used in new home construction, except for the Strong-Wall product line which increased slightly. Sales of all of Simpson Dura-Vent’s product lines decreased as a result of several factors, including the decline in new home construction.

Income from operations decreased 34.0% from $40.3 million in the first quarter of 2006 to $26.6 million in the first quarter of 2007, while gross margins decreased from 39.8% in the first quarter of 2006 to 37.1% in the first quarter of 2007. The decrease in gross margins was primarily due to a higher proportion of fixed overhead costs resulting primarily from the lower sales volume. The steel market continues to be dynamic with a high degree of uncertainty, and steel prices have continued to increase. Since December 31, 2006, total inventories have declined 4.0%. If steel prices increase and the Company is not able to increase its prices sufficiently, the Company’s margins could further deteriorate.

Selling expenses increased 4.0% from $17.5 million in the first quarter of 2006 to $18.2 million in the first quarter of 2007. The increase was driven primarily by a $1.0 million increase in expenses associated with sales and marketing personnel. General and administrative expenses decreased 6.4% from $23.1 million in the first quarter of 2006 to $21.6 million in the first quarter of 2007. The decrease was primarily due to a reduction in cash profit sharing included in administrative expenses totaling $3.2 million, partially offset by an increase in professional services fees and other personnel costs totaling to $0.9 million. The effective tax rate was 38.1% in the first quarter of 2007, down from 38.5% in the first quarter of 2006.

In April 2007, the Company’s Board of Directors declared a cash dividend of $0.10 per share. The record date for the cash dividend is July 6, 2007, and it will be paid on July 26, 2007. In February 2007, the Company completed the purchase of 122,500 shares of its Common Stock for a weighted average price of $34.22 per share. The total cost of the transaction was $4.2 million and was part of the $50 million that the Company’s Board of Directors authorized in February 2007. The number of shares repurchased was the same as the number of shares that were subject to stock options granted in 2007.

Investors, analysts and other interested parties are invited to join the Company’s conference call on Friday, April 27, 2007, at 6:00am Pacific Time. To participate, callers may dial 800-896-8445. The call will be webcast simultaneously as well as being available for one month through a link on the Company’s website at www.simpsonmfg.com.

This document contains forward-looking statements, based on numerous assumptions and subject to risks and uncertainties. Although the Company believes that the forward-looking statements are reasonable, it does not and cannot give any assurance that its beliefs and expectations will prove to be correct. Many factors could significantly affect the Company’s operations and cause the Company’s actual results to differ substantially from the Company’s expectations. Those factors include, but are not limited to: (i) general economic and construction business conditions; (ii) customer acceptance of the Company’s products; (iii) relationships with key customers; (iv) materials and manufacturing costs; (v) the financial condition of customers, competitors and suppliers; (vi) technological developments; (vii) increased competition; (viii) changes in capital market conditions; (ix) governmental and business conditions in countries where the Company’s products are manufactured and sold; (x) changes in trade regulations; (xi) the effect of acquisition activity; (xii) changes in the Company’s plans, strategies, objectives, expectations or intentions; and (xiii) other risks and uncertainties indicated from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. Actual results might differ materially from results suggested by any forward-looking statements in this report. The Company does not have an obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise.

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The Company’s results of operations for the three months ended March 31, 2007 and 2006 (unaudited), are as follows:

	Three Months
	Ended March 31,
(Amounts in thousands, except per share data)	2007			2006
Net sales	$	193,155		$	215,658
Cost of sales		121,533			129,740
Gross profit		71,622			85,918
Research and development and engineering expenses		5,260			5,058
Selling expenses		18,154			17,458
General and administrative expenses		21,638			23,114
Income from operations		26,570			40,288
Loss in equity method investment		(33	)		(143	)
Interest income, net		1,374			887
Income before taxes		27,911			41,032
Provision for income taxes		10,621			15,788
Minority interest		–			91
Net income	$	17,290		$	25,153
Net income per share:
Basic	$	0.36		$	0.52
Diluted		0.35			0.51
Cash dividend declared per common share	$	0.10		$	0.08
Weighted average shares outstanding:
Basic		48,414			48,378
Diluted		48,886			49,134
Other data:
Depreciation and amortization	$	7,077		$	6,495
Pre-tax stock compensation expense		1,677			1,840

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The Company’s financial position as of March 31, 2007 and 2006, and December 31, 2006 (unaudited), is as follows:

	March 31,				December 31,
(Amounts in thousands)	2007		2006		2006
Cash and short-term investments	$	149,310	$	129,575	$	148,299
Trade accounts receivable, net		126,577		125,041		95,991
Inventories		208,797		192,741		217,608
Other current assets		19,045		17,775		17,440
Total current assets		503,729		465,132		479,338
Property, plant and equipment, net		206,442		174,039		197,180
Goodwill		44,617		42,919		44,337
Other noncurrent assets		21,568		15,942		14,479
Total assets	$	776,356	$	698,032	$	735,334
Trade accounts payable	$	35,863	$	40,167	$	22,909
Current portion of long-term debt		2,691		2,966		327
Other current liabilities		62,599		65,666		57,019
Total current liabilities		101,153		108,799		80,255
Long-term debt		337		643		338
Other long-term liabilities		8,775		1,422		1,866
Minority interest in consolidated variable interest entities		–		2,128		–
Stockholders’ equity		666,091		585,040		652,875
Total liabilities and stockholders’ equity	$	776,356	$	698,032	$	735,334

Simpson Manufacturing Co., Inc., headquartered in Pleasanton, California, through its subsidiary, Simpson Strong-Tie Company Inc., designs, engineers and is a leading manufacturer of wood-to-wood, wood-to-concrete and wood-to-masonry connectors and fastening systems and pre-fabricated shearwalls. Simpson Strong-Tie also offers a full line of adhesives, mechanical anchors and powder actuated tools for concrete, masonry and steel. The Company’s other subsidiary, Simpson Dura-Vent Company, Inc., designs, engineers and manufactures venting systems for gas and wood burning appliances. The Company’s common stock trades on the New York Stock Exchange under the symbol “SSD.”

For further information, contact Barclay Simpson at (925) 560-9032.

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