Shares of Simpson Manufacturing fell 5.4% to $171 in postmarket trading after the company reported a drop in profit in the second quarter, citing a continued challenging housing market in both the U.S. and Europe.
The building materials company on Monday posted a net profit of $97.8 million, or $2.31 a share, compared with $107.2 million, or $2.50 a share, for the same period a year earlier.
Net sales fell to $597 million from $597.6 million a year ago, the company added.
For 2024, the company expects U.S. housing starts to be flat to slightly lower and European housing starts to be below prior year.
"While we remain optimistic in the longer-term growth prospects of the housing market, our expectation for modest growth this year has been extended out into 2025 where we expect mid-single digit growth in U.S. housing starts," Chief Executive Mike Olosky said.
