GUADALAJARA, Mexico,
July 24, 2014 /PRNewswire/
-- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced
today its results of operations for the sixth-month period ended
June 30, 2014.
Comparative first six months of 2014 vs. first six months of
2013
Net Sales
Net sales of the Company increased 5%
from Ps. 12,625 million in the first half of 2013 to Ps. 13,204
million in the first half of 2014. Shipments of finished steel
products increased 1% from 1,052 thousand tons in the first half of
2013 to 1,066 thousand tons in the first half of 2014. Total sales
outside of Mexico in the first
half of 2014 increased 11% to Ps. 6,598 million compared to Ps.
5,968 million in the first half of 2013. Mexican sales decreased 1%
from Ps. 6,657 million in the first half of 2013 to Ps. 6,606
million in the first half of 2014. The increase in sales for the
first half of 2014 compared to the first half of 2013, is due to
the combined of increased in the average sales price of 3% and
increase in the volume of shipments approximately of 14 thousand
tons that represent a 1%.
Cost of Sales
Cost of sales increased 8% from
Ps. 11,227 million in the first half of 2013, to Ps. 12,071 million
in the first half of 2014. Cost of sales as a percentage of net
sales represented 91% in the first half of 2014 while in the first
half of 2013 represented 89%. Cost of sales increased due to the
higher volume shipment and the increase in the price of certain raw
materials.
Gross Profit
Gross profit of the Company for
the first half of 2014 decreased 19% from Ps. 1,398 million in the
first half of 2013, to Ps. 1,133 million in the first half of 2014.
Gross profit as percentage of net sales in the first half of 2014
was of 9% while in the first half of 2013 was of 11%. The gross
profit between both periods is given by an increase in the average
sales price and a higher volume of shipments between both
periods.
Selling, General and Administrative
Expense
Selling, general and administrative expense
decreased 7%, from Ps. 597 million in the first half of 2013 to Ps.
555 million in the same period 2014, selling, general and
administrative expense represented 4% of the net sales of the first
half of 2014 and 5% of net sales in the first half of 2013.
Other Income (Expenses,) net
The Company
recorded other income net for Ps. 9 million in both periods.
Operating Income
Operating income decreased
28% from Ps. 810 million for the first half of 2013 compared to Ps.
587 million in the first half of 2014. Operating income as
percentage of net sales was 4% in the first half of 2014 compared
to 6% in the same period of 2013. The decrease in operating income
is due to an increase in the average cost of production.
Ebitda
The Ebitda of the first half of 2014,
decreased in Ps 287 million or 21% compared to first half of 2013,
due to a increase in the average cost of production. The Ebitda
passed of Ps. 1,371 million in the first half of 2013 to Ps. 1,084
million in the first half of 2014.
Comprehensive Financial Cost
Comprehensive financial cost for the first half of 2014 represented
an expense of Ps. 28 million compared with of Ps. 224 million of
expense for the first half of 2013. The comprehensive financial
cost is comprised by the exchange loss of Ps. 13 million in the
first half of 2014 compared with an exchange loss of Ps. 223
million in the first half of 2013. Also the Company recorded a net
expense interest of Ps. 15 million for the first half of 2014
compared with a net expense interest of Ps.1 million in 2013.
Income Taxes
The Company recorded an income of
Ps. 35 million for the net income tax during the first half of
2014, (comprised for a current income tax of Ps. 15 million and an
income for deferred income tax of Ps. 50 million) compared with an
income of Ps. 103 million of income tax for the first half of 2013
(comprised for a current income tax of Ps. 22 million and an income
for deferred income tax of Ps. 81 million).
Net Income
As a result of the foregoing, the
Company recorded a decrease in net income of 16% to pass of
Ps. 857 million in the first half of 2013 to Ps. 722 million of the
same period of 2014.
Comparative second quarter of 2014 vs. first quarter of
2014
Net Sales
Net sales of the Company increased
1% in the second quarter of 2014 compared to the first quarter of
the same period, to pass of Ps. 6,582 million during the first
quarter of 2014 to Ps. 6,622 million in the second quarter of 2014.
Shipments of finished steel products increased 1% from 530 thousand
tons in the first quarter of 2014 to 536 thousand tons in the
second quarter of the same year. Total sales outside of
Mexico in the second quarter of
2014 increased 8% to get to Ps. 3,423 million compared to Ps. 3,175
million of the first quarter of the same year. Mexican sales show a
decrease of 6% from Ps. 3,407 million in the first quarter of 2014
to Ps. 3,199 million in the second quarter of the same year. The
sales outside of Mexico had better
performance in the second quarter of 2014 compared to the first
quarter of the same year.
Cost of Sales
Cost of sales decreased 1% from
Ps. 6,057 million in the first quarter of 2014 to Ps. 6,014 million
in the second quarter of 2014. Cost of sales as a percentage of net
sales represented 92% for the first quarter of 2014 compared to 91%
in the second quarter of the same year, the average cost of sales
by ton record a decrease between both quarters of 2%.
Gross Profit
Gross profit of the Company for
the second quarter of 2014 increased 16% to pass of Ps. 525 million
in the first quarter of 2014 to Ps. 608 million in the second
quarter of same year. Gross profit as a percentage of net sales
represented 8% for the first quarter of 2014 compared to 9% in the
second quarter of the same year. The increased in the gross profit
in the second quarter of 2014 is caused by a better average cost of
sales and a higher volume of sales.
Selling, General and Administrative Expense
Selling, general and administrative expense increase 3%, from Ps.
274 million in the first quarter of 2014 to Ps. 281 million in the
second quarter of the same year, and as percentage of net sales
represented 4% for both periods.
Other (Expenses) Income, net
The Company
recorded other income net for Ps. 6 million during the second
quarter of 2014 compared to other expense net for Ps. 3 million in
the first quarter of 2014.
Operating Income
Operating income increased
31%, of Ps. 254 million in the first quarter of 2014 compared to
Ps. 333 of the second quarter of the same year. Operating income as
percentage of net sales was 4% for the first quarter compared to 5%
for the second quarter of the same year. The increase in operating
income is due mainly to a reduction in the selling general and
administrative expenses of the second quarter 2014.
Ebitda
The Ebitda in the second quarter of
2014 show an increase of 16% compared to the first quarter of the
same year, due to previously mentioned. The Ebitda of the second
quarter was of Ps. 582 million versus Ps. 501 million in the first
quarter of 2014.
Comprehensive Financial Cost
Comprehensive
financial cost of the Company in the second quarter of 2014
represented an expense of Ps. 10 million compared with an expense
of Ps. 18 million for the first quarter of 2014. The comprehensive
financial cost is comprised for; the net interest expense, of Ps.
10 million in the second quarter of 2014, while in the first
quarter was of Ps. 4 million. Also we record a net exchange loss of
Ps. 0 million in the second quarter of 2014 compared a net exchange
loss of Ps. 14 million in the first quarter of the same year.
Income Taxes
The Company have been recorded an
income of Ps. 34 million of income tax during the second quarter of
2014, (comprised for an income by current income tax of Ps. 7
million and an income for deferred tax of Ps. 27 million) compared
with the Ps. 1 million of income for the first quarter of the same
year, (comprised for a current income tax of Ps. 22 million and of
an income for deferred tax of Ps. 23 million).
Net Income
As a result of the foregoing, the
Company recorded an increase of 21% from a net income of Ps. 327
million in the first quarter of 2014 compared to a net income of
Ps. 396 million for the second quarter of 2014.
Liquidity and Capital Resources
As of June 30, 2014, Simec's total consolidated debt
consisted of U.S. $302,000 of 8 7/8%
medium-term notes ("MTN's") due 1998, or Ps. 3.9 million (accrued
interest on June 30, 2014 was U.S.
$547,000, or Ps. 7.1 million).
As of December 31, 2013, Simec's
total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's")
due 1998, or Ps. 3.9 million (accrued interest on December 31, 2013 was U.S. $527,000, or Ps. 6.9 million).
Comparative second quarter of 2014 vs. second quarter of
2013
Net Sales
Net sales of the Company increased
7% from Ps. 6,182 million during the second quarter of 2013 to Ps.
6,622 million in the second quarter of 2014. Sales in tons of
finished steel increased 3% from 522 thousand tons in the second
quarter of 2013 compared with 536 thousand tons in the second
quarter of 2014. Sales outside of Mexico in the second quarter of 2014 increased
18% from Ps. 2,898 million in the second quarter of 2013 to Ps.
3,423 million in the second quarter of 2014. Mexican sales decrease
3% from Ps. 3,284 million in the second quarter of 2013 to Ps.
3,199 million in the second quarter of 2014. The increase in sales
in the second quarter of 2014 compared to the second quarter of
2013 is due to an increase in the average sales price of 4% and an
increase in the volume of shipments approximately of 14 thousand of
tons.
Cost of Sales
Cost of sales increased 9% in
the second quarter of 2014 compared to the second quarter of 2013
from Ps. 5,505 million in the second quarter of 2013 to Ps. 6,014
million in the second quarter of 2014. With respect to sales, the
cost of sales of the second quarter of 2014 represented 91%
compared to 89% for the second quarter of 2013. The average cost of
sales by ton of steel products increased 6% in the second quarter
of 2014 versus the second quarter of 2013, due to increase in the
price of certain raw materials.
Gross (Loss) Profit
Gross profit of the
Company for the second quarter of 2014 amount to Ps. 608 million
compared to Ps. 677 million in the second quarter of 2013, this
represented a decrease of 10% between both periods. Gross profit as
a percentage of net sales for the second quarter of 2014 was 9%
compared to 11% of the second quarter of 2013. The decrease in
gross profit is mainly due to a higher average cost of sales and a
higher volume of shipments in the second quarter of 2014 compared
with the second quarter of 2013.
Selling, General and Administrative Expense
The selling, general and administrative expenses increased 6% in
the second quarter of 2014 from Ps. 266 million in the second
quarter of 2013 to Ps. 281 million in the second quarter of 2014.
Selling, general and administrative expense as a percentage of net
sales represented 4% for both periods.
Other Income (Expenses), net
The company
recorded other income net of Ps. 6 million in the second quarter of
2014 compared with other expenses net of Ps. 12 million for the
second quarter of 2013.
Operating (Loss) Income
Operating income
amounted to Ps. 333 million in the second quarter 2014 compared to
Ps. 423 million in the second quarter of 2013, this represent 21%
of decrease between both quarters. The operating income as a
percentage of net sales in the second quarter of 2014 was 5% and 7%
in the second quarter of 2013. The decrease in the operating income
is due to a higher average cost of sales in the second quarter of
2014 compared to the same period of 2013.
Ebitda
The Ebitda of the second quarter of
2014 decrease compared to the same period of 2013 in 16% from Ps.
692 million in the second quarter of 2013 to Ps. 582 million of the
same period of 2014, this is due to the above explained in the
operating income.
Comprehensive Financial
Cost
Comprehensive financial cost of the Company for the second quarter
of 2014 represented a net expense of Ps. 10 million compared with
an expense of Ps. 6 million for the second quarter of 2013. The
comprehensive financial cost is comprised for; the net interest
expense of Ps. 10 million in the second quarter of 2014, compared
to a net interest expense of Ps. 1 million for the same period of
2013. Also record an exchange loss of Ps. 0 million in the second
quarter of 2014 and an exchange loss of Ps. 5 million in the second
quarter of 2013.
Income Taxes
The company recorded an accrual
for income tax of Ps. 34 million in the second quarter of 2014,
(comprised for an income by current income tax of Ps. 7 million and
an income for deferred tax of Ps. 27 million) compared to an
accrual of Ps. 85 million for income tax for the second quarter of
2013, (comprised for an income by current income tax of Ps. 30
million and an income for deferred tax of Ps. 55 million).
Net Income (Loss)
As a result of the
foregoing, the Company recorded a net income of Ps. 396 million in
the second quarter of 2014 compared to Ps. 551 million for the
second quarter of 2013, a decrease of 28% between both
quarters.
(millions of
pesos)
|
1H
'14
|
|
1H
'13
|
|
Year 14 vs
'13
|
Sales
|
13,204
|
|
12,625
|
|
5%
|
Cost of
Sales
|
12,071
|
|
11,227
|
|
8%
|
Gross
Profit
|
1,133
|
|
1,398
|
|
(19%)
|
Selling, General and
Administrative Expense
|
555
|
|
597
|
|
(7%)
|
Other Income
(Expenses), net
|
9
|
|
9
|
|
0%
|
Operating
Profit
|
587
|
|
810
|
|
(28%)
|
EBITDA
|
1,084
|
|
1,371
|
|
(21%)
|
Net
income
|
722
|
|
857
|
|
(16%)
|
Sales Outside
Mexico
|
6,598
|
|
5,968
|
|
11%
|
Sales in
Mexico
|
6,606
|
|
6,657
|
|
(1%)
|
Total Sales
(Tons)
|
1,066
|
|
1,052
|
|
1%
|
Quarter
|
|
|
|
|
|
(millions of
pesos)
|
2Q'14
|
1Q
'14
|
2Q
'13
|
2Q´14 vs
1Q´14
|
2Q´14 vs
2Q '13
|
Sales
|
6,622
|
6,582
|
6,182
|
1%
|
7%
|
Cost of
Sales
|
6,014
|
6,057
|
5,505
|
(1%)
|
9%
|
Gross
Profit
|
608
|
525
|
677
|
16%
|
(10%)
|
Selling, General and
Adm. Expenses
|
281
|
274
|
266
|
3%
|
6%
|
Other Income
(Expenses), net
|
6
|
3
|
12
|
100%
|
(50%)
|
Operating
Profit
|
333
|
254
|
423
|
31%
|
(21%)
|
EBITDA
|
582
|
501
|
692
|
16%
|
(16%)
|
Net Income
|
396
|
327
|
551
|
21%
|
(28%)
|
Sales Outside
Mexico
|
3,423
|
3,175
|
2,898
|
8%
|
18%
|
Sales in
Mexico
|
3,199
|
3,407
|
3,284
|
(6%)
|
(3%)
|
Total Sales
(Tons)
|
536
|
530
|
522
|
1%
|
3%
|
Product
|
Thousands of
Tons
Jan-Jun
2014
|
Million of
Pesos
Jan-Jun 2014
|
Average Price per
Ton
Jan-Jun
2014
|
Thousands of
Tons
Jan – Jun
2013
|
Million of
Pesos
Jan- Jun 2013
|
Average Price per
Ton
Jan-Jun
2013
|
Commercial
Profiles
|
431
|
4,150
|
9,629
|
457
|
4,519
|
9,888
|
Special
Profiles
|
635
|
9,054
|
14,258
|
595
|
8,106
|
13,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
1,066
|
13,204
|
12,386
|
1,052
|
12,625
|
12,001
|
|
|
|
|
|
|
|
Product
|
Thousands of
Tons
Apr-Jun
2014
|
Million of
Pesos Apr-Jun 2014
|
Average Price per
Ton
Apr-Jun
2014
|
Thousands of
Tons
Jan –
Mar
2014
|
Million
of Pesos
Jan-Mar 2014
|
Average Price per
Ton
Jan-Mar
2014
|
Thousands of
Tons Apr-Jun
2013
|
Million
of Pesos
Apr-Jun
2013
|
Average
Price per
Ton
Apr-Jun
2013
|
Commercial
Profiles
|
222
|
2,113
|
9,518
|
238
|
2,320
|
9,748
|
246
|
2,380
|
9,675
|
Special
Profiles
|
314
|
4,509
|
14,360
|
292
|
4,262
|
14,596
|
276
|
3,802
|
13,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
536
|
6,622
|
12,354
|
530
|
6,582
|
12,419
|
522
|
6,182
|
11,843
|
|
|
|
|
|
|
|
|
|
|
Any forward-looking information contained herein is
inherently subject to various risks, uncertainties and assumptions
which, if incorrect, may cause actual results to vary materially
from those anticipated, expected or estimated. The company assumes
no obligation to update any forward-looking information
contained herein.
SOURCE Grupo Simec, S.A.B. de
C.V.