GUADALAJARA, Mexico,
Oct. 28, 2014 /PRNewswire/ --
Grupo Simec, S.A.B. de C.V. (NYSE:
SIM) ("Simec") announced today its results of operations for the
nine-month period ended September 30,
2014.
Comparative first nine months of 2014 vs. first nine months
of 2013
Net Sales
Net sales of the Company increased 7% from Ps. 18,836 million in
the first nine months of 2013 to Ps. 20,225 million in the first
nine months of 2014. Shipments of finished steel products increased
4% from 1,649 thousand tons in the first nine months of 2014 to
1,580 thousand tons in the first nine months of 2013. Total sales
outside of Mexico in the first
nine months of 2014 increased 14% to Ps. 10,138 million compared to
Ps.8,910 million in the first nine months of 2013. Mexican sales
increased 2% from Ps. 9,926 million in the first nine months of
2013 to Ps. 10,087 million in the first nine months of 2014. The
increase in sales for the first nine months of 2014 compared to the
first nine months of 2013 is due to the increased in the volume of
shipments of 69 thousand tons. The average sales price by ton
increased approximately 3%.
Cost of Sales
Cost of sales increased 10% from Ps. 16,964 million in the first
nine months of 2013, to Ps. 18,635 million in the first nine months
of 2014. Cost of sales as a percentage of net sales represented 92%
in the first nine months of 2014 while in the first nine months of
2013 represented 90%. Cost of sales by steel ton increased
approximately 5% in the first nine months of 2014 over the same
period of 2013 due to the minor volume shipment.
Gross Profit
Gross profit of the Company for the first nine months of 2014
decreased 15% from Ps. 1,872 million in the first nine months of
2013, to Ps. 1,590 million in the first nine months of 2014.
Marginal profit as percentage of net sales in the first nine months
of 2014 was of 8% while in the first nine months of 2013 was of
10%. The gross profit decrease is given by an increase in the
average cost of raw materials.
General, Selling and Administrative Expense
Selling, general and administrative expenses decreased 6%, from
Ps.883 million in the first nine months of 2013 to Ps. 826 million
in the same period 2014, selling, general and administrative
expenses represented 4% of the net sales of the first nine months
of 2014 and 5% of net sales in the first nine months of 2013.
Other Income (Expenses,) net
The Company recorded other income net for Ps. 58 million during
the first nine months of 2014 while in the same periods of 2013 the
other income net by this concept was of Ps. 9 million.
Operating Income
Operating income decreased 18% from Ps. 998 million for the
first nine months of 2013 compared to Ps. 822 million in the first
nine months of 2014. Operating income as percentage of net sales
was 4% in the first nine months of 2014 compared to 5% in the same
period of 2013. The decreased in operating income is due to a
higher average cost in the first nine months of 2014 compared with
the same period of 2013.
EBITDA
The EBITDA decreased 15%, from Ps. 1,843 million in the first
nine months of 2013 to Ps. 1,571 million in the first nine
months of 2014, due to an increase in the average cost of raw
materials.
Comprehensive Financial Cost
Comprehensive financial cost for the first nine months of 2014
represented an income of Ps. 61 million compared with an expense of
Ps. 159 million for the first nine months of 2013. The net interest
expense was of Ps. 9 million for the first nine months of 2014,
compared with a net interest expense of Ps.26 million in 2013. Also
we record an exchange profit of Ps.70 million in the first nine
months of 2014 compared with an exchange loss of Ps. 133 million in
the first nine months of 2013 due to the slip in the exchange rate
of the Ps. against the dollar of 3% in the first nine months of
2014.
Income Taxes
The Company recorded an income of Ps. 63 million for the net
income tax during the first nine months of 2014, (includes a
deferred income tax of Ps. 45 million) compared with an income of
Ps. 247 million of income tax for the first nine months of 2013
(includes a deferred income tax of Ps. 141 million).
Net Income
As a result of the foregoing, the Company recorded a decrease in
net income of 13% to pass of Ps. 1,366 million in the first nine
months of 2013 to Ps. 1,183 million of the same period of 2014.
Liquidity and Capital Resources
At September 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. 4.1 million (accrued interest on September 30, 2014 was U.S. $534,000, or Ps. 7.2 million). At
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 third quarter of 2014 vs. second quarter of
2014
Net Sales
Net sales of the Company increased to pass of Ps. 6,622 million
during the second quarter of 2014 to Ps. 7,021 million in the third
quarter of 2014. Shipments of finished steel products increased
from 536 thousand tons in the second quarter of 2014 to 583
thousand tons in the third quarter of the same year. Total sales
outside of Mexico in the third
quarter of 2014 increased 2% to get to Ps. 3,482 million compared
to Ps. 3,423 million of the second quarter of the same year.
Mexican sales show an increase of from Ps. 3,199 million in the
second quarter of 2014 to Ps. 3,539 million in the third quarter of
the same year. The average selling price decreased 2% in the third
quarter of 2014 compared to the second quarter of the same
year.
Cost of Sales
Cost of sales increased from Ps. 6,014 million in the second
quarter of 2014 to Ps. 6,564 million in the third quarter of 2014.
Cost of sales as a percentage of net sales represented 93% for the
third quarter of 2014 compared to 91% for the second quarter of the
same year. The cost of sales by ton increases 0.3% in the third
quarter of 2014 compared to the second quarter of the same year,
due mainly to increase of raw materials.
Gross Profit
Gross profit of the Company for the third quarter of 2014
decreased 25% to pass of Ps. 608 million in the second quarter of
2014 to Ps. 457 million in the third quarter of same year. Gross
profit as a percentage of net sales in the third quarter of 2014
was of 7% compared to 9% in the second quarter of the same year.
The decreased in the gross profit in the third quarter of 2014 is
due to a decreased in the average selling price.
General, Selling and Administrative Expense
Selling, general and administrative expense decreased 4% to pass
of Ps. 281 million in the second quarter of 2014 to Ps. 271 million
in the third 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. 49 million during
the third quarter of 2014 compared to other income net for Ps. 6
million in the second quarter of 2014.
Operating Income
The Operating income was of Ps. 235 million in the third quarter
of 2014 compared to Ps. 333 million in the second quarter of the
same year. Operating income as percentage of net sales was 5% for
the second quarter of 2014 compared to 3% for the third quarter of
the same year. The decrease in operating income is due mainly to a
lower average selling price.
EBITDA
The EBITDA show a decrease of 16%, this is due to previously
mentioned. The EBITDA, of the third quarter was of Ps. 487 million
versus Ps. 582 million in the second quarter of 2014.
Comprehensive Financial Cost
Comprehensive financial cost of the Company in the third quarter
of 2014 represented an income of Ps. 89 million compared with an
expense of Ps. 10 million for the second quarter of 2014. The
comprehensive financial cost is comprised for: the net interest
expense of Ps. 6 million in the third quarter of 2014 compared to
net interest expense of 10 million in the second quarter of the
same year. Also we record a net exchange income net of Ps. 83
million in the third quarter of 2014 compared a net exchange loss
of Ps. 0 million in the second quarter of the same year.
Income Taxes
The Company have been recorded an income of Ps. 28 million of
income tax during the third quarter of 2014, (includes a deferred
income tax of Ps.6 million) compared with the Ps. 34 million of
income for the second quarter of the same year, (includes a
deferred income tax of Ps. 27 million).
Net Income
As a result of the foregoing, the Company recorded a net income
of Ps. 460 million in the third quarter of 2014 compared to a net
income of Ps. 396 million for the second quarter of 2014.
Comparative third quarter of 2014 vs. third quarter of
2013
Net Sales
Net sales of the Company increased 13% from Ps. 6,211 million
during the third quarter of 2013 to Ps. 7,021 million in the third
quarter of 2014. Sales in tons of finished steel increased from 527
thousand tons in the third quarter of 2013 compared with 583
thousand tons in the third quarter of 2014. Sales outside of
Mexico increased 18% from Ps.
2,941 million in the third quarter of 2013 to Ps. 3,482 million in
the third quarter of 2014. Mexican sales increased 8% from Ps.
3,270 million in the third quarter of 2013 to Ps. 3,539 million in
the third quarter of 2014. The average sales price increased
approximately 2% in the third quarter of 2014, compared to the same
period of the 2013.
Cost of Sales
Cost of sales increased 14% in the third quarter of 2014
compared to the third quarter of 2013 from Ps. 5,736 million in the
third quarter of 2013 to Ps. 6,564 million in the third quarter of
2014. With respect to sales, the cost of sales of the third quarter
of 2013 represented 92% compared to 93% for the third quarter of
2014. The average cost of raw materials used to produce steel
products increased 3% in the third quarter of 2014 versus the third
quarter of 2013, due to increase of raw materials prices.
Gross (Loss) Profit
Gross profit of the Company for the third quarter of 2014
decreased 4% from Ps. 457 million compared to Ps. 475 million in
the third quarter of 2013. Gross profit as a percentage of net
sales for the third quarter of 2014 was 7% compared to 8% of the
third quarter of 2013. The decrease in gross profit is due an
increase in the average selling cost of some raw materials.
General, Selling and Administrative Expense
The selling, general and administrative expense decreased 5% in
the third quarter of 2014 from Ps. 271 million in the third quarter
of 2014 to Ps. 286 million in the third quarter of 2013. Selling,
general and administrative expense as a percentage of net sales
represented 4% for the third quarter of 2014 compared to 5% of the
third quarter of 2013.
Other Income (Expenses), net
The company recorded other income net of Ps. 49 million in the
third quarter of 2014 compared with other expense net of Ps. 0.5
million for the third quarter of 2013.
Operating (Loss) Income
Operating income increased from Ps. 188 million in the third
quarter 2013 compared to Ps. 235 million in the third quarter of
2014, this represent 25% of increase between both quarters. The
operating income as a percentage of net sales was 3% for both
periods. The increase in the operating income is due to a less
selling, general and administrative expense and other income.
EBITDA
The EBITDA of the third quarter of 2014 increased 3% from
Ps 472 million in the third quarter of 2013 to Ps. 487 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 third
quarter of 2014 represented a net income of Ps. 89 million compared
with an income of Ps. 65 million for the third quarter of 2013. The
comprehensive financial cost is comprised for: the net interest
income of Ps. 6 million in the third quarter of 2014, compared to a
net interest expense of Ps. 26 million for the same period of 2013.
Also record an exchange gain of Ps. 91 million in the third quarter
of 2013 and an exchange gain of Ps. 83 million in the third quarter
of 2014.
Income Taxes
The company recorded an income for income tax for Ps. 28 million
in the third quarter of 2014, (includes a deferred income tax of
Ps. 6 million) compared to an income of Ps. 144 million for income
tax for the third quarter of 2013, (includes an accrual of deferred
income tax of Ps. 60 million).
Net Income (Loss)
As a result of the foregoing, the Company net income was of Ps.
460 million in the third quarter of 2014 compared to a net income
of Ps. 509 million for the same period of the 2013.
(millions of
pesos)
|
Jan - Sep
'14
|
|
Jan - Sep
'13
|
|
Year 14 vs
'13
|
Sales
|
20,225
|
|
18,836
|
|
7%
|
Cost of
Sales
|
18,635
|
|
16,964
|
|
10%
|
Gross
Profit
|
1,590
|
|
1,872
|
|
(15%)
|
Selling, General and
Administrative Expense
|
826
|
|
883
|
|
(6%)
|
Other Income
(Expenses), net
|
58
|
|
9
|
|
544%
|
Operating
Profit
|
822
|
|
998
|
|
(18%)
|
EBITDA
|
1,571
|
|
1,843
|
|
(15%)
|
Net
income
|
1,183
|
|
1,366
|
|
(13%)
|
Sales Outside
Mexico
|
10,138
|
|
8,910
|
|
14%
|
Sales in
Mexico
|
10,087
|
|
9,926
|
|
2%
|
Total Sales
(Tons)
|
1,649
|
|
1,580
|
|
4%
|
Cost by
ton
|
11,301
|
|
10,737
|
|
5%
|
Quarter
|
|
|
|
|
|
(millions of
pesos)
|
3Q'14
|
2Q
'14
|
3Q
'13
|
3Q´14vs
2Q´14
|
3Q´14 vs
3Q '13
|
Sales
|
7,021
|
6,622
|
6,211
|
6%
|
13%
|
Cost of
Sales
|
6,564
|
6014
|
5,736
|
9%
|
14%
|
Gross
Profit
|
457
|
608
|
475
|
(25%)
|
(4%)
|
Selling, General and
Adm. Expenses
|
271
|
281
|
286
|
(4%)
|
(5%)
|
Other Income
(Expenses), net
|
49
|
6
|
0
|
717%
|
(100%)
|
Operating
Profit
|
235
|
333
|
188
|
(29%)
|
25%
|
EBITDA
|
487
|
582
|
472
|
(16%)
|
3%
|
Net Income
|
460
|
396
|
509
|
16%
|
(10%)
|
Sales Outside
Mexico
|
3,482
|
3,423
|
2,941
|
2%
|
18%
|
Sales in
Mexico
|
3,539
|
3,199
|
3,270
|
11%
|
8%
|
Total Sales
(Tons)
|
583
|
536
|
527
|
9%
|
11%
|
|
11,259
|
11,220
|
10,884
|
0%
|
3%
|
Product
|
Thousands
of
Tons
Jan-Sep
2014
|
Million
of
Pesos
Jan-Sep 2014
|
Average
Price
per
Ton
Jan-Sep
2014
|
Thousands
of
Tons
Jan–Sep
2013
|
Million
of
Pesos
Jan- Sep
2013
|
Average
Price
per
Ton
Jan-Sep
2013
|
Special
Profiles
|
946
|
13,380
|
14,144
|
909
|
12,332
|
13,562
|
Commercial
Profiles
|
703
|
6,845
|
9,737
|
671
|
6,504
|
9,703
|
Total
|
1,649
|
20,225
|
12,265
|
1,580
|
18,836
|
11,925
|
Product
|
Thousands
of
Tons
Jul-Sep
2014
|
Million
of
Pesos
Jul-Sep
2014
|
Average
Price
per
Ton
Jul-Sep
2014
|
Thousands
of
Tons
Apr-Jun
2014
|
Million
of
Pesos
Apr-Jun
2014
|
Average
Price
per
Ton
Apr-Jun
2014
|
Thousands
of
Tons
Jul-Sep
2013
|
Million
of
Pesos
Jul-Sep
2013
|
Average
Price
per
Ton
Jul-Sep
2013
|
Special
Profiles
|
311
|
4,326
|
13,910
|
314
|
4,509
|
14,360
|
314
|
4,197
|
13,370
|
Commercial
Profiles
|
272
|
2,695
|
9,908
|
222
|
2,113
|
9,518
|
213
|
2,014
|
9,438
|
|
|
|
|
|
|
|
|
|
|
Total
|
583
|
7,021
|
12,043
|
536
|
6,622
|
12,354
|
527
|
6,211
|
11,779
|
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.
PRESS
RELEASE
|
Contact: Sergio Vigil
Gonzalez
|
|
Mario Moreno
Cortez
|
|
Grupo Simec, S.A.B.
de C.V.
|
|
Calzada Lazaro
Cardenas 601
|
|
44440 Guadalajara,
Jalisco, México
|
|
52 55 1165 1025
|
|
52 33 3770 6734
|
SOURCE Grupo Simec, S.A.B. de
C.V.