GUADALAJARA, Mexico,
April 29, 2014 /PRNewswire/
-- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced
today its results of operations for the three-month period ended
March 31, 2014 (SIMEC-B).
Comparative first quarter of 2014 vs. first quarter of
2013
Net Sales
The net sales of the company
increased 2% derived from the increase in average sales price.
Sales increased from Ps. 6,443 million in the first quarter of 2013
to Ps. 6,582 million in the same period of 2014. Shipments of steel
finished goods remained from 531 thousand tons in the first quarter
of 2013 compared to 530 thousand tons in the same period of 2014.
Total sales outside of Mexico in
the first quarter of 2014 increased 3% to reach Ps. 3,175 million
compared to Ps. 3,070 million in the same period of 2013. The
Mexican sales increased 1% from Ps. 3,373 million in the first
quarter of 2013 to Ps. 3,407 million in the same period of 2014.
The increase in sales can be explained due to a better average
selling price compared with the same period of 2013. The average
sales price per ton of steel finished goods increase 2% in the
first quarter of 2014 compared with the same period of 2013.
Cost of Sales
The cost of sales increased 6%
from Ps. 5,722 million in the first quarter of 2013 to Ps. 6,057
million in the same period of 2014. In the first quarter of 2014
the cost of sales represents the 92% of the net sales compared to
89% in the same period of 2013. The average cost of sales per ton
of steel finished goods increased 6% in the first quarter of 2014
compared to the same period of 2013.
Gross Profit
The gross profit of the company
for the same period decreased 27% from Ps. 721 million in 2013 to
Ps. 525 million in the same period of 2014. Gross profit as a
percentage of net sales in the first quarter of 2014 was 8% and for
the same period of 2013 was 11%. The decrease in gross profit is
due to an increase in the raw materials in the first quarter of
2014 compared with the same period of 2013.
General, Sales and administrative
Expenses
General, selling and administrative expenses
decreased 17% from Ps. 332 million in the first quarter of 2013
compared to Ps. 274 million in the same period of 2014, and
representing 4% and 5% of net sales in the first quarter of 2014
and 2013 respectively.
Other Expenses (Income) net
The company
recorded other expenses net of Ps. 3 million in the first quarter
of 2014 compared to other income net of Ps. 2 million in the same
period of 2013.
Operating Income
The operating income decreased
34% from Ps. 387 million for the first quarter of 2013 compared to
Ps. 254 million in the same period of 2014. Operating income as a
percentage of net sales was 4% in the first quarter of 2014
compared to 6% in the same period of 2013. The decrease in
operating income is due to an increase in the cost of sales in the
first quarter of 2014 compared with the same period of 2013.
EBITDA
The EBITDA of the company for the first quarter
of 2014, show a decrement of 26%, by the above mentioned to pass
from Ps. 679 million in the first quarter of 2013 compared against
Ps. 501 million of the first quarter of 2014.
Comprehensive Financial Cost
The
Comprehensive financial cost in the first quarter of 2014
represented a net expense of Ps. 18 million compared with an
expense of Ps. 218 million in the same period of 2013. Net interest
was an expense of Ps. 4 million in the first quarter of 2014
compared with a net expense of Ps. 0 million in the same period of
2013. At the same time, Simec registered an exchange loss of Ps. 14
million in the first quarter of 2014 compared with an exchange loss
of Ps. 218 million in the same period of 2013.
Income Taxes
Income Taxes recorded an income of
Ps. 1 million in the first quarter of 2014 (including the income of
Ps. 23 million of deferred income taxes) compared to an income of
Ps. 18 million in the same period of 2013 (including the benefits
of Ps. 27 million of deferred income taxes).
Net Income (loss) (Before Non- controlling
Interest)
As a result of the foregoing, net income
increased 7% to Ps. 327 million in the first quarter of 2014 from
Ps. 306 million in the same period of previous year.
Liquidity and Capital Resources
As of March 31, 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. 4.0 million (accrued
interest on March 31, 2013 was U.S.
$536,529, or Ps. 7.2 million).
As of March 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. 3.7 million (accrued interest on March 31, 2013 was U.S. $506,856 or Ps. 6.3 million).
Comparative first quarter of 2014 vs. fourth quarter of
2013
Net Sales
The net sales of the company
increased 19% comparing Ps. 5,532 million in the fourth quarter of
2013 to Ps. 6,582 million in the first quarter of 2014. The tons
sales increased 9%, from 485 thousand tons in the fourth quarter of
2013 compared to 530 thousand tons in the first quarter of 2014.
Total sales outside of Mexico in
the first quarter of 2014 increased 30% to Ps. 2,437 million on the
last quarter of 2013 compared to Ps. 3,175 million in the first
quarter of 2014. The Mexican sales increased 10% from Ps. 3,095
million in the fourth quarter of 2013 to Ps. 3,407 million in the
first quarter of 2014. The average sales price per ton increased 9%
in the first quarter of 2014 compared with the fourth quarter of
2013.
Cost of Sales
Cost of sales increased 11% from
Ps. 5,446 million in the fourth quarter of 2013 to Ps. 6,057
million in the first quarter of 2014. Cost of sales as a percentage
of net sales in the first quarter of 2014 represented 92% and in
the last quarter of 2013 cost of sales represented 98%. The average
cost of finished steel products in the first quarter of 2014
increased 2% compared to the fourth quarter of 2013 as a result of
an increased on the shipped volume and cost of raw materials.
Gross Profit
Gross profit of the company for
the first quarter increased from Ps. 525 million in 2014 to Ps. 86
million in last quarter of 2013. Gross profit as a percentage of
net sales in the first quarter of 2014 was 8% and for the last
period of 2013 was 2%. The increase in gross profit is due to the
rise on the volume of shipments and the average sales price on the
first quarter of 2014 compared with the last quarter of 2013.
General, Sales and administrative
Expenses
General, selling and administrative expenses
increased 18% from Ps. 274 million in the first quarter of 2014
compared to Ps. 233 million in the fourth quarter of 2013,
representing 4% of net sales in both periods.
Other Expenses (Income) net
The company
recorded other net income of Ps. 3 million in the first quarter of
2014 compared to other net expense of Ps. 68 million in the fourth
quarter of 2013.
Operating Income
Operating income increased
218% from Ps. 254 million for the first quarter of 2014 compared to
a loss of Ps. 215 million in the last quarter of 2013.
Operating income as a percentage of net sales was 4% in the
first quarter of 2014, compared to -3% in the last quarter of 2013.
The increase in operating income is due to the increase in volume
of shipments and the average sales price, in the first quarter of
2014 compared with the fourth quarter of 2013.
EBITDA
The EBITDA of the company increased Ps. 508
million comparing Ps. 501 million of the first quarter of 2014
against Ps. -7 million of the last quarter of 2013, there was an
increase of Ps. 508 millions.
Comprehensive Financial Cost
Comprehensive financial cost in the first quarter of 2014
represented a net expense of Ps. 18 million compared with an income
of Ps. 84 million in the fourth quarter of 2013. Net interest
expense of the first quarter of 2014 was of Ps. 4 million compared
with an interest net income of Ps. 18 million in the last quarter
of 2013. At the same time, Simec registered a loss on exchange rate
of Ps. 14 million in the first quarter of 2014 compared with an
income on exchange rate of Ps. 66 million on the last quarter of
2014.
Income Taxes
Income Taxes recorded an income of
Ps. 1 million in the first quarter of 2014 (including Ps. 23
million of deferred income taxes) compared with an income of Ps. 35
million in the same period of 2013 (including the benefits of Ps.
198 million of deferred income taxes).
Net Income (loss) (Before Non- controlling
Interest)
As a result of the foregoing, the net income
of the first quarter of 2014 is of Ps. 327 million compared with
Ps. 151 million of the last period of previous year.
Quarter
|
|
|
|
|
|
(millions of
pesos)
|
1Q'14
|
1Q
'13
|
4Q
'13
|
1Q´14 vs
1Q´13
|
1Q´14 vs
4Q '13
|
Sales
|
6,582
|
6,443
|
5,532
|
2%
|
19%
|
Cost of
Sales
|
6,057
|
5,722
|
5,446
|
6%
|
11%
|
Gross
Profit
|
525
|
721
|
86
|
(27%)
|
510%
|
Selling, General and
Adm. Expenses
|
274
|
332
|
233
|
(17%)
|
18%
|
Other Income
(Expenses), net
|
3
|
-2
|
-68
|
250%
|
104%
|
Operating
Profit
|
254
|
387
|
-215
|
(34%)
|
218%
|
EBITDA
|
501
|
679
|
-7
|
(26%)
|
7,257%
|
Net Income
|
327
|
306
|
151
|
7%
|
117%
|
Sales Outside
Mexico
|
3,175
|
3,070
|
2,437
|
3%
|
30%
|
Sales in
Mexico
|
3,407
|
3,373
|
3,095
|
1%
|
10%
|
Total Sales
(Tons)
|
530
|
531
|
485
|
0%
|
9%
|
Product
|
Thousand of
Tons
Jan-Mar
2014
|
Million of
Pesos
Jan-Mar
2014
|
Average Price per
Ton
Jan-Mar
2014
|
Thousand of
Tons
Jan-Mar
2013
|
Million of
Pesos
Jan-Mar
2013
|
Average Price per
Ton
Jan-Mar
2013
|
Thousand of
Tons
Oct-Dec
2013
|
Million of
Pesos
Oct-Dec
2013
|
Average Price per
Ton
Oct-Dec
2013
|
Commercial
Profiles
|
238
|
2,320
|
9,748
|
247
|
2,475
|
10,021
|
219
|
1,899
|
8,671
|
Special
Profiles
|
292
|
4,262
|
14,596
|
284
|
3,968
|
13,971
|
266
|
3,633
|
13,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
530
|
6,582
|
12,419
|
531
|
6,443
|
12,134
|
485
|
5,532
|
11,406
|
|
|
|
|
|
|
|
|
|
|
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.
Contact:
Sergio Vigil Gonzalez
Mario Moreno Cortez
Grupo Simec, S.A.B. de C.V.
+52-55-1165-1025
+52-33-3770-6734
|
SOURCE Grupo Simec, S.A.B. de
C.V.