GRUPO SIMEC, S.A.B. DE C.V. GUADALAJARA, Mexico, April 30, 2015 /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, 2015.
Comparative first quarter of 2015 vs. first quarter of 2014
Net Sales
The net sales of the company increased 5% derived from the increase in shipments of steel. Sales increased from Ps. 6,582 million in the first quarter of 2014 to Ps. 6,897 million in the same period of 2015. Shipments of steel finished goods increased 8% from 530 thousand tons in the first quarter of 2014 compared to 573 thousand tons in the same period of 2015. Total sales outside of Mexico in the first quarter of 2015 decreased 1% to reach Ps. 3,146 million compared to Ps. 3,175 million in the same period of 2014. The Mexican sales increased 10% from Ps. 3,407 million in the first quarter of 2014 to Ps. 3,751 million in the same period of 2015. The increase in sales can be explained due to a greater volume shipped compared with the same period of 2014. The average sales price per ton of steel finished goods decrease 3% in the first quarter of 2015 compared with the same period of 2014.
Cost of Sales
The cost of sales decreased 1% from Ps. 6,057 million in the first quarter of 2014 to Ps. 6,022 million in the same period of 2015. In the first quarter of 2015 the cost of sales represents the 87% of the net sales compared to 92% in the same period of 2014. The average cost of sales per ton of steel finished goods decreased 8% in the first quarter of 2015 compared to the same period of 2014.
Gross Profit
The gross profit of the company for the same period increased 67% from Ps. 525 million in 2014 to Ps. 875 million in the same period of 2015. Gross profit as a percentage of net sales in the first quarter of 2015 was 13% and for the same period of 2014 was 8%. The increase in gross profit is due to an increase in sales volume shipped and higher production with better cost of the raw materials in the first quarter of 2015 compared with the same period of 2014.
General, Sales and administrative Expenses
General, selling and administrative expenses were maintained in both periods, from Ps. 274 million in the first quarter of 2014 compared to Ps. 273 million in the same period of 2015, and representing 4% of net sales in both periods.
Other Expenses (Income) net
The company recorded other income net of Ps. 3 million in the first quarter of 2015 compared to other income net of Ps. 3 million in the same period of 2014.
Operating Income
The operating income increased 138% from Ps. 254 million for the first quarter of 2014 compared to Ps. 605 million in the same period of 2015. Operating income as a percentage of net sales was 9% in the first quarter of 2015 compared to 4% in the same period of 2014. The increase in operating income is due to an increase in sales volume shipped and a better cost of sales in the first quarter of 2015 compared with the same period of 2014.
EBITDA
The EBITDA of the company for the first quarter of 2015, show an increase of 75%, by the above mentioned to pass from Ps. 501 million in the first quarter of 2014 compared against Ps. 876 million of the first quarter of 2015.
Comprehensive Financial Cost
The Comprehensive financial cost in the first quarter of 2015 represented a net income of Ps. 19 million compared with an expense of Ps.18 million in the same period of 2014. Net interest was an expense of Ps. 4 million in the first quarter of 2015 compared with a net expense of Ps. 4 million in the same period of 2014. At the same time, Simec registered an exchange income of Ps. 23 million in the first quarter of 2015 compared with an exchange loss of Ps. 14 million in the same period of 2014.
Income Taxes
Income Taxes recorded an expense of Ps. 267 million in the first quarter of 2015 (including the income of Ps. 8 million of deferred income taxes) compared to an income of Ps. 1 million in the same period of 2014 (including the benefits of Ps. 23 million of deferred income taxes).
Net Income (loss) (Before Non- controlling Interest)
As a result of the foregoing, net income increased 35% to Ps. 441 million in the first quarter of 2015 from Ps. 327 million in the same period of previous year.
Liquidity and Capital Resources
As of March 31, 2015, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, or Ps. 4.6 million (accrued interest on March 31, 2015 was U.S. $537,766, or Ps. 8.2 million). 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, 2014 was U.S. $536,529 or Ps. 7.2 million).
Comparative first quarter of 2015 vs. fourth quarter of 2014
Net Sales
The net sales of the company increased 4% comparing Ps. 6,604 million in the fourth quarter of 2014 to Ps. 6,897 million in the first quarter of 2015. The tons sales increased 5%, from 548 thousand tons in the fourth quarter of 2014 compared to 573 thousand tons in the first quarter of 2015. Total sales outside of Mexico in the first quarter of 2015 decreased 1% from Ps. 3,176 million on the last quarter of 2014 compared to Ps. 3,146 million in the first quarter of 2015. The Mexican sales increased 9% from Ps. 3,428 million in the fourth quarter of 2014 to Ps. 3,751 million in the first quarter of 2015. The average sales price per ton was maintained in both periods.
Cost of Sales
Cost of sales decreased 12% from Ps. 6,858 million in the fourth quarter of 2014 to Ps. 6,022 million in the first quarter of 2015. Cost of sales as a percentage of net sales in the first quarter of 2015 represented 87% and in the last quarter of 2014 cost of sales represented 104%. The average cost of finished steel products in the first quarter of 2015 decreased 16% compared to the fourth quarter of 2014 as a result of an increased on the shipped volume and better cost of raw materials.
Gross Profit
Gross profit of the company for the first quarter increased to Ps. 875 million in 2015 from Ps. -254 million in last quarter of 2014. Gross profit as a percentage of net sales in the first quarter of 2015 was 13% and for the last period of 2014 was -4%. The increase in gross profit is due to the rise on the production and volume of shipments on the first quarter of 2015 compared with the last quarter of 2014.
General, Sales and administrative Expenses
General, selling and administrative expenses decreased 26% to Ps. 273 million in the first quarter of 2015 compared to Ps. 367 million in the fourth quarter of 2014, representing 4% of net sales in the first quarter of 2015 and for the last period of 2014 was 6%.
Other Expenses (Income) net
The company recorded other net income of Ps. 3 million in the first quarter of 2015 compared to other net income of Ps. 3 million in the fourth quarter of 2014.
Operating Income
Operating income increased 198% to Ps. 605 million for the first quarter of 2015 compared to a loss of Ps. -618 million in the last quarter of 2014. Operating income as a percentage of net sales was 9% in the first quarter of 2015, compared to -9% in the last quarter of 2014. The increase in operating income is due to the increase in production and volume of shipments, in the first quarter of 2015 compared with the fourth quarter of 2014.
EBITDA
The EBITDA of the company for the first quarter of 2015 was Ps. 876 million compared against Ps. -249 million of the last quarter of 2014, an increase of Ps. 1,125 million.
Comprehensive Financial Cost
Comprehensive financial cost in the first quarter of 2015 represented a net income of Ps. 19 million compared with an income of Ps. 415 million in the fourth quarter of 2014. Net interest expense of the first quarter of 2015 was of Ps. 4 million compared with an interest net income of Ps. 11 million in the last quarter of 2014. At the same time, Simec registered an income on exchange rate of Ps. 23 million in the first quarter of 2015 compared with an income on exchange rate of Ps. 404 million on the last quarter of 2014.
Income Taxes
Income Taxes recorded an expense of Ps. 267 million in the first quarter of 2015 (including Ps. 8 million of deferred income taxes) compared with an income of Ps. 225 million in the same period of 2014 (including the benefits of Ps. 71 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 2015 is of Ps. 441 million compared with Ps. 21 million of the last period of previous year.
Quarter
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(millions of pesos) 1Q '15 1Q '14 4Q '14 1Q '15 vs 1Q '15 vs
1Q '14 4Q '14
--- ------ ------
Sales 6,897 6,582 6,604 5% 4%
----- ----- ----- ----- --- ---
Cost of Sales 6,022 6,057 6,858 (1%) (12%)
------------- ----- ----- ----- --- ----
Gross Profit 875 525 -254 67% (444%)
------------ --- --- ---- --- -----
Selling, General and Adm. Expenses 273 274 367 0% (26%)
---------------------------------- --- --- --- --- ----
Other Income (Expenses), net 3 3 3 0% 0%
---------------------------- --- --- --- --- ---
Operating Profit 605 254 -618 138% (198%)
---------------- --- --- ---- --- -----
EBITDA 876 501 -249 75% (452%)
------ --- --- ---- --- -----
Net Income 441 327 21 35% 2000%
---------- --- --- --- --- ----
Sales Outside Mexico 3,146 3,175 3,176 (1%) (1%)
-------------------- ----- ----- ----- --- ---
Sales in Mexico 3,751 3,407 3,428 10% 9%
--------------- ----- ----- ----- --- ---
Total Sales (Tons) 573 530 548 8% 5%
----------------- --- --- --- --- ---
10,510 11,428 12,515 (8%) (16%)
------ ------ ------ --- ----
Product Thousands of Tons Millions of Pesos Jan- Average Price per Ton Thousands of Tons Millions of Pesos Jan-Mar Average Price per Ton Thousands of Tons Oct-Dec Millions of Pesos Average Price per Ton Oct-
Mar 2015 Dec
Oct-Dec 2014
Jan-Mar 2015 Jan-Mar Jan-Mar 2014 Jan-Mar 2014 2014
2015 2014 2014
--- ---- ---- ----
Special Profiles 273 4,007 14,678 292 4,262 14,596 253 3,605 14,249
---------------- --- ----- ------ --- ----- ------ --- ----- ------
Commercial Profiles 300 2,890 9,665 238 2,320 9,748 295 2,999 10,166
------------------- --- ----- ----- --- ----- ----- --- ----- ------
Total 573 6,897 12,037 583 6,582 12,419 548 6,604 12,051
----- --- ----- ------ --- ----- ------ --- ----- ------
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.
Calzada Lazaro Cardenas 601
44440 Guadalajara, Jalisco,
Mexico
52 55 1165 1025
52 33 3770 6734
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SOURCE Grupo Simec, S.A.B. de C.V.
