GRUPO SIMEC, S.A.B. DE C.V. GUADALAJARA, Mexico, Feb. 27, 2015 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today its results of operations for the twelve-month period ended December 31, 2014 and December 31, 2013.
Twelve-Month Period Ended December 31, 2014 compared to Twelve-Month Period Ended December 31, 2013
Net Sales
Net sales increased 11% by the combination of higher shipments of finished steel products by 6% and the average sales price per ton of 4% compared the same period of 2013, the sale rose from Ps. 24,369 millions in the twelve-month period ended December 31, 2013 to Ps. 26,962 millions in the same period of 2014. Shipments of finished steel products increase 6% to 2 million 197 thousand tons in the twelve-month period ended December 31, 2014 compared to 2 million 064 thousand tons in the same period of 2013. Total sales outside of Mexico in the twelve-month period ended December 31, 2014 increased 18% to Ps. 13,400 million compared with Ps. 11,347 million in the same period of 2013. Total sales in Mexico increased 4% from Ps. 13,022 millions in the twelve-month period ended December 31, 2013 to Ps. 13,562 millions in the same period of 2014. The increase in sales is due to the increase of the average sales price of 4% and higher shipments of finished steel products by 6%.
Cost of Sales
Cost of sales increased 12% from Ps. 22,410 millions in the twelve-month period ended December 31, 2013 to Ps. 24,993 millions in the same period of 2014. Cost of sales as a percentage of net sales in the twelve months ended on December 31 of 2014 represented 93% and 92% in the same period of 2013. The average cost of finished steel produced in the twelve-month period ended December 31, 2014 compared to the same period of 2013 increased approximately 5% by higher costs of SBQ steel.
Gross Profit
Gross profit of the Company in the twelve-month period ended December 31, 2014 was of Ps. 1,969 million compared to Ps. 1,959 millions in the same period of 2013. Gross profit as a percentage of net sales represented 7% in the twelve-month period ended December 31, 2014 and 8% in the same period of 2013. The increase in the gross profit is due to higher shipments of finished steel products in 2014, compared with the same period of 2013.
Operating Expenses
Selling, general and administrative expenses increased 5% from Ps. 1,117 millions in the twelve-month period ended December 31, 2013 to Ps. 1,170 million in the same period of 2014. Selling, general and administrative expenses as a percentage of net sales represented 5% during the twelve-month period ended December 31, 2013 and 4% in the same period of 2014.
Other Expenses (Income) net
The company recorded other expenses of Ps. 59 millions in the twelve-month period ended December 31, 2013 compared to other net income of Ps. 55 millions in the same period of 2014.
Operating Income
Operating income increased 9% from Ps. 783 million for the twelve-month period ended December 31, 2013 to Ps. 855 millions in the same period of 2014. Operating income as a percentage of net sales was 3% in both periods.
EBITDA
The EBITDA of the Company increased 2% from Ps. 1,836 millions in the twelve-month prior ended December 31, of 2013, to Ps. 1,865 millions in the same period of 2014.
Comprehensive Financial Cost
Comprehensive financial cost in the twelve-month period ended December 31, 2014 represented a net income of Ps. 344 million compared with a net expense of Ps. 75 millions in the same period of 2013. The net interest was zero in 2014 compared with a net interest expense of Ps. 9 million in the twelve-month period ended December 31, 2013. As a result, we registered a net exchange income of Ps. 344 millions in the twelve-month period ended December 31, 2014 compared with a net exchange loss of Ps. 66 millions in the same period of 2013, reflecting a 13% increase in the value of the peso versus the dollar in the twelve-month period ended December 31, 2014 compared to December 31, 2013.
Income Taxes
The Company have recorded an expense net tax of Ps. 70 millions in the twelve-month period ended December 31, 2014 (including the income of deferred income tax of Ps. 193 millions) compared with a net income tax of Ps. 282 millions in the same period of 2013 (including the expense tax deferred of Ps. 339 millions).
Net Income (loss) (After Minority Interest)
As a result of the foregoing, net income increased by 1% from Ps. 1,517 millions in the twelve-month period ended December 31, 2013 to a net income of Ps. 1,527 millions in the same period of 2014.
Liquidity and Capital Resources
As of December 31, 2014, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 4.5 million (accrued interest on December 31, 2014 was U.S. $555,585 or Ps. 6.9 millions). 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, Ps. 3.9 million (accrued interest on December 31, 2013 was U.S. $527,048, or Ps. 6.9 millions).
Comparative fourth quarter 2014 vs third quarter 2014
Net Sales
Net sales decreased 4% from Ps. 7,021 millions in the third quarter of 2014 to Ps. 6,736 million for the fourth quarter of 2014. Sales in tons decreased from 583 thousand ton in the third quarter of 2014 to 548 thousand ton in the fourth quarter of the same period a decrease of 6%. Total sales outside of Mexico for the fourth quarter of 2014 decreased 6% from Ps. 3,482 millions in the third quarter to Ps. 3,262 millions in the four quarter of 2014. Sales in Mexico diminish to 3,474 million in the fourth quarter of 2014 compared Ps. 3,539 millions in the third quarter of 2014 an decrease of 2%. Prices of finished products sold in the fourth quarter of 2014 increased approximately 2% compared to the third quarter of the same period.
Cost of Sales
Cost of sales was of Ps. 6,358 millions in the fourth quarter of 2014 compared to Ps. 6,564 million for the third quarter of 2014. With respect to sales, in the fourth quarter of 2014, the cost of sales represented 94% for the fourth quarter of 2014 while for the third quarter of 2014 was of 93%. The average cost of sales by ton increased 3% in the fourth quarter of 2014 versus the third quarter of 2014.
Gross Profit
Gross profit of the Company for the fourth quarter of 2014 decreased 17% to Ps. 378 million compared to Ps. 457 millions in the third quarter of 2014. The gross profit as a percentage of net sales for the fourth quarter was of 6% and 7% for the third quarter of 2014.
Operating Expenses
Selling, general and administrative expenses increased 27% to Ps. 343 millions in the fourth quarter of 2014 compared to Ps. 271 million for the third quarter of 2014. Selling, general and administrative expenses as a percentage of net sales represented 5% during the fourth quarter of 2014 and 4% for the third quarter of 2014.
Other Expenses (Income) net
The company recorded other net expenses of Ps. 2 millions in the fourth quarter of 2014 compared to other net income of Ps. 49 million for the third quarter of 2014.
Operating (Loss) Income
Operating income was of Ps 33 million in the fourth quarter of 2014 compared to an operating income of Ps. 235 millions in the third quarter of 2014. The operating income as a percentage of net sales in the fourth quarter of 2014 represented 1% while the operating income for the third quarter of 2014 represented 3%.
EBITDA
The EBITDA was Ps. 487 millions in the third quarter of 2014 compared to Ps. 294 million for the fourth quarter of 2014 due to the above explained.
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter for 2014 was a net income of Ps. 283 million compared with a net income of Ps. 89 million for the third quarter of 2014. The net interest income in the fourth quarter was Ps 9 million compared to Ps 5 millions in the third quarter of 2014. At the same time we registered an exchange net income of Ps. 84 millions in the third quarter of 2014 compared with an exchange net income of Ps. 274 millions in the fourth quarter of 2014.
Income Taxes
Income Taxes for the fourth quarter of 2014 had an expense net tax of Ps. 133 million (including an income tax deferred for Ps. 148 millions) compared to an income of Ps. 28 million for the third quarter of 2014, (including an expense tax deferred of Ps. 6 millions).
Net Income (loss) (After Minority Interest)
As a result of the foregoing, the Company had a net income of Ps. 344 millions in the fourth quarter of 2014 compared to Ps. 460 million of net income in the third quarter of 2014.
Comparative fourth quarter 2014 vs fourth quarter 2013
Net Sales
Net sales increased 22% from Ps. 5,532 million for the fourth quarter of 2013 to Ps. 6,736 million for the fourth quarter of 2014. Sales in tons of finished steel in the fourth quarter of 2013 were 485 thousand tons versus to 548 thousand tons in the fourth quarter of 2014. Total sales outside of Mexico increase 34% from Ps. 2,437 million for the fourth quarter of 2013 to Ps. 3,262 millions in the fourth quarter of 2014. Sales in Mexico increased 12% from Ps. 3,095 millions in the fourth quarter of 2013 to Ps. 3,474 millions in the fourth quarter of 2014. The average sales prices of finished products sold in the fourth quarter of 2014 increased approximately 8% compared to the fourth quarter of 2013.
Cost of Sales
Cost of sales increased 17% from Ps. 5,446 millions in the fourth quarter of 2013 compared to Ps. 6,358 million for the fourth quarter of 2014. With respect to sales, the cost of sales represented 94% during the fourth quarter of 2014 and 98% during the fourth quarter of 2013. The average cost of steel products increased 3% in the fourth quarter of 2014 versus the fourth quarter of 2013.
Gross Profit
Gross profit for the fourth quarter of 2014 increased 340% from Ps. 86 millions in the fourth quarter of 2013 compared to an income of Ps. 378 millions in the fourth quarter of 2014. The gross profit as a percentage of net sales represented 6% during the fourth quarter of 2014 and 2% during the fourth quarter of 2013.
Operating Expenses
Selling, general and administrative expenses increased 47% from Ps. 233 millions in the fourth quarter of 2013 compared to Ps. 343 million for the fourth quarter of 2014. Selling, general and administrative expenses as a percentage of net sales represented 5% during the fourth quarter of 2014 and 4% during the fourth quarter of 2013.
Other Expenses (Income) net
The company recorded other expenses net of Ps. 68 millions in the fourth quarter of 2013 compared with other expenses net of Ps. 2 million for the fourth quarter of 2014.
Operating (Loss) Income
Operating income was of Ps. 33 millions in the fourth quarter of 2014 compared to an operating loss of Ps. 215 millions in the fourth quarter of 2013. The operating income as a percentage of net sales in the fourth quarter of 2014 was 1%, compared to an operating loss of -4% in the fourth quarter of 2013.
EBITDA
The EBITDA from the fourth quarter of 2014 increased 4,300% from Ps -7 million in the fourth quarter of 2013 to Ps 294 million in the fourth quarter of 2014.
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter of 2014 was a net income of Ps. 283 million compared with a net income of Ps 84 million in the fourth quarter of 2013. Net interest income was of Ps. 9 million in the fourth quarter of 2014 compared with a net interest expense of Ps. 18 million in the fourth quarter of 2013. At the same time we registered a net exchange income of Ps. 274 millions in the fourth quarter of 2014 compared with an exchange income of Ps. 66 millions in the fourth quarter of 2013.
Income Taxes
The Company recorded an expense net taxes for the fourth quarter of 2014 of Ps. 133 million (including an income of deferred income tax of Ps 148 millions), compared to an income taxes of Ps. 35 million for the fourth quarter of 2013, (including an expense of deferred income tax of Ps. 198 millions).
Net Income (loss) (After Minority Interest)
As a result of the foregoing, the Company recorded a net income of Ps. 344 millions in the fourth quarter of 2014 compared to Ps. 151 million of net income in the fourth quarter of 2013.
(millions of pesos) Jan - Dec '14 Jan - Dec '13 Year 14 vs
'13
--- ---
Sales 26,962 24,369 11%
----- ------ ------ ---
Cost of Sales 24,993 22,410 12%
------------- ------ ------ ---
Gross Profit 1,969 1,959 1%
------------ ----- ----- ---
Selling, General and Administrative Expense 1,170 1,117 5%
------------------------------------------- ----- ----- ---
Other Income (Expenses), net 55 -59 (193%)
---------------------------- --- --- -----
Operating Profit 855 783 9%
---------------- --- --- ---
EBITDA 1,865 1,836 2%
------ ----- ----- ---
Net income 1,527 1,517 1%
---------- ----- ----- ---
Sales Outside Mexico 13,400 11,347 18%
-------------------- ------ ------ ---
Sales in Mexico 13,562 13,022 4%
--------------- ------ ------ ---
Total Sales (Tons) 2,197 2,064 6%
----------------- ----- ----- ---
Cost by ton 11,376 10,858 5%
----------- ------ ------ ---
Quarter
-------
(millions of pesos) 4Q'14 3Q '14 4Q '13 4Q´14vs 4Q´14 vs
3Q´14 4Q '13
--- ----- ------
Sales 6,736 7,021 5,532 (4%) 22%
----- ----- ----- ----- --- ---
Cost of Sales 6,358 6,564 5,446 (3%) 17%
------------- ----- ----- ----- --- ---
Gross Profit 378 457 86 (17%) 340%
------------ --- --- --- ---- ---
Selling, General and Adm. Expenses 343 271 233 27% 47%
---------------------------------- --- --- --- --- ---
Other Income (Expenses), net -2 49 -68 (104%) (97%)
---------------------------- --- --- --- ----- ----
Operating Profit 33 235 -215 (86%) (115%)
---------------- --- --- ---- ---- -----
EBITDA 294 487 -7 (40%) (4300%)
------ --- --- --- ---- ------
Net Income 344 460 151 (25%) 128%
---------- --- --- --- ---- ---
Sales Outside Mexico 3,262 3,482 2,437 (6%) 34%
-------------------- ----- ----- ----- --- ---
Sales in Mexico 3,474 3,539 3,095 (2%) 12%
--------------- ----- ----- ----- --- ---
Total Sales (Tons) 548 583 485 (6%) 13%
----------------- --- --- --- --- ---
11,602 11,259 11,229 3% (3%)
------ ------ ------ --- ---
Product Thousands of Million of Average Price Thousands of Million of Average Price
Tons Pesos per Ton Tons Pesos per Ton
Jan-Dec 2014 Jan-Dec 2014 Jan - Dec 2013 Jan- Dec 2013 Jan-Dec 2013
Jan-Dec 2014
--- ------------
Special Profiles 1,199 17,050 14,220 1,175 15,965 13,587
---------------- ----- ------ ------ ----- ------ ------
Commercial Profiles 998 9,912 9,932 889 8,404 9,453
------------------- --- ----- ----- --- ----- -----
Total 2,197 26,962 12,272 2,064 24,369 11,087
----- ----- ------ ------ ----- ------ ------
Product Thousands of Million of Average Price Thousands of Million of Average Price Thousands of Million of Average Price
Tons Pesos per Ton Tons Pesos per Ton Tons Pesos per Ton
Oct-Dec 2014 Oct-Dec 2014 Jul-Sep 2014 Jul-Sep 2014 Jul-Sep 2014 Oct-Dec 2013 Oct-Dec 2013 Oct-Dec 2013
Oct-Dec 2014
--- ------------
Special Profiles 253 3,669 14,502 311 4,326 13,910 266 3,633 13,657
---------------- --- ----- ------ --- ----- ------ --- ----- ------
Commercial Profiles 295 3,067 10,396 272 2,695 9,908 219 1,899 8,671
------------------- --- ----- ------ --- ----- ----- --- ----- -----
Total 548 6,736 12,292 583 7,021 12,043 485 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.
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SOURCE Grupo Simec, S.A.B. de C.V.
