GUADALAJARA, Mexico, April 30, 2012 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (AMEX: SIM) ("Simec") announced today its results of operations for the three-month period ended March 31, 2012.
Comparative first quarter of 2012 vs. first quarter of 2011
Net Sales
Net sales of the company increased 24% by the combination of: increase in volume shipment and the diminish in the sales price and. Sales rose from Ps. 6,565 millions in the first quarter of 2011 to Ps. 8,115 millions in the same period of 2012. Shipments of finished steel products increased 9%, from 538 thousand tons in the first quarter of 2011 compared to 588 thousand tons in the same period of 2012. Total sales outside of Mexico in the first quarter of 2012 increased 17% to Ps. 4,288 million compared to Ps. 3,678 million in the same period of 2011. The Mexican sales increased 33% from Ps. 2,887 millions in the first quarter of 2011 to Ps. 3,827 millions in the same period of 2012. The increase in sales can be explained due to the volume of tons shipments compared with the same period of 2011 the products shipments increase in 50 thousand versus the same period of 2012. The average sales price decreased 13% in the first quarter of 2012 compared with the same period of 2011.
Cost of Sales
Cost of sales increased 22% from Ps. 5,705 millions in the first quarter of 2011 to Ps. 6,960 millions in the same period of 2012. Cost of sales as a percentage of net sales in the first quarter of 2012 represented 86% and in 2011 cost of sales represented 87%. The average cost of finished steel products in the first quarter of 2012 increased 12% compared to the same period of 2011.
Gross Profit
Gross profit of the company for the same period increased 34% from Ps. 860 millions in 2011 to Ps. 1,155 millions in the same period of 2012. Gross profit as a percentage of net sales in the first quarter of 2012 was 14% and for the same period of 2011 was 13%. The increase in gross profit is due to the mayor volume of shipments in the first quarter of 2012 compared with the same period of 2011.
General, Sales and administrative Expenses
General, selling and administrative expenses increased 12% to Ps. 282 millions in the first quarter of 2011 compared to Ps. 316 millions in the same period of 2012, and represented 4% of net sales in the first quarter of 2012 and 2011.
Operating Income
Operating income increased 45% from Ps. 578 million for the first quarter of 2011 compared to Ps. 839 millions in the same period of 2012. Operating income as a percentage of net sales was 10% in the first quarter of 2012 compared to 9% in the same period of 2011. The increase in operating income is due to increase in volume of shipments, in the first quarter of 2012 compared with the same period of 2011.
EBITDA
The EBITDA of the company for the first quarter of 2012, show an increase of 30%, by the above mentioned to pass from Ps. 833 millions in the first quarter of 2011 compared against Ps. 1,087 million of the first quarter of 2012.
Comprehensive Financial Cost
Comprehensive financial cost in the first quarter of 2012 represented an expense of Ps. 147 million compared with an expense of Ps. 84 millions in the same period of 2011. Net interest was an expense of Ps. 1 millions in the first quarter of 2012 compared with a net gain of Ps. 2 millions in the same period of 2011. At the same time, Simec registered an exchange loss of Ps. 145 millions in the first quarter of 2012 compared with an exchange loss of Ps. 86 millions in the same period of 2011, due to 8.1% revaluation of the peso versus the dollar as of March 31, 2012 compared to December 31, 2011.
Other Expenses (Income) net
The company recorded other income net of Ps. 11 millions in the first quarter of 2012 compared to other income net of Ps. 1 million in the same period of 2011.
Income Taxes
Income Taxes recorded an income of Ps. 30 millions in the first quarter of 2012 (including the income of Ps. 32 millions of deferred income taxes) compared to an income of Ps. 14 millions in the same period of 2011 (including the benefits of Ps. 36 millions of deferred income taxes).
Net Income (loss) (Before Non- controlling Interest)
As a result of the foregoing, net income decreased 42% to Ps. 703 millions in the first quarter of 2012 versus Ps. 495 millions in the same period of previous year.
Liquidity and Capital Resources
As of March 31, 2012, 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 March 31, 2012 was U.S. $479,730, or Ps. 6.2 millions). As of December 31, 2011, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, or Ps. 3.6 million (accrued interest on December 31, 2011 was U.S. $452,297 or Ps. 5.4 million).
Comparative first quarter of 2012 vs. fourth quarter of 2011
Net Sales
Net sales of the company increased 4% from Ps. 7,836 million of the fourth quarter of 2011 to Ps. 8,115 million to the first quarter of 2012. Sales in tons of finished steel increased 5% from 558 thousand tons in the fourth quarter of 2011 compared with 588 thousand tons in the first quarter of 2012. The total sales outside of Mexico for the first quarter of 2012 increased 8 % to Ps. 3,958 millions in the fourth quarter of 2011, compared with Ps. 4,288 million for the first quarter of 2012. The Mexican sales decreased 1% from Ps. 3,878 millions in the fourth quarter of 2011 to Ps. 3,827 millions in the first quarter of 2012. Prices of finished products sold in the first quarter 2011 decreased 10% compared to the fourth quarter 2011.
Cost of Sales
Cost of sales increased 3% from Ps. 6,761 millions in the fourth quarter of 2011 to Ps. 6,960 millions in the first quarter of 2012. With respect to sales, in the first quarter of 2012, the cost of sales represented 86% compared to 86% for the fourth quarter of 2011. The average cost of raw materials used to produce steel products decreased 2% in the first quarter of 2012 versus the fourth quarter of 2011.
Marginal (Loss) Profit
Marginal profit for the first quarter of 2012 amounted to Ps.1,155 million compared with the profit of Ps. 1,075 million in the fourth quarter of 2011. The marginal profit as a percentage of net sales for the first quarter of 2012 was 14% compared with 14% for the fourth quarter of 2011. The increase in marginal profit is due to the improved in the volume of the shipments and decrease in the average sales price comparing the first quarter of 2012 versus the fourth quarter of 2011.
General, Sales and administrative Expenses
General, selling and administrative expenses amounted to Ps. 316 millions in the first quarter of 2012 versus Ps. 360 million in the fourth quarter of 2011, equivalent to a decreased of 12%. General, selling and administrative expenses as a percentage of net sales represented 4% during the first quarter of 2012 and 5% for the fourth quarter of 2011.
Operating (Loss) Income
Operating income was of Ps. 839 million in the first quarter of 2012 compared to Ps. 715 million of the fourth quarter of 2011. The operating income amount an increase of 17% between both quarters. The operating income as a percentage of net sales in the first quarter of 2012 was 10% compared to an operating of 9% in the fourth quarter of 2011. The increase in operating income is due to the improved in volume of shipments and diminish in the general, selling and administrative expense for the first quarter of 2012 compared with the fourth quarter of 2011.
EBITDA
The EBITDA of the first quarter of 2012 was of Ps. 1,087 million compared to Ps. 967 million of the fourth quarter of 2011, an increase of Ps 120 million.
Comprehensive Financial Cost
Comprehensive financial cost for the first quarter of 2012 represented an expense of Ps. 147 million compared with an income of Ps. 261 million for the fourth quarter of 2011. Net interest for the first quarter of 2012 amount an expense of Ps. 1 million, while for the fourth quarter of 2011, the effect was an expense of Ps. 5 million. At the same time we registered an exchange net loss of Ps. 145 millions in the first quarter of 2012 compared with an exchange net gain of Ps. 266 millions in the fourth quarter of 2011.
Other Expenses (Income) net
The company recorded other income net of Ps. 11 millions in the first quarter of 2012 compared with other expenses net of Ps. 135 million for the fourth quarter of 2011.
Income Taxes
The Company record an income tax, as income of Ps. 30 millions in the first quarter of 2012 (including the income of Ps. 32 millions of deferred income taxes) compared to an income of Ps. 335 millions in the fourth quarter same period of 2011 (including the benefits of Ps. 150 millions of deferred income taxes).
Net Income (loss) (Before Non- controlling Interest)
As a result of the foregoing, net income was of Ps. 703 millions in the first quarter of 2012 versus Ps. 1,175 millions in the fourth quarter of 2011
(Millions of pesos) | 1Q '12 | 1Q '11 | 4Q '11 | 1Q'12 vs | 1Q'12 vs | |
Sales | 8,115 | 6,565 | 7,836 | 24% | 4% | |
Cost of Sales | 6,960 | 5,705 | 6,761 | 22% | 3% | |
Gross Profit | 1,155 | 860 | 1,075 | 34% | 7% | |
Operating Expenses | 316 | 282 | 360 | 12% | (12%) | |
Operating Profit | 839 | 578 | 715 | 45% | 17% | |
EBITDA | 1,087 | 833 | 967 | 30% | 12% | |
Net Profit before Non-Controlling Interest | 703 | 495 | 1,175 | 42% | (40%) | |
Sales outside Mexico | 4,288 | 3,678 | 3,958 | 17% | 8% | |
Sales in Mexico | 3,827 | 2,887 | 3,878 | 33% | (1%) | |
Total sales (tons) | 588 | 538 | 559 | 9% | 5% | |
Product | Thousands of tons 1Q'12 | Millions of pesos 1Q'12 | Average price per ton 1Q'12 | Thousands of tons 1Q'11 | Millions of pesos 1Q'11 | Average price per ton 1Q'11 | Thousands of tons 4Q'10 | Millions of pesos 4Q'10 | Average price per ton 4Q'10 | |
Special Bar Quality "SBQ" | 334 | 5,168 | 15,473 | 322 | 4,407 | 13,686 | 318 | 5,011 | 15,758 | |
Light Structural | 254 | 2,947 | 11,602 | 216 | 2,158 | 9,991 | 240 | 2,825 | 11,771 | |
Total | 588 | 8,115 | 13,801 | 538 | 6,565 | 12,203 | 558 | 7,836 | 14,043 | |
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
Adolfo Luna Luna
Grupo Simec, S.A.B. de C.V.
Calzada Lazaro Cardenas 601
44440 Guadalajara, Jalisco, Mexico
52 55 1165 1025
52 33 3770 6734
SOURCEGrupo Simec, S.A.B. de C.V.
