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'14 vs |
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.
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SOURCEGrupo Simec, S.A.B. de C.V.
