UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER
THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION
FILE NUMBER 1-11176
|
For
the month of
|
April
|
,
2007.
|
|
Group
Simec, Inc.
|
||
|
(Translation
of Registrant’s Name Into English)
|
|
|
|
Av.
Lazaro Cardenas 601, Colonia la Nogalera, Guadalajara, Jalisco,
Mexico
44440
|
||
|
(Address
of principal executive office)
|
||
Indicate
by check mark whether the registrant files or will file annual reports
under
cover of Form 20-F or Form 40-F.
|
Form
20-F
|
[X]
|
Form
40-F
|
[
]
|
|
Yes
|
[
]
|
No
|
[X]
|
Indicate
by check mark whether the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7)
|
Yes
|
[
]
|
No
|
[X]
|
Indicate
by check mark whether the registrant by furnishing the information contained
in
this form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
|
Yes
|
[
]
|
No
|
[X]
|
(If
“Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-_______________________.)
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Company has
duly
caused this report to be signed on its behalf by the undersigned, thereunto
duly
authorized.
|
|
GRUPO
SIMEC, S.A.B. de C.V.
|
|
|
(Registrant)
|
||
|
Date:
April 25, 2007.
|
By: /s/ Luis García Limón |
|
|
Name:
Luis
García Limón
|
||
| Title: Chief Executive Officer | ||
|
|
|
PRESS
RELEASE
|
Contact: |
Mario
Padilla Velásquez
|
|
|
José
Flores Flores
|
|
| Grupo Simec, S.A. de C.V. | ||
| Calzada Lazaro Cardenas 601 | ||
|
44440
Guadalajara, Jalisco, Mexico
|
||
| 52 55 1165 1025 | ||
| 52 33 3770 6734 |
GRUPO
SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST THREE MONTHS OF
2007
GUADALAJARA,
MEXICO, April 23, 2007- 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, 2007.
Comparative
first quarter 2007 vs first quarter 2006
Net
Sales
Net
sales
increased 4% from Ps. 5,848 million for the first quarter 2006 compared with
Ps.
6,079 million for the same period 2007 due to an increase in volume as prices
remained stable. Sales of finished steel products increased 4% to 704 thousand
tons in the first quarter 2007 compared with 680 thousand tons in the same
period 2006. Total sales outside of Mexico for the first quarter 2007 decreased
4% to Ps. 4,250 million compared with Ps. 4,443 million for the same period
2006. Total Mexican sales increased 30% from 1,405 million in 2006 to Ps.1,829
millions in the same period 2007.
Cost
of Sales
Cost
of
sales remained relatively flat from Ps. 4,881 million in the first quarter
2006
to Ps. 4,869 million for the same period 2007. In the first quarter 2007, the
cost of sales represented 80% of net sales compared to 83% for the same period
2006. The decrease in cost is attributed to a decrease of 4% in the average
cost
of raw materials used to produce steel products in real terms in the first
quarter of 2007 versus the same period of 2006.
Gross
Profit
Gross
profit for the first quarter 2007 increased 25% to Ps. 1,210 million compared
to
Ps. 967 million in the same period of 2006. Gross profit as a percentage of
net
sales for the first quarter 2007 was 20% compared with 17% for the same period
of 2006. This was principally due to stable prices and an increase of 4% in
sales volume.
Operating
Expenses
Operating
expenses increased 7% to Ps. 355 million in the first quarter 2007 compared
to
Ps. 333 million for the same period 2006 but remained stable at 6% of net
sales.
Operating
Profit
Operating
profit increased 35% from Ps. 634 million in the first quarter 2006 to Ps.
856
million for the same period 2007. Operating profit as a percentage of sales
in
the first quarter 2006 was 11% compared to 14% in the same period 2007. This
was
due to an increment of 4% in volumes of products sold and stable
prices.
Integral
Financial Cost
Integral
financial cost for the first quarter 2007 represented a gain of Ps. 75 million
compared with the loss of Ps. 5 million for the same period 2006. Interest
income was Ps.47 million in the first quarter 2007 compared with Ps. 4 million
in the same period 2006. At the same time we registered an exchange gain of
Ps.
61 million in the first quarter 2007 compared with an exchange gain of Ps.
2
million in the first quarter 2006, reflecting a 1.8% decrease in the value
of
the peso versus the dollar in the first quarter of 2007.
Other
Expenses (Income) net
The
company recorded other income net of Ps. 27 million for the first quarter 2007
compared with other income net for Ps. 12 million for the same period 2006.
The
increase is attributable to the recognition of the benefit of natural gas
hedging contracts value as compared to fair market value in the United
States.
Taxes
and Profit Sharing
Taxes
and
profit sharing for the first quarter 2007 increased to Ps. 231 million compared
to Ps. 98 million for the same period 2006 due to an increase in differed taxes
during the first quarter 2007.
Net
Profit
As
a
result of the foregoing, net profit increased by 34% to Ps. 726 million in
the
first quarter 2007 from Ps. 543 million in the first quarter 2006.
Comparative
first quarter 2007 vs fourth quarter 2006
Net
Sales
Net
sales
increased 27% due to an increase of 13% in prices and a 12% increase in volume
making net sales go from Ps. 4,785 million for the fourth quarter 2006 to Ps.
6,079 million for the first quarter 2007. Sales in tons of finished steel
products increased 12% to 704 thousand tons in the first quarter 2007 compared
with 627 thousand tons in the fourth quarter 2006. The total sales outside
of
Mexico for the first quarter 2007 increased 53% to Ps. 4,250 million compared
with Ps. 2,774 million for the same period 2006. Total sales in Mexico decreased
9% from Ps. 2,011 million in the fourth quarter of 2006 to Ps.1,829 millions
in
the same period 2007.
Cost
of Sales
Cost
of
sales increased 22% from Ps. 3,986 million in the fourth quarter 2006 to Ps.
4,869 million for the first quarter 2007. In the first quarter 2007, the cost
of
sales represented 80% of net sales compared to 83% for the fourth quarter 2006.
The increase in cost is due to a 12% increase in sales volumes and an increase
of 9% in the average cost primarily as a result of increases in the price of
scrap and certain other raw materials.
Gross
Profit
Gross
profit for the first quarter 2007 increased 51% to Ps. 1,210 million compared
to
Ps. 799 million in the fourth quarter 2006. Gross profit as a percentage of
net
sales for the first quarter 2007 was 20% compared with 17% for the fourth
quarter 2006. The increase in gross profit was due to an increase of 13% in
prices, a 12% increase in sales volume and an increase of 9% in the average
cost.
Operating
Expenses
Operating
expenses increased 12% to Ps. 355 million in the first quarter 2007 compared
to
Ps. 318 million for the fourth quarter 2006. As a percentage of sales, operating
expenses represented 6% during the first quarter of 2007 compared to 7% in
the
fourth quarter of 2006.
Operating
Profit
Operating
profit increased 78% from Ps. 481 million in the fourth quarter 2006 to Ps.
856
million for the first quarter 2007. Operating profit as a percentage of net
sales increased to 14% in the first quarter 2007 from 10 % in the fourth quarter
2006. This was due to an increase of 12% in sales volume, a 13% increase in
prices and an increase of 9% in the average cost of raw materials.
Integral
Financial Cost
Integral
financial cost for the first quarter 2007 represented an income of Ps. 75
million compared with an expense Ps. 39 million for the fourth quarter 2006.
Interest income was Ps. 47 million in the first quarter 2007 compared with
Ps.
23 million in the fourth quarter 2006.
Other
Expenses (Income) net
The
company recorded other income net of Ps. 27 million for the first quarter 2007
compared with other income net of Ps. 26 million for the fourth quarter 2006.
Taxes
and Profit Sharing
Taxes
and
profit sharing for the first quarter 2007 were Ps. 231 million compared to
Ps.
157 million for the fourth quarter 2006.
Net
Profit
As
a
result of the foregoing, net profit increased by 133% to Ps. 726 million in
the
first quarter 2007 from Ps. 311 million in the fourth quarter 2006.
|
(Millions
of pesos)
|
1Q
‘07
|
4Q
‘06
|
1Q
‘06
|
1Q´07vs
4Q´06
|
1Q´07
vs
1Q'06
|
|
Sales
|
6,079
|
4,785
|
5,848
|
27%
|
4%
|
|
Cost
of Sales
|
4,869
|
3,986
|
4,881
|
22%
|
0%
|
|
Gross
Profit
|
1,210
|
799
|
967
|
51%
|
25%
|
|
Operating
Expenses
|
355
|
318
|
333
|
12%
|
7%
|
|
Operating
Profit
|
856
|
481
|
634
|
78%
|
35%
|
|
EBITDA
|
978
|
600
|
748
|
63%
|
31%
|
|
Net
Profit
|
726
|
311
|
543
|
133%
|
34%
|
|
Sales
outside Mexico
|
4,250
|
2,774
|
4,443
|
53%
|
-4%
|
|
Sales
in México
|
1,829
|
2,011
|
1,405
|
-9%
|
30%
|
|
Total
sales (tons)
|
704
|
627
|
680
|
12%
|
4%
|
|
Product
|
Thousands
of tons
1Q
'07
|
Millions
of pesos
1Q'07
|
Average
price per ton 1Q'07
|
Thousands
of tons 4Q'06
|
Millions
of pesos 4Q'06
|
Average
price per ton 4Q'06
|
Thousands
of tons 1Q'06
|
Millions
of pesos 1Q'06
|
Average
price per ton 1Q'06
|
|
SBQ
|
516
|
4,711
|
9,131
|
463
|
3,602
|
7,702
|
497
|
4,681
|
9,038
|
|
Light
Structural
|
62
|
442
|
7,130
|
51
|
361
|
7,016
|
82
|
515
|
6,024
|
|
Structural
|
61
|
482
|
7,899
|
52
|
423
|
8,047
|
53
|
355
|
6,433
|
|
Rebar
|
64
|
439
|
6,862
|
60
|
386
|
6,363
|
47
|
295
|
6,023
|
|
Others
|
1
|
5
|
-
|
1
|
13
|
-
|
1
|
2
|
-
|
|
Total
|
704
|
6,079
|
8,635
|
627
|
4,785
|
7,631
|
680
|
5,848
|
8,601
|
|
|
|
|
|
|
|
|
|
|
|
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.
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
STOCK
EXCHANGE CODE:
SIMEC QUARTER: 1YEAR:2007
GRUPO
SIMEC, S.A. DE C.V.
CONSOLIDATED
FINANCIAL STATEMENT
AT
MARCH
31 OF 2007 AND 2006
(thousands
of Mexican pesos)
|
REF
S
|
CONCEPTS
|
CURRENT
YEAR
|
PREVIOUS
YEAR
|
||
|
AMOUNT
|
%
|
AMOUNT
|
%
|
||
|
s01
|
TOTAL
ASSETS
|
20,953,879
|
100
|
15,704,692
|
100
|
|
s02
|
CURRENT
ASSETS
|
12,944,192
|
62
|
7,451,361
|
47
|
|
s03
|
CASH
AND SHORT-TERM INVESTMENTS
|
5,090,759
|
24
|
359,111
|
2
|
|
s04
|
ACCOUNTS
AND NOTES RECEIVABLE (NET)
|
2,713,234
|
13
|
2,679,198
|
17
|
|
s05
|
OTHER
ACCOUNTS AND NOTES RECEIVABLE
|
283,680
|
1
|
368,209
|
2
|
|
s06
|
INVENTORIES
|
4,796,043
|
23
|
3,830,590
|
24
|
|
s07
|
OTHER
CURRENT ASSETS
|
60,476
|
0
|
214,253
|
1
|
|
s08
|
LONG-TERM
|
0
|
0
|
0
|
0
|
|
s09
|
ACCOUNTS
AND NOTES RECEIVABLE (NET)
|
0
|
0
|
0
|
0
|
|
s10
|
INVESTMENT
IN SHARES OF NON-CONSOLIDATED
SUBSIDIARIES
AND ASSOCIATES
|
0
|
0
|
0
|
0
|
|
s11
|
OTHER
INVESTMENTS
|
0
|
0
|
0
|
0
|
|
s12
|
PROPERTY,
PLANT AND EQUIPMENT (NET)
|
7,560,674
|
36
|
7,499,304
|
48
|
|
s13
|
LAND
AND BULIDINGS
|
2,541,182
|
12
|
2,481,738
|
16
|
|
s14
|
MACHINERY
AND INDUSTRIAL EQUIPMENT
|
8,033,757
|
38
|
6,853,914
|
44
|
|
s15
|
OTHER
EQUIPMENT
|
192,088
|
1
|
177,567
|
1
|
|
s16
|
ACCUMULATED
DEPRECIATION
|
3,354,311
|
16
|
2,582,563
|
16
|
|
s17
|
CONSTRUCTION
IN PROGRESS
|
147,958
|
1
|
568,648
|
4
|
|
s18
|
OTHER
INTANGIBLE ASSETS AND DEFERRED ASSETS (NET)
|
443,434
|
2
|
748,086
|
5
|
|
s19
|
OTHER
ASSETS
|
5,579
|
0
|
5,941
|
0
|
|
s20
|
TOTAL
LIABILITIES
|
5,168,522
|
100
|
5,127,300
|
100
|
|
s21
|
CURRENT
LIABILITIES
|
2,927,627
|
57
|
3,080,132
|
60
|
|
s22
|
SUPPLIERS
|
1,714,016
|
33
|
1,807,276
|
35
|
|
s23
|
BANK
LOANS
|
0
|
0
|
0
|
0
|
|
s24
|
STOCK
MARKET LOANS
|
3,347
|
0
|
3,446
|
0
|
|
s25
|
TAXES
PAYABLE
|
307,201
|
6
|
161,737
|
3
|
|
s26
|
OTHER
CURRENT LIABILITIES
|
903,063
|
17
|
1,107,673
|
22
|
|
s27
|
LONG-TERM
LIABILITIES
|
0
|
0
|
0
|
0
|
|
s28
|
BANK
LOANS
|
0
|
0
|
0
|
0
|
|
s29
|
STOCK
MARKET LOANS
|
0
|
0
|
0
|
0
|
|
s30
|
OTHER
LOANS
|
0
|
0
|
0
|
0
|
|
s31
|
DEFERRED
LIABILITIES
|
0
|
0
|
0
|
0
|
|
s32
|
OTHER
NON-CURRENT LIABILITIES
|
2,240,895
|
43
|
2,047,168
|
40
|
|
s33
|
CONSOLIDATED
STOCKHOLDERS’ EQUITY
|
15,785,357
|
100
|
10,577,392
|
100
|
|
s34
|
MINORITY
INTEREST
|
2,358,820
|
15
|
2,135,892
|
20
|
|
s35
|
MAJORITY
INTEREST
|
13,426,537
|
85
|
8,441,500
|
80
|
|
s36
|
CONTRIBUTED
CAPITAL
|
6,999,858
|
44
|
4,640,890
|
44
|
|
S79
|
CAPITAL
STOCK
|
3,928,865
|
25
|
3,668,458
|
35
|
|
s39
|
PREMIUM
ON ISSUANCE OF SHARES
|
3,070,993
|
19
|
972,432
|
9
|
|
s40
|
CONTRIBUTIONS
FOR FUTURE CAPITAL INCREASES
|
0
|
0
|
0
|
0
|
|
s41
|
EARNED
CAPITAL
|
6,426,679
|
41
|
3,800,610
|
36
|
|
s42
|
RETAINED
EARNINGS AND CAPITAL RESERVES
|
7,444,909
|
47
|
5,238,189
|
50
|
|
s44
|
OTHER
ACCUMULATED COMPREHENSIVE RESULT
|
(1,018,230)
|
(6)
|
(1,437,579)
|
(14)
|
|
s80
|
SHARES
REPURCHASED
|
0
|
0
|
0
|
0
|
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
CONSOLIDATED
FINANCIAL STATEMENT
BREAKDOWN
OF MAIN CONCEPTS
(thousands
of Mexican pesos)
|
REF
S
|
CONCEPTS
|
CURRENT
YEAR
|
PREVIOUS
YEAR
|
||
|
AMOUNT
|
%
|
AMOUNT
|
%
|
||
|
s03
|
CASH
AND SHORT-TERM INVESTMENTS
|
5,090,759
|
100
|
359,111
|
100
|
|
s46
|
CASH
|
395,871
|
8
|
316,894
|
88
|
|
s47
|
SHORT-TERM
INVESTMENTS
|
4,694,888
|
92
|
42,217
|
12
|
|
s07
|
OTHER
CURRENT ASSETS
|
60,476
|
100
|
214,253
|
100
|
|
s81
|
DERIVATIVE
FINANCIAL INSTRUMENTS
|
0
|
0
|
19,063
|
9
|
|
s82
|
DISCONTINUED
OPERATIONS
|
0
|
0
|
0
|
0
|
|
s83
|
OTHER
|
60,476
|
100
|
195,190
|
91
|
|
s18
|
OTHER
INTANGIBLE ASSETS AND DEFERRED ASSETS (NET)
|
443,434
|
100
|
748,086
|
100
|
|
s48
|
DEFERRED
EXPENSES
|
341,999
|
77
|
497,786
|
67
|
|
s49
|
GOODWILL
|
39,530
|
9
|
174,018
|
23
|
|
s50
|
DEFERRED
TAXES
|
0
|
0
|
0
|
0
|
|
s51
|
OTHER
|
61,905
|
14
|
76,282
|
10
|
|
s19
|
OTHER
ASSETS
|
5,579
|
100
|
5,941
|
100
|
|
s84
|
INTANGIBLE
ASSET FROM LABOR OBLIGATIONS
|
5,579
|
100
|
3,475
|
58
|
|
s85
|
DERIVATIVE
FINANCIAL INSTRUMENTS
|
0
|
0
|
0
|
0
|
|
s50
|
DEFERRED
TAXES
|
0
|
0
|
2,466
|
42
|
|
s86
|
DISCONTINUED
OPERATIONS
|
0
|
0
|
0
|
0
|
|
s87
|
OTHER
|
0
|
0
|
0
|
0
|
|
s21
|
CURRENT
LIABILITIES
|
2,927,627
|
100
|
3,080,132
|
100
|
|
s52
|
FOREIGN
CURRENCY LIABILITIES
|
1,883,232
|
64
|
1,745,431
|
57
|
|
s53
|
MEXICAN
PESOS LIABILITIES
|
1,044,395
|
36
|
1,334,701
|
43
|
|
s26
|
OTHER
CURRENT LIABILITIES
|
903,063
|
100
|
1,107,673
|
100
|
|
s88
|
DERIVATIVE
FINANCIAL INSTRUMENTS
|
0
|
0
|
0
|
0
|
|
s89
|
INTEREST
LIABILITIES
|
3,807
|
0
|
3,610
|
0
|
|
s68
|
PROVISIONS
|
301,796
|
33
|
387,588
|
35
|
|
s90
|
DISCONTINUED
OPERATIONS
|
0
|
0
|
0
|
0
|
|
s58
|
OTHER
CURRENT LIABILITIES
|
597,460
|
66
|
716,475
|
65
|
|
s27
|
LONG-TERM
LIABILITIES
|
0
|
0
|
0
|
0
|
|
s59
|
FOREIGN
CURRENCY LIABILITIES
|
0
|
0
|
0
|
0
|
|
s60
|
MEXICAN
PESOS LIABILITIES
|
0
|
0
|
0
|
0
|
|
s31
|
DEFERRED
LIABILITIES
|
0
|
0
|
0
|
0
|
|
s65
|
NEGATIVE
GOODWILL
|
0
|
0
|
0
|
0
|
|
s67
|
OTHER
|
0
|
0
|
0
|
0
|
|
s32
|
OTHER
NON CURRENT LIABILITIES
|
2,240,895
|
100
|
2,047,168
|
100
|
|
s66
|
DEFERRED
TAXES
|
2,149,967
|
96
|
1,920,636
|
94
|
|
s91
|
OTHER
LIABILITIES IN RESPECT OF SOCIAL INSURANCE
|
16,253
|
1
|
12,910
|
1
|
|
s92
|
DISCONTINUED
OPERATIONS
|
0
|
0
|
0
|
0
|
|
s69
|
OTHER
LIABILITIES
|
74,675
|
3
|
113,622
|
6
|
|
s79
|
CAPITAL
STOCK
|
3,928,865
|
100
|
3,668,458
|
100
|
|
s37
|
CAPITAL
STOCK (NOMINAL)
|
2,308,106
|
59
|
2,048,257
|
56
|
|
s69
|
RESTATEMENT
OF CAPITAL STOCK
|
1,620,759
|
41
|
1,620,201
|
44
|
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
CONSOLIDATED
FINANCIAL STATEMENT
BREAKDOWN
OF MAIN CONCEPTS
(thousands
of Mexican pesos)
|
REF
S
|
CONCEPTS
|
CURRENT
YEAR
|
PREVIOUS
YEAR
|
||
|
AMOUNT
|
%
|
AMOUNT
|
%
|
||
|
s42
|
RETAINED
EARNINGS AND CAPITAL RESERVES
|
7,444,909
|
100
|
5,238,189
|
100
|
|
s93
|
LEGAL
RESERVE
|
0
|
0
|
0
|
0
|
|
s43
|
RESERVE
FOR REPURCHASE OF SHARES
|
195,540
|
3
|
91,480
|
2
|
|
s94
|
OTHER
RESERVES
|
0
|
0
|
0
|
0
|
|
s95
|
RETAINED
EARNINGS
|
6,648,089
|
89
|
4,686,162
|
88
|
|
s45
|
NET
INCOME FOR THE YEAR
|
601,280
|
8
|
460,547
|
9
|
|
s44
|
OTHER
ACCUMULATED COMPREHENSIVE RESULT
|
(1,018,230)
|
100
|
(1,437,579)
|
100
|
|
s70
|
ACCUMULATED
MONETARY RESULT
|
0
|
0
|
0
|
0
|
|
s71
|
RESULT
FROM HOLDING NON-MONETARY ASSETS
|
(45,685)
|
4
|
(504,882)
|
35
|
|
s96
|
CUMULATIVE
RESULT FROM FOREIGN CURRENCY TRANSLATION
|
(22,094)
|
2
|
0
|
0
|
|
s97
|
CUMULATIVE
RESULT FROM DERIVATIVE FINANCIAL INSTRUMENTS
|
(4,442)
|
0
|
13,312
|
(1)
|
|
s98
|
CUMULATIVE
EFFECT OF DEFERRED INCOME TAXES
|
(946,009)
|
93
|
(946,009)
|
66
|
|
s99
|
LABOR
OBLIGATION ADJUSTMENT
|
0
|
0
|
0
|
0
|
|
s100
|
OTHER
|
0
|
0
|
0
|
0
|
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
BALANCE
SHEETS
OTHER
CONCEPTS
(thousands
of Mexican pesos)
|
REF
S
|
CONCEPTS
|
CURRENT
YEAR
|
PREVIOUS
YEAR
|
|
AMOUNT
|
AMOUNT
|
||
|
S72
|
WORKING
CAPITAL
|
10,016,565
|
4,371,229
|
|
S73
|
PENSIONS
FUND AND SENIORITY PREMIUMS
|
0
|
0
|
|
S74
|
EXECUTIVES
(*)
|
54
|
59
|
|
S75
|
EMPLOYERS
(*)
|
1,153
|
1,165
|
|
S76
|
WORKERS
(*)
|
3,082
|
3,248
|
|
S77
|
COMMON
SHARES (*)
|
474,621,611
|
140,404,902
|
|
S78
|
REPURCHASED
SHARES (*)
|
0
|
0
|
|
S101
|
RESTRICTED
CASH
|
0
|
0
|
|
S102
|
NET
DEBT OF NON CONSOLIDATED COMPANIES
|
0
|
0
|
(*)
THESE
ITEMS SHOULD BE EXPRESSED IN UNITS
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
STATEMENTS
OF INCOME
FROM
JANUARY 1 TO MARCH 31 OF 2007 AND 2006
(thousands
of Mexican pesos)
|
REF
R
|
CATEGORIES
|
CURRENT
YEAR
|
PREVIOUS
YEAR
|
||
|
AMOUNT
|
%
|
AMOUNT
|
%
|
||
|
r01
|
NET
SALES
|
6,079,170
|
100
|
5,848,202
|
100
|
|
r02
|
COST
OF SALES
|
4,868,843
|
80
|
4,881,098
|
83
|
|
r03
|
GROSS
PROFIT
|
1,210,327
|
20
|
967,104
|
17
|
|
r04
|
OPERATING
EXPENSES
|
354,773
|
6
|
332,971
|
6
|
|
r05
|
OPERATING
INCOME
|
855,554
|
14
|
634,133
|
11
|
|
r06
|
INTEGRAL
FINANCING COST
|
(75,231)
|
(1)
|
4,826
|
0
|
|
r07
|
INCOME
AFTER INTEGRAL FINANCING COST
|
930,785
|
15
|
629,307
|
11
|
|
r08
|
OTHER
EXPENSE AND INCOME (NET)
|
(26,842)
|
0
|
(12,129)
|
0
|
|
r44
|
SPECIAL
ITEMS
|
0
|
0
|
0
|
0
|
|
r09
|
INCOME
BEFORE INCOME TAXES AND EMPLOYEES’ PROFIT SHARING
|
957,627
|
16
|
641,436
|
11
|
|
r10
|
PROVISIONS
FOR INCOME TAXES AND EMPLOYEES’ PROFIT SHARING
|
231,371
|
4
|
98,333
|
2
|
|
r11
|
NET
INCOME AFTER TAXES AND EMPLOYEES’ PROFIT SHARING
|
726,256
|
12
|
543,103
|
9
|
|
r12
|
EQUITY
IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES AND
ASSOCIATES
|
0
|
0
|
0
|
0
|
|
r13
|
CONSOLIDATED
NET INCOME FROM CONTINUING OPERATIONS
|
726,256
|
12
|
543,103
|
9
|
|
r14
|
INCOME
FROM DISCONTINUED OPERATIONS
|
0
|
0
|
0
|
0
|
|
r15
|
CONSOLIDATED
NET INCOME BEFORE EXTRAORDINARY ITEMS
|
726,256
|
12
|
543,103
|
9
|
|
r16
|
EXTRAORDINARY
ITEMS, NET EXPENSES (INCOME)
|
0
|
0
|
0
|
0
|
|
r17
|
CUMULATIVE
EFFECT FROM ACCOUNTING CHANGE, NET
|
0
|
0
|
0
|
0
|
|
r18
|
NET
CONSOLIDATED INCOME
|
726,256
|
12
|
543,103
|
9
|
|
r19
|
NET
INCOME OF MINORITY INTEREST
|
124,976
|
2
|
82,556
|
1
|
|
r20
|
NET
INCOME OF MAJORITY INTEREST
|
601,280
|
10
|
460,547
|
8
|
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
|
GRUPO
SIMEC, S.A. DE C.V.
|
STATEMENTS
OF INCOME
BREAKDOWN
OF MAIN CONCEPTS
(thousands
of Mexican pesos)
|
REF
R
|
CONCEPTS
|
CURRENT
YEAR
|
PREVIOUS
YEAR
|
||
|
AMOUNT
|
%
|
AMOUNT
|
%
|
||
|
r01
|
NET
SALES
|
6,079,170
|
100
|
5,848,202
|
100
|
|
r21
|
DOMESTIC
|
1,828,676
|
30
|
1,405,297
|
24
|
|
r22
|
FOREIGN
|
4,250,494
|
70
|
4,442,905
|
76
|
|
r23
|
TRANSLATED
INTO DOLLARS (***)
|
388,343
|
389,220
|
||
|
r06
|
INTEGRAL
FINANCING COST
|
(75,231)
|
(100)
|
4,826
|
100
|
|
r24
|
INTEREST
EXPENSE
|
5,926
|
8
|
3,144
|
65
|
|
r42
|
LOSS
(GAIN) ON RESTATEMENT OF UDI’S
|
0
|
0
|
0
|
0
|
|
r45
|
OTHER
FINANCE COSTS
|
0
|
0
|
0
|
0
|
|
r26
|
INTEREST
INCOME
|
47,248
|
(63)
|
4,166
|
(86)
|
|
r46
|
OTHER
FINANCIAL INCOME
|
0
|
0
|
0
|
0
|
|
r25
|
FOREIGN
EXCHANGE LOSS (GAIN) (NET)
|
(61,652)
|
(82)
|
(1,833)
|
(38)
|
|
r28
|
RESULT
FROM MONETARY POSITION
|
27,743
|
37
|
7,681
|
159
|
|
r10
|
PROVISIONS
FOR INCOME TAXES AND EMPLOYEES’ PROFIT SHARING
|
231,371
|
100
|
98,333
|
100
|
|
r32
|
INCOME
TAX
|
111,639
|
48
|
121,242
|
123
|
|
r33
|
DEFERRED
INCOME TAX
|
119,732
|
52
|
(22,909)
|
(23)
|
|
r34
|
EMPLOYEES’
PROFIT SHARING EXPENSES
|
0
|
0
|
0
|
0
|
|
r35
|
DEFERRED
EMPLOYEES’ PROFIT SHARING
|
0
|
0
|
0
|
0
|
(***)
THOUSANDS OF DOLLARS
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
STATEMENTS
OF INCOME
OTHER
CONCEPTS
(thousands
of Mexican pesos)
|
REF
R
|
CONCEPTS
|
CURRENT
YEAR
|
PREVIOUS
YEAR
|
|
AMOUNT
|
AMOUNT
|
||
|
r36
|
TOTAL
SALES
|
6,111,403
|
6,044,961
|
|
r37
|
TAX
RESULT FOR THE YEAR
|
0
|
0
|
|
r38
|
NET
SALES (**)
|
23,690,792
|
17,700,034
|
|
r39
|
OPERATION
INCOME (**)
|
3,560,471
|
1,851,753
|
|
r40
|
NET
INCOME OF MAJORITY INTEREST (**)
|
2,316,857
|
1,286,239
|
|
r41
|
NET
CONSOLIDATED INCOME (**)
|
2,577,959
|
1,398,887
|
|
r47
|
OPERATIVE
DEPRECIATION AND AMORTIZATION
|
122,498
|
113,766
|
(**)
RESTATED INFORMATION FOR THE LAST TWELVE MONTHS
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
STATEMENTS
OF CHANGES IN FINANCIAL POSITION
FROM
JANUARY 1 TO MARCH 31 OF 2007 AND 2006
(thousands
of pesos)
|
REF
C
|
CONCEPTS
|
CURRENT
YEAR
|
PREVIOUS
YEAR
|
|
AMOUNT
|
AMOUNT
|
||
|
c01
|
CONSOLIDATED
NET INCOME
|
726,256
|
543,103
|
|
c02
|
+
(-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE CASH
|
242,230
|
90,857
|
|
c03
|
RESOURCES
FROM NET INCOME FOR THE YEAR
|
968,486
|
633,960
|
|
c04
|
RESOURCES
PROVIDED OR USES IN OPERATION
|
(331,075)
|
220,855
|
|
c05
|
RESOURCES
PROVIDED BY (USED FOR) IN OPERATING ACTIVITIES
|
637,411
|
854,815
|
|
c06
|
RESOURCES
PROVIDED BY (USED FOR) EXTERNAL FINANCING ACTIVITIES
|
80
|
(263,650)
|
|
c07
|
RESOURCES
PROVIDED BY (USED FOR) INTERNAL FINANCING ACTIVITIES
|
2,358,885
|
127,592
|
|
c08
|
RESOURCES
PROVIDED BY (USED FOR) INTERNAL FINANCING ACTIVITIES
|
2,358,965
|
(136,058)
|
|
c09
|
RESOURCES
PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES
|
(53,917)
|
(578,356)
|
|
c10
|
NET
INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS
|
2,942,459
|
140,401
|
|
c11
|
CASH
AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF PERIOD
|
2,148,300
|
218,710
|
|
c12
|
CASH
AND SHORT TERM INVESTMENTS AT THE END OF PERIOD
|
5,090,759
|
359,111
|
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
STATEMENTS
OF CHANGES IN FINANCIAL POSITION
BREAKDOWN
OF MAIN CONCEPTS
(thousands
of pesos)
|
REF
C
|
CONCEPTS
|
CURRENT
YEAR
|
PREVIOUS
YEAR
|
|
AMOUNT
|
AMOUNT
|
||
|
c02
|
+
(-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE
CASH
|
242,230
|
90,857
|
|
c13
|
DEPRECIATION
AND AMORTIZATION FOR THE YEAR
|
122,498
|
113,766
|
|
c41
|
+
(-) OTHER ITEMS
|
119,732
|
(22,909)
|
|
c04
|
RESOURCES
PROVIDED OR USED IN OPERATION
|
(331,075)
|
220,855
|
|
c18
|
+
(-) DECREASE (INCREASE) IN ACCOUNT RECEIVABLES
|
(526,553)
|
(177,383)
|
|
c19
|
+
(-) DECREASE (INCREASE) IN INVENTORIES
|
128,667
|
(67,455)
|
|
c20
|
+
(-) DECREASE (INCREASE) IN OTHER ACCOUNT RECEIVABLES
|
17,658
|
115,014
|
|
c21
|
+
(-) DECREASE (INCREASE) IN SUPPLIERS
|
(88,103)
|
344,245
|
|
c22
|
+
(-) DECREASE (INCREASE) IN OTHER LIABILITIES
|
137,256
|
6,434
|
|
c06
|
RESOURCES
PROVIDED BY (USED FOR) EXTERNAL FINANCING
ACTIVITIES
|
80
|
(263,650)
|
|
c23
|
+
BANK FINANCING
|
0
|
0
|
|
c24
|
+
STOCK MARKET FINANCING
|
27
|
0
|
|
c25
|
+
DIVIDEND RECEIVED
|
0
|
0
|
|
c26
|
OTHER
FINANCING
|
53
|
163,795
|
|
c27
|
BANK
FINANCING AMORTIZATION
|
0
|
(427,445)
|
|
c28
|
(-)
STOCK MARKET FINANCING AMORTIZATION
|
0
|
0
|
|
c29
|
(-)
OTHER FINANCING AMORTIZATION
|
0
|
0
|
|
c42
|
+
(-) OTHER ITEMS
|
0
|
0
|
|
c07
|
RESOURCES
PROVIDED BY (USED FOR) INTERNAL FINANCING
ACTIVITIES
|
2,358,885
|
127,592
|
|
c30
|
+
(-) INCREASE (DECREASE) IN CAPITAL STOCK
|
260,398
|
37,678
|
|
c31
|
(-)
DIVIDENDS PAID
|
0
|
0
|
|
c32
|
+
PREMIUM ON ISSUANCE OF SHARES
|
2,098,487
|
89,914
|
|
c33
|
+
CONTRIBUTION FOR FUTURE CAPITAL INCREASES
|
0
|
0
|
|
c43
|
+
(-) OTHER ITEMS
|
0
|
0
|
|
c09
|
RESOURCES
PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES
|
(53,917)
|
(578,356)
|
|
c34
|
+
(-) INCREASE (DECREASE) IN PERMANENT STOCK INVESTMENTS
|
0
|
0
|
|
c35
|
(-)
ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT
|
(54,795)
|
(112,697)
|
|
c36
|
(-)
INCREASE IN CONSTRUCTION PROGRESS
|
0
|
0
|
|
c37
|
+
SALE OF OTHER PERMANENT INVESTMENTS
|
0
|
0
|
|
c38
|
+
SALE OF TANGIBLE FIXED ASSETS
|
0
|
0
|
|
c39
|
+
(-) OTHER ITEMS
|
878
|
(465,659)
|
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
RATIOS
CONSOLIDATED
|
REF
P
|
CATEGORIES
|
QUARTER
OF PRESENT
FINANCIAL
YEAR
|
QUARTER
OF PREVIOUS
FINANCIAL
YEAR
|
|
YIELD
|
|||
|
p01
|
NET
INCOME TO NET SALES
|
11.94%
|
9.28%
|
|
p02
|
NET
INCOME TO STOCKHOLDERS’ EQUITY (**)
|
17.25%
|
15.23%
|
|
p03
|
NET
INCOME TO TOTAL ASSETS (**)
|
12.30%
|
8.90%
|
|
p04
|
CASH
DIVIDENDS TO PREVIOUS YEAR NET INCOME
|
0.00%
|
0.00%
|
|
p05
|
INCOME
DUE TO MONETARY POSITION TO NET INCOME
|
(3.82)%
|
(1.41)%
|
|
ACTIVITY
|
|||
|
p06
|
NET
SALES TO NET ASSETS (**)
|
1.13
times
|
1.12
times
|
|
p07
|
NET
SALES TO FIXED ASSETS (**)
|
3.13
times
|
2.36
times
|
|
p08
|
INVENTORIES
TURNOVER (**)
|
5.94
times
|
3.82
times
|
|
p09
|
ACCOUNTS
RECEIVABLE IN DAYS OF SALES
|
34.92
days
|
35.85
days
|
|
p10
|
PAID
INTEREST TO TOTAL LIABILITIES WITH COST (**)
|
11.58%
|
1,098.67%
|
|
LEVERAGE
|
|||
|
p11
|
TOTAL
LIABILITIES TO TOTAL ASSETS
|
24.66%
|
32.64%
|
|
p12
|
TOTAL
LIABILITIES TO STOCKHOLDERS’ EQUITY
|
0.32
times
|
0.48
times
|
|
p13
|
FOREIGN
CURRENCY LIABILITIES TO TOTAL LIABILITIES
|
36.43%
|
34.04%
|
|
p14
|
LONG-TERM
LIABILITIES TO FIXED ASSETS
|
0.00%
|
0.00%
|
|
p15
|
OPERATING
INCOME TO INTEREST PAID
|
144.37
times
|
201.69
times
|
|
p16
|
NET
SALES TO TOTAL LIABILITIES (**)
|
4.58
times
|
3.45
times
|
|
LIQUIDITY
|
|||
|
p17
|
CURRENT
ASSETS TO CURRENT LIABILITIES
|
4.42
times
|
2.41
times
|
|
p18
|
CURRENT
ASSETS LESS INVENTORY TO CURRENT LIABILITIES
|
2.78
times
|
1.17
times
|
|
p19
|
CURRENT
ASSETS TO TOTAL LIABILITIES
|
2.50
times
|
1.45
times
|
|
p20
|
AVAILABLE
ASSETS TO CURRENT LIABILITIES
|
173.88%
|
11.65%
|
|
CASH
FLOW
|
|||
|
p21
|
RESOURCES
FROM NET INCOME TO NET SALES
|
15.93%
|
10.84%
|
|
p22
|
RESOURCES
FROM CHANGES IN WORKING CAPITAL TO NET SALES
|
(5.44)%
|
3.77%
|
|
p23
|
RESOURCES
GENERATED (USED) IN OPERATING TO INTEREST PAID
|
107.56
times
|
271.88
times
|
|
p24
|
EXTERNAL
FINANCING TO RESOURCES PROVIDED BY (USED FOR) FINANCING
|
0.00%
|
193.77%
|
|
p25
|
INTERNAL
FINANCING TO RESOURCES PROVIDED (USED FOR) FINANCING
|
(99.99)%
|
(93.77)%
|
|
p26
|
RESOURCES
PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES
|
101.62%
|
19.48%
|
(**)
IN
THESE RATIOS FOR THE DATA TAKE INTO CONSIDERATION THE LAST TWELVE
MONTHS
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
DATE
PER SHARE
CONSOLIDATED
|
REF
D
|
CATEGORIES
|
QUARTER
OF PRESENT
FINANCIAL
YEAR
|
QUARTER
OF PREVIOUS
FINANCIAL
YEAR
|
|
d01
|
BASIC
PROFIT PER ORDINARY SHARE (**)
|
$
5.41
|
$
8.95
|
|
d02
|
BASIC
PROFIT PER PREFERRED SHARE (**)
|
$
0.00
|
$
0.00
|
|
d03
|
DILUTED
PROFIT PER ORDINARY SHARE (**)
|
$
0.00
|
$
0.00
|
|
d04
|
CONTINUING
OPERATING PROFIT PER COMMON SHARE (**)
|
$
5.41
|
$
8.95
|
|
d05
|
EFFECT
OF DISCONTINUED OPERATIONS ON CONTINUING OPERATING PROFIT PER SHARE
(**)
|
$
0.00
|
$
0.00
|
|
d06
|
EFFECT
OF EXTRAORDINARY PROFIT AND LOSS ON CONTINUING OPERATING PROFIT
PER SHARE
(**)
|
$
0.00
|
$
0.00
|
|
d07
|
EFFECT
BY CHANGES IN ACCOUNTING POLICIES ON CONTINUING OPERATING PROFIT
PER SHARE
(**)
|
$
0.00
|
$
0.00
|
|
d08
|
CARRYING
VALUE PER SHARE
|
$
28.29
|
$
60.12
|
|
d09
|
CASHH
DIVIDEND ACCUMULATED PER SHARE
|
$
0.00
|
$
0.00
|
|
d10
|
DIVIDEND
IN SHARES PER SHARE
|
0.00
shares
|
0.00
shares
|
|
d11
|
MARKET
PRICE TO CARRYING VALUE
|
1.60
times
|
1.33
times
|
|
d12
|
MARKET
PRICE TO BASIC PROFIT PER ORDINARY SHARE
|
8.36
times
|
8.58
times
|
|
d13
|
MARKET
PRICE TO BASIC PROFIT PER PREFERRED SHARE (**)
|
0.00
times
|
0.00
times
|
(**)
TO
CALCULATE THE DATE PER SHARE USE THE NET INCOME FOR THE LAST TWELVE
MONTHS.
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
DIRECTOR
REPORT
CONSOLIDATED
Comparative
first quarter 2007 vs first quarter 2006
Net
Sales
Net
sales
increased 4% from Ps. 5,848 million for the first quarter 2006 compared with
Ps.
6,079 million for the same period 2007 due to an increase in volume as prices
remained stable. Sales of finished steel products increased 4% to 704 thousand
tons in the first quarter 2007 compared with 680 thousand tons in the same
period 2006. Total sales outside of Mexico for the first quarter 2007 decreased
4% to Ps. 4,250 million compared with Ps. 4,443 million for the same period
2006. Total Mexican sales increased 30% from 1,405 million in 2006 to Ps.1,829
millions in the same period 2007.
Cost
of Sales
Cost
of
sales remained relatively flat from Ps. 4,881 million in the first quarter
2006
to Ps. 4,869 million for the same period 2007. In the first quarter 2007, the
cost of sales represented 80% of net sales compared to 83% for the same period
2006. The decrease in cost is attributed to a decrease of 4% in the average
cost
of raw materials used to produce steel products in real terms in the first
quarter of 2007 versus the same period of 2006.
Gross
Profit
Gross
profit for the first quarter 2007 increased 25% to Ps. 1,210 million compared
to
Ps. 967 million in the same period of 2006. Gross profit as a percentage of
net
sales for the first quarter 2007 was 20% compared with 17% for the same period
of 2006. This was principally due to stable prices and an increase of 4% in
sales volume.
Operating
Expenses
Operating
expenses increased 7% to Ps. 355 million in the first quarter 2007 compared
to
Ps. 333 million for the same period 2006 but remained stable at 6% of net
sales.
Operating
Profit
Operating
profit increased 35% from Ps. 634 million in the first quarter 2006 to Ps.
856
million for the same period 2007. Operating profit as a percentage of sales
in
the first quarter 2006 was 11% compared to 14% in the same period 2007. This
was
due to an increment of 4% in volumes of products sold and stable
prices.
Integral
Financial Cost
Integral
financial cost for the first quarter 2007 represented a gain of Ps. 75 million
compared with the loss of Ps. 5 million for the same period 2006. Interest
income was Ps.47 million in the first quarter 2007 compared with Ps. 4 million
in the same period 2006. At the same time we registered an exchange gain of
Ps.
61 million in the first quarter 2007 compared with an exchange gain of Ps.
2
million in the first quarter 2006, reflecting a 1.8% decrease in the value
of
the peso versus the dollar in the first quarter of 2007.
Other
Expenses (Income) net
The
company recorded other income net of Ps. 27 million for the first quarter 2007
compared with other income net for Ps. 12 million for the same period 2006.
The
increase is attributable to the recognition of the benefit of natural gas
hedging contracts value as compared to fair market value in the United
States.
Taxes
and Profit Sharing
Taxes
and
profit sharing for the first quarter 2007 increased to Ps. 231 million compared
to Ps. 98 million for the same period 2006 due to an increase in differed taxes
during the first quarter 2007.
Net
Profit
As
a
result of the foregoing, net profit increased by 34% to Ps. 726 million in
the
first quarter 2007 from Ps. 543 million in the first quarter 2006.
Comparative
first quarter 2007 vs fourth quarter 2006
Net
Sales
Net
sales
increased 27% due to an increase of 13% in prices and a 12% increase in volume
making net sales go from Ps. 4,785 million for the fourth quarter 2006 to Ps.
6,079 million for the first quarter 2007. Sales in tons of finished steel
products increased 12% to 704 thousand tons in the first quarter 2007 compared
with 627 thousand tons in the fourth quarter 2006. The total sales outside
of
Mexico for the first quarter 2007 increased 53% to Ps. 4,250 million compared
with Ps. 2,774 million for the same period 2006. Total sales in Mexico decreased
9% from Ps. 2,011 million in the fourth quarter of 2006 to Ps.1,829 millions
in
the same period 2007.
Cost
of Sales
Cost
of
sales increased 22% from Ps. 3,986 million in the fourth quarter 2006 to Ps.
4,869 million for the first quarter 2007. In the first quarter 2007, the cost
of
sales represented 80% of net sales compared to 83% for the fourth quarter 2006.
The increase in cost is due to a 12% increase in sales volumes and an increase
of 9% in the average cost primarily as a result of increases in the price of
scrap and certain other raw materials.
Gross
Profit
Gross
profit for the first quarter 2007 increased 51% to Ps. 1,210 million compared
to
Ps. 799 million in the fourth quarter 2006. Gross profit as a percentage of
net
sales for the first quarter 2007 was 20% compared with 17% for the fourth
quarter 2006. The increase in gross profit was due to an increase of 13% in
prices, a 12% increase in sales volume and an increase of 9% in the average
cost.
Operating
Expenses
Operating
expenses increased 12% to Ps. 355 million in the first quarter 2007 compared
to
Ps. 318 million for the fourth quarter 2006. As a percentage of sales, operating
expenses represented 6% during the first quarter of 2007 compared to 7% in
the
fourth quarter of 2006.
Operating
Profit
Operating
profit increased 78% from Ps. 481 million in the fourth quarter 2006 to Ps.
856
million for the first quarter 2007. Operating profit as a percentage of net
sales increased to 14% in the first quarter 2007 from 10 % in the fourth quarter
2006. This was due to an increase of 12% in sales volume, a 13% increase in
prices and an increase of 9% in the average cost of raw materials.
Integral
Financial Cost
Integral
financial cost for the first quarter 2007 represented an income of Ps. 75
million compared with an expense Ps. 39 million for the fourth quarter 2006.
Interest income was Ps. 47 million in the first quarter 2007 compared with
Ps.
23 million in the fourth quarter 2006.
Other
Expenses (Income) net
The
company recorded other income net of Ps. 27 million for the first quarter 2007
compared with other income net of Ps. 26 million for the fourth quarter 2006.
Taxes
and Profit Sharing
Taxes
and
profit sharing for the first quarter 2007 were Ps. 231 million compared to
Ps.
157 million for the fourth quarter 2006.
Net
Profit
As
a
result of the foregoing, net profit increased by 133% to Ps. 726 million in
the
first quarter 2007 from Ps. 311 million in the fourth quarter 2006.
|
(Millions
of pesos)
|
1Q
‘07
|
4Q
‘06
|
1Q
‘06
|
1Q´07vs
4Q´06
|
1Q´07
vs
1Q'06
|
|
Sales
|
6,079
|
4,785
|
5,848
|
27%
|
4%
|
|
Cost
of Sales
|
4,869
|
3,986
|
4,881
|
22%
|
0%
|
|
Gross
Profit
|
1,210
|
799
|
967
|
51%
|
25%
|
|
Operating
Expenses
|
355
|
318
|
333
|
12%
|
7%
|
|
Operating
Profit
|
856
|
481
|
634
|
78%
|
35%
|
|
EBITDA
|
978
|
600
|
748
|
63%
|
31%
|
|
Net
Profit
|
726
|
311
|
543
|
133%
|
34%
|
|
Sales
outside Mexico
|
4,250
|
2,774
|
4,443
|
53%
|
-4%
|
|
Sales
in México
|
1,829
|
2,011
|
1,405
|
-9%
|
30%
|
|
Total
sales (tons)
|
704
|
627
|
680
|
12%
|
4%
|
|
Product
|
Thousands
of tons
1Q
'07
|
Millions
of pesos
1Q'07
|
Average
price per ton 1Q'07
|
Thousands
of tons 4Q'06
|
Millions
of pesos 4Q'06
|
Average
price per ton 4Q'06
|
Thousands
of tons 1Q'06
|
Millions
of pesos 1Q'06
|
Average
price per ton 1Q'06
|
|
SBQ
|
516
|
4,711
|
9,131
|
463
|
3,602
|
7,702
|
497
|
4,681
|
9,038
|
|
Light
Structural
|
62
|
442
|
7,130
|
51
|
361
|
7,016
|
82
|
515
|
6,024
|
|
Structural
|
61
|
482
|
7,899
|
52
|
423
|
8,047
|
53
|
355
|
6,433
|
|
Rebar
|
64
|
439
|
6,862
|
60
|
386
|
6,363
|
47
|
295
|
6,023
|
|
Others
|
1
|
5
|
-
|
1
|
13
|
-
|
1
|
2
|
-
|
|
Total
|
704
|
6,079
|
8,635
|
627
|
4,785
|
7,631
|
680
|
5,848
|
8,601
|
|
|
|
|
|
|
|
|
|
|
|
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.
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
FINANCIAL
STATEMENT NOTES
CONSOLIDATED
(1)
Operations preparation bases and summary of significant accounting
policies:
Grupo
Simec, S.A. de C.V. and its Subsidiaries (“the Company”) are subsidiaries of
Industrias CH, S.A. de C.V. (“ICH”), and their main activities consist of the
manufacturing and sale of steel products primarily destined for the construction
sector of Mexico and other countries.
Significant
accounting policies and practices followed by the Companies which affect the
principal captions of the financial statements are described below:
a.
Financial statement presentation -
The
consolidated financial statements have been prepared in accordance with
principles generally accepted in Mexico, which include the recognition of the
effects of inflation on the financial information and the presentation in
constant Mexican pesos.
b.
Principles of Consolidation -
As part
of the financial debt restructuring agreement into during 1997, Compañía
Siderúrgica de Guadalajara, S.A. de C.V. (“CSG”) assumed all of the debt of the
Company in return for an equity interest in its subsidiaries. As a result of
the
above, the Company is the principal shareholder of CSG, and CSG is the principal
shareholder of the other subsidiaries that Grupo Simec, S.A. de C.V. (“Simec")
controlled before the restructuring.
The
main
subsidiaries of CSG are the following:
°
Compañía Siderúrgica de California, S.A. de C.V.
°
Industrias del Acero y del Alambre, S.A. de C.V.
°
Pacific
Steel Inc.
°
SimRep
Corporation and PAV Republic and Subsidiaries
All
significant intercompany balances and transactions have been eliminated in
consolidation.
c.
Cash and cash equivalents -
The
Company considers short-term investments with original maturities not greater
than three months to be cash equivalent. Cash equivalents include temporary
investments and Mexican Government Treasury Bonds, and are stated at market
value, which approximates cost plus earned interest. Any increase in market
value is credited to operations for the period.
d.
Inventories -
The
inventories are originally stated at average cost and subsequently adjusted
to
replacement value at the balance sheet date. The replacement values do not
exceed market and are determined as follows:
Billet
finished goods and work in process - At the latest production cost for the
month.
Raw
materials - According to purchase prices prevailing in the market at the balance
sheet date.
Materials,
supplies and rollers - At historical cost, restated by applying the steel
industry inflation index.
The
Company presents as non-current inventories the rollers and spare parts, which
according to historical data and production trends will not be used within
a
one-year period.
e.-
Derivative financial instruments--
The
Company is using derivative financial instruments for hedging risks associated
with natural gas prices and conducted studies on historical consumption, future
requirements and commitments; thus it avoided exposure to risks other than
the
normal operating risks. Management of the Company examines its financial risks
by continually analyzing price, credit and liquidity risks.
The
Company uses futures contracts for hedging risks from fluctuations in natural
gas prices, which are based on demand and supply at the principal international
markets.
As
applicable, the Company recognized the fair value of instruments either as
liabilities or assets. Such fair value and thus, the value of these assets
or
liabilities were restated at each month’s-end. The Company opted for the early
adoption of Bulletin C-10 “Derivative Financial Instruments and Hedging”;
therefore, at December 31, 2003 the fair value of natural gas in force during
2004, 2005 and 2006 and which effective portions will not be offset against
the
asset risks until consumed, were recognized within the comprehensive income
account in stockholders’ equity.
f.
Property, plant and equipment -
Property, plant and equipment of domestic origin are restated by using factors
derived from The National Consumer Price Index (“NCPI”) from the date of their
acquisition, and imported machinery and equipment are restated by applying
devaluation and inflation factors of the country of origin. Depreciation
recorded in the consolidated statement of income (loss) is computed based upon
the estimated useful life and the restated cost of each asset. In addition,
Financial expense incurred during the construction period is capitalized as
construction in progress. The capitalized amounts are restated using a factor
derived from the NCPI cumulative from the date of capitalization through
period-end and are amortized over the average depreciation period of the
corresponding assets. The estimated useful lives of assets as of March 31,
2007
are as follows:
|
Years
|
|
|
Buildings...........................................................................
|
15
to 50
|
|
Machinery
and equipment ............................................
|
10
to 40
|
|
Buildings
and improvements (Republic)………..........
|
10
to 25
|
|
Land
improvements (Republic)…………….................
|
5
to 25
|
|
Machinery
and equipment (Republic)……..…………
|
5
to 20
|
g.
Other assets -
Organization and pre-operating expenses are capitalized and restated using
a
factor derived from the NCPI cumulative from the date of generation through
period-end, and their amortization is calculated by the straight-line method
over a period of 20 years.
h.
Seniority premiums and severance payments -
According to Federal Labor Law, employees are entitled to seniority premiums
after fifteen years or more of services. These premiums are recognized as
expenses in the years in which the services are rendered, using actuarial
calculations based on the projected unit credit method, and since 1996 by
applying real interest and salary increases.
Any
other
payments to which employees may be entitled in case of separation, disability
or
death, are charged to operations in the period in which they become
payable.
i.
Pension plan -
Until
1995, the Company provided pension benefits for all personnel with a minimum
of
10 years of service and 35 years of age. The Company had established an
irrevocable trust for its contributions, which were based on actuarial
calculations. In December 1995, the board of directors of the Company, in
agreement
with the trade union, discontinued these benefits and related contributions
to
the trust fund. This decision was made because of the new Mexican pension fund
system, Administradoras de Fondos para el Retiro, which establishes similar
benefits for the employees. The balance of the trust fund will be applied to
the
retirement benefits of qualifying employees until the fund is exhausted due
to
the irrevocable status of the fund.
The
Company does not have any contractual obligation regarding the payment of
pensions of retirements.
j.
Cost of sales -
Cost of
sales related to sales of inventory items is recorded at standard cost, which
approximates the replacement cost at the date of sale.
k.
Income tax and employee profit sharing - In
1999,
the Mexican Institute of Public Accountants issued Bulletin D-4, “Accounting for
Income and Asset Taxes and Employee Profit Sharing”, which is effective for all
fiscal years beginning January 1, 2000. Bulletin D-4 establishes financial
accounting and reporting standards for the effects of asset tax, income tax
and
employee profit sharing that result from enterprise activities during the
current and preceding years.
The
Company and its subsidiaries are included in the consolidated tax returns of
the
company's parent.
l.
Foreign currency transactions and exchange differences - All
transactions in foreign currency are recorded at the exchange rates prevailing
on the date of their execution or liquidation. Foreign currency denominated
assets and liabilities are translated at the exchange rates prevailing at the
balance sheet date. Any exchange differences incurred with regard to assets
or
liabilities denominated in foreign currency are charged to operations of the
period and are included in financial income (expense) in the accompanying
consolidated statements of income (loss).
For
consolidation purposes, the financial statements of the subsidiaries abroad,
SimRep and subsidiaries, Pacific Steel and Undershaft Investment, were
translated into pesos in conformity with Mexican accounting Bulletin B-15,
Transactions in Foreign Currency and Translation of Financial Statements of
Foreign Operations.
The
subsidiary SimRep was considered as a foreign entity for translation purposes;
therefore the financial statements as reported by the subsidiary abroad were
adjusted to conform with Mexican GAAP, which includes the recognition of the
effects of inflation as required by Mexican accounting Bulletin B-10, applying
inflation adjustment factors derived from the U.S. Consumer Price Index (CPI)
published by the U.S. labor department, The financial information already
restated to include inflationary effects, is translated to Mexican pesos as
follows:
-By
applying the prevailing exchange rate at the consolidated balance sheet date
for
monetary and non-monetary assets and liabilities.
-By
applying the prevailing exchange rate for stockholders’ equity accounts, at the
time capital contributions were made and earnings were generated.
-By
applying the prevailing exchange rate at the consolidated balance sheet date
for
revenues and expenses during the reporting period.
-The
related effect of translation is recorded in stockholders’ equity under the
caption Equity adjustments for non monetary assets.
-The
resulting amounts were restated applying adjustment factors derived from the
NCPI, in conformity with Mexican accounting Bulletin B-10.
The
subsidiaries Pacific Steel and Undershaft Investment, were considered an
“integral part of the operations” of the Company; and the financial statements
of such subsidiaries were translated into Mexican pesos as follows:
By
applying the prevailing exchange rate at the consolidated balance sheet date
for
monetary items.
By
applying the prevailing exchange rate at the time the non-monetary assets and
capital are generated, and the weighted average exchange rate of the period
for
income statement items.
The
related effect of translation is recorded in the statement of operations as
part
of the caption Comprehensive financing cost.
The
resulting amounts were restated applying adjustment factors derived from the
Mexican NCPI, in conformity with Mexican accounting Bulletin B-10.
m.
Geographic concentration of credit risk -
The
Company sells its products primarily to distributors for the construction
industry with no specific geographic concentration. Additionally, no single
customer accounted for a significant amount of the Company's sales, and there
were no significant accounts receivable from a single customer or affiliate
at
March 31, 2006 and at March 31, 2007, direct sales to two customers accounted
for approximately 10% and 16.6% of the Republic’s sales. The Company performs
evaluations of its customers' credit histories and establishes and allowance
for
doubtful accounts based upon the credit risk of specific customers and
historical trends.
n.
Other income (expenses) -
Other
income (expenses) shown in the consolidated statements of operations primarily
includes other financial operations.
o.
Gain on monetary position -
The gain
on monetary position in the consolidated statements of income (loss) is
determined by applying to net monetary assets or liabilities at the beginning
of
each month the factor of inflation derived from the NCPI and is restated at
period-end with the corresponding factor.
p.
Restatement of capital stock and retained earnings (losses)
-
This is
determined by multiplying capital stock contributions and retained earnings
(losses) by factors derived from the NCPI, which measure the cumulative
inflation from the date when capital stock contributions were made and earnings
(losses) were generated, through the latest period-end.
q.
Effect of restatement of stockholders’ equity - The
effect resulting from restating stockholders’ equity includes the accumulated
effect from holding non-monetary assets, which represents the change in the
specific price level of those assets compared to the change in the
NCPI.
(2)
Financial Debt:
At
March
31, 2007 Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8%
medium-term notes (“MTN’s”) due 1998 (accrued interest at March 31, 2007 was
U.S. $ 343,570 dollars). At December 31, 2006 Simec’s total consolidated debt
consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998
(accrued interest at December 31, 2006 was U.S. $336,525 dollars).
(3)
Commitments and contingent liabilities:
a.
Pacific Steel, Inc. (a wholly-owned subsidiary located in the U.S.A.) has been
named in various claims and suits relating to the generation, storage,
transport, disposal and cleanup of materials classified as hazardous waste.
The
Company has accrued approximately Ps. 10,762 (U.S. $971,165) at March 31, 2007,
(included in accrued liabilities) relating to these actions; the reduction
of
this reserve from previous levels reflects clean-up activities undertaken by
Simec. Management believes the ultimate liability with respect to this matter
will not exceed the amounts that have been accrued.
b.
The
Company is subject to various other legal proceeding and claims, which have
arisen, in the ordinary course of its business. It is the opinion of management
that their ultimate resolution will not have a material adverse effect on the
Company’s consolidated financial position or consolidated results of
operations.
c.
Compañía Siderúrgica de Guadalajara, S.A. de C.V. has entered into a gas and
liquid oxygen purchase agreement with Praxair de México, S.A. de C.V., under
which it is committed to acquire monthly over a fifteen-
year
period beginning January 1, 1989, a certain amount of product. At present
required purchases amount to Ps. 1,800 per month.
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
RELATIONS
OF SHARES INVESTMENTS
CONSOLIDATED
|
COMPANY
NAME
|
MAIN
ACTIVITIES
|
NUMBER
OF
SHARES
|
OWNERSHIP
|
|
SUBSIDIARIES
|
|||
|
Cia
siderurgica de Guadalajara
|
Sub-Holding
|
99.99
|
|
|
Simec
International
|
Production
and sales of steel products
|
99.99
|
|
|
Arrendadora
Simec
|
Production
and sales of steel products
|
100.00
|
|
|
Controladora
Simec
|
Sub-Holding
|
100.00
|
|
|
Pacific
Steel
|
Scrap
purchase
|
100.00
|
|
|
Cia.
Siderúrgica del Pacífico
|
Rent
of land
|
99.99
|
|
|
Coordinadora
de Servicios Siderúrgicos de Calidad
|
Administrative
services
|
100.00
|
|
|
Administradora
de Servicios de la Industria Siderúrgica
|
Administrative
services
|
99.99
|
|
|
Industrias
del Acero y del Alambre
|
Sales
of steel products
|
99.99
|
|
|
Procesadora
Mexicali
|
Scrap
purchase
|
99.99
|
|
|
Servicios
Simec
|
Administrative
services
|
100.00
|
|
|
Sistemas
de Transporte de Baja California
|
Freight
services
|
100.00
|
|
|
Operadora
de Metales
|
Administrative
services
|
100.00
|
|
|
Operadora
de Servicios Siderúrgicos de Tlaxcala
|
Administrative
services
|
100.00
|
|
|
Administradora
de Servicios Siderúrgicos de Tlaxcala
|
Administrative
services
|
100.00
|
|
|
Operadora
de Servicios de la Industria Siderúrgica
|
Administrative
services
|
100.00
|
|
|
SimRep
|
Sub-Holding
|
100.00
|
|
|
PAV
Republic
|
Production
and sales of steel products
|
100.00
|
|
|
TOTAL
INVESTMENT IN SUBSIDIARIES
|
|||
|
ASSOCIATEDS
|
0
|
0.00
|
|
|
TOTAL
INVESTMENT IN ASSOCIATEDS
|
0.00
|
||
|
OTHER
PERMANENT INVESTMENTS
|
0.00
|
||
|
TOTAL
|
NOTES
MEXICAN
STOCK EXCHANGE
SIFIC
/ ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
CREDITS
BREAK DOWN
(THOUSANDS
OF MEXICAN PESOS)
CONSOLIDATED
|
Amortization
|
Rate
of
|
Denominated
in Pesos (Thousands of Pesos)
|
Denominated
in Foreign Currency (Thousands of Pesos)
|
|||||||||||
|
Credit
Type / Institution
|
Date
|
Interest
|
Time
Interval
|
Time
Interval
|
||||||||||
|
Current
|
Until
1
|
Until
2
|
Until
3
|
Until
4
|
Until
5
|
Current
|
Until
1
|
Until
2
|
Until
3
|
Until
4
|
Until
5
|
|||
|
Year
|
Year
|
Years
|
Years
|
Years
|
Years
or
|
Year
|
Year
|
Years
|
Years
|
Years
|
Years
or
|
|||
|
More
|
More
|
|||||||||||||
|
BANKS
|
||||||||||||||
|
With
Warranty
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||
|
TOTAL
BANKS
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||
|
LISTED
IN THE
STOCK
EXCHANGE
|
||||||||||||||
|
UNSECURED
DEBT
|
||||||||||||||
|
Medium
Term Notes
|
15/12/1998
|
9.33
|
0
|
0
|
0
|
0
|
0
|
0
|
3,347
|
0
|
0
|
0
|
0
|
0
|
|
TOTAL
STOCK EXCHANGE
|
0
|
0
|
0
|
0
|
0
|
0
|
3,347
|
0
|
0
|
0
|
0
|
0
|
||
|
SUPPLIERS
|
||||||||||||||
|
Various
|
0
|
401,483
|
0
|
0
|
0
|
0
|
0
|
1,312,533
|
0
|
0
|
0
|
0
|
||
|
TOTAL
SUPPLIERS
|
0
|
401,483
|
0
|
0
|
0
|
0
|
0
|
1,312,533
|
0
|
0
|
0
|
0
|
||
|
OTHER
CURRENT LIABILITIES AND OTHER CREDITS
|
||||||||||||||
|
Various
|
0
|
318,285
|
0
|
0
|
0
|
0
|
0
|
279,175
|
0
|
0
|
0
|
0
|
||
|
TOTAL
OTHER CURRENT LIABILITIES AND OTHER CREDITS
|
0
|
318,285
|
0
|
0
|
0
|
0
|
0
|
279,175
|
0
|
0
|
0
|
0
|
||
|
TOTAL
|
0
|
719,768
|
0
|
0
|
0
|
0
|
3,347
|
1,591,708
|
0
|
0
|
0
|
0
|
|
NOTES:
The exchange rate of the peso to the U.S. Dollar at March 31, 2007
was Ps.
11.0813
|
MEXICAN
STOCK EXCHANGE
SIFIC
/
ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
MONETARY
FOREIGN CURRENCY POSITION
(Thousands
of Mexican Pesos)
CONSOLIDATED
|
DOLLARS
|
OTHER
CURRENCIES
|
TOTAL
|
|||
|
FOREIGN
CURRENCY POSITION
|
THOUSANDS
OF DOLLARS
|
THOUSANDS
OF PESOS
|
THOUSANDS
OF DOLLARS
|
THOUSANDS
OF PESOS
|
THOUSANDS
OF PESOS
|
|
TOTAL
ASSETS
|
627,625
|
6,954,864
|
0
|
0
|
6,954,864
|
|
LIABILITIES
POSITION
|
169,894
|
1,882,649
|
52
|
583
|
1,883,232
|
|
SHORT
TERM LIABILITIES POSITION
|
169,894
|
1,882,649
|
52
|
583
|
1,883,232
|
|
LONG
TERM LIABILITIES POSITION
|
0
|
0
|
0
|
0
|
0
|
|
NET
BALANCE
|
457,731
|
5,072,215
|
(52)
|
(583)
|
5,071,632
|
NOTES
THE
EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT MARCH 31, 2007 WAS PS.
11.0813
MEXICAN
STOCK EXCHANGE
SIFIC
/
ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
RESULT
FROM MONETARY POSITION
(Thousands
of Mexican Pesos)
CONSOLIDATED
|
MONTH
|
MONETARY
ASSETS
|
MONETARY
LIABILITIES
|
ASSET
(LIABILITY )
MONETARY
POSITION
|
MONTHLY
INFLATION
|
MONTHLY
(PROFIT )
AND
LOSS
|
|
JANUARY
|
3,373,099
|
2,186,629
|
1,186,470
|
0.52
|
6,128
|
|
FEBRUARY
|
3,663,966
|
1,510,290
|
2,153,673
|
0.28
|
6,020
|
|
MARCH
|
6,158,413
|
1,425,766
|
4,732,647
|
0.22
|
10,243
|
|
ACTUALIZATION
|
43
|
||||
|
CAPITALIZATION
|
0
|
||||
|
FOREIGN
CORPOPATION
|
(10,162)
|
||||
|
OTHER
|
15,471
|
||||
|
TOTAL
|
27,743
|
MEXICAN
STOCK EXCHANGE
SIFIC
/
ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
DEBT
INSTRUMENTS
CONSOLIDATED
FINANCIAL
LIMITED BASED IN ISSUED DEED AND/OR TITLE
MEDIUM
TERM NOTES
A)
Current assets to current liabilities must be 1.0 times or more.
B)
Total
liabilities to total assets do not be more than 0.60.
C)
Operating income plus items added to income which do not require using cash
must
be 2.0 times or more.
This
notes was offered in the international market.
ACTUAL
SITUATION OF FINANCIAL LIMITED
MEDIUM
TERM NOTES
A)
Accomplished the actual situation is 4.42 times.
B)
Accomplished the actual situation is 0.25
C)
Accomplished the actual situation is 165.04
As
of
March 31, 2007, the remaining balance of the MTNs not exchanged amounts to
Ps.
3,347 ($302,000 dollars).
C.P.
José
Flores Flores
Chief
Financial Officer
BONDS
AND/OR MEDIUM TERM NOTES CERTIFICATE
MEXICAN
STOCK EXCHANGE
SIFIC
/
ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
PLANTS,
COMMERCE CENTERS OR DISTRIBUTION CENTERS
CONSOLIDATED
|
PLANT
OR CENTER
|
ECONOMIC
ACTIVITY
|
PLANT
CAPACITY
|
UTILIZATION
(%)
|
|
GUADALAJARA
MINI MILL
|
PRODUCTION
AND SALES OF STEEL PRODUCTS
|
480
|
83.69
|
|
MEXICALI
MINI MILL
|
PRODUCTION
AND SALES OF STEEL PRODUCTS
|
250
|
69.13
|
|
INDUSTRIAS
DEL ACERO Y DEL ALAMBRE
|
SALE
OF STEEL PRODUCTS
|
0
|
0
|
|
APIZACO
AND CHOLULA PLANTS
|
PRODUCTION
AND SALES OF STEEL PRODUCTS
|
460
|
86.93
|
|
CANTON
CASTER FACILITY
|
PRODUCTION
OF BILLET
|
787
|
53.80
|
|
LORAIN
CASTER FACILITY
|
PRODUCTION
OF BILLET
|
1,169
|
96.90
|
|
LORAIN
HOT-ROLLING MILL
|
PRODUCTION
AND SALES OF STEEL PRODUCTS
|
838
|
74.80
|
|
LACKAWANNA
HOT-ROLLING MILL
|
PRODUCTION
AND SALES OF STEEL PRODUCTS
|
544
|
89.00
|
|
MASSILLON
COLD-FINISH FACILITY
|
PRODUCTION
AND SALES OF STEEL PRODUCTS
|
125
|
96.60
|
|
GARY
COLD-FINISH FACILITY
|
PRODUCTION
AND SALES OF STEEL PRODUCTS
|
71
|
63.00
|
|
ONTARIO
COLD-FINISH FACILITY
|
PRODUCTION
AND SALES OF STEEL PRODUCTS
|
59
|
70.00
|
MEXICAN
STOCK EXCHANGE
SIFIC
/
ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
MAIN
RAW MATERIALS
CONSOLIDATED
|
DOMESTIC
|
MAIN
SUPPLIERS
|
FOREIGN
|
MAIN
SUPPLIERS
|
DOMESTIC
SUBSTITUTION
|
COST
PRODUCTION (%)
|
|
PLANTS
IN USA
|
SCRAP
|
VARIOUS
|
NO
|
11.90
|
|
|
SCRAP
|
VARIOUS
|
PLANTS
IN MEXICO
|
NO
|
50.00
|
|
|
PLANTS
IN USA
|
COKE
|
VARIOUS
|
NO
|
5.80
|
|
|
PLANTS
IN USA
|
PELLETS
|
VARIOUS
|
NO
|
5.00
|
|
|
FERROALLOYS
|
VARIOUS
|
PLANTS
IN MEXICO
|
YES
|
9.48
|
|
|
PLANTS
IN USA
|
FERROALLOYS
|
VARIOUS
|
NO
|
7.60
|
|
|
ELECTRODES
|
VARIOUS
|
PLANTS
IN MEXICO
|
VARIOUS
|
YES
|
1.90
|
|
PLANTS
IN USA
|
ELECTRODES
|
VARIOUS
|
NO
|
0.80
|
MEXICAN
STOCK EXCHANGE
SIFIC
/
ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
SALES
DISTRIBUTION BY PRODUCT
CONSOLIDATED
DOMESTIC
SALES
|
MAIN
PRODUCTS
|
NET
SALES
|
MAIN
DESTINATION
|
|||
|
VOLUME
|
AMOUNT
|
TRADEMARKS
|
COSTUMERS
|
||
|
STRUCTURAL
PROFILES
|
54
|
431,285
|
|||
|
COMMERCIAL
PROFILES
|
16
|
121,743
|
|||
|
REBAR
|
50
|
345,693
|
|||
|
FLAT
BAR
|
41
|
283,007
|
|||
|
STEEL
BARS
|
84
|
642,320
|
|||
|
OTHER
|
0
|
4,628
|
|||
|
BILLET
|
0
|
0
|
|||
|
HOT-ROLLED
BARS
|
|||||
|
COLD-FINISHED
BARS
|
|||||
|
SEMI-FINISHED
SEAMLESS TUBE ROUNDS
|
|||||
|
OTHER
SEMI-FINISHED TRADE PRODUCTS
|
|||||
|
T
O T A L
|
1,828,676
|
||||
|
FOREIGN
SALES
|
4,250,494
|
||||
|
TOTAL
|
6,079,170
|
||||
MEXICAN
STOCK EXCHANGE
SIFIC
/
ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
SALES
DISTRIBUTION BY PRODUCT
CONSOLIDATED
FOREIGN
SALES
|
MAIN
PRODUCTS
|
NET
SELLS
|
MAIN
|
||
|
VOLUME
|
AMOUNT
|
TRADEMARKS
|
COSTUMERS
|
|
|
EXPORTS
|
||||
|
STRUCTURAL
PROFILES
|
7
|
50,574
|
||
|
COMMERCIAL
PROFILES
|
5
|
34,519
|
||
|
REBAR
|
15
|
93,467
|
||
|
STEEL
BARS
|
6
|
45,714
|
||
|
FLAT
BAR
|
0
|
2,793
|
||
|
BILLET
|
0
|
0
|
||
|
FOREIGN
SUBSIDIARIES
|
||||
|
HOT-ROLLED
BARS
|
249
|
2,474,723
|
||
|
COLD-FINISHED
BARS
|
42
|
560,293
|
||
|
SEMI-FINISHED
SEAMLESS TUBE ROUNDS
|
69
|
529,730
|
||
|
OTHER
SEMI-FINISHED TRADE PRODUCTS
|
66
|
458,681
|
||
|
T
O T A L
|
4,250,494
|
|||
MEXICAN
STOCK EXCHANGE
SIFIC
/
ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
CONSOLIDATED
INTEGRATION
OF THE PAID SOCIAL CAPITAL STOCK
CHARACTERISTICS
OF THE SHARES
|
SERIES
|
NOMINAL
VALUE
|
VALID
CUPON
|
NUMBER
OF SHARES
|
CAPITAL
STOCK
(Thousands
of Pesos)
|
||||
|
FIXED
PORTION
|
VARIABLE
PORTION
|
MEXICAN
|
FREE
SUSCRIPTION
|
FIXED
|
VARIABLE
|
|||
|
B
|
90,850,050
|
383,771,561
|
0
|
474,621,611
|
441,786
|
1,866,320
|
||
|
TOTAL
|
90,850,050
|
383,771,561
|
0
|
474,621,611
|
441,786
|
1,866,320
|
||
TOTAL
NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING
THE INFORMATION : 474,621,611
MEXICAN
STOCK EXCHANGE
SIFIC
/
ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
CONSTRUCTION
IN PROGRESS
CONSOLIDATED
THE
PROJECTS IN PROGRESS AT MARCH 31, 2007, ARE:
|
PROjECTS
IN PROGRESS
|
TOTAL
INVESTMENT
|
||
|
PROJECTS
IN REPUBLIC
|
68,782
|
||
|
PROJECTS
IN MEXICALI
|
9,108
|
||
|
PROJECTS
IN TLAXCALA
|
70,068
|
||
|
TOTAL
INVESTMENT AT
MARCH
31, 2007
|
147,958
|
MEXICAN
STOCK EXCHANGE
SIFIC
/
ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
INFORMATION
RELATED TO BULLETIN B-15
(FOREIGN
CURRENCY TRANSLATION)
CONSOLIDATED
Foreign
currency transactions and exchange differences - All
transactions in foreign currency are recorded at the exchange rates prevailing
on the date of their execution or liquidation. Foreign currency denominated
assets and liabilities are translated at the exchange rates prevailing at the
balance sheet date. Any exchange differences incurred with regard to assets
or
liabilities denominated in foreign currency are charged to operations of the
period and are included in financial income (expense) in the accompanying
consolidated statements of income (loss).
The
financial statements of foreign subsidiaries are translated into Mexican pesos
in conformity with Bulletin B-15 “Transactions in Foreign Currency and
Translation of Financial Statements of Foreign Operations”.
Pacific
Steel and Undershaft investments are considered to be “integrated foreign
operations”, as defined in Bulletin B-15, and accordingly such financial
statements were translated as follows:
| - |
Monetary
items at the exchange rate at the balance sheet
date.
|
| - |
Non-monetary
items and stockholders’ equity at the exchange rate prevailing at the date
the transactions occurred.
|
| - |
Income
and expense items at an appropriate average exchange
rate.
|
| - |
The
resulting foreign currency translation differences are included in
the
financial income (expense) in the statement of income
(loss).
|
| - |
All
resulting Mexican peso amounts are restated for the effects of inflation
in accordance with the dispositions of Bulletin B-10 using the NCPI,
where
such effects are considered
significant.
|
SimRep
and subsidiaries are considered to be “foreign operations”, as defined in
Bulletin B-15, and accordingly such financial statements were translated as
follows:
| - |
Monetary
and non-monetary items at the exchange rate at the balance sheet
date.
|
| - |
Income
and expense items at the exchange rate at the balance sheet
date.
|
| - |
The
resulting foreign currency translation differences are included in
the
stockholders’ equity.
|
| - |
All
resulting Mexican peso amounts are restated for the effects of inflation
in accordance with the dispositions of Bulletin B-10 using the NCPI,
where
such effects are considered
significant.
|
MEXICAN
STOCK EXCHANGE
SIFIC
/
ICS
| STOCK EXCHANGE CODE: SIMEC |
QUARTER:
1 YEAR:
2007
|
|
| GRUPO SIMEC, S.A. DE C.V. |
CONSOLIDATED
DECLARATION
OF THE COMPANY OFFICIALS RESPONSIBLE FOR THE INFORMATION CONTAINED IN THIS
REPORT.
LUIS
GARCIA LIMON AND JOSE FLORES FLORES CERTIFY THAT BASED ON OUR KNOWLEDGE, THIS
REPORT DOES NOT CONTAIN ANY UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT TO
STATE
A MATERIAL FACT NECESSARY TO MAKE THE STATEMENTS MADE HEREIN, IN LIGHT OF THE
CIRCUMSTANCES UNDER WHICH SUCH STATEMENTS WERE MADE, NOT MISLEADING WITH RESPECT
TO THE PERIOD COVERED BY THIS FIRST QUARTER REPORT.
| ING LUIS GARCIA LIMON | C.P. JOSE FLORES FLORES |
| CHIEF EXECUTIVE OFFICER | CHIEF FINANCIAL OFFICER |
GUADALAJARA,
JAL, AT APRIL 23 OF 2007.