Grupo Simec S.A.B. De C.V. Reports Consolidated Earnings Results for the Second Quarter and First Half Ended June 30, 2016
July 21, 2016 at 05:34 pm EDT
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Grupo Simec S.A.B. de C.V. reported consolidated earnings results for the second quarter and six months ended June 30, 2016. For the quarter, the company’s sales were PHP 6,742 million compared to PHP 6,307 million a year ago. Operating profit was PHP 1,297 million compared to PHP 490 million a year ago. Operating income as percentage of Net Sales were 10% for the first quarter compared to 19% for the second quarter of the same year. The operating income is due mainly to a decrease in the selling general and administrative expenses of the second quarter 2016. EBITDA was PHP 1,584 million compared to PHP 782 million a year ago. Net income was PHP 1,771 million compared to PHP 412 million a year ago.
For the first half year, the company’s sales were PHP 12,844 million compared to PHP 13,204 million a year ago. Operating profit was PHP 1,899 against PHP 1,095 million a year ago. EBITDA was PHP 2,467 against PHP 1,658 million a year ago. Net income was PHP 2,803 million against PHP 853 million a year ago. The operating income as a percentage of net sales in the second quarter of 2016 was 19% and 8% in the second quarter of 2015. The increase in the operating income is due to the higher volume shipment and a better average cost of sales in the second quarter of 2016 compared to the same period of 2015.
Grupo Simec SAB de CV is a Mexico-based company primarily engaged in producing, processing and distributing special steels and structural steel sections. The Company identifies its operating segments by regions: Mexico and the United States of America. The Firm's Mexican segment includes the Mexicali, Guadalajara, Tlaxcala and San Luis Potosi plants. The United States segment includes seven plants, six of which are located in the states of Ohio, Indiana and New York. The segments manufacture and sell steel products destined mainly for the construction and automotive industries. The Company, through its subsidiaries, is also present in Brazil and the Netherlands.