Grupo Simec S.A.B. De C.V. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2016
May 10, 2016 at 02:33 pm EDT
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Grupo Simec S.A.B. de C.V. reported unaudited consolidated earnings results for the first quarter ended March 31, 2016. For the quarter, the company’s net sales of the company decreased 12% derived from the decrease in shipments of steel. Sales decreased from MXN 6,897 million in the first quarter of 2015 to MXN 6,102 million in the same period of 2016. Total sales outside of Mexico in the first quarter of 2016 decreased 23% to reach MXN 2,411 million compared to MXN 3,146 million in the same period of 2015. The Mexican sales decreased 2% from MXN 3,751 million in the first quarter of 2015 to MXN 3,691 million in the same period of 2016. The decrease in sales can be explained due to a lower volume shipped compared with the same period of 2015. The operating income remained from MXN 605 million for the first quarter of 2015 compared to MXN 603 million in the same period of 2016. Operating income as a percentage of Net Sales were 10% in the first quarter of 2016 compared to 9% in the same period of 2015. The increase in operating income is due to a better cost of sales in the first quarter of 2016 compared with the same period of 2015. The EBITDA of the company for the first quarter of 2016, show an increase of 1%, by the above mentioned to pass from MXN 876 million in the first quarter of 2015 compared against MXN 883 million of the first quarter of 2016. Net income increased 134% to MXN 1,032 million in the first quarter of 2016 from MXN 441 million in the same period of previous year.
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.