Grupo Simec, S.A.B. de C.V. Announces Earnings Results for the Third Quarter and Nine Months Ended September 30, 2016
October 19, 2016 at 08:06 pm EDT
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Grupo Simec, S.A.B. de C.V. announced earnings results for the third quarter and nine months ended September 30, 2016. For the quarter, the company reported sales of MXN 6,671 million compared to MXN 6,347 million a year ago. Operating profit was MXN 988 million compared to MXN 525 million a year ago. EBITDA was MXN 1,321 million compared to MXN 806 million a year ago. Net income was MXN 1,461 million compared to loss of MXN 292 million a year ago. Total sales were 529 tons compared to 546 tons a year ago. The increase in the operating income is due to a better cost of sales.
For the nine months, the company reported sales of MXN 19,514 million compared to MXN 19,551 million a year ago. Operating profit was MXN 2,887 million compared to MXN 1,620 million a year ago. EBITDA was MXN 3,788 million compared to MXN 2,465 million a year ago. Net income was MXN 4,264 million compared to MXN 560 million a year ago. Total sales were 1,630 tons compared to 1,664 tons a year ago. The decrease in sales for the first nine months of 2016 is due to the decrease in the volume of shipments compared to the first nine months of 2015 (34,000 tons equivalent to 2% increase). The increase in operating income is due to a better average cost in the first nine months of 2016 compared with the same period of 2015. The EBITDA increased 54%, due to a better average cost of raw materials.
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.