6-K 1 e48353_6k.htm CURRENT REPORT

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                                                  Dec                                                                , 2011.

 

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 [_]

 

Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)

 

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: May 04, 2012. By:     /s/ Luis García Limón
  Name:   Luis García Limón 
               Title:     Chief Executive Officer

 
 

 

 

 

GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS AUDITED FOR THE YEAR OF 2011 AND 2010

 

GUADALAJARA, MEXICO, May 3, 2012- Grupo Simec, S.A.B. de C.V. (AMEX: SIM) (“Simec”) announced today its results of operations Audited for the twelve-month period ended December 31, 2011 and December 31, 2010.

Twelve-Month Period Ended December 31, 2011 compared to Twelve-Month Period Ended December 31, 2010

 

We reclassified indirect cost in 2010 from selling, general and administrative expenses to Inventories and Cost Sales according with the full cost, issued by the Mexican Financial Reporting Standards “MFRS” for purposes of comparability with 2011.

 

Net Sales

Net sales increased 19% by the combination of higher sales of Special Bars “SBQ”, shipments of finished steel products and the increase of the average sales price per ton of 17% compared versus the same period of 2010, the sale rose from Ps. 24,576 millions in the twelve-month period ended December 31, 2010 to Ps. 29,270 millions in the same period of 2011. Shipments of finished steel products increase 2% to 2 million 288 thousand tons in the twelve-month period ended December 31, 2011 compared to 2 million 241 thousand tons in the same period of 2010. Total sales outside of Mexico in the twelve-month period ended December 31, 2011 increased 14% to Ps. 15,654 million compared with Ps. 13,777 millions in the same period of 2010. Total sales in Mexico increased 26% from Ps. 10,799 millions in the twelve-month period ended December 31, 2010 to Ps. 13,616 millions in the same period of 2011. The increase in sales is due to an increase shipments during the twelve-month period ended December 31, 2011, compared to the same period in 2010 (47 thousand tons), increase in SBQ shipment in 193 thousand tons, and the increase of the average sales price of 17%.

 

Cost of Sales

Cost of sales increased 15% from Ps. 22,250 millions in the twelve-month period ended December 31, 2010 to Ps. 25,624 millions in the same period of 2011. Cost of sales as a percentage of net sales in the twelve months ended on December 31 of 2011 and 2010, cost of sales represented 88 and 91% respectively. The average cost of finished steel produced in the twelve-month period ended December 31, 2011 compared to the same period of 2010 increased approximately 13% by a higher of SBQ sales and increase of shipment.

 

 

Gross Profit

Gross profit of the Company in the twelve-month period ended December 30, 2011 was of Ps. 3,646 million compared to Ps. 2,326 millions in the same period of 2010. Gross profit as a percentage of net sales represented 12% and 9% in 2011 and 2010 respectively. The increase in the gross profit is attributed to an increase in the volume shipment, better blend of steel compared with the same period of 2010.

 

General, Sales and Administrative Expenses

Selling, general and administrative expenses decreased 9% from Ps. 1,152 millions in the twelve-month period ended December 31, 2010 to Ps. 1,054 millions in the same period of 2011, representing 4% and 5% respect of net sales in the twelve-month period ended December 2011 and 2010 respectively.

 

Operating Income

Operating income increased 121% from Ps. 1,174 million for the twelve-month period ended December 31, 2010 to Ps. 2,592 millions in the same period of 2011. Operating income as a percentage of net sales was 9% in the twelve-month period ended December 31, 2011 compared with 5% in the same period of 2010. The increase in operating income is due to an increase in shipments, increase in sales of SBQ and better average sales price per ton.

 
 

 

EBITDA

The EBITDA of the Company increase 58% from Ps. 2,272 millions in the twelve-month prior ended December 31, of 2010, to Ps.3,593 millions in the same period of 2011.

 

Comprehensive Financial Cost.

Comprehensive financial cost in the twelve-month period ended December 31, 2011 represented a net income of Ps. 584 million compared with a net expense of Ps. 207 millions in the same period of 2010. The net interest was an income of Ps 2 million in 2011 compared with a net interest of Ps. zero in the twelve-month period ended December 31, 2010. So it, we registered a net exchange gain net of Ps. 582 millions in the twelve-month period ended December 31, 2011 compared with a net exchange loss of Ps. 207 millions in the same period of 2010, reflecting a 13% decrease in the value of the peso versus the dollar in the twelve-month period ended December 31, 2011 compared to December 31, 2010.

 

Other Expenses (Income) net

The company recorded other net expenses of Ps. 186 millions in the twelve-month period ended December 31, 2010 for expenses incurred in the use of patent industrial compared to other expenses net of Ps. 114 millions in the same period of 2011.

 

Income Taxes

The Company have recorded an expense net income tax of Ps. 110 millions in the twelve-month period ended December 31, 2011 (including the income of income tax for Ps.87 million and the expense of deferred income tax of Ps. 197 millions) compared with an expense net of Ps. 112 millions in the same period of 2010 (including the income tax deferred of Ps. 47 millions).

 

Net Income (loss) (Before Non- controlling Interest)

As a result of the foregoing, net income increased of 341% from Ps. 669 millions in the twelve-month period ended December 31, 2010 to a net income of Ps. 2,952 millions in the same period of 2011.

 

Liquidity and Capital Resources

 

As of December 31, 2011, Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998, Ps. 4.2 millions (accrued interest on December 31, 2011 was U.S. $472,824 or Ps. 6.6 millions). As of December 31, 2010, Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998, Ps. 3.7 million (accrued interest on December 31, 2010 was U.S. $445,914, or Ps. 5.5 millions).

 

 

Comparative fourth quarter 2011 vs third quarter 2011

 

Net Sales

Net sales increased 2% from Ps. 7,676 millions in the third quarter of 2011 to Ps. 7,836 million for the fourth quarter of 2011. Sales in tons decreased from 592 thousand ton in the third quarter of 2011 to 558 thousand ton in the fourth quarter of the same period a decrease of 6%. Total sales outside of Mexico for the fourth quarter of 2011 decreased 4% from Ps. 4,121 millions in the third quarter to Ps. 3,958 millions in the four quarter of 2011. Sales in Mexico rose to 3,878 million in the fourth quarter of 2011 compared Ps. 3,555 millions in the third quarter of 2011 an increase of 9%. Prices of finished products sold in the fourth quarter of 2011 increased approximately 8% compared to the third quarter of the same period.

 

Cost of Sales

Cost of sales was of Ps. 6,761 millions in the fourth quarter of 2011 compared to Ps. 6,789 millions for the third quarter of 2011. With respect to sales, in the fourth quarter of 2011, the cost of sales represented 86% for the fourth quarter of 2011 while for the third quarter of 2011 was of 88%. The average cost of sales by ton increased 6% in the fourth quarter of 2011 versus the third quarter of 2011.

 
 

 

Gross Profit

Gross profit of the Company for the fourth quarter of 2011 increased 21% to Ps.1,075 million compared to Ps. 887 millions in the third quarter of 2011. The gross profit as a percentage of net sales for the fourth quarter was of 14% and 12% for the third quarter of 2011.

 

General, Sales and Administrative Expenses

Selling, general and administrative expenses increased 49% to Ps. 360 millions in the fourth quarter of 2011 compared to Ps. 241 millions for the third quarter of 2011. Selling, general and administrative expenses as a percentage of net sales represented 5% during the fourth quarter of 2011 and 3% during the third quarter of 2011.

 

Operating Income

Operating income was of Ps 715 million in the fourth quarter of 2011 compared to an operating income of Ps. 646 millions in the third quarter of 2011. The operating income as a percentage of net sales in the fourth represented 9% and the third quarter of 2011 represented 8%.

 

 

Ebitda

The EBITDA in both quarter its similar from Ps. 940 millions in the third quarter of 2011 to Ps. 967 millions in the fourth quarter of the same period due to the above explained

 

 

Comprehensive Financial Income (Cost)

Comprehensive financial cost for the fourth quarter for 2011 was a net income of Ps. 260 million compared with a net income of Ps. 495 millions for the third quarter of 2011. The net interest income in the third quarter of 2011 was of Ps 3 million while in the fourth quarter was a net interest expenses of Ps. 5 millions. At the same time we registered an exchange net gain of Ps. 492 millions in the third quarter of 2011 compared with an exchange net gain of Ps. 265 millions in the fourth quarter of 2011.

 

Other Expenses (Income) net

The company recorded other net expense of Ps. 135 millions in the fourth quarter of 2011compared to other net income of Ps. 30 millions for the third quarter of 2011.

 

Income Taxes

Income Taxes for the fourth quarter of 2011 had a net income tax of Ps. 335 million (including an income tax deferred for Ps. 150 millions) compared to an expense of Ps. 468 millions for the third quarter of 2011, (including an expense tax deferred of Ps. 386 millions).

 

 

Net Income (loss) (Before Non- controlling Interest)

As a result of the foregoing, the Company had a net income of Ps. 1,175 millions in the fourth quarter of 2011 compared to Ps. 704 million of net income in the third quarter of 2011.

 

 

Comparative fourth quarter 2011 vs fourth quarter 2010

 

Net Sales

Net sales increased 39% from Ps. 5,635 millions for the fourth quarter of 2010 to Ps. 7,836 million for the fourth quarter of 2011. Sales in tons of finished steel in the fourth quarter of 2010 were 522 thousand tons versus to 558 thousand tons in the fourth quarter of 2011. Total sales outside of Mexico increase 28% from Ps. 3,094 millions for the fourth quarter of 2010 to Ps. 3,958 millions in the fourth quarter of 2011. Sales in Mexico increase 53% from Ps. 2,541 millions in the fourth quarter of 2010 to Ps. 3,878 millions in the fourth quarter of 2011. The average sales prices of finished products sold in the fourth quarter of 2011 increased approximately 30% compared to the fourth quarter of 2010.

 

Cost of Sales

Cost of sales increased 32% from Ps. 5,140 millions in the fourth quarter of 2010 compared to Ps. 6,761 million for the fourth quarter of 2011. With respect to sales, in the fourth quarter of 2011, the cost of sales represented 86% compared to 91% for the fourth quarter of 2010. The average cost of raw materials used to produce steel products increased 23% in the fourth quarter of 2011 versus the fourth quarter of 2010.

 
 

 

Gross Profit

Gross profit for the fourth quarter of 2011 increased 117% from Ps. 495 millions in the fourth quarter of 2010 compared to an income of Ps. 1,075 millions in the fourth quarter of 2011. The gross profit as a percentage of net sales for the fourth quarter of 2011 was 14% compared with 9% for the fourth quarter of 2010.

 

 

General, Sales and Administrative Expenses

Selling, general and administrative expenses decreased 26% from Ps.487 million in the fourth quarter of 2010 compared to Ps. 360 millions for the fourth quarter of 2011.Selling, general and administrative expenses as a percentage of net sales represented 5% during the fourth quarter of 2011 and 9% during the fourth quarter of 2010.

 

Operating Income

Operating income was of Ps.715 million in the fourth quarter of 2011 compared with Ps. 8 millions in the fourth quarter of 2010. The operating income as a percentage of net sales in the fourth quarter of 2011 was 9% compared to 0.1% in the fourth quarter of 2010.

 

Ebitda

The EBITDA from the fourth quarter of 2011 increased 229% from Ps 294 million in the fourth quarter of 2010 to Ps 967 million in the fourth quarter of 2011.

 

 

Comprehensive Financial Income (Cost)

Comprehensive financial cost for the fourth quarter of 2011 was an income of Ps. 260 million compared with an expense of Ps 119 millions in the fourth quarter of 2010. Net interest expense was Ps. 5 millions in the fourth quarter of 2011 compared with a net income of Ps. 2 millions in the fourth quarter of 2010. At the same time we registered a net exchange gain of Ps. 265 millions in the fourth quarter of 2011 compared with an exchange loss of Ps. 121 millions in the fourth quarter of 2010.

 

Other Expenses (Income) net

The company recorded other net expense of Ps. 144 millions in the fourth quarter of 2010 for expenses incurred in the use of patent industrial compared with other expenses net of Ps. 135 million for the fourth quarter of 2011.

 

Income Taxes

The Company recorded an income taxes for the fourth quarter of 2011 was an income of Ps. 335 million (including an income of deferred income tax of Ps 150 millions), compared to a net expense of Ps. 48 millions for the fourth quarter of 2010, (including an income of deferred income tax of Ps. 46 millions).

 

Net Income (loss) (Before Minority Interest)

As a result of the foregoing, net income of Ps. 1,175 millions in the fourth quarter of 2011 compared to a loss of Ps. 303 million of net income in the fourth quarter of 2010.

 

 

 
 

 

 

Millions of pesos

Twelve months ended
December 31, 2011
Twelve months ended
December 31, 2010

2011

vs.

2010

Sales       29,270    24,576         19%
Cost of Sales       25,624    22,250         15%
Marginal Profit         3,646      2,326         57%
Operating Expenses         1,054      1,152       (9%)
Operating Income         2,592      1,174       121%
EBITDA         3,593      2,272         58%
Income before Non-Controlling Interest         2,952         669       341%
Sales outside Mexico       15,654    13,777          14%
Sales in México       13,616    10,799         26%
Total sales (tons)         2,288      2,241           2%

 

 

(Millions of pesos)      4Q ‘11       3Q ‘11     4Q ‘10  4Q´11 vs
  3Q'11
  4Q´11vs
  4Q´10
Sales   7,836    7,676    5,635      2%      39%
Cost of Sales   6,761    6,789    5,140      0%      32%
Marginal Profit   1,075       887       495    21%    117%
Operating Expenses      360       241       487    49%    (26%)
Operating Income      715       646           8      11%  8,838%
EBITDA      967       940       294     3%    229%
Income before Non. Controlling  Interest   1,175       704      (303)    67%  (488%)
Sales outside Mexico   3,958    4,121    3,094    (4%)      28%
Sales in México   3,878    3,555    2,541    9%      53%
Total sales (tons)      558       592       522    (6%)        7%

 

 

 

 

 

Product

Thousands of tons twelve months ended December 31, 2011 Million of pesos twelve months ended December 31, 2011 Average price per ton twelve months ended December 31, 2011 Thousands of tons twelve months ended December 31, 2010 Million of pesos twelve months ended December 31, 2010 Average price per ton twelve months ended December 31, 2010
SBQ    1,380   19,659    14,246   1,187    15,194    12,800
Light Structural       908     9,611    10,585   1,054      9,382      8,901
Total    2,288   29,270    12,793   2,241    24,576    10,967
             

 

 

 

Product

Thousands of tons

4Q '11

Millions of pesos

4Q'11

Average price per ton 4Q'11

Thousands of tons

3Q '11

Millions of pesos

3Q'11

Average price per ton 3Q'11 Thousands of tons       4Q'10  Millions of pesos          4Q'10 Average price per ton        4Q'10
SBQ    318   5,011   15,758    344  5,038   14,645    261  3,187   12,211
Light Structural    240   2,825   11,771    248  2,638   10,637    261  2,448     9,379
Total    558   7,836   14,042    592  7,676   12,966    522  5,635   10,795
                   

 

 

 

 
 

 

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: 4 YEAR: 2011
   
GRUPO SIMEC, S.A.B. DE C.V.  
   

CONSOLIDATED FINANCIAL STATEMENT

AT DECEMBER 31 OF 2011 AND 2010

(thousands of Mexican pesos)

 

REF

S

CONCEPTS CURRENT YEAR PREVIOUS YEAR
    AMOUNT % AMOUNT %
s01 TOTAL ASSETS 31,269,466 100 27,120,746 100
           
s02 CURRENT ASSETS 16,200,861 52 13,410,752 49
s03 CASH AND SHORT-TERM INVESTMENTS 6,537,088 21 3,384,917 12
s04 ACCOUNTS AND NOTES RECEIVABLE (NET) 3,031,679 10 2,465,208 9
s05 OTHER ACCOUNTS AND NOTES RECEIVABLE 677,989 2 857,485 3
s06 INVENTORIES 5,760,120 18 6,606,922 24
s07 OTHER CURRENT ASSETS 193,985 1 96,220 0
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) 9,475,562 30 9,453,237 35
s13 LAND AND BULIDINGS 4,171,787 13 3,800,468 14
s14 MACHINERY AND INDUSTRIAL EQUIPMENT 13,935,986 45 13,111,559 48
s15 OTHER EQUIPMENT 267,596 1 233,810 1
s16 ACCUMULATED DEPRECIATION 8,977,962 29 8,180,035 30
s17 CONSTRUCTION IN PROGRESS 78,155 0 487,435 2
s18 OTHER INTANGIBLE ASSETS AND  DEFERRED ASSETS (NET) 3,801,003 12 4,101,141 15
s19 OTHER ASSETS 1,792,040 6 155,616 1
           
s20 TOTAL LIABILITIES 7,000,643 100 6,662,996 100
           
s21 CURRENT LIABILITIES 3,822,757 55 3,898,606 59
s22 SUPPLIERS 2,294,701 33 2,162,801 32
s23 BANK LOANS 0 0 0 0
s24 STOCK MARKET LOANS 4,225 0 3,732 0
s103 OTHER LOANS WITH COST 707,453 10 602,168 9
s25 TAXES PAYABLE 246,247 4 434,220 7
s26 OTHER CURRENT LIABILITIES WITHOUT COST 570,131 8 695,685 10
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 WITH COST 0 0 0 0
s31 DEFERRED LIABILITIES 0 0 0 0
s32 OTHER NON-CURRENT LIABILITIES WITHOUT COST 3,177,886 45 2,764,390 41
           
s33 CONSOLIDATED STOCKHOLDERS’ EQUITY 24,268,823 100 20,457,750 100
           
s34 MINORITY INTEREST 2,175,858 9 1,784,438 9
s35 MAJORITY INTEREST 22,092,965 91 18,673,312 91
s36 CONTRIBUTED CAPITAL 8,350,900 34 8,350,900 41
S79 CAPITAL STOCK 4,142,696 17 4,142,696 20
s39 PREMIUM ON ISSUANCE OF SHARES 4,208,204 17 4,208,204 21
s40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0 0 0
s41 EARNED CAPITAL 13,742,065 57 10,322,412 50
s42 RETAINED EARNINGS AND CAPITAL RESERVES 12,942,705 53 9,979,248 49
s44 OTHER ACCUMULATED COMPREHENSIVE RESULT 799,360 3 343,164 2
s80 SHARES REPURCHASED 0 0 0 0
 
 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. 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 6,537,088 100 3,384,917 100
s46 CASH 1,495,928 23 769,399 23
s47 SHORT-TERM INVESTMENTS 5,041,160 77 2,615,518 77
           
s07 OTHER CURRENT ASSETS 193,985 100 96,220 100
s81 DERIVATIVE FINANCIAL INSTRUMENTS 0 0 0 0
s82 DISCONTINUED OPERATIONS 0 0 0 0
s83 OTHER 193985 100 96,220 100
           
s18 OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET) 3,801,003 100 4,101,141 100
s48 DEFERRED EXPENSES 1,848,171 49 2,275,568 55
s49 GOODWILL 1,814,160 48 1,814,160 44
s51 OTHER 138,672 4 11,413 0
           
s19 OTHER ASSETS 1,792,040 100 155,616 100
s84 INTANGIBLE ASSET FROM LABOR OBLIGATIONS 0 0 0 0
s85 DERIVATIVE FINANCIAL INSTRUMENTS 0 0 0 0
s50 DEFERRED TAXES 0 0 0 0
s86 DISCONTINUED OPERATIONS 0 0 0 0
s87 OTHER 1,792,040 100 155,616 100
           
s21 CURRENT LIABILITIES 3,822,757 100 3,898,606 100
s52 FOREIGN CURRENCY LIABILITIES 3,005,735 79 2,777,231 71
s53 MEXICAN PESOS LIABILITIES 817,022 21 1,121,375 29
           
s26 OTHER CURRENT LIABILITIES WITHOUT COST 570,131 100 695,685 100
s88 DERIVATIVE FINANCIAL INSTRUMENTS 35,456 6 79,708 11
s89 INTEREST LIABILITIES 6,615 1 5,486 1
s68 PROVISIONS 0 0 0 0
s90 DISCONTINUED OPERATIONS 0 0 0 0
s58 OTHER CURRENT LIABILITIES 528,060 93 610,491 88
           
s27 LONG-TERM LIABILITIES 0 100 0 100
s59 FOREIGN CURRENCY LIABILITIES 0 0 0 0
s60 MEXICAN PESOS LIABILITIES 0 0 0 0
           
s31 DEFERRED LIABILITIES 0 100 0 100
s65 NEGATIVE GOODWILL 0 0 0 0
s67 OTHER 0 0 0 0
           
s32 OTHER NON CURRENT LIABILITIES WITHOUT COST 3,177,886 100 2,764,390 100
s66 DEFERRED TAXES 3,071,885 97 2,668,054 97
s91 OTHER LIABILITIES IN RESPECT OF SOCIAL INSURANCE 57,814 2 45,333 2
s92 DISCONTINUED OPERATIONS 0 0 0 0
s69 OTHER LIABILITIES 48,187 2 51,003 2
           
s79 CAPITAL STOCK 4,142,696 100 4,142,696 100
s37 CAPITAL STOCK (NOMINAL) 2,420,230 58 2,420,230 58
s69 RESTATEMENT OF CAPITAL STOCK 1,722,466 42 1,722,466 42

 

 
 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. 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 12,942,705 100 9,979,248 100
s93 LEGAL RESERVE 0 0 0 0
s43 RESERVE FOR REPURCHASE OF SHARES 200,612 2 200,612 2
s94 OTHER RESERVES 0 0 0 0
s95 RETAINED EARNINGS 9,879,666 76 8,875,093 89
s45 NET INCOME FOR THE YEAR 2,862,427 22 903,543 9
           
s44 OTHER ACCUMULATED COMPREHENSIVE RESULT 799,360 100 343,164 100
s70 ACCUMULATED MONETARY RESULT 0 0 0 0
s71 RESULT FROM HOLDING NON-MONETARY ASSETS 0 0 0 0
s96 CUMULATIVE RESULT FROM FOREIGN CURRENCY TRANSLATION

 

824,805

 

103

 

406,513

 

118

s97 CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL INSTRUMENTS

 

(25,445)

 

(3)

 

(63,349)

 

(18)

s98 CUMULATIVE EFFECT OF DEFERRED INCOME TAXES 0 0 0 0
s99 LABOR OBLIGATION ADJUSTMENT 0 0 0 0
s100 OTHER 0 0 0 0

 

 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
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 12,378,104 9,512,146
S73 PENSIONS FUND AND SENIORITY PREMIUMS 0 0
S74 EXECUTIVES (*) 54 54
S75 EMPLOYERS (*) 1,519 1,443
S76 WORKERS (*) 3,113 2,864
S77 COMMON SHARES (*) 497,709,214 497,709,214
S78 REPURCHASED SHARES (*) 0 0
S101 RESTRICTED CASH 0 0
S102 NET DEBT OF NON CONSOLIDATED COMPANIES 707,453 602,168

 

(*) THESE ITEMS SHOULD BE EXPRESSED IN UNITS

 

 

 

 
 

 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  
   

STATEMENTS OF INCOME

FROM JANUARY 1 TO DECEMBER 31 OF 2011 AND 2010

(thousands of Mexican pesos)

 

REF

R

CATEGORIES CURRENT YEAR PREVIOUS YEAR
    AMOUNT % AMOUNT %
r01 NET SALES 29,270,498 100 24,576,436 100
r02 COST OF SALES 25,624,612 88 20,529,666 84
r03 GROSS PROFIT 3,645,886 12 4,046,770 16
r04 OPERATING EXPENSES 1,054,152 4 2,961,944 12
r05 OPERATING INCOME 2,591,734 9 1,084,826 4
r08 OTHER INCOME AND (EXPENSE), NET (113,706) 0 (186,078) 0
r06 COMPREHENSIVE FINANCING RESULT 584,040 2 (207,497) 0
r12 EQUITY IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES AND ASSOCIATES

 

0

 

0

 

0

 

0

r48 NON ORDINARY ITEMS 0 0 0 0
r09 INCOME BEFORE INCOME TAXES 3,062,068 10 691,251 3
r10 INCOME TAXES 109,837 0 86,314 0
r11 INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS 2,952,231 10 604,937 2
r14 DISCONTINUED OPERATIONS 0 0 0 0
r18 NET CONSOLIDATED INCOME 2,952,231 10 604,937 2
r19 NET INCOME OF MINORITY INTEREST 89,804 0 (298,606) (1)
r20 NET INCOME OF MAJORITY INTEREST 2,862,427 10 903,543 4

 

 
 

 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. 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 29,270,498 100 24,576,436 100
r21 DOMESTIC 13,616,862 47 10,799,739 44
r22 FOREIGN 15,653,636 53 13,776,697 56
r23 TRANSLATED INTO DOLLARS (***) 1,118,884 4 1,114,881 5
           
r08 OTHER INCOME AND (EXPENSE), NET (113,706) 100 (186,078) 100
r49 OTHER INCOME AND (EXPENSE), NET (113,706) 100 (186,078) 100
r34 EMPLOYEES’ PROFIT SHARING EXPENSES 0 0 0 0
r35 DEFERRED EMPLOYEES’ PROFIT SHARING 0 0 0 0
           
r06 COMPREHENSIVE FINANCING RESULT 584,040 100 (207,497) 100
r24 INTEREST EXPENSE 23,725 4 12,315 (6)
r42 GAIN (LOSS) ON RESTATEMENT OF UDI’S 0 0 0 0
r45 OTHER FINANCE COSTS 0 0 0 0
r26 INTEREST INCOME 26,135 4 12,058 (6)
r46 OTHER FINANCIAL PRODUCTS 0 0 0 0
r25 FOREIGN EXCHANGE GAIN (LOSS), NET 581,630 100 (207,240) 100
r28 RESULT FROM MONETARY POSITION 0 0 0 0
           
r10 INCOME TAXES 109,837 100 86,314 100
r32 INCOME TAX (86,837) (79) 158,043 183
r33 DEFERRED INCOME TAX 196,674 179 (71,729) (83)

 

(***) THOUSANDS OF DOLLARS

 

 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  

 

STATEMENTS OF INCOME

OTHER CONCEPTS

(thousands of Mexican pesos)

 

REF

R

CONCEPTS CURRENT YEAR PREVIOUS YEAR
    AMOUNT AMOUNT
       
r36 TOTAL SALES 29,554,022 25,795,696
r37 TAX RESULT FOR THE YEAR 0 0
r38 NET SALES (**) 29,270,498 24,576,436
r39 OPERATION INCOME (**) 2,591,734 1,084,826
r40 NET INCOME OF MAJORITY INTEREST (**) 2,862,427 903,543
r41 NET CONSOLIDATED INCOME (**) 2,952,231 604,937
r47 OPERATIVE DEPRECIATION AND AMORTIZATION  1,001,098 1,098,208

 

(**) RESTATED INFORMATION FOR THE LAST TWELVE MONTHS

 

 
 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  

 

QUARTERLY STATEMENTS OF INCOME

FROM OCTOBER 1 TO DECEMBER 31 OF 2011 AND 2010

(thousands of Mexican pesos)

 

REF

R

CATEGORIES CURRENT YEAR PREVIOUS YEAR
    AMOUNT % AMOUNT %
r01 NET SALES 7,836,347 100 5,634,869 100
r02 COST OF SALES 6,761,453 86 4,246,443 75
r03 GROSS PROFIT 1,074,894 14 1,388,426 25
r04 OPERATING EXPENSES 360,132 5 1,403,034 25
r05 OPERATING INCOME 714,762 9 (14,608) 0
r08 OTHER INCOME AND (EXPENSE), NET (135,443) (2) (144,180) (3)
r06 COMPREHENSIVE FINANCING RESULT 260,516 3 (119,345) (2)
r12 EQUITY IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES AND ASSOCIATES

 

0

 

0

 

0

 

0

r48 NON ORDINARY ITEMS 0 0 0 0
r09 INCOME BEFORE INCOME TAXES 839,835 11 (278,133) (5)
r10 INCOME TAXES (335,171) (4) 41,678 1
r11 INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS 1,175,006 15 (319,811) (6)
r14 DISCONTINUED OPERATIONS 0 0 0 0
r18 NET CONSOLIDATED INCOME 1,175,006 15 (319,811) (6)
r19 NET INCOME OF MINORITY INTEREST (41,367) 0 (154,611) (3)
r20 NET INCOME OF MAJORITY INTEREST 1,216,373 16 (165,200) (3)

 

 
 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  

 

QUARTERLY STATEMENTS OF INCOME

BREAKDOWN OF MAIN CONCEPTS

(thousands of Mexican pesos)

 

REF

R

CONCEPTS CURRENT YEAR PREVIOUS YEAR
    AMOUNT % AMOUNT %
rt01 NET SALES 7,836,347 100 5,634,869 100
rt21 DOMESTIC 3,878,375 49 2,540,761 45
rt22 FOREIGN 3,957,972 51 3,094,108 55
rt23 TRANSLATED INTO DOLLARS (***) 280,740 4 250,391 4
           
rt08 OTHER INCOME AND (EXPENSE), NET (135,443) 100 (144,180) 100
rt49 OTHER INCOME AND (EXPENSE), NET (135,443) 100 (144,180) 100
rt34 EMPLOYEES’ PROFIT SHARING EXPENSES 0 0 0 0
rt35 DEFERRED EMPLOYEES’ PROFIT SHARING 0 0 0 0
           
rt06 COMPREHENSIVE FINANCING RESULT 260,516 100 (119,345) 100
rt24 INTEREST EXPENSE 13,973 5 1,910 (2)
rt42 GAIN (LOSS) ON RESTATEMENT OF UDI’S 0 0 0 0
rt45 OTHER FINANCE COSTS 0 0 0 0
rt26 INTEREST INCOME 9,158 4 3,899 (3)
rt46 OTHER FINANCIAL PRODUCTS 0 0 0 0
rt25 FOREIGN EXCHANGE GAIN (LOSS), NET 265,331 102 (121,334) 102
rt28 RESULT FROM MONETARY POSITION 0 0 0 0
           
rt10 INCOME TAXES (335,171) 100 41,678 100
rt32 INCOME TAX (185,244) 55 94,584 227
rt33 DEFERRED INCOME TAX (149,927) 45 (52,906) (127)

 

(***) THOUSANDS OF DOLLARS

 
 

 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  
   

QUARTERLY STATEMENTS OF INCOME

OTHER CONCEPTS

(thousands of Mexican pesos)

 

REF

RT

CONCEPTS CURRENT YEAR PREVIOUS YEAR
    AMOUNT AMOUNT
rt47 OPERATIVE DEPRECIATION AND AMORTIZATION  251,776 317,970

 

 

 

 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  
   

STATE OF CASH FLOW DIRECT METHOD)

FROM JANUARY 1 TO DECEMBER 31 OF 2011 AND 2010

(thousands of pesos)

 

REF

C

CONCEPTS CURRENT YEAR PREVIOUS YEAR
    AMOUNT AMOUNT
       
  ACTIVITIES OF OPERATION    
e01 INCOME (LOSS) BEFORE INCOME TAXES 3,062,068 691,251
e02 + (-) ITEMS NOT REQUIRING CASH 0 0
e03 + (-) ITEMS RELATED TO INVESTING ACTIVITIES 449,704 1,100,764
e04 + (-) ITEMS RELATED TO FINANCING ACTIVITIES 23,725 13,916
e05 CASH FLOW BEFORE INCOME TAX 3,535,497 1,805,931
e06 CASH FLOW PROVIDED OR USED IN OPERATION (581,223) 420,694
e07 CASH FLOW PROVIDED OF OPERATING ACTIVITIES 2,954,274 2,226,625
  INVESTMENT ACTIVITIES    
e08 NET CASH FLOW FROM INVESTING ACTIVITIES (440,065) (678,929)
e09 CASH FLOW AFTER INVESTING ACTIVITIES 2,514,209 1,547,696
  FINANCING ACTIVITIES    
e10 NET CASH FROM FINANCING ACTIVITIES 13 (140,079)
e11 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

 

2,514,222

 

1,407,617

e12 TRANSLATION DIFFERENCES IN CASH AND CASH EQUIVALENTS

 

637,949

 

28,400

e13 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD 3,384,917 1,948,900
e14 CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 6,537,088 3,384,917

 

 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  
   

STATE OF CASH FLOW (INDIRECT METHOD)

BREAKDOWN OF MAIN CONCEPTS

(thousands of pesos)

 

REF

C

CONCEPTS CURRENT YEAR PREVIOUS YEAR
    AMOUNT AMOUNT
e02 + (-) ITEMS NOT REQUIRING CASH 0 0
e15 + ESTIMATES FOR THE PERIOD 0 0
e16 + PROVISIONS FOR THE PERIOD 0 0
e17 + (-) OTHER UNREALIZED ITEMS 0 0
       
e03 + (-) ITEMS RELATED TO INVESTING ACTIVITIES 449,704 1,100,764
e18 +   DEPRECIATION AND AMORTIZATION FOR THE PERIOD 1,001,098 1,098,208
e19 (-) + GAIN OR LOSS ON SALE PROPERTY, PLANT AND EQUIPMENT 0 0
e20 + IMPAIRMENT LOSS 0 0
e21 (-) + EQUITY IN RESULTS OF ASSOCIATES AND JOINT VENTURES 0 0
e22 (-) DIVIDENDS RECEIVED 0 0
e23 (-) INTEREST INCOME (26,135) (12,058)
e24 (-) + OTHER ITEMS (525,259) 14,614
       
e04 + (-) ITEMS RELATED TO FINANCING ACTIVITIES 23,725 13,916
e25 + ACCRUED INTEREST 23,725 13,916
e26 + (-) OTHER ITEMS 0 0
       
e06 CASH FLOW PROVIDED OR USED IN OPERATION (581,223) 420,694
e27 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE (431,775) (336,840)
e28 + (-) DECREASE (INCREASE) IN INVENTORIES 15,095 (86,034)
e29 + (-)DECREASE (INCREASE) IN IN OTHER ACCOUNT RECEIVABLES 365,017 267,744
e30 + (-) INCREASE DECREASE IN SUPPLIERS (45,518) 331,836
e31 + (-)INCREASE DECREASE IN OTHER LIABILITIES (477,120) (79,386)
e32 + (-) INCOME TAXES PAID OR RETURNED (6,922) 323,374
       
e08 NET CASH FLOW FROM INVESTING ACTIVITIES (440,065) (678,929)
e33 (-) PERMANENT INVESTMENT IN SHARES 0 (187,433)
e34 + DISPOSITION OF PERMANENT INVESTMENT IN SHARES 0 0
e35 (-) INVESTMENT IN PROPERTY PLANT AND EQUIPMENT (432,000) (496,361)
e36 + SALE OF PROPERTY PLANT AND EQUIPMENT 0 0
e37 (-) INVESTMENT IN INTANGIBLE ASSETS 0 0
e38 + DISPOSITION OF INTANGIBLE ASSETS 0 0
e39 + OTHER PERMANENT INVESTMENTS 0 0
e40 + DISPOSITION OF OTHER PERMANENT INVESTMENTS 0 0
e41 + DIVIDEND RECEIVED 0 0
e42 + INTEREST RECEIVED 26,135 12,058
e43 + (-) DECREASE (INCREASE) ADVANCES AND LOANS TO THIRD PARTS 0 0
e44 + (-) OTHER ITEMS (34,200) (7,193)
       
e10 NET CASH FRON FINANCING ACTIVITIES 13 (140,079)
e45 + BANK FINANCING 0 0
e46 + STOCK MARKET FINANCING 0 0
e47 + OTHER FINANCING 74,963 323,720
e48 (-) BANK FINANCING AMORTIZATION 0 (8,656)
e49 (-) STOCK MARKET FINANCING AMORTIZATION 0 0
e50 (-) OTHER FINANCING AMORTIZATION (51,225) (442,688)
e51 + (-) INCREASE (DECREASE ) IN CAPITAL STOCK 0 0
e52 (-) DIVIDENS PAID 0 0
e53 + PREMIUM ON ISSUANCE OF SHARES 0 0
e54 + CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0
e55 (-) INTEREST EXPENSE (23,725) (12,455)
e56 (-) REPURCHASE OF SHARES 0 0
e57 + (-) OTHER ITEMS 0 0

 

 
 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. 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 (**) $   5.75 $ 1.81
d02 BASIC PROFIT PER PREFERRED SHARE (**) $   0.00 $   0.00
d03 DILUTED PROFIT PER ORDINARY SHARE (**) $   0.00 $   0.00
d04 EARNINGS (LOSS) BEFORE DISCONTINUED OPERATIONS PER COMMON SHARE (**)

 

$ 5.75

 

$ 1.81

d05 DISCONTINUED OPERATIONS EFFECT ON EARNING (LOSS) PER SHARE (**)

 

$ 0.00

 

$ 0.00

d08 CARRYING VALUE PER SHARE $ 44.39 $ 37.52
d09 CASH 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               0.69 times               0.79 times
d12 MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE            5.84 times           17.93 times
d13 MARKET PRICE TO BASIC PROFIT PER PREFERENT 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: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. 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 10.09% 2.46%
p02 NET INCOME TO STOCKHOLDERS’ EQUITY (**) 12.16% 2.96%
p03 NET INCOME TO TOTAL ASSETS (**) 9.44% 2.23%
p04 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 0.00% 0.00%
p05 INCOME DUE TO MONETARY POSITION TO NET INCOME 0.00% 0.00%
       
  ACTIVITY    
p06 NET SALES TO NET ASSETS (**) 0.94 times 0.91 times
p07 NET SALES TO FIXED ASSETS (**) 3.09 times 2.60 times
p08 INVENTORIES TURNOVER (**) 4.45 times 3.11 times
p09 ACCOUNTS RECEIVABLE IN DAYS OF SALES 32 days 31 days
p10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 3.33% 2.03%
       
  LEVERAGE    
p11 TOTAL LIABILITIES TO TOTAL ASSETS 22.39% 24.57%
p12 TOTAL LIABILITIES TO STOCKHOLDERS’ EQUITY 0.29 times 0.33 times
p13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 42.94% 41.68%
p14 LONG-TERM LIABILITIES TO FIXED ASSETS 0.00% 0.00%
p15 OPERATING INCOME TO INTEREST PAID 109.24 times 88.09 times
p16 NET SALES TO TOTAL LIABILITIES (**) 4.18 times 3.69 times
       
  LIQUIDITY    
p17 CURRENT ASSETS TO CURRENT LIABILITIES 4.24 times 3.44 times
p18 CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES 2.73 times 1.75 times
p19 CURRENT ASSETS TO TOTAL LIABILITIES 2.31 times 2.01 times
p20 AVAILABLE ASSETS TO CURRENT LIABILITIES 171.00% 86.82%
       

 

 

 

  

 
 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4      YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  

 

DIRECTOR REPORT

GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS AUDITED FOR THE YEAR OF 2011 AND 2010

 

GUADALAJARA, MEXICO, May 4, 2012- Grupo Simec, S.A.B. de C.V. (AMEX: SIM) (“Simec”) announced today its results of operations Audited for the twelve-month period ended December 31, 2011 and December 31, 2010.

Twelve-Month Period Ended December 31, 2011 compared to Twelve-Month Period Ended December 31, 2010

 

We reclassified indirect cost in 2010 from selling, general and administrative expenses to Inventories and Cost Sales according with the full cost, issued by the Mexican Financial Reporting Standards “MFRS” for purposes of comparability with 2011.

 

Net Sales

Net sales increased 19% by the combination of higher sales of Special Bars “SBQ”, shipments of finished steel products and the increase of the average sales price per ton of 17% compared versus the same period of 2010, the sale rose from Ps. 24,576 millions in the twelve-month period ended December 31, 2010 to Ps. 29,270 millions in the same period of 2011. Shipments of finished steel products increase 2% to 2 million 288 thousand tons in the twelve-month period ended December 31, 2011 compared to 2 million 241 thousand tons in the same period of 2010. Total sales outside of Mexico in the twelve-month period ended December 31, 2011 increased 14% to Ps. 15,654 million compared with Ps. 13,777 millions in the same period of 2010. Total sales in Mexico increased 26% from Ps. 10,799 millions in the twelve-month period ended December 31, 2010 to Ps. 13,616 millions in the same period of 2011. The increase in sales is due to an increase shipments during the twelve-month period ended December 31, 2011, compared to the same period in 2010 (47 thousand tons), increase in SBQ shipment in 193 thousand tons, and the increase of the average sales price of 17%.

 

Cost of Sales

Cost of sales increased 15% from Ps. 22,250 millions in the twelve-month period ended December 31, 2010 to Ps. 25,624 millions in the same period of 2011. Cost of sales as a percentage of net sales in the twelve months ended on December 31 of 2011 and 2010, cost of sales represented 88 and 91% respectively. The average cost of finished steel produced in the twelve-month period ended December 31, 2011 compared to the same period of 2010 increased approximately 13% by a higher of SBQ sales and increase of shipment.

 

 

Gross Profit

Gross profit of the Company in the twelve-month period ended December 30, 2011 was of Ps. 3,646 million compared to Ps. 2,326 millions in the same period of 2010. Gross profit as a percentage of net sales represented 12% and 9% in 2011 and 2010 respectively. The increase in the gross profit is attributed to an increase in the volume shipment, better blend of steel compared with the same period of 2010.

 

General, Sales and Administrative Expenses

Selling, general and administrative expenses decreased 9% from Ps. 1,152 millions in the twelve-month period ended December 31, 2010 to Ps. 1,054 millions in the same period of 2011, representing 4% and 5% respect of net sales in the twelve-month period ended December 2011 and 2010 respectively.

 
 

 

Operating Income

Operating income increased 121% from Ps. 1,174 million for the twelve-month period ended December 31, 2010 to Ps. 2,592 millions in the same period of 2011. Operating income as a percentage of net sales was 9% in the twelve-month period ended December 31, 2011 compared with 5% in the same period of 2010. The increase in operating income is due to an increase in shipments, increase in sales of SBQ and better average sales price per ton.

 

EBITDA

The EBITDA of the Company increase 58% from Ps. 2,272 millions in the twelve-month prior ended December 31, of 2010, to Ps.3,593 millions in the same period of 2011.

 

Comprehensive Financial Cost.

Comprehensive financial cost in the twelve-month period ended December 31, 2011 represented a net income of Ps. 584 million compared with a net expense of Ps. 207 millions in the same period of 2010. The net interest was an income of Ps 2 million in 2011 compared with a net interest of Ps. zero in the twelve-month period ended December 31, 2010. So it, we registered a net exchange gain net of Ps. 582 millions in the twelve-month period ended December 31, 2011 compared with a net exchange loss of Ps. 207 millions in the same period of 2010, reflecting a 13% decrease in the value of the peso versus the dollar in the twelve-month period ended December 31, 2011 compared to December 31, 2010.

 

Other Expenses (Income) net

The company recorded other net expenses of Ps. 186 millions in the twelve-month period ended December 31, 2010 for expenses incurred in the use of patent industrial compared to other expenses net of Ps. 114 millions in the same period of 2011.

 

Income Taxes

The Company have recorded an expense net income tax of Ps. 110 millions in the twelve-month period ended December 31, 2011 (including the income of income tax for Ps.87 million and the expense of deferred income tax of Ps. 197 millions) compared with an expense net of Ps. 112 millions in the same period of 2010 (including the income tax deferred of Ps. 47 millions).

 

Net Income (loss) (Before Non- controlling Interest)

As a result of the foregoing, net income increased of 341% from Ps. 669 millions in the twelve-month period ended December 31, 2010 to a net income of Ps. 2,952 millions in the same period of 2011.

 

Liquidity and Capital Resources

 

As of December 31, 2011, Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998, Ps. 4.2 millions (accrued interest on December 31, 2011 was U.S. $472,824 or Ps. 6.6 millions). As of December 31, 2010, Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998, Ps. 3.7 million (accrued interest on December 31, 2010 was U.S. $445,914, or Ps. 5.5 millions).

 

 

Comparative fourth quarter 2011 vs third quarter 2011

 

Net Sales

Net sales increased 2% from Ps. 7,676 millions in the third quarter of 2011 to Ps. 7,836 million for the fourth quarter of 2011. Sales in tons decreased from 592 thousand ton in the third quarter of 2011 to 558 thousand ton in the fourth quarter of the same period a decrease of 6%. Total sales outside of Mexico for the fourth quarter of 2011 decreased 4% from Ps. 4,121 millions in the third quarter to Ps. 3,958 millions in the four quarter of 2011. Sales in Mexico rose to 3,878 million in the fourth quarter of 2011 compared Ps. 3,555 millions in the third quarter of 2011 an increase of 9%. Prices of finished products sold in the fourth quarter of 2011 increased approximately 8% compared to the third quarter of the same period.

 
 

 

Cost of Sales

Cost of sales was of Ps. 6,761 millions in the fourth quarter of 2011 compared to Ps. 6,789 millions for the third quarter of 2011. With respect to sales, in the fourth quarter of 2011, the cost of sales represented 86% for the fourth quarter of 2011 while for the third quarter of 2011 was of 88%. The average cost of sales by ton increased 6% in the fourth quarter of 2011 versus the third quarter of 2011.

 

Gross Profit

Gross profit of the Company for the fourth quarter of 2011 increased 21% to Ps.1,075 million compared to Ps. 887 millions in the third quarter of 2011. The gross profit as a percentage of net sales for the fourth quarter was of 14% and 12% for the third quarter of 2011.

 

General, Sales and Administrative Expenses

Selling, general and administrative expenses increased 49% to Ps. 360 millions in the fourth quarter of 2011 compared to Ps. 241 millions for the third quarter of 2011. Selling, general and administrative expenses as a percentage of net sales represented 5% during the fourth quarter of 2011 and 3% during the third quarter of 2011.

 

Operating Income

Operating income was of Ps 715 million in the fourth quarter of 2011 compared to an operating income of Ps. 646 millions in the third quarter of 2011. The operating income as a percentage of net sales in the fourth represented 9% and the third quarter of 2011 represented 8%.

 

 

Ebitda

The EBITDA in both quarter its similar from Ps. 940 millions in the third quarter of 2011 to Ps. 967 millions in the fourth quarter of the same period due to the above explained

 

 

Comprehensive Financial Income (Cost)

Comprehensive financial cost for the fourth quarter for 2011 was a net income of Ps. 260 million compared with a net income of Ps. 495 millions for the third quarter of 2011. The net interest income in the third quarter of 2011 was of Ps 3 million while in the fourth quarter was a net interest expenses of Ps. 5 millions. At the same time we registered an exchange net gain of Ps. 492 millions in the third quarter of 2011 compared with an exchange net gain of Ps. 265 millions in the fourth quarter of 2011.

 

Other Expenses (Income) net

The company recorded other net expense of Ps. 135 millions in the fourth quarter of 2011compared to other net income of Ps. 30 millions for the third quarter of 2011.

 

Income Taxes

Income Taxes for the fourth quarter of 2011 had a net income tax of Ps. 335 million (including an income tax deferred for Ps. 150 millions) compared to an expense of Ps. 468 millions for the third quarter of 2011, (including an expense tax deferred of Ps. 386 millions).

 

 

Net Income (loss) (Before Non- controlling Interest)

As a result of the foregoing, the Company had a net income of Ps. 1,175 millions in the fourth quarter of 2011 compared to Ps. 704 million of net income in the third quarter of 2011.

 

 

Comparative fourth quarter 2011 vs fourth quarter 2010

 

Net Sales

Net sales increased 39% from Ps. 5,635 millions for the fourth quarter of 2010 to Ps. 7,836 million for the fourth quarter of 2011. Sales in tons of finished steel in the fourth quarter of 2010 were 522 thousand tons versus to 558 thousand tons in the fourth quarter of 2011. Total sales outside of Mexico increase 28% from Ps. 3,094 millions for the fourth quarter of 2010 to Ps. 3,958 millions in the fourth quarter of 2011. Sales in Mexico increase 53% from Ps. 2,541 millions in the fourth quarter of 2010 to Ps. 3,878 millions in the fourth quarter of 2011. The average sales prices of finished products sold in the fourth quarter of 2011 increased approximately 30% compared to the fourth quarter of 2010.

 
 

 

Cost of Sales

Cost of sales increased 32% from Ps. 5,140 millions in the fourth quarter of 2010 compared to Ps. 6,761 million for the fourth quarter of 2011. With respect to sales, in the fourth quarter of 2011, the cost of sales represented 86% compared to 91% for the fourth quarter of 2010. The average cost of raw materials used to produce steel products increased 23% in the fourth quarter of 2011 versus the fourth quarter of 2010.

 

Gross Profit

Gross profit for the fourth quarter of 2011 increased 117% from Ps. 495 millions in the fourth quarter of 2010 compared to an income of Ps. 1,075 millions in the fourth quarter of 2011. The gross profit as a percentage of net sales for the fourth quarter of 2011 was 14% compared with 9% for the fourth quarter of 2010.

 

 

General, Sales and Administrative Expenses

Selling, general and administrative expenses decreased 26% from Ps.487 million in the fourth quarter of 2010 compared to Ps. 360 millions for the fourth quarter of 2011.Selling, general and administrative expenses as a percentage of net sales represented 5% during the fourth quarter of 2011 and 9% during the fourth quarter of 2010.

 

Operating Income

Operating income was of Ps.715 million in the fourth quarter of 2011 compared with Ps. 8 millions in the fourth quarter of 2010. The operating income as a percentage of net sales in the fourth quarter of 2011 was 9% compared to 0.1% in the fourth quarter of 2010.

 

Ebitda

The EBITDA from the fourth quarter of 2011 increased 229% from Ps 294 million in the fourth quarter of 2010 to Ps 967 million in the fourth quarter of 2011.

 

 

Comprehensive Financial Income (Cost)

Comprehensive financial cost for the fourth quarter of 2011 was an income of Ps. 260 million compared with an expense of Ps 119 millions in the fourth quarter of 2010. Net interest expense was Ps. 5 millions in the fourth quarter of 2011 compared with a net income of Ps. 2 millions in the fourth quarter of 2010. At the same time we registered a net exchange gain of Ps. 265 millions in the fourth quarter of 2011 compared with an exchange loss of Ps. 121 millions in the fourth quarter of 2010.

 

Other Expenses (Income) net

The company recorded other net expense of Ps. 144 millions in the fourth quarter of 2010 for expenses incurred in the use of patent industrial compared with other expenses net of Ps. 135 million for the fourth quarter of 2011.

 

Income Taxes

The Company recorded an income taxes for the fourth quarter of 2011 was an income of Ps. 335 million (including an income of deferred income tax of Ps 150 millions), compared to a net expense of Ps. 48 millions for the fourth quarter of 2010, (including an income of deferred income tax of Ps. 46 millions).

 

Net Income (loss) (Before Minority Interest)

As a result of the foregoing, net income of Ps. 1,175 millions in the fourth quarter of 2011 compared to a loss of Ps. 303 million of net income in the fourth quarter of 2010.

 

 
 

 

 

Millions of pesos

Twelve months

ended December

31, 2011

Twelve months ended
December 31, 2010

2011

vs.

2010

Sales       29,270    24,576         19%
Cost of Sales       25,624    22,250         15%
Marginal Profit         3,646      2,326         57%
Operating Expenses         1,054      1,152        (9%)
Operating Income         2,592      1,174        121%
EBITDA         3,593      2,272         58%
Income before Non-Controlling Interest         2,952         669        341%
Sales outside Mexico       15,654    13,777          14%
Sales in México       13,616    10,799         26%
Total sales (tons)         2,288      2,241           2%

 

 

(Millions of pesos)      4Q ‘11       3Q ‘11    4Q ‘10  4Q´11 vs
  3Q'11
  4Q´11vs
  4Q´10
Sales   7,836    7,676    5,635      2%      39%
Cost of Sales   6,761    6,789    5,140      0%      32%
Marginal Profit   1,075       887       495    21%    117%
Operating Expenses      360       241       487    49%    (26%)
Operating Income      715       646           8      11%  8,838%
EBITDA      967       940       294      3%    229%
Income before Non. Controlling  Interest    1,175       704      (303)    67%  (487%)
Sales outside Mexico   3,958    4,121    3,094    (4%)      28%
Sales in México   3,878    3,555    2,541    9%      53%
Total sales (tons)      558       592       522    (6%)        7%

 

 

 

 

 

Product

Thousands of tons twelve months ended December 31,2011 Million of pesos twelve months ended December 31, 2011 Average price per ton twelve months ended December 31, 2011 Thousands of tons Twelve months ended December 31,2010 Million of pesos twelve months ended December 31, 2010 Average price per ton twelve months ended December 31, 2010
SBQ    1,380   19,659    14,246   1,187    15,194    12,800
Light Structural       908     9,611    10,585   1,054      9,382      8,901
Total    2,288   29,270    12,793   2,241    24,576    10,967
             

 

 

 

Product

Thousands of tons

4Q '11

Millions of pesos

4Q'11

Average price per ton 4Q'11

Thousands of tons

3Q '11

Millions of pesos

3Q'11

Average price per ton 3Q'11      Thousands of tons         4Q'10  Millions of pesos              4Q'10 Average price per ton                  4Q'10
SBQ    318   5,011   15,758    344  5,038   14,645    261  3,187   12,211
Light Structural    240   2,825   11,771    248  2,638   10,637    261  2,448     9,379
Total    558   7,836   14,042    592  7,676   12,966    522  5,635   10,795
                   

 

 
 

 

 

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: 4      YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  

 

FINANCIAL STATEMENT NOTES

CONSOLIDATED

 

(1) Operations preparation bases and summary of significant accounting policies:

Grupo Simec, S.A. B., de C.V. and its Subsidiaries (“the Company”) are subsidiaries of Industrias CH, S.A.B., de C.V. (“ICH”), and their main activities consist of the manufacturing and sale of steel products primarily destined for the construction and automotive 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 - Below is a summary of the most significant accounting policies and practices used in the preparation of the consolidated financial statements, in conformity with Mexican Financial Reporting Standards (MFRS), which include Bulletins and Circulars issued by the Accounting Principles Commission (CPC) of the Mexican Institute of Public Accountants (IMCP) which have not been amended, replaced or abrogated by MFRS issued by the Mexican Financial Reporting Standards Research and Development Board (Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera, A.C. (CINIF)..

 

All significant intercompany balances and transactions have been eliminated in consolidation.

 

b. 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.

 

c. Inventories – Are valued to the full cost average by Domestic subsidiaries, and the foreing subsidiaries are valued on a last-in, first-out(LIFO). For translation effects into MFRS the inventories have been adjusted from LIFO to average full cost system.

Billet finished goods and work in process, have been valued to the full cost.

Raw materials, materials, supplies and rollers, at the average cost.

 

The Company presents as non-current inventories certains raw materials (Coke) rollers and spare parts, which according to historical data and production trends will not be used within a one-year period.

 

d.- Derivative financial instruments-- During 2011, 2010 and 2009 the Company used derivative financial instruments for hedging risks associated with natural gas prices for which it conducted studies on historical consumption, future requirement and commitments acquired, thus diminishing its exposure to risks other than its normal operating risks.

 

To mitigate the risks associated with changes in natural gas prices occurring naturally as a result of the supply and demand on international markets, the Company uses natural gas cash-flow exchange contracts or natural gas swaps to offset fluctuations in the price of natural gas, whereby the Company receives a floating price and pays a fixed price. Fluctuations in natural gas prices from volumes consumed are recognized as part of the Company’s operating cost.

 
 

 

The fair value of these assets or liabilities is restated at the end of each month based on the new estimate. The Company periodically evaluates the changes in cash flows of the derivative instrument to analyze if the swaps are highly effective for mitigating the exposure to natural gas price fluctuations. A hedge instrument is considered to be highly effective when changes in its fair value or cash flows of the primary position are compensated on a regular or cumulatively basis, by changes in fair value or cash flows of the hedging instrument in a range between 80% and 125%. In 2011, 2010 and 2009 the fair value of derivatives that did not qualify for hedge accounting was adjusted through Statement of Income. For the derivatives that qualified for hedge accounting their fair value was adjusted through the Stockholders’ equity in the caption Fair value of derivative financial instruments until such time as the related item the derivative hedges is recognized in income. At that time, the fair value included in Stockholders’ equity is also recognized in income.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.

 

e 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, until December 31, 2007. 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 estimated useful lives of assets as of September 30, 2011 are as follows:

 

Years

Buildings...…........................................................................10 to 65

Machinery and equipment ................................. ...................5 to 40

Buildings and improvements (Republic)……...... …..…………5 to 25

Land improvements (Republic)……………..…… ....……….. 5 to 25

Machinery and equipment (Republic)……..…………......…… 5 to 20

 

 

f. Other assets - Organization and pre-operating expenses are capitalized and their amortization is calculated by the straight-line method over a period of 20 years.

 

g. 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.

 

h. 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.

 
 

 

i. Income taxes - 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.

 

j. 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 foreign subsidiaries, were translated into pesos in conformity with Mexican accounting Bulletin MFRS B-15, Transactions in Foreign Currency.

 

The first step in the process of conversion of financial information of the operations is the determination of the functional currency, which is in first instance the currency of primary the economic surroundings of the foreign operation; nevertheless, despite the previous thing, the functional currency can differ from the premises or registry, in the measurement that this one does not represent the currency that fundamentally affects the cash flow of the operations abroad. The financial statements of the foreign subsidiaries were turned to Mexican pesos with the following procedure:

 

- Applying the prevailing exchange rate at the consolidated balance date for monetary assets and liabilities.

- Applying the prevailing historical exchange rate for nonmonetary assets and liabilities and for stockholders’ equity accounts.

- Applying the prevailing the historical exchange rate at the consolidated balance sheet date for revenues and expenses during the reporting period

- The resulting effect of translation, the process of consolidation and to apply the participation method, is recorded in stockholders’ equity under the accumulated effect by conversion forming part of the Comprehensive Income.

 

k. 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 June 30, 2011 sales of ten customers accounted for approximately 40.5% 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.

l. Other income (expenses) - Other income (expenses) shown in the consolidated statements of operations primarily includes other financial operations non recurring.

 

(2) Financial Debt:

As of December 31, 2011, Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998, or Ps. 4.2 million (accrued interest on December 31, 2011 was U.S. $472,824, or Ps. 6.6 million). As of December 31, 2010, 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 millions (accrued interest on December 31, 2010 was U.S. $445,914, or Ps. 5.5 millions).

 
 

 

(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. 5.9 millions (U.S. $424,207) at December 31, 2011, (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.

 

 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  
   

RELATIONS OF SHARES INVESTMENTS

CONSOLIDATED

COMPANY NAME MAIN ACTIVITIES

NUMBER OF

SHARES

OWNERSHIP

 

SUBSIDIARIES      
Cia Siderurgica de Guadalajara Production and sales of steel products   99.99
Simec International Production and sales of steel products   99.99
Arrendadora Simec Production and sales of steel products   100.00
Undershaft 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
Comercializadora Simec Sales of steel products   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   50.22
Republic Engineered Products Production and sales of steel products   50.22
CSG Comercial Sales of steel products   99.95
Comercializadora de Productos de  Aceros de Tlaxcala Sales of steel products   99.95
Siderúrgica de Baja California Sales of steel products   99.95
Corporación Aceros DM Sub-Holding   99.99
Productos Siderurgicos de Tlaxcala Sales of steel products   100.00
Comercializadora MSAN Sales of steel products   100.00
Comercializadora Aceros DM Sales of steel products   100.00
Promotora de Aceros San Luis Sales of steel products   100.00
Corporativos G&DL Administrative services   85.00
Procesadora Industrial Administrative services   99.99
Acero Transporte San Freight services   100.00
Simec International 2 Inc. Sales of steel products   99.99
Simec International 3 Inc. Sales of steel products   99.99
Simec International 4 Inc. Sales of steel products   99.99
Simec International 5 Inc. Sales of steel products   99.99
Simec International 6 Production and sales of steel products   99.99
Simec International 7 Production and sales of steel products   99.99
Corporación ASL Sales of steel products    99.99
Simec Acero Sales of steel products   100.00
Simec USA Sales of steel products   100.00
Simec Steel Sales of steel products   100.00
Pacific Steel Projects Administrative services   100.00
GV do Brasil Production and sales of Steel productos   99.99
       

 

TOTAL INVESTMENT IN SUBSIDIARIES

     

 

ASSOCIATEDS

     
      0
TOTAL INVESTMENT IN ASSOCIATEDS     0
OTHER PERMANENT INVESTMENTS     0.00

 

TOTAL

   

 

0

 

 

NOTES

 
 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. 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                            
 

 

 

  0 0 0 0 0 0 0 0 0 0 0 0
 

 

 

  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 0 4,225 0 0 0 0
                             
                             
TOTAL STOCK EXCHANGE     0 0 0 0 0 0 0 4,225 0 0 0 0
                             
                             
                             

SUPPLIERS

 

                           
Various     0 445,207 0 0 0 0 0 1,849,494 0 0 0 0
                             
TOTAL SUPPLIERS     0 445,207 0 0 0 0 0 1,849,494 0 0 0 0
                             
OTHER LOANS WITH COST  

 

0.25

            0 707,453        
 
 
                             
TOTAL     0 0 0 0 0 0 0 707,453 0 0 0 0
                             
OTHER CURRENT LIABILITIES WITHOUT COST                            
Various     0 125,568 0 0 0 0 0 444,563 0 0 0 0
TOTAL     0 125,568 0 0 0 0 0 444,563 0 0 0 0
                             
                             
TOTAL     0 570,775 0 0 0 0 0 3,005,735 0 0 0 0
                                 

 

NOTES: The exchange rate of the peso to the U.S. Dollar at December 31, 2011 was Ps. 13.9904

 

 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC  QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  
   

MONETARY FOREIGN CURRENCY POSITION

(Thousands of Mexican Pesos)

 

CONSOLIDATED

 

  DOLLARS OTHER CURRENCIES TOTAL
FOREING CURRENCY POSITION THOUSANDS OF DOLLARS THOUSANDS OF PESOS THOUSANDS OF DOLLARS THOUSANDS OF PESOS THOUSANDS OF PESOS
           
           
TOTAL ASSETS 573,167 8,018,833 0 0 8,018,833
           
LIABILITIES POSITION 218,287 3,053,923 0 0 3,053,923
SHORT TERM LIABILITIES POSITION 214,843 3,005,735 0 0 3,005,735
LONG TERM LIABILITIES POSITION 3,444 48,188 0 0 48,188
           
NET BALANCE 354,880 4,964,910 0 0 4,964,910

 

NOTES

THE EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT DECEMBER 31, 2011 WAS PS. 13.9904

 

 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC  QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. 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 4.24 times.

B) Accomplished the actual situation is 0.22

C) Accomplished the actual situation is 151.4

 

As of December 31, 2011, the remaining balance of the MTNs not exchanged amounts to Ps. 4.2 Millions ($302,000 dollars).

 

 

C.P. Adolfo Luna Luna

Chief Financial Officer

 

 

 

 

 

BONDS AND/OR MEDIUM TERM NOTES CERTIFICATE

 

 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC  QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. 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

 

72.66

MEXICALI MINI MILL PRODUCTION AND SALES OF STEEL PRODUCTS

 

250

 

73.92

APIZACO AND CHOLULA PLANTS PRODUCTION AND SALES OF STEEL PRODUCTS

 

480

 

76.43

CANTON CASTER FACILITY PRODUCTION OF BILLET 1,144 72.00
LORAIN CASTER FACILITY PRODUCTION OF BILLET 1,045 0.00
LORAIN HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL PRODUCTS

 

693

 

44.80

LACKAWANNA HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL PRODUCTS

 

495

 

67.40

MASSILLON COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS

 

104

 

61.80

GARY COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS

 

59

 

49.00

ONTARIO COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS

 

49

 

47.80

SAN LUIS POTOSI COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS

 

620

 

80.76

 

 

 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC  QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  
   

MAIN RAW MATERIALS

CONSOLIDATED

 

DOMESTIC

 

MAIN SUPPLIERS

 

FOREIGN

 

MAIN SUPPLIERS

DOMESTIC SUBSTITUTION COST PRODUCTION (%)
PLANTS IN USA   SCRAP VARIOUS NO 47.70
SCRAP VARIOUS PLANTS IN MEXICO     55.94
FERROALLOYS VARIOUS PLANTS IN MEXICO   YES 6.74
PLANTS IN USA   FERROALLOYS VARIOUS NO 13.70
ELECTRODES VARIOUS PLANTS IN MEXICO VARIOUS YES 1.93
PLANTS IN USA   ELECTRODES VARIOUS NO 2.10

 

 

 

 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC  QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  
   

SELLS DISTRIBUTION BY PRODUCT

CONSOLIDATED

 

 

DOMESTIC SALES

 

MAIN PRODUCTS NET SALES

MAIN DESTINATION

 

  VOLUME AMOUNT TRADEMARKS CUSTOMERS
COMMERCIAL PROFILES 910 9,492,258    
SPECIAL PROFILES 539 6,088,232    
OTHERS   127,431    
         
T O T A L 1,449   15,707,921    
         
FOREIGN SALES 839 13,562,577    
TOTAL 2,288 29,270,498    
           

 

 

 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC  QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  
   

SELLS DISTRIBUTION BY PRODUCT

CONSOLIDATED

 

 

FOREIGN SALES

 

MAIN PRODUCTS NET SELLS

MAIN

 

  VOLUME AMOUNT TRADEMARKS CUSTOMERS
EXPORTS        
COMMERCIAL PROFILES 157 1,836,626    
SPECIAL PROFILES 17 162,362    
OTHERS 0 92,071    

 

FOREIGN SUBSIDIARIES

       
SPECIAL PROFILES 839 13,562,577    
         
T O T A L   15,653,636    
           

 

 

 

 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC  QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  
   

CONSTRUCTION IN PROGRESS

 

 

CONSOLIDATED

 

 

THE PROJECTS IN PROGRESS AT DECEMBER 31, 2011, ARE:

 

PROJECTS IN PROGRESS TOTAL INVESTMENT    
       
PROJECTS IN REPUBLIC                                                                  56,551    
PROJECTS IN MEXICALI 4,268    
PROJECTS IN TLAXCALA 12,345    
PROJECTS IN GUADALAJARA 861    

PROJECTS IN SAN LUIS POTOSI

 

4,130    
TOTAL INVESTMENT AS OF
DECEMBER 31, 2011

 

78,155

   


 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC  QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  
   

TRANSACTIONS IN FOREIGN CURRENCY AND CONVERSION OF FINANCIAL STATEMENTS OF FOREIGN OPERATIONS

INFORMATION RELATED TO BULLETIN B-15

 

CONSOLIDATED

 

 

Foreign currency transactions and exchange differences – Transactions in foreign currencies are recorded at the exchange rates prevailing at the celebration and liquidation dates. The assets and liabilities in foreign currencies are translated at the exchange rates prevailing at the date of the consolidated balance sheet. The exchange gains or losses incurred in connection with those assets or liabilities are included in the Statement of income, as part of the comprehensive financing cost. Note 3 presents the consolidated position in foreign currencies at the end of each year and the exchange rates used in the translation.

 

The functional and reporting currency of the Company is the Mexican peso. The financial statements of foreign subsidiaries were translated to Mexican pesos in accordance with the New Mexican Financial Reporting Standard MFRS B-15 "Conversion of foreign currencies” that came into effect on January 1, 2008. Under this Standard, the first step to convert financial information from operations abroad is the determination of the functional currency. The functional currency is the currency of the primary economic environment of the foreign operation or, if different, the currency that mainly impacts its cash flows. The new rule incorporates the concepts of recording currency that is the currency in which the entity maintains its accounting records, whether for legal or information purposes and the reporting currency, which is the currency chosen by the Company to report its financial information.

 

The U.S. dollar was considered as the functional currency of the subsidiary SimRep, therefore the financial statements of this subsidiary were translated into Mexican pesos by applying: i) the exchange rates at the balance sheet date to all assets and liabilities and (ii) the historical exchange rate at stockholders’ equity accounts and revenues, costs and expenses. The difference resulting from the translation or consolidation processes or from applying the equity method, is recognized as a cumulative translation adjustment as part of Translation effect in foreign subsidiaries in Stockholders’ equity.


The Mexican Peso was considered the functional currency of the subsidiary Pacific Steel and the U.S. dollar as its recording currency; therefore the financial statements were translated to Mexican pesos as follows: i) monetary assets and liabilities by applying the exchange rates at the balance sheet date; ii) non-monetary assets and liabilities, as well as stockholders’ equity accounts, at the historical exchange rate; and iii) revenues, costs and expenses at the historical exchange rate. Translation differences were carried directly to the income statement under the caption Foreign exchange loss, net.

 

 
 

 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC  QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  
   

INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK

CHARACTERISTICS OF THE SHARES

 

SERIES

NOMINAL

VALUE

VALID

COUPON

NUMBER OF SHARES

CAPITAL STOCK

(Thousands of Pesos)

      FIXED PORTION VARIABLE PORTION

 

MEXICAN

FREE SUBSCRIPTION

 

FIXED

 

VARIABLE

B     90,850,050 406,859,164 0 497,709,214 441,786 1,978,444
TOTAL     90,850,050 406,859,164 0 497,709,214 441,786 1,978,444
                   

 

 

     TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING THE INFORMATION : 497,709,214

 

 

 
 

MEXICAN STOCK EXCHANGE

SIFIC / ICS

 

STOCK EXCHANGE CODE: SIMEC  QUARTER: 4 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  
   

CONSOLIDATED

 

 

DECLARATION OF THE COMPANY OFFICIALS RESPONSIBLE FOR THE INFORMATION CONTAINED IN THIS REPORT.

 

LUIS GARCIA LIMON AND ADOLFO LUNA LUNA 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 SECOND QUARTER REPORT.

 

 

 

 

 

 

   ING LUIS GARCIA LIMON C.P. ADOLFO LUNA LUNA   
  CHIEF EXECUTIVE OFFICER            CHIEF FINANCIAL OFFICER

 

 

 

 GUADALAJARA, JAL, AT MAY 03 OF 2012.