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 May, 2009.
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 4, 2009. By: /s/ Luis Garcia Limon
------------------------------
Name: Luis Garcia Limon
Title: Chief Executive Officer
PRESS RELEASE Contact: Sergio Vigil Gonzalez
Jose 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 2009
GUADALAJARA, MEXICO, April 30, 2009- 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, 2009.
Acquisition of Corporacion Aceros DM, S.A. de C.V.
On February 21, 2008, we entered into an agreement to acquire 100% of the shares
of Corporacion Aceros DM, S.A. de C.V. and certain of its affiliates ("Grupo
San"), and on May 30, 2008 said acquisition was completed. Grupo San is a long
products steel mini-mill and the second-largest corrugated rebar producer in
Mexico. Grupo San's operations are based in San Luis Potosi, Mexico. Its plants
and 1,450 employees produce 600 thousand tons of finished products annually.
With this acquisition, Simec and Industrias CH, S.A.B. de C.V. ("ICH") position
themselves as the second-largest producer of rebar and the largest steel
producer in Mexico, with a production capacity of approximately 4.5 million tons
of liquid steel and 3.8 million tons of finished products.
With this strategic acquisition, Simec and ICH will achieve a more diversified
product mix, with 40% of sales in Mexico and 60% outside Mexico, both of which
will allow them to better address the natural cycles of the steel industry on
the domestic and global levels. Additionally, Simec has already identified
significant synergies and economies of scale that will increase the company's
operating margins. Grupo San's central location in San Luis Potosi, where Simec
is not currently present, also represents a strong competitive advantage since
it provides several strategic benefits mainly related to distribution, given its
proximity to Mexico's main cities, sea ports, and borders.
In addition, Grupo San has aggressive expansion plans in its rebar business,
which ICH and Simec will support and promote to satisfy the growing demand for
this product, resulting from the Mexican government's aggressive infrastructure
plan.
The financial statements of Simec include the operations of Grupo San since June
1, 2008.
Pursuant to Mexican Financial Reporting Standards "Bulletin B-7 Acquisitions of
Business," Simec is in the process of calculating the goodwill and other
intangible assets in the acquisition of Grupo San; as of December 31, 2008,
Simec registered the adjustment of the intangible assets and we are in the
process of determining the adjustment of the fixed assets.
Comparative first quarter 2009 vs first quarter 2008
Net Sales
Net sales decreased 30% to Ps. 5,081 million in the first quarter 2009
(including the net sales generated by the newly acquired plants of Grupo San of
Ps. 1,059 million) compared to Ps. 7,287 million in the same period 2008.
Shipments of finished steel products decreased 32% to 506 thousand tons in the
first quarter 2009 (including the net sales generated by the newly acquired
plants of Grupo San of 135 thousand tons) compared to 745 thousand tons in the
same period 2008. Total sales outside of Mexico in the first quarter 2009
decreased 59% to Ps. 2,222 million compared with Ps. 5,423 million in the same
period 2008, while total Mexican sales increased 53% from Ps. 1,865 million in
the first quarter 2008 to Ps. 2,859 millions in the same period 2009 (including
the net sales generated by the newly acquired plants of Grupo San of Ps. 1,053
million). The decrease in sales can be explained due to lower shipments during
the first quarter 2009, compared to the same period in 2008 (a 239,000 tons
decrease). The average price of steel products increased 2.6% in the first
quarter 2009 compared with the same period of 2008.
Direct Cost of Sales
Direct cost of sales decreased 32% from Ps. 6,050 million in the first quarter
2008 to Ps. 4,111 million in the same period 2009 (including the cost of sales
generated by the newly acquired plants of Grupo San of Ps. 657 million). Direct
cost of sales as a percentage of net sales represented 81% in the first quarter
2009 compared to 83% in the same period 2008. The average cost of raw materials
used to produce steel products in the first quarter of 2009 was the same
compared to the corresponding period of 2008.
Gross Profit
Gross profit in the first quarter 2009 was Ps. 970 million (including the gross
profit generated by the newly acquired plants of Grupo San of Ps. 402 million)
compared to Ps. 1,237 million in the same period 2008. Gross profit as a
percentage of net sales in the first quarter 2009 was 19% compared to 17% in the
same period 2008. The decline in gross profit is due to lower shipments of 32%
during the first quarter 2009 compared with the same period of 2008.
Operating Expenses
Operating expenses increased 63% to Ps. 585 million in the first quarter 2009
(including the operating expenses from the newly acquired plants of Grupo San of
Ps. 114 million and the amortization of the tangible and intangible assets of
Ps. 90 million registered by the acquisition of Grupo San) compared to Ps. 359
million in the same period 2008, and represented 12% of net sales in the first
quarter 2009 and 5% of net sales in the same period 2008.
Operating Profit
Operating profit decreased 56% to Ps. 385 million for the first quarter 2009
(including the operating profit generated by the newly acquired plants of Grupo
San of Ps. 289 million) compared to Ps. 878 million in the same period 2008.
Operating profit as a percentage of net sales was 8% in the first quarter 2009
compared to 12% in the same period 2008. The decline in operating profit is due
to lower shipments of 32% during the first quarter 2009 compared with the same
period of 2008.
Comprehensive Financial Cost
Comprehensive financial cost in the first quarter 2009 represented an income of
Ps. 60 million compared with an expense of Ps. 62 million in the same period
2008. Net interest expense was Ps. 3 million in the first quarter 2009 compared
with a gain of Ps. 55 million in the same period 2008. At the same time, we
registered an exchange gain of Ps. 63 million in the first quarter 2009 compared
with an exchange loss of Ps. 117 million in the same period 2008, reflecting a
5.9% decrease in the value of the peso versus the dollar in the first quarter
2009 compared to the same period of 2008.
Other Expenses (Income) net
The company recorded other income net of Ps. 2 million in the first quarter 2009
compared to other income net of Ps. 6 million in the same period 2008.
Income Taxes
Income Taxes recorded a provision of Ps. 7 million in the first quarter 2009
(including the provision of Ps. 167 million of deferred income taxes) compared
to Ps. 230 million in the same period of 2008 (including the provision of Ps.
110 million of deferred income taxes).
Net Profit
As a result of the foregoing, net profit decreased by 26% to Ps. 440 million in
the first quarter 2009 from Ps. 592 million in the same period 2008.
Liquidity and Capital Resources
As of March 31, 2009, Simec's total consolidated debt consisted of U.S.
$952,000; U.S. $650,000 is a credit bank and U.S. $302,000 of 8 7/8% medium-term
notes ("MTN's") due 1998 (accrued interest on March 31, 2009 was U.S. $395,099).
As of December 31, 2008, Simec's total consolidated debt consisted of U.S.
$952,000; U.S. $650,000 is a credit bank and U.S. $302,000 of 8 7/8% medium-term
notes ("MTN's") due 1998 (accrued interest on December 31, 2008 was U.S.
$387,882).
Comparative first quarter 2009 vs fourth quarter 2008
Net Sales
Net sales decreased 33% from Ps. 7,618 million for the fourth quarter 2008
(including the net sales generated by the newly acquired plants of Grupo San of
Ps. 945 million) to Ps. 5,081 million for the first quarter 2009 (including the
net sales generated by the newly acquired plants of Grupo San of Ps. 1,059
million). Sales in tons of finished steel decreased 11% to 506 thousand tons in
the first quarter 2009 compared with 567 thousand tons in the fourth quarter
2008. The total sales outside of Mexico for the first quarter 2009 decreased 55%
to Ps. 2,222 million compared with Ps. 4,983 million for the fourth quarter
2008. Total Mexican sales increased 9% to 2,859 million in the first quarter
2009 from Ps. 2,635 million in the fourth quarter 2008. Prices of finished
products sold in the first quarter 2009 decreased approximately 25% compared to
the fourth quarter 2008.
Direct Cost of Sales
Direct cost of sales decreased 44% from Ps. 7,327 million in the fourth quarter
2008 (including the cost of sales generated by the newly acquired plants of
Grupo San of Ps. 473 million) to Ps. 4,111 million for the first quarter 2009
(including the cost of sales generated by the newly acquired plants of Grupo San
of Ps. 657 million). With respect to sales, in the first quarter 2009, the
direct cost of sales represents 81% compared to 96% for the fourth quarter 2008.
The average cost of raw materials used to produce steel products decreased 37%
in the first quarter 2009 versus the fourth quarter 2008, primarily as a result
of decreases in the price of scrap and certain other raw materials.
Gross Profit
Gross profit for the first quarter 2009 increased 233% to Ps. 970 million
(including the gross profit generated by the newly acquired plants of Grupo San
of Ps. 402 million) compared to Ps. 291 million in the fourth quarter 2008
(including the gross profit generated by the newly acquired plants of Grupo San
of Ps. 472 million). The gross profit as a percentage of net sales for the first
quarter 2009 was 19% compared with 4% for the fourth quarter of 2008. The
increase in gross profit is due to the decrease in the cost of raw materials
used to produce steel products.
Operating Expenses
Operating expenses decreased 36% to Ps. 585 million in the first quarter 2009
(including the operating expenses from the newly acquired plants of Grupo San of
Ps. 114 million and the amortization of the tangible and intangible assets of
Ps. 90 million registered by the acquisition of Grupo San) compared to Ps. 916
million for the fourth quarter 2008 (including the operating expenses from the
newly acquired plants of Grupo San of Ps. 232 million and the amortization of
the tangible and intangible assets of Ps. 277 million registered by the
acquisition of Grupo San). Operating expenses as a percentage of net sales
represented 12% during the first quarter 2009 and the fourth quarter 2008.
Operating Profit
Operating profit increased 1,616% from an operating loss of Ps. 625 million in
the fourth quarter 2008 (including the operating profit generated by the newly
acquired plants of Grupo San of Ps. 232 million) to Ps. 385 million of operating
profit for the first quarter 2009 (including the operating profit generated by
the newly acquired plants of Grupo San of Ps. 289 million). The operating profit
as a percentage of net sales in the first quarter 2009 was 8% compared to 8% in
the fourth quarter 2008. The increase in operating profit is due to the decrease
in the cost of raw materials used to produce steel products and the decrease in
the operating expenses previously mentioned.
Comprehensive Financial Cost
Comprehensive financial cost for the first quarter 2009 represented an income of
Ps. 60 million compared with an income of Ps. 59 million for the fourth quarter
2008. Net interest expense was Ps. 3 million in the first quarter 2009 compared
with Ps. 2 million of net interest expense in the fourth quarter 2008. At the
same time we registered an exchange gain of Ps. 63 million in the first quarter
2009 compared with an exchange gain of Ps. 61 million in the fourth quarter
2008.
Other Expenses (Income) net
The company recorded other income net of Ps. 2 million in the first quarter 2009
compared with other expense net of Ps. 56 million for the fourth quarter 2008.
Income Taxes
Income Taxes for the first quarter 2009 was an expense of Ps. 7 million compared
to Ps. 171 million of income for the fourth quarter 2008.
Net Profit
As a result of the foregoing, net profit was Ps. 440 million in the first
quarter 2009 compared to Ps. 451 million of net loss in the fourth quarter 2008.
--------------------------------------------------------------------------------
1Q '09 vs 1Q '09vs
(Millions of pesos) 1Q '09 4Q '08 1Q '08 4Q '08 1Q '08
--------------------------------------------------------------------------------
Sales 5,081 7,618 7,287 -33% -30%
--------------------------------------------------------------------------------
Cost of Sales 4,111 7,327 6,050 -44% -32%
--------------------------------------------------------------------------------
Gross Profit 970 291 1,238 233% -22%
--------------------------------------------------------------------------------
Operating Expenses 585 916 359 -36% 63%
--------------------------------------------------------------------------------
Operating Profit 385 (625) 878 1,616% -56%
--------------------------------------------------------------------------------
EBITDA 660 (188) 1,008 -451% -35%
--------------------------------------------------------------------------------
Net Profit 440 (451) 592 -198% -26%
--------------------------------------------------------------------------------
Sales outside Mexico 2,222 4,983 5,423 -55% -59%
--------------------------------------------------------------------------------
Sales in Mexico 2,859 2,635 1,865 9% 53%
--------------------------------------------------------------------------------
Total sales (tons) 506 567 745 11% -32%
--------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
Millions Average Thousands Millions Average
Thousands Millions Average Thousands of price per of of price per
of tons of pesos price per of tons pesos ton tons pesos ton
Product 1Q '09 1Q'09 ton 1Q'09 4Q'08 4Q'08 4Q'08 1Q'08 1Q'08 1Q'08
---------------------------------------------------------------------------------------------------------------------------------
SBQ 215 2,621 12,191 335 5,435 16,224 565 5,749 10,175
---------------------------------------------------------------------------------------------------------------------------------
Light Structural 47 464 9,872 30 339 11,302 54 453 8,389
---------------------------------------------------------------------------------------------------------------------------------
Structural 50 507 10,140 33 371 11,243 55 504 9,164
---------------------------------------------------------------------------------------------------------------------------------
Rebar 163 1,241 7,613 146 1,210 8,287 70 550 7,857
---------------------------------------------------------------------------------------------------------------------------------
Others 31 248 - 23 263 - 1 31 -
---------------------------------------------------------------------------------------------------------------------------------
Total 506 5,081 10,042 567 7,618 13,435 745 7,287 9,783
---------------------------------------------------------------------------------------------------------------------------------
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: 2009
GRUPO SIMEC, S.A.B. DE C.V.
CONSOLIDATED FINANCIAL STATEMENT
AT MARCH 31 OF 2009 AND 2008
(thousands of Mexican pesos)
------------------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
S
------------------------------------------------------------------------------------------------------------------------
AMOUNT % AMOUNT %
------------------------------------------------------------------------------------------------------------------------
s01 TOTAL ASSETS 31,722,335 100 23,918,476 100
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s02 CURRENT ASSETS 14,017,052 44 15,576,282 65
------------------------------------------------------------------------------------------------------------------------
s03 CASH AND SHORT-TERM INVESTMENTS 922,014 3 6,752,074 28
------------------------------------------------------------------------------------------------------------------------
s04 ACCOUNTS AND NOTES RECEIVABLE (NET) 3,244,705 10 3,276,302 14
------------------------------------------------------------------------------------------------------------------------
s05 OTHER ACCOUNTS AND NOTES RECEIVABLE 828,807 3 647,164 3
------------------------------------------------------------------------------------------------------------------------
s06 INVENTORIES 8,672,727 27 4,838,058 20
------------------------------------------------------------------------------------------------------------------------
s07 OTHER CURRENT ASSETS 348,799 1 62,684 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) 10,338,885 33 7,858,403 33
------------------------------------------------------------------------------------------------------------------------
s13 LAND AND BUILDINGS 3,751,091 12 2,619,470 11
------------------------------------------------------------------------------------------------------------------------
s14 MACHINERY AND INDUSTRIAL EQUIPMENT 12,955,284 41 9,035,151 38
------------------------------------------------------------------------------------------------------------------------
s15 OTHER EQUIPMENT 231,082 1 110,082 0
------------------------------------------------------------------------------------------------------------------------
s16 ACCUMULATED DEPRECIATION 7,066,745 22 4,151,159 17
------------------------------------------------------------------------------------------------------------------------
s17 CONSTRUCTION IN PROGRESS 468,173 1 244,859 1
------------------------------------------------------------------------------------------------------------------------
s18 OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET) 7,244,175 23 381,248 2
------------------------------------------------------------------------------------------------------------------------
s19 OTHER ASSETS 122,223 0 102,543 0
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s20 TOTAL LIABILITIES 9,649,026 100 6,115,488 100
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s21 CURRENT LIABILITIES 5,219,041 54 3,261,652 53
------------------------------------------------------------------------------------------------------------------------
s22 SUPPLIERS 3,090,763 32 2,330,209 38
------------------------------------------------------------------------------------------------------------------------
s23 BANK LOANS 9,316 0 0 0
------------------------------------------------------------------------------------------------------------------------
s24 STOCK MARKET LOANS 4,295 0 3,230 0
------------------------------------------------------------------------------------------------------------------------
s103 OTHER LOANS WITH COST 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
s25 TAXES PAYABLE 341,726 4 292,065 5
------------------------------------------------------------------------------------------------------------------------
s26 OTHER CURRENT LIABILITIES WITHOUT COST 1,772,941 18 636,148 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 4,429,985 46 2,853,836 47
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s33 CONSOLIDATED STOCKHOLDERS' EQUITY 22,073,309 100 17,802,988 100
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s34 MINORITY INTEREST 3,202,784 15 2,493,092 14
------------------------------------------------------------------------------------------------------------------------
s35 MAJORITY INTEREST 18,870,525 85 15,309,896 86
------------------------------------------------------------------------------------------------------------------------
s36 CONTRIBUTED CAPITAL 8,350,900 38 7,181,743 40
------------------------------------------------------------------------------------------------------------------------
S79 CAPITAL STOCK 4,142,696 19 4,030,427 23
------------------------------------------------------------------------------------------------------------------------
s39 PREMIUM ON ISSUANCE OF SHARES 4,208,204 19 3,151,316 18
------------------------------------------------------------------------------------------------------------------------
s40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
s41 EARNED CAPITAL 10,519,625 48 8,128,153 46
------------------------------------------------------------------------------------------------------------------------
s42 RETAINED EARNINGS AND CAPITAL RESERVES 10,052,853 46 9,155,207 51
------------------------------------------------------------------------------------------------------------------------
s44 OTHER ACCUMULATED COMPREHENSIVE RESULT 466,772 2 (1,027,054) (6)
------------------------------------------------------------------------------------------------------------------------
s80 SHARES REPURCHASED 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
CONSOLIDATED FINANCIAL STATEMENT
BREAKDOWN OF MAIN CONCEPTS
(thousands of Mexican pesos)
------------------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
S
------------------------------------------------------------------------------------------------------------------------
AMOUNT % AMOUNT %
------------------------------------------------------------------------------------------------------------------------
s03 CASH AND SHORT-TERM INVESTMENTS 922,014 100 6,752,074 100
------------------------------------------------------------------------------------------------------------------------
s46 CASH 664,976 72 423,838 6
------------------------------------------------------------------------------------------------------------------------
s47 SHORT-TERM INVESTMENTS 257,038 28 6,328,236 94
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s07 OTHER CURRENT ASSETS 348,799 100 62,684 100
------------------------------------------------------------------------------------------------------------------------
s81 DERIVATIVE FINANCIAL INSTRUMENTS 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
s82 DISCONTINUED OPERATIONS 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
s83 OTHER 348,799 100 62,684 100
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s18 OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET) 7,244,175 100 381,248 100
------------------------------------------------------------------------------------------------------------------------
s48 DEFERRED EXPENSES 3,050,094 42 282,583 74
------------------------------------------------------------------------------------------------------------------------
s49 GOODWILL 4,166,160 58 36,887 10
------------------------------------------------------------------------------------------------------------------------
s51 OTHER 27,921 0 61,778 16
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s19 OTHER ASSETS 122,223 100 102,543 100
------------------------------------------------------------------------------------------------------------------------
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 122,223 100 102,543 100
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s21 CURRENT LIABILITIES 5,219,041 100 3,261,652 100
------------------------------------------------------------------------------------------------------------------------
s52 FOREIGN CURRENCY LIABILITIES 2,853,313 55 2,438,287 75
------------------------------------------------------------------------------------------------------------------------
s53 MEXICAN PESOS LIABILITIES 2,365,728 45 823,365 25
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s26 OTHER CURRENT LIABILITIES WITHOUT COST 1,772,941 100 636,148 100
------------------------------------------------------------------------------------------------------------------------
s88 DERIVATIVE FINANCIAL INSTRUMENTS 445,808 25 0 0
------------------------------------------------------------------------------------------------------------------------
s89 INTEREST LIABILITIES 5,917 0 3,966 1
------------------------------------------------------------------------------------------------------------------------
s68 PROVISIONS 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
s90 DISCONTINUED OPERATIONS 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
s58 OTHER CURRENT LIABILITIES 1,321,216 75 632,182 99
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
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 WITHOUT COST 4,429,985 100 2,853,836 100
------------------------------------------------------------------------------------------------------------------------
s66 DEFERRED TAXES 4,359,169 98 2,772,284 97
------------------------------------------------------------------------------------------------------------------------
s91 OTHER LIABILITIES IN RESPECT OF SOCIAL INSURANCE 31,484 1 18,990 1
------------------------------------------------------------------------------------------------------------------------
s92 DISCONTINUED OPERATIONS 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
s69 OTHER LIABILITIES 39,332 1 62,562 2
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s79 CAPITAL STOCK 4,142,696 100 4,030,427 100
------------------------------------------------------------------------------------------------------------------------
s37 CAPITAL STOCK (NOMINAL) 2,420,230 58 2,307,961 57
------------------------------------------------------------------------------------------------------------------------
s69 RESTATEMENT OF CAPITAL STOCK 1,722,466 42 1,722,466 43
------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
CONSOLIDATED FINANCIAL STATEMENT
BREAKDOWN OF MAIN CONCEPTS
(thousands of Mexican pesos)
------------------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
S
------------------------------------------------------------------------------------------------------------------------
AMOUNT % AMOUNT %
------------------------------------------------------------------------------------------------------------------------
s42 RETAINED EARNINGS AND CAPITAL RESERVES 10,052,853 100 9,155,207 100
------------------------------------------------------------------------------------------------------------------------
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 9,307,346 93 8,481,722 93
------------------------------------------------------------------------------------------------------------------------
s45 NET INCOME FOR THE YEAR 544,895 5 472,873 5
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s44 OTHER ACCUMULATED COMPREHENSIVE RESULT 466,772 100 (1,027,054) 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 787,753 169 (56,541) 6
------------------------------------------------------------------------------------------------------------------------
s97 CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL INSTRUMENTS (320,981) (69) 0 0
------------------------------------------------------------------------------------------------------------------------
s98 CUMULATIVE EFFECT OF DEFERRED INCOME TAXES 0 0 (970,513) 94
------------------------------------------------------------------------------------------------------------------------
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: 2009
GRUPO SIMEC, S.A. DE C.V.
BALANCE SHEETS
OTHER CONCEPTS
(thousands of Mexican pesos)
------------------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
S
------------------------------------------------------------------------------------------------------------------------
AMOUNT AMOUNT
------------------------------------------------------------------------------------------------------------------------
S72 WORKING CAPITAL 8,798,011 12,314,630
------------------------------------------------------------------------------------------------------------------------
S73 PENSIONS FUND AND SENIORITY PREMIUMS 0 0
------------------------------------------------------------------------------------------------------------------------
S74 EXECUTIVES (*) 60 45
------------------------------------------------------------------------------------------------------------------------
S75 EMPLOYERS (*) 1,687 1,220
------------------------------------------------------------------------------------------------------------------------
S76 WORKERS (*) 2,517 3,183
------------------------------------------------------------------------------------------------------------------------
S77 COMMON SHARES (*) 497,709,214 474,621,611
------------------------------------------------------------------------------------------------------------------------
S78 REPURCHASED SHARES (*) 0 0
------------------------------------------------------------------------------------------------------------------------
S101 RESTRICTED CASH 0 0
------------------------------------------------------------------------------------------------------------------------
S102 NET DEBT OF NON CONSOLIDATED COMPANIES 286,634 0
------------------------------------------------------------------------------------------------------------------------
(*) THESE ITEMS SHOULD BE EXPRESSED IN UNITS
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
STATEMENTS OF INCOME
FROM JANUARY 1 TO MARCH 31 OF 2009 AND 2008
(thousands of Mexican pesos)
------------------------------------------------------------------------------------------------------------------------
REF CATEGORIES CURRENT YEAR PREVIOUS YEAR
R
------------------------------------------------------------------------------------------------------------------------
AMOUNT % AMOUNT %
------------------------------------------------------------------------------------------------------------------------
r01 NET SALES 5,080,641 100 7,287,967 100
------------------------------------------------------------------------------------------------------------------------
r02 COST OF SALES 4,110,730 81 6,050,363 83
------------------------------------------------------------------------------------------------------------------------
r03 GROSS PROFIT 969,911 19 1,237,604 17
------------------------------------------------------------------------------------------------------------------------
r04 OPERATING EXPENSES 585,282 12 359,374 5
------------------------------------------------------------------------------------------------------------------------
r05 OPERATING INCOME 384,629 8 878,230 12
------------------------------------------------------------------------------------------------------------------------
r08 OTHER INCOME AND (EXPENSE), NET 1,852 0 5,699 0
------------------------------------------------------------------------------------------------------------------------
r06 COMPREHENSIVE FINANCING RESULT 59,925 1 (61,859) 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 446,406 9 822,070 11
------------------------------------------------------------------------------------------------------------------------
r10 INCOME TAXES 6,734 0 230,180 3
------------------------------------------------------------------------------------------------------------------------
r11 INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS 439,672 9 591,890 8
------------------------------------------------------------------------------------------------------------------------
r14 DISCONTINUED OPERATIONS 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
r18 NET CONSOLIDATED INCOME 439,672 9 591,890 8
------------------------------------------------------------------------------------------------------------------------
r19 NET INCOME OF MINORITY INTEREST (105,223) (2) 119,017 2
------------------------------------------------------------------------------------------------------------------------
r20 NET INCOME OF MAJORITY INTEREST 544,895 11 472,873 6
------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(thousands of Mexican pesos)
------------------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
R
------------------------------------------------------------------------------------------------------------------------
AMOUNT % AMOUNT %
------------------------------------------------------------------------------------------------------------------------
r01 NET SALES 5,080,641 100 7,287,967 100
------------------------------------------------------------------------------------------------------------------------
r21 DOMESTIC 2,859,092 56 1,864,957 26
------------------------------------------------------------------------------------------------------------------------
r22 FOREIGN 2,221,549 44 5,423,010 74
------------------------------------------------------------------------------------------------------------------------
r23 TRANSLATED INTO DOLLARS (***) 153,510 506,617
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
r08 OTHER INCOME AND (EXPENSE), NET 1,852 100 5,699 100
------------------------------------------------------------------------------------------------------------------------
r49 OTHER INCOME AND (EXPENSE), NET 1,852 100 5,699 100
------------------------------------------------------------------------------------------------------------------------
r34 EMPLOYEES' PROFIT SHARING EXPENSES 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
r35 DEFERRED EMPLOYEES' PROFIT SHARING 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
r06 COMPREHENSIVE FINANCING RESULT 59,925 100 (61,859) 100
------------------------------------------------------------------------------------------------------------------------
r24 INTEREST EXPENSE 13,478 22 5,048 (8)
------------------------------------------------------------------------------------------------------------------------
r42 GAIN (LOSS) ON RESTATEMENT OF UDI'S 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
r45 OTHER FINANCE COSTS 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
r26 INTEREST INCOME 9,795 16 60,422 (98)
------------------------------------------------------------------------------------------------------------------------
r46 OTHER FINANCIAL PRODUCTS 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
r25 FOREIGN EXCHANGE GAIN (LOSS), NET 63,608 106 (117,233) 190
------------------------------------------------------------------------------------------------------------------------
r28 RESULT FROM MONETARY POSITION 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
r10 INCOME TAXES 6,734 100 230,180 100
------------------------------------------------------------------------------------------------------------------------
r32 INCOME TAX (160,109) (2378) 119,835 52
------------------------------------------------------------------------------------------------------------------------
r33 DEFERRED INCOME TAX 166,843 2478 110,345 48
------------------------------------------------------------------------------------------------------------------------
(***) THOUSANDS OF DOLLARS
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
STATEMENTS OF INCOME
OTHER CONCEPTS
(thousands of Mexican pesos)
---------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
R
---------------------------------------------------------------------------------------------------------------
AMOUNT AMOUNT
---------------------------------------------------------------------------------------------------------------
r36 TOTAL SALES 5,233,819 7,379,364
---------------------------------------------------------------------------------------------------------------
r37 TAX RESULT FOR THE YEAR 0 0
---------------------------------------------------------------------------------------------------------------
r38 NET SALES (**) 32,977,894 25,156,833
---------------------------------------------------------------------------------------------------------------
r39 OPERATION INCOME (**) 2,621,628 2,184,449
---------------------------------------------------------------------------------------------------------------
r40 NET INCOME OF MAJORITY INTEREST (**) 1,868,159 1,385,017
---------------------------------------------------------------------------------------------------------------
r41 NET CONSOLIDATED INCOME (**) 1,748,131 1,471,926
---------------------------------------------------------------------------------------------------------------
r47 OPERATIVE DEPRECIATION AND AMORTIZATION 274,917 130,060
---------------------------------------------------------------------------------------------------------------
(**) RESTATED INFORMATION FOR THE LAST TWELVE MONTHS
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
STATEMENTS OF CHANGES IN FINANCIAL POSITION
FROM JANUARY 1 TO MARCH 31 OF 2009 AND 2008
(thousands of pesos)
---------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
C
---------------------------------------------------------------------------------------------------------------
AMOUNT AMOUNT
---------------------------------------------------------------------------------------------------------------
c01 CONSOLIDATED NET INCOME 439,672 591,890
---------------------------------------------------------------------------------------------------------------
c02 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE CASH 441,760 240,405
---------------------------------------------------------------------------------------------------------------
c03 RESOURCES FROM NET INCOME FOR THE YEAR 881,432 832,295
---------------------------------------------------------------------------------------------------------------
c04 RESOURCES PROVIDED OR USED IN OPERATION (469,984) (365,028)
---------------------------------------------------------------------------------------------------------------
c05 RESOURCES PROVIDED BY (USED FOR) OPERATING ACTIVITIES 411,448 467,267
---------------------------------------------------------------------------------------------------------------
c06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL FINANCING
ACTIVITIES 0 24,881
---------------------------------------------------------------------------------------------------------------
c07 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING
ACTIVITIES 0 0
---------------------------------------------------------------------------------------------------------------
c08 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING
ACTIVITIES 0 24,881
---------------------------------------------------------------------------------------------------------------
c09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES (66,175) (136,229)
---------------------------------------------------------------------------------------------------------------
c10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS 345,273 355,919
---------------------------------------------------------------------------------------------------------------
c11 CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF PERIOD 576,741 6,396,155
---------------------------------------------------------------------------------------------------------------
c12 CASH AND SHORT TERM INVESTMENTS AT THE END OF PERIOD 922,014 6,752,074
---------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
STATEMENTS OF CHANGES IN FINANCIAL POSITION
BREAKDOWN OF MAIN CONCEPTS
(thousands of pesos)
---------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
C
---------------------------------------------------------------------------------------------------------------
AMOUNT AMOUNT
---------------------------------------------------------------------------------------------------------------
c02 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE CASH 441,760 240,405
---------------------------------------------------------------------------------------------------------------
c13 DEPRECIATION AND AMORTIZATION FOR THE YEAR 274,917 130,060
---------------------------------------------------------------------------------------------------------------
c41 + (-) OTHER ITEMS 166,843 110,345
---------------------------------------------------------------------------------------------------------------
c04 RESOURCES PROVIDED OR USED IN OPERATION (469,984) (365,028)
---------------------------------------------------------------------------------------------------------------
c18 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE (291,139) (795,113)
---------------------------------------------------------------------------------------------------------------
c19 + (-) DECREASE (INCREASE) IN INVENTORIES 572,509 92,346
---------------------------------------------------------------------------------------------------------------
c20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNTS RECEIVABLE (408,381) (63,841)
---------------------------------------------------------------------------------------------------------------
c21 + (-) INCREASE (DECREASE) IN SUPPLIERS (485,559) 225,974
---------------------------------------------------------------------------------------------------------------
c22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES 142,586 175,606
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
c06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL FINANCING
ACTIVITIES 0 24,881
---------------------------------------------------------------------------------------------------------------
c23 + BANK FINANCING 0 0
---------------------------------------------------------------------------------------------------------------
c24 + STOCK MARKET FINANCING 0 (52)
---------------------------------------------------------------------------------------------------------------
c25 + DIVIDEND RECEIVED 0 0
---------------------------------------------------------------------------------------------------------------
c26 OTHER FINANCING 0 0
---------------------------------------------------------------------------------------------------------------
c27 BANK FINANCING AMORTIZATION 0 0
---------------------------------------------------------------------------------------------------------------
c28 (-) STOCK MARKET FINANCING AMORTIZATION 0 0
---------------------------------------------------------------------------------------------------------------
c29 (-) OTHER FINANCING AMORTIZATION 0 0
---------------------------------------------------------------------------------------------------------------
c42 + (-) OTHER ITEMS 0 24,933
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
C07 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING
ACTIVITIES 0 0
---------------------------------------------------------------------------------------------------------------
c30 + (-) INCREASE (DECREASE) IN CAPITAL STOCK 0 0
---------------------------------------------------------------------------------------------------------------
c31 (-) DIVIDENDS PAID 0 0
---------------------------------------------------------------------------------------------------------------
c32 + PREMIUM ON ISSUANCE OF SHARES 0 0
---------------------------------------------------------------------------------------------------------------
c33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES 0 0
---------------------------------------------------------------------------------------------------------------
c43 + (-) OTHER ITEMS 0 0
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
c09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES (66,175) (136,229)
---------------------------------------------------------------------------------------------------------------
c34 + (-) DECREASE (INCREASE) IN PERMANENT INVESTMENTS 0 0
---------------------------------------------------------------------------------------------------------------
c35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT (90,900) (75,913)
---------------------------------------------------------------------------------------------------------------
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 24,725 (60,316)
---------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
STATE OF CASH FLOW (INDIRECT METHOD)
FROM JANUARY 1 TO MARCH 31 OF 2009 AND 2008
(thousands of pesos)
---------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
C
---------------------------------------------------------------------------------------------------------------
AMOUNT AMOUNT
---------------------------------------------------------------------------------------------------------------
ACTIVITIES OF OPERATION
---------------------------------------------------------------------------------------------------------------
e01 INCOME (LOSS) BEFORE INCOME TAXES 446,406 822,070
---------------------------------------------------------------------------------------------------------------
e02 + (-) ITEMS NOT REQUIRING CASH 0 0
---------------------------------------------------------------------------------------------------------------
e03 + (-) ITEMS RELATED TO INVESTING ACTIVITIES 280,990 69,638
---------------------------------------------------------------------------------------------------------------
e04 + (-) ITEMS RELATED TO FINANCING ACTIVITIES 13,478 5,048
---------------------------------------------------------------------------------------------------------------
e05 CASH FLOW BEFORE INCOME TAX 740,874 896,756
---------------------------------------------------------------------------------------------------------------
e06 CASH FLOW PROVIDED OR USED IN OPERATION (332,336) (484,863)
---------------------------------------------------------------------------------------------------------------
e07 CASH FLOW PROVIDED OF OPERATING ACTIVITIES 408,538 411,893
---------------------------------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES
---------------------------------------------------------------------------------------------------------------
e08 NET CASH FLOW FROM INVESTING ACTIVITIES (81,105) (15,491)
---------------------------------------------------------------------------------------------------------------
e09 CASH FLOW AFTER INVESTING ACTIVITIES 327,433 396,402
---------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
---------------------------------------------------------------------------------------------------------------
e10 NET CASH FROM FINANCING ACTIVITIES 19,212 (40,483)
---------------------------------------------------------------------------------------------------------------
e11 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS 346,645 355,919
---------------------------------------------------------------------------------------------------------------
e12 TRANSLATION DIFFERENCES IN CASH AND CASH EQUIVALENTS (1,372) 0
---------------------------------------------------------------------------------------------------------------
e13 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD 576,741 6,396,155
---------------------------------------------------------------------------------------------------------------
e14 CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 922,014 6,752,074
---------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
STATE OF CASH FLOW (INDIRECT METHOD)
BREAKDOWN OF MAIN CONCEPTS
(thousands of pesos)
---------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
C
---------------------------------------------------------------------------------------------------------------
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 280,990 69,638
---------------------------------------------------------------------------------------------------------------
e18 + DEPRECIATION AND AMORTIZATION FOR THE PERIOD 274,917 130,060
---------------------------------------------------------------------------------------------------------------
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 (9,795) (60,422)
---------------------------------------------------------------------------------------------------------------
e24 (-) + OTHER ITEMS 15,868 0
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
e04 + (-) ITEMS RELATED TO FINANCING ACTIVITIES 13,478 5,048
---------------------------------------------------------------------------------------------------------------
e25 + ACCRUED INTEREST 13,478 5,048
---------------------------------------------------------------------------------------------------------------
e26 + (-) OTHER ITEMS 0 0
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
e06 CASH FLOW PROVIDED OR USED IN OPERATION (332,336) (484,863)
---------------------------------------------------------------------------------------------------------------
e27 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE (291,139) (795,113)
---------------------------------------------------------------------------------------------------------------
e28 + (-) DECREASE (INCREASE) IN INVENTORIES 572,509 92,346
---------------------------------------------------------------------------------------------------------------
e29 + (-)DECREASE (INCREASE) IN OTHER ACCOUNT RECEIVABLES (408,381) (63,841)
---------------------------------------------------------------------------------------------------------------
e30 + (-) INCREASE DECREASE IN SUPPLIERS (485,559) 225,974
---------------------------------------------------------------------------------------------------------------
e31 + (-)INCREASE DECREASE IN OTHER LIABILITIES 454,235 175,606
---------------------------------------------------------------------------------------------------------------
e32 + (-) INCOME TAXES PAID OR RETURNED (174,001) (119,835)
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
e08 NET CASH FLOW FROM INVESTING ACTIVITIES (81,105) (15,491)
---------------------------------------------------------------------------------------------------------------
e33 (-) PERMANENT INVESTMENT IN SHARES 0 0
---------------------------------------------------------------------------------------------------------------
e34 + DISPOSITION OF PERMANENT INVESTMENT IN SHARES 0 0
---------------------------------------------------------------------------------------------------------------
e35 (-) INVESTMENT IN PROPERTY PLANT AND EQUIPMENT (90,900) (75,913)
---------------------------------------------------------------------------------------------------------------
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 9,795 60,422
---------------------------------------------------------------------------------------------------------------
e43 + (-) DECREASE (INCREASE) ADVANCES AND LOANS TO THIRD PARTS 0 0
---------------------------------------------------------------------------------------------------------------
e44 + (-) OTHER ITEMS 0 0
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
e10 NET CASH FROM FINANCING ACTIVITIES 19,212 (40,483)
---------------------------------------------------------------------------------------------------------------
e45 + BANK FINANCING 0 0
---------------------------------------------------------------------------------------------------------------
e46 + STOCK MARKET FINANCING 0 (52)
---------------------------------------------------------------------------------------------------------------
e47 + OTHER FINANCING 0 0
---------------------------------------------------------------------------------------------------------------
e48 (-) BANK FINANCING AMORTIZATION 0 0
---------------------------------------------------------------------------------------------------------------
e49 (-) STOCK MARKET FINANCING AMORTIZATION 0 0
---------------------------------------------------------------------------------------------------------------
e50 (-) OTHER FINANCING AMORTIZATION 0 0
---------------------------------------------------------------------------------------------------------------
e51 + (-) INCREASE (DECREASE ) IN CAPITAL STOCK 0 0
---------------------------------------------------------------------------------------------------------------
e52 (-) DIVIDENDS PAID 0 0
---------------------------------------------------------------------------------------------------------------
e53 + PREMIUM ON ISSUANCE OF SHARES 0 0
---------------------------------------------------------------------------------------------------------------
e54 + CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0
---------------------------------------------------------------------------------------------------------------
e55 (-) INTEREST EXPENSE (6,885) (5,048)
---------------------------------------------------------------------------------------------------------------
e56 (-) REPURCHASE OF SHARES 0 0
---------------------------------------------------------------------------------------------------------------
e57 + (-) OTHER ITEMS 26,097 (35,383)
---------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
DATE PER SHARE
CONSOLIDATED
---------------------------------------------------------------------------------------------------------------------
REF CATEGORIES QUARTER OF PRESENT QUARTER OF PREVIOUS
D FINANCIAL YEAR FINANCIAL YEAR
---------------------------------------------------------------------------------------------------------------------
d01 BASIC PROFIT PER ORDINARY SHARE (**) $ 3.56 $ 2.92
---------------------------------------------------------------------------------------------------------------------
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 (**) $ 3.56 $ 2.92
---------------------------------------------------------------------------------------------------------------------
d05 DISCONTINUED OPERATIONS EFFECT ON EARNING (LOSS) PER SHARE (**) $ 0.00 $ 0.00
---------------------------------------------------------------------------------------------------------------------
d08 CARRYING VALUE PER SHARE $37.91 $32.26
---------------------------------------------------------------------------------------------------------------------
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 0.54 times 1.24 times
---------------------------------------------------------------------------------------------------------------------
d12 MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE 5.77 times 13.69 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: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
RATIOS
CONSOLIDATED
---------------------------------------------------------------------------------------------------------------------
REF CATEGORIES QUARTER OF PRESENT QUARTER OF PREVIOUS
P FINANCIAL YEAR FINANCIAL YEAR
---------------------------------------------------------------------------------------------------------------------
YIELD
---------------------------------------------------------------------------------------------------------------------
p01 NET INCOME TO NET SALES 8.65% 8.12%
---------------------------------------------------------------------------------------------------------------------
p02 NET INCOME TO STOCKHOLDERS' EQUITY (**) 7.92% 8.27%
---------------------------------------------------------------------------------------------------------------------
p03 NET INCOME TO TOTAL ASSETS (**) 5.51% 6.15%
---------------------------------------------------------------------------------------------------------------------
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 (**) 1.04 times 1.05 times
---------------------------------------------------------------------------------------------------------------------
p07 NET SALES TO FIXED ASSETS (**) 3.19 times 3.20 times
---------------------------------------------------------------------------------------------------------------------
p08 INVENTORIES TURNOVER (**) 3.21 times 4.46 times
---------------------------------------------------------------------------------------------------------------------
p09 ACCOUNTS RECEIVABLE IN DAYS OF SALES 50 days 35 days
---------------------------------------------------------------------------------------------------------------------
p10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 8.39% 0.00%
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
LEVERAGE
---------------------------------------------------------------------------------------------------------------------
p11 TOTAL LIABILITIES TO TOTAL ASSETS 30.42% 25.57%
---------------------------------------------------------------------------------------------------------------------
p12 TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY 0.44 times 0.34 times
---------------------------------------------------------------------------------------------------------------------
p13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 29.57% 39.87%
---------------------------------------------------------------------------------------------------------------------
p14 LONG-TERM LIABILITIES TO FIXED ASSETS 0.00% 0.00%
---------------------------------------------------------------------------------------------------------------------
p15 OPERATING INCOME TO INTEREST PAID 28.54 times 173.98 times
---------------------------------------------------------------------------------------------------------------------
p16 NET SALES TO TOTAL LIABILITIES (**) 3.42 times 4.11 times
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
LIQUIDITY
---------------------------------------------------------------------------------------------------------------------
p17 CURRENT ASSETS TO CURRENT LIABILITIES 2.69 times 4.78 times
---------------------------------------------------------------------------------------------------------------------
p18 CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES 1.02 times 3.29 times
---------------------------------------------------------------------------------------------------------------------
p19 CURRENT ASSETS TO TOTAL LIABILITIES 1.45 times 2.55 times
---------------------------------------------------------------------------------------------------------------------
p20 AVAILABLE ASSETS TO CURRENT LIABILITIES 17.67% 207.01%
---------------------------------------------------------------------------------------------------------------------
(**) 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: 2009
GRUPO SIMEC, S.A.B. DE C.V.
DIRECTOR REPORT
CONSOLIDATED
Acquisition of Corporacion Aceros DM, S.A. de C.V.
On February 21, 2008, we entered into an agreement to acquire 100% of the shares
of Corporacion Aceros DM, S.A. de C.V. and certain of its affiliates ("Grupo
San"), and on May 30, 2008 said acquisition was completed. Grupo San is a long
products steel mini-mill and the second-largest corrugated rebar producer in
Mexico. Grupo San's operations are based in San Luis Potosi, Mexico. Its plants
and 1,450 employees produce 600 thousand tons of finished products annually.
With this acquisition, Simec and Industrias CH, S.A.B. de C.V. ("ICH") position
themselves as the second-largest producer of rebar and the largest steel
producer in Mexico, with a production capacity of approximately 4.5 million tons
of liquid steel and 3.8 million tons of finished products.
With this strategic acquisition, Simec and ICH will achieve a more diversified
product mix, with 40% of sales in Mexico and 60% outside Mexico, both of which
will allow them to better address the natural cycles of the steel industry on
the domestic and global levels. Additionally, Simec has already identified
significant synergies and economies of scale that will increase the company's
operating margins. Grupo San's central location in San Luis Potosi, where Simec
is not currently present, also represents a strong competitive advantage since
it provides several strategic benefits mainly related to distribution, given its
proximity to Mexico's main cities, sea ports, and borders.
In addition, Grupo San has aggressive expansion plans in its rebar business,
which ICH and Simec will support and promote to satisfy the growing demand for
this product, resulting from the Mexican government's aggressive infrastructure
plan.
The financial statements of Simec include the operations of Grupo San since June
1, 2008.
Pursuant to Mexican Financial Reporting Standards "Bulletin B-7 Acquisitions of
Business," Simec is in the process of calculating the goodwill and other
intangible assets in the acquisition of Grupo San; as of December 31, 2008,
Simec registered the adjustment of the intangible assets and we are in the
process of determining the adjustment of the fixed assets.
Comparative first quarter 2009 vs first quarter 2008
Net Sales
Net sales decreased 30% to Ps. 5,081 million in the first quarter 2009
(including the net sales generated by the newly acquired plants of Grupo San of
Ps. 1,059 million) compared to Ps. 7,287 million in the same period 2008.
Shipments of finished steel products decreased 32% to 506 thousand tons in the
first quarter 2009 (including the net sales generated by the newly acquired
plants of Grupo San of 135 thousand tons) compared to 745 thousand tons in the
same period 2008. Total sales outside of Mexico in the first quarter 2009
decreased 59% to Ps. 2,222 million compared with Ps. 5,423 million in the same
period 2008, while total Mexican sales increased 53% from Ps. 1,865 million in
the first quarter 2008 to Ps. 2,859 millions in the same period 2009 (including
the net sales generated by the newly acquired plants of Grupo San of Ps. 1,053
million). The decrease in sales can be explained due to lower shipments during
the first quarter 2009, compared to the same period in 2008 (a 239,000 tons
decrease). The average price of steel products increased 2.6% in the first
quarter 2009 compared with the same period of 2008.
Direct Cost of Sales
Direct cost of sales decreased 32% from Ps. 6,050 million in the first quarter
2008 to Ps. 4,111 million in the same period 2009 (including the cost of sales
generated by the newly acquired plants of Grupo San of Ps. 657 million). Direct
cost of sales as a percentage of net sales represented 81% in the first quarter
2009 compared to 83% in the same period 2008. The average cost of raw materials
used to produce steel products in the first quarter of 2009 was the same
compared to the corresponding period of 2008.
Gross Profit
Gross profit in the first quarter 2009 was Ps. 970 million (including the gross
profit generated by the newly acquired plants of Grupo San of Ps. 402 million)
million compared to Ps. 1,237 million in the same period 2008. Gross profit as a
percentage of net sales in the first quarter 2009 was 19% compared to 17% in the
same period 2008. The decline in gross profit is due to lower shipments of 32%
during the first quarter 2009 compared with the same period of 2008.
Operating Expenses
Operating expenses increased 63% to Ps. 585 million in the first quarter 2009
(including the operating expenses from the newly acquired plants of Grupo San of
Ps. 114 million and the depreciation and amortization of the tangible and
intangible assets of Ps. 90 million registered by the acquisition of Grupo San)
compared to Ps. 359 million in the same period 2008, and represented 12% of net
sales in the first quarter 2009 and 5% of net sales in the same period 2008.
Operating Profit
Operating profit decreased 56% to Ps. 385 million for the first quarter 2009
(including the operating profit generated by the newly acquired plants of Grupo
San of Ps. 289 million) compared to Ps. 878 million in the same period 2008.
Operating profit as a percentage of net sales was 8% in the first quarter 2009
compared to 12% in the same period 2008. The decline in operating profit is due
to lower shipments of 32% during the first quarter 2009 compared with the same
period of 2008.
Comprehensive Financial Cost
Comprehensive financial cost in the first quarter 2009 represented an income of
Ps. 60 million compared with an expense of Ps. 62 million in the same period
2008. Net interest expense was Ps. 3 million in the first quarter 2009 compared
with a gain of Ps. 55 million in the same period 2008. At the same time, we
registered an exchange gain of Ps. 63 million in the first quarter 2009 compared
with an exchange loss of Ps. 117 million in the same period 2008, reflecting a
5.9% decrease in the value of the peso versus the dollar in the first quarter
2009 compared to the same period of 2008.
Other Expenses (Income) net
The company recorded other income net of Ps. 2 million in the first quarter 2009
compared to other income net of Ps. 6 million in the same period 2008.
Income Taxes
Income Taxes recorded a provision of Ps. 7 million in the first quarter 2009
(including the provision of Ps. 167 million of deferred income taxes) compared
to Ps. 230 million in the same period of 2008 (including the provision of Ps.
110 million of deferred income taxes).
Net Profit
As a result of the foregoing, net profit decreased by 26% to Ps. 440 million in
the first quarter 2009 from Ps. 592 million in the same period 2008.
Liquidity and Capital Resources
As of March 31, 2009, Simec's total consolidated debt consisted of U.S.
$952,000; U.S. $650,000 is a credit bank and U.S. $302,000 of 8 7/8% medium-term
notes ("MTN's") due 1998 (accrued interest on March 31, 2009 was U.S. $395,099).
As of December 31, 2008, Simec's total consolidated debt consisted of U.S.
$952,000; U.S. $650,000 is a credit bank and U.S. $302,000 of 8 7/8% medium-term
notes ("MTN's") due 1998 (accrued interest on December 31, 2008 was U.S.
$387,882).
Comparative first quarter 2009 vs fourth quarter 2008
Net Sales
Net sales decreased 33% from Ps. 7,618 million for the fourth quarter 2008
(including the net sales generated by the newly acquired plants of Grupo San of
Ps. 945 million) to Ps. 5,081 million for the first quarter 2009 (including the
net sales generated by the newly acquired plants of Grupo San of Ps. 1,059
million). Sales in tons of finished steel decreased 11% to 506 thousand tons in
the first quarter 2009 compared with 567 thousand tons in the fourth quarter
2008. The total sales outside of Mexico for the first quarter 2009 decreased 55%
to Ps. 2,222 million compared with Ps. 4,983 million for the fourth quarter
2008. Total Mexican sales increased 9% to 2,859 million in the first quarter
2009 from Ps. 2,635 million in the fourth quarter 2008. Prices of finished
products sold in the first quarter 2009 decreased approximately 25% compared to
the fourth quarter 2008.
Direct Cost of Sales
Direct cost of sales decreased 44% from Ps. 7,327 million in the fourth quarter
2008 (including the cost of sales generated by the newly acquired plants of
Grupo San of Ps. 473 million) to Ps. 4,111 million for the first quarter 2009
(including the cost of sales generated by the newly acquired plants of Grupo San
of Ps. 657 million). With respect to sales, in the first quarter 2009, the
direct cost of sales represents 81% compared to 96% for the fourth quarter 2008.
The average cost of raw materials used to produce steel products decreased 37%
in the first quarter 2009 versus the fourth quarter 2008, primarily as a result
of decreases in the price of scrap and certain other raw materials.
Gross Profit
Gross profit for the first quarter 2009 increased 233% to Ps. 970 million
(including the gross profit generated by the newly acquired plants of Grupo San
of Ps. 402 million) compared to Ps. 291 million in the fourth quarter 2008
(including the gross profit generated by the newly acquired plants of Grupo San
of Ps. 472 million). The gross profit as a percentage of net sales for the first
quarter 2009 was 19% compared with 4% for the fourth quarter of 2008. The
increase in gross profit is due to the decrease in the cost of raw materials
used to produce steel products.
Operating Expenses
Operating expenses decreased 36% to Ps. 585 million in the first quarter 2009
(including the operating expenses from the newly acquired plants of Grupo San of
Ps. 114 million and the depreciation and amortization of the tangible and
intangible assets of Ps. 90 million registered by the acquisition of Grupo San)
compared to Ps. 916 million for the fourth quarter 2008 (including the operating
expenses from the newly acquired plants of Grupo San of Ps. 232 million and the
depreciation and amortization of the tangible and intangible assets of Ps. 277
million registered by the acquisition of Grupo San). Operating expenses as a
percentage of net sales represented 12% during the first quarter 2009 and the
fourth quarter 2008.
Operating Profit
Operating profit increased 1,616% from an operating loss of Ps. 625 million in
the fourth quarter 2008 (including the operating profit generated by the newly
acquired plants of Grupo San of Ps. 232 million) to Ps. 385 million of operating
profit for the first quarter 2009 (including the operating profit generated by
the newly acquired plants of Grupo San of Ps. 289 million). The operating profit
as a percentage of net sales in the first quarter 2009 was 8% compared to 8% in
the fourth quarter 2008. The increase in operating profit is due to the decrease
in the cost of raw materials used to produce steel products and the decrease in
the operating expenses previously mentioned.
Comprehensive Financial Cost
Comprehensive financial cost for the first quarter 2009 represented an income of
Ps. 60 million compared with an income of Ps. 59 million for the fourth quarter
2008. Net interest expense was Ps. 3 million in the first quarter 2009 compared
with Ps. 2 million of net interest expense in the fourth quarter 2008. At the
same time we registered an exchange gain of Ps. 63 million in the first quarter
2009 compared with an exchange gain of Ps. 61 million in the fourth quarter
2008.
Other Expenses (Income) net
The company recorded other income net of Ps. 2 million in the first quarter 2009
compared with other expense net of Ps. 56 million for the fourth quarter 2008.
Income Taxes
Income Taxes for the first quarter 2009 was an expense of Ps. 7 million compared
to Ps. 171 million of income for the fourth quarter 2008.
Net Profit
As a result of the foregoing, net profit was Ps. 440 million in the first
quarter 2009 compared to Ps. 451 million of net loss in the fourth quarter 2008.
--------------------------------------------------------------------------------
1Q '09 vs 1Q '09vs
(Millions of pesos) 1Q '09 4Q '08 1Q '08 4Q '08 1Q '08
--------------------------------------------------------------------------------
Sales 5,081 7,618 7,287 -33% -30%
--------------------------------------------------------------------------------
Cost of Sales 4,111 7,327 6,050 -44% -32%
--------------------------------------------------------------------------------
Gross Profit 970 291 1,238 233% -22%
--------------------------------------------------------------------------------
Operating Expenses 585 916 359 -36% 63%
--------------------------------------------------------------------------------
Operating Profit 385 (625) 878 1616% -56%
--------------------------------------------------------------------------------
EBITDA 660 (188) 1,008 -451% -35%
--------------------------------------------------------------------------------
Net Profit 440 (451) 592 -198% -26%
--------------------------------------------------------------------------------
Sales outside Mexico 2,222 4,983 5,423 -55% -59%
--------------------------------------------------------------------------------
Sales in Mexico 2,859 2,635 1,865 9% 53%
--------------------------------------------------------------------------------
Total sales (tons) 506 567 745 -11% -32%
--------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
Average Average
Thousands Millions of Average Thousands Millions of price per Thousands Millions of price per
of tons pesos price per of tons pesos ton of tons pesos ton
Product 1Q '09 1Q'09 ton 1Q'09 4Q'08 4Q'08 4Q'08 1Q'08 1Q'08 1Q'08
----------------------------------------------------------------------------------------------------------------------------------
SBQ 215 2,621 12,191 335 5,435 16,224 565 5,749 10,175
----------------------------------------------------------------------------------------------------------------------------------
Light Structural 47 464 9,872 30 339 11,302 54 453 8,389
----------------------------------------------------------------------------------------------------------------------------------
Structural 50 507 10,140 33 371 11,243 55 504 9,164
----------------------------------------------------------------------------------------------------------------------------------
Rebar 163 1,241 7,613 146 1,210 8,287 70 550 7,857
----------------------------------------------------------------------------------------------------------------------------------
Others 31 248 - 23 263 - 1 31 -
----------------------------------------------------------------------------------------------------------------------------------
Total 506 5,081 10,042 567 7,618 13,435 745 7,287 9,783
----------------------------------------------------------------------------------------------------------------------------------
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: 2009
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. 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 - 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 Investigacion y Desarrollo de Normas de Informacion Financiera,
A.C. (CINIF).
b. The main subsidiaries of SIMEC are the following:
o Compania Siderurgica de California, S.A. de C.V.
o Industrias del Acero y del Alambre, S.A. de C.V.
o Pacific Steel Inc.
o 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 - Domestic subsidiaries' inventories are recorded initially at
average cost under the direct costing system. Foreign subsidiaries' inventories
are valued on a last-in, first-out (LIFO). For translation effects into MFRS the
inventories have been adjusted from LIFO to average cost under the direct
costing system.
Billet finished goods and work in process, raw materials and materials,
supplies and rollers - At the average cost.
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 March 31, 2009 the fair value of natural gas 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, 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 March 31, 2009 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
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. 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.
k. 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.
l. 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, 2009 sales
to five customers accounted for approximately 34% 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.
m. Other income (expenses) - Other income (expenses) shown in the consolidated
statements of operations primarily includes other financial operations.
(2) Financial Debt:
As of March 31, 2009, Simec's total consolidated debt consisted of U.S.
$952,000; U.S. $650,000 is a credit bank and U.S. $302,000 of 8 7/8% medium-term
notes ("MTN's") due 1998 (accrued interest on March 31, 2009 was U.S. $395,099).
As of December 31, 2008, Simec's total consolidated debt consisted of U.S.
$952,000; U.S. $650,000 is a credit bank and U.S. $302,000 of 8 7/8% medium-term
notes ("MTN's") due 1998 (accrued interest on December 31, 2008 was U.S.
$387,882).
(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. 11,896 (U.S. $830,032) at March 31, 2009,
(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: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
RELATIONS OF SHARES INVESTMENTS
CONSOLIDATED
--------------------------------------------------------------------------------------------------------------------------
NUMBER
COMPANY NAME MAIN ACTIVITIES 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. Siderurgica del Pacifico Rent of land 99.99
--------------------------------------------------------------------------------------------------------------------------
Coordinadora de Servicios Siderurgicos 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 Siderurgicos de Tlaxcala Administrative services 100.00
--------------------------------------------------------------------------------------------------------------------------
Administradora de Servicios Siderurgicos de
Tlaxcala Administrative services 100.00
--------------------------------------------------------------------------------------------------------------------------
Operadora de Servicios de la Industria Siderurgica Administrative services 100.00
--------------------------------------------------------------------------------------------------------------------------
SimRep Sub-Holding 50.22
--------------------------------------------------------------------------------------------------------------------------
PAV Republic Production and sales of steel products 50.22
--------------------------------------------------------------------------------------------------------------------------
CSG Comercial Sales of steel products 99.95
--------------------------------------------------------------------------------------------------------------------------
Comercializadora de Aceros de Tlaxcala Sales of steel products 99.95
--------------------------------------------------------------------------------------------------------------------------
Siderurgica de Baja California Sales of steel products 99.95
--------------------------------------------------------------------------------------------------------------------------
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: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
CREDITS BREAK DOWN
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
------------------------------------------------------------------------------------------------------------------------------------
Denominated in Pesos Denominated in Foreign Currency
(Thousands of Pesos) (Thousands of Pesos)
------------------------------------------------------------------------------------------------------------------------------------
Credit Type / Amortization Rate of
Institution Date Interest Time Interval Time Interval
------------------------------------------------------------------------------------------------------------------------------------
Until Until
5 5
Until Until Until Years Until Until Until Years
Current Until 1 2 3 4 or Current Until 1 2 3 4 or
Year Year Years Years Years More Year Year Years Years Years More
------------------------------------------------------------------------------------------------------------------------------------
BANKS
------------------------------------------------------------------------------------------------------------------------------------
With Warranty 0 0 0 0 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
GE CAPITAL 20/05/2010 LIBOR+0.25 0 0 0 0 0 0 0 9,316 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 4,295 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
TOTAL STOCK
EXCHANGE 0 0 0 0 0 0 4,295 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
SUPPLIERS
------------------------------------------------------------------------------------------------------------------------------------
Various 1,114,624 0 0 0 0 0 1,976,139 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
TOTAL SUPPLIERS 1,114,624 0 0 0 0 0 1,976,139 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
OTHER LOANS
WITH COST
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
TOTAL 0 0 0 0 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Denominated in Pesos Denominated in Foreign Currency
(Thousands of Pesos) (Thousands of Pesos)
------------------------------------------------------------------------------------------------------------------------------------
Credit Type / Amortization Rate of
Institution Date Interest Time Interval Time Interval
------------------------------------------------------------------------------------------------------------------------------------
Until Until
5 5
Until Until Until Years Until Until Until Years
Current Until 1 2 3 4 or Current Until 1 2 3 4 or
Year Year Years Years Years More Year Year Years Years Years More
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
OTHER CURRENT
LIABILITIES
WITHOUT COST
------------------------------------------------------------------------------------------------------------------------------------
Various 0 900,062 0 0 0 0 872,879 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
TOTAL 0 900,062 0 0 0 0 872,879 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
TOTAL 1,114,624 900,062 0 0 0 0 2,853,313 9,316 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
NOTES: The exchange rate of the peso to the U.S. Dollar at March 31, 2009 was
Ps. 14.3317
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
MONETARY FOREIGN CURRENCY POSITION
(Thousands of Mexican Pesos)
CONSOLIDATED
------------------------------------------------------------------------------------------------------------------------------
DOLLARS OTHER CURRENCIES TOTAL
------------------------------------------------------------------------------------------------------------------------------
FOREIGN CURRENCY POSITION THOUSANDS OF THOUSANDS OF THOUSANDS OF THOUSANDS OF THOUSANDS OF
DOLLARS PESOS DOLLARS PESOS PESOS
------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 178,881 2,556,827 0 0 2,556,827
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
LIABILITIES POSITION 198,898 2,850,247 169 3,066 2,853,313
------------------------------------------------------------------------------------------------------------------------------
SHORT TERM LIABILITIES POSITION 198,898 2,850,247 169 3,066 2,853,313
------------------------------------------------------------------------------------------------------------------------------
LONG TERM LIABILITIES POSITION 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
NET BALANCE -20,017 -293,420 (169) (3,066) -296,486
------------------------------------------------------------------------------------------------------------------------------
NOTES
THE EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT MARCH 31, 2009 WAS PS.
14.3317
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
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 2.64 times.
B) Accomplished the actual situation is 0.31
C) Accomplished the actual situation is 31.84
As of March 31, 2009, the remaining balance of the MTNs not exchanged
amounts to Ps. 4,295 ($302,000 dollars).
C.P. Jose Flores Flores
Chief Financial Officer
BONDS AND/OR MEDIUM TERM NOTES CERTIFICATE
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
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 76.53
----------------------------------------------------------------------------------------------------------------------------
MEXICALI MINI MILL PRODUCTION AND SALES OF STEEL PRODUCTS 250 67.45
----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAS DEL ACERO Y DEL ALAMBRE SALE OF STEEL PRODUCTS 0 0.00
----------------------------------------------------------------------------------------------------------------------------
APIZACO AND CHOLULA PLANTS PRODUCTION AND SALES OF STEEL PRODUCTS 460 74.96
----------------------------------------------------------------------------------------------------------------------------
CANTON CASTER FACILITY PRODUCTION OF BILLET 1,380 25.70
----------------------------------------------------------------------------------------------------------------------------
LORAIN CASTER FACILITY PRODUCTION OF BILLET 1,150 0.00
----------------------------------------------------------------------------------------------------------------------------
LORAIN HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL PRODUCTS 840 25.20
----------------------------------------------------------------------------------------------------------------------------
LACKAWANNA HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL PRODUCTS 600 0.00
----------------------------------------------------------------------------------------------------------------------------
MASSILLON COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS 125 41.70
----------------------------------------------------------------------------------------------------------------------------
GARY COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS 70 22.50
----------------------------------------------------------------------------------------------------------------------------
ONTARIO COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS 60 56.30
----------------------------------------------------------------------------------------------------------------------------
SAN LUIS POTOSI COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS 600 90.32
----------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
MAIN RAW MATERIALS
CONSOLIDATED
--------------------------------------------------------------------------------------------------------------
DOMESTIC COST
DOMESTIC MAIN SUPPLIERS FOREIGN MAIN SUPPLIERS SUBSTITUTION PRODUCTION (%)
--------------------------------------------------------------------------------------------------------------
PLANTS IN USA SCRAP VARIOUS NO 18.80
--------------------------------------------------------------------------------------------------------------
SCRAP VARIOUS PLANTS IN MEXICO 51.97
--------------------------------------------------------------------------------------------------------------
PLANTS IN USA COKE VARIOUS
--------------------------------------------------------------------------------------------------------------
PLANTS IN USA PELLETS VARIOUS
--------------------------------------------------------------------------------------------------------------
FERROALLOYS VARIOUS PLANTS IN MEXICO YES 9.14
--------------------------------------------------------------------------------------------------------------
PLANTS IN USA FERROALLOYS VARIOUS NO 13.30
--------------------------------------------------------------------------------------------------------------
ELECTRODES VARIOUS PLANTS IN MEXICO VARIOUS YES 2.54
--------------------------------------------------------------------------------------------------------------
PLANTS IN USA ELECTRODES VARIOUS NO 2.00
--------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
SELLS DISTRIBUTION BY PRODUCT
CONSOLIDATED
DOMESTIC SELLS
--------------------------------------------------------------------------------
MAIN PRODUCTS NET SALES MAIN DESTINATION
--------------------------------------------------------------------------------
VOLUME AMOUNT TRADEMARKS COSTUMERS
--------------------------------------------------------------------------------
STRUCTURAL PROFILES 42 435,960
--------------------------------------------------------------------------------
COMMERCIAL PROFILES 22 209,979
--------------------------------------------------------------------------------
REBAR 158 1,207,443
--------------------------------------------------------------------------------
FLAT BAR 13 134,909
--------------------------------------------------------------------------------
STEEL BARS 67 623,454
--------------------------------------------------------------------------------
OTHER 0 8,207
--------------------------------------------------------------------------------
BILLET 8 46,804
--------------------------------------------------------------------------------
ALAMBRON 10 75,546
--------------------------------------------------------------------------------
MALLA 13 116,790
--------------------------------------------------------------------------------
T O T A L 2,859,092
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FOREIGN SALES 2,221,549
--------------------------------------------------------------------------------
TOTAL 5,080,641
--------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
SELLS DISTRIBUTION BY PRODUCT
CONSOLIDATED
FOREIGN SELLS
--------------------------------------------------------------------------------
MAIN PRODUCTS NET SALES MAIN
--------------------------------------------------------------------------------
VOLUME AMOUNT TRADEMARKS COSTUMERS
--------------------------------------------------------------------------------
EXPORTS
--------------------------------------------------------------------------------
STRUCTURAL PROFILES 8 71,023
--------------------------------------------------------------------------------
COMMERCIAL PROFILES 6 56,747
--------------------------------------------------------------------------------
REBAR 9 101,114
--------------------------------------------------------------------------------
STEEL BARS 5 33,343
--------------------------------------------------------------------------------
FLAT BAR 6 62,800
--------------------------------------------------------------------------------
BILLET 0 333
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FOREIGN SUBSIDIARIES
--------------------------------------------------------------------------------
HOT-ROLLED BARS 100 1,312,243
--------------------------------------------------------------------------------
COLD-FINISHED BARS 22 384,504
--------------------------------------------------------------------------------
OTHER SEMI-FINISHED
--------------------------------------------------------------------------------
TRADE PRODUCTS 12 135,357
--------------------------------------------------------------------------------
INGOT 5 64,085
--------------------------------------------------------------------------------
T O T A L 2,221,549
--------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
CONSTRUCTION IN PROGRESS
CONSOLIDATED
THE PROJECTS IN PROGRESS AT MARCH 31, 2009, ARE:
PROJECTS IN PROGRESS TOTAL INVESTMENT
PROJECTS IN REPUBLIC 209,157
PROJECTS IN MEXICALI 163,409
PROJECTS IN TLAXCALA 63,451
PROJECTS IN GUADALAJARA 13,255
PROJECTS IN SAN LUIS 18,901
TOTAL INVESTMENT AT MARCH 31, 2009 468,173
=======
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
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 - 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
assets and liabilities.
- Applying the prevailing historical exchange rate 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.
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
CONSOLIDATED
INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK
CHARACTERISTICS OF THE SHARES
----------------------------------------------------------------------------------------------------------
NOMINAL VALID CAPITAL STOCK
SERIES VALUE CUPON NUMBER OF SHARES (Thousands of Pesos)
----------------------------------------------------------------------------------------------------------
FIXED VARIABLE FREE
PORTION PORTION MEXICAN SUSCRIPTION 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: 1 YEAR: 2009
GRUPO SIMEC, S.A.B. DE C.V.
CONSOLIDATED
R20: PRO FORMA FINANCIAL INFORMATION
The following combined pro forma financial information (unaudited) is
based on the Company's historical financial statements, adjusted to
include the effects of the acquisition of Grupo San.
The pro forma information (unaudited) assumes that the acquisition was
conducted at the beginning of 2008, and is based on the available
information and certain assumptions that management considered reasonable.
The pro forma financial information (unaudited) is not intended to present
the results of the consolidated operations had the acquisition occurred on
such date, nor to anticipate the Company's results of operations.
January January -
-March March
2009 2008
------- -------
2009 2008
------- -------
Net sales Ps. 5,081 Ps. 8,933
Marginal profit 970 1,845
Net income Ps. 545 Ps. 809
------- -------
Earnings per share 1.09 1.70
======= =======
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2009
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 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 MAY 4 OF 2009.