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Grupo Simec, S.A.B. de C.V. (NYSE: SIM) is a leading manufacturer, processor, and distributor of Special Bar Quality (SBQ) steel and steel alloys. Headquartered in Guadalajara, Mexico, the company operates in Mexico, the United States, Brazil, and Canada, producing a wide range of steel products including I-beams, channels, structural and commercial angles, hot rolled bars, flat bars, rebars, cold-finished bars, and wire rods. Additionally, Grupo Simec manufactures semi-finished tube rounds and other related products.
Since its founding in 1969, Grupo Simec has expanded its operations internationally, exporting products to Central and South America as well as Europe. The company's SBQ steel products are integral to various engineering applications such as axles, hubs, and crankshafts for automobiles and light trucks, as well as machine tools and off-highway equipment. Additionally, their structural steel products are widely used in non-residential construction and other infrastructural projects.
Grupo Simec recently announced its financial results for the period ending September 30, 2023. The company reported net sales of Ps. 32,401 million, which marks a decrease from Ps. 44,012 million in the same period of the previous year. Shipments of finished steel products also saw a decline, dropping to 1.64 million tons from 1.72 million tons. Despite these challenges, the company maintains a solid foothold in its core markets.
In recent developments, Grupo Simec has opted to idle its steelmaking operations at its Republic Steel mills in Canton, Ohio, and Lackawanna, New York, due to a challenging market environment in the United States. This move aims to consolidate operations in their state-of-the-art facility in Tlaxcala, Mexico, preserving service quality for U.S. customers while addressing financial and environmental challenges.
Grupo Simec is a subsidiary of Industrias CH, S.A.B. de C.V., and its commitment to quality, innovation, and sustainability continues to drive its operations forward in a competitive global market.
Grupo Simec (NYSE: SIM) reported its financial results for FY2024, showing mixed performance. Net sales decreased 18% to Ps. 33,658 million, driven by a 6% reduction in steel shipments and a 13% lower average sales price compared to 2023.
Despite challenges, net income surged 168% to Ps. 11,475 million in 2024 from Ps. 4,283 million in 2023. EBITDA decreased 21% to Ps. 6,864 million. The company maintained a gross profit margin of 24%, while operating income declined 23% to Ps. 5,830 million.
Geographic performance showed domestic sales in Mexico dropping 25% to Ps. 18,270 million, while international sales decreased 8% to Ps. 15,388 million. The company benefited from lower scrap costs and recorded a significant comprehensive financial income of Ps. 6,630 million, largely due to exchange rate gains.
Grupo Simec has filed its Annual Report on Form 20-F for the fiscal year ended December 31, 2023, with the SEC. The report is available on the SEC website and the company's investor relations page. Shareholders can request free hard copies of the Form 20-F, including complete audited financial statements, by contacting Mario Moreno Cortez via email.
The company operates as a diversified manufacturer, processor, and distributor of SBQ steel and structural steel products in the United States, Mexico, and Brazil. Their SBQ products serve engineered applications in the automotive industry, while their structural steel products primarily target the non-residential construction market.
Grupo Simec (NYSE: SIM) reported a serious accident at its steel complex in Apizaco, Tlaxcala on October 30, 2024. A liquid steel spill resulted in fatalities among employees and has temporarily halted operations at plant one of the facility. The company expressed regret for the loss of life and stated it is investigating the causes of the accident.
Grupo Simec reported financial results for the first nine months of 2024, showing mixed performance. Net sales decreased 23% to Ps. 24,828 million compared to Ps. 32,401 million in 2023, with shipments down 6%. The company's gross profit declined 23% to Ps. 6,203 million, while EBITDA decreased 31% to Ps. 5,189 million. Despite lower operational metrics, net income increased 125% to Ps. 8,587 million, largely due to comprehensive financial gains including exchange rate benefits. The average selling price decreased 18% compared to 2023, affecting both domestic and international sales.
Grupo Simec (NYSE: SIM) reported its first half of 2024 financial results. Net sales plummeted 29% year-over-year to Ps. 16,279 million, driven by a 22% drop in average sales price and an 8% decrease in shipment volumes. Sales outside Mexico fell 24%, while Mexican sales dropped 32%. Cost of sales fell 29%, aligning with the decline in net sales. Gross profit decreased 30% to Ps. 4,047 million. Operating income fell 40% to Ps. 2,916 million. EBITDA dropped 37% to Ps. 3,413 million.
However, net income surged 169% year-over-year to Ps. 5,435 million, primarily due to an increase in comprehensive financial income. On a quarterly basis, net sales grew 6% in Q2 2024 vs. Q1 2024, with a 12% increase in shipment volumes. Despite a 15% rise in domestic sales, sales outside Mexico decreased 3%. Net income increased 173% quarter-over-quarter to Ps. 3,979 million.
Grupo Simec, S.A.B. de C.V. (NYSE: SIM) reported a 24% decrease in net sales in the twelve-month period ending December 31, 2023, compared to the previous year. The cost of sales decreased by 22%, resulting in a 31% drop in gross profit. Operating income decreased by 37%, and EBITDA saw a 35% decline. Net income dropped by 44%. The company's debt remained constant.
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