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Grupo Simec - SIM STOCK NEWS

Welcome to our dedicated page for Grupo Simec news (Ticker: SIM), a resource for investors and traders seeking the latest updates and insights on Grupo Simec stock.

Overview of Grupo Simec, S.A.B. de C.V.

Grupo Simec, S.A.B. de C.V. (NYSE: SIM) is a leading manufacturer, processor, and distributor of Special Bar Quality (SBQ) steel and structural steel products. Headquartered in Guadalajara, Mexico, the company operates extensive production and commercial facilities across Mexico, the United States, Brazil, and Canada. Grupo Simec is a subsidiary of Industrias CH, S.A.B. de C.V., further strengthening its position within the global steel industry. The company’s operations are vertically integrated, encompassing the entire value chain from raw steel production to the delivery of finished products.

Core Product Offerings

Grupo Simec specializes in the production of SBQ steel and structural steel products, which are essential in a wide range of industries. Its product portfolio includes:

  • SBQ Steel Products: Used in highly engineered applications such as axles, hubs, and crankshafts for automobiles and light trucks, as well as machine tools and off-highway equipment.
  • Structural Steel Products: Includes I-beams, channels, structural and commercial angles, hot rolled bars, flat bars, rebars, and wire rods. These products are primarily used in non-residential construction and other construction applications.
  • Semi-Finished Products: Such as tube rounds and other trade products, catering to specialized industrial needs.

The company’s focus on SBQ steel differentiates it from general steel producers, as these products are tailored for high-performance and precision engineering applications.

Industry Applications and Market Segments

Grupo Simec’s products serve a diverse range of industries, including:

  • Automotive: SBQ steel is critical for manufacturing durable components like crankshafts and axles.
  • Construction: Structural steel products are widely used in non-residential construction projects, providing strength and durability.
  • Industrial Equipment: Machine tools and off-highway equipment rely on the precision and resilience of SBQ steel.

The company’s ability to cater to these specialized markets underscores its technical expertise and adaptability.

Geographical Reach

Grupo Simec operates across key markets in North and South America, with production facilities in Mexico, the United States, and Brazil, and exports to Central and South America, as well as Europe. This geographical diversification helps mitigate risks associated with regional economic fluctuations and positions the company as a global player in the steel industry.

Competitive Positioning

Grupo Simec competes in a highly competitive and cyclical industry. Its focus on SBQ steel provides a competitive advantage, as these products are less commoditized and cater to niche, high-value applications. The company’s vertically integrated operations, combined with its strategic geographical presence, allow it to optimize production costs and maintain supply chain efficiency. However, it faces challenges such as fluctuating raw material prices, global steel market dynamics, and economic conditions in its key markets.

Significance in the Steel Industry

As a major producer of SBQ and structural steel products, Grupo Simec plays a vital role in supporting industries that require high-quality steel solutions. Its commitment to innovation and quality positions it as a trusted partner for customers in the automotive, construction, and industrial sectors. By leveraging its expertise and extensive production capabilities, Grupo Simec continues to meet the evolving demands of the global steel market.

Rhea-AI Summary

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.

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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.

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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.

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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.

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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.

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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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Grupo Simec, S.A.B. de C.V. (NYSE: SIM) announced its first-quarter 2024 financial results, showing a decrease in net sales, gross profit, and operating income compared to the same period in 2023. The company's sales outside of Mexico decreased by 29%, while Mexican sales dropped by 45%. Despite the decrease in sales, the company managed to maintain a gross profit margin of 25%. EBITDA decreased by 44% to Ps. 1,668 million. The net income for the first quarter of 2024 increased by 41% compared to the same period in 2023.
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Grupo Simec, S.A.B. de C.V. (NYSE: SIM) reported a decrease in net sales by 24% and a decrease in gross profit by 27% for the twelve-month period ended December 31, 2023 compared to the same period in 2022. Operating income decreased by 31%, and EBITDA decreased by 29%. The company's net income also decreased by 33% year-over-year. Sales outside Mexico decreased by 31%, while sales in Mexico decreased by 18%. The company's total debt remained stable. In the fourth quarter of 2023, net sales decreased by 7%, and gross profit decreased by 6% compared to the fourth quarter of 2022.
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Grupo Simec (NYSE: SIM) announces financial results for the twelve-month period ended December 31, 2023, showing a decrease in net sales, cost of sales, and gross profit compared to 2022. Operating income, EBITDA, and net income also declined. Sales outside Mexico dropped by 31%, while sales in Mexico decreased by 18%. The company experienced a 33% decrease in net income. However, other income increased by 44%. The fourth quarter of 2023 saw a decrease in net sales and gross profit, with an increase in operating expenses. EBITDA and net income also decreased compared to the previous quarter. The company faced challenges in sales and costs, impacting its financial performance.
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Grupo Simec (NYSE: SIM) reports unusual movements in the negotiation of its series B shares, attributing them to market conditions and denying involvement of its board members or executives.
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FAQ

What is the current stock price of Grupo Simec (SIM)?

The current stock price of Grupo Simec (SIM) is $25.9 as of March 6, 2025.

What is the market cap of Grupo Simec (SIM)?

The market cap of Grupo Simec (SIM) is approximately 4.1B.

What products does Grupo Simec manufacture?

Grupo Simec produces SBQ steel and structural steel products, including I-beams, channels, angles, rebars, and wire rods, as well as semi-finished products.

What industries does Grupo Simec serve?

The company serves industries such as automotive, construction, and industrial equipment, providing high-performance steel solutions for engineered applications.

Where does Grupo Simec operate?

Grupo Simec operates in Mexico, the United States, Brazil, and Canada, and exports to Central and South America, as well as Europe.

What is Special Bar Quality (SBQ) steel?

SBQ steel is a high-performance steel used in precision-engineered applications such as automotive components, machine tools, and off-highway equipment.

How does Grupo Simec differentiate itself from competitors?

Grupo Simec focuses on SBQ steel, a niche market requiring technical expertise, and benefits from vertically integrated operations and a diversified geographical presence.

Who owns Grupo Simec?

Grupo Simec is a subsidiary of Industrias CH, S.A.B. de C.V., a prominent player in the steel industry.

What are Grupo Simec's key markets?

Key markets include North and South America, with significant operations in Mexico, the U.S., and Brazil, and exports to Europe and other regions.

What challenges does Grupo Simec face?

Challenges include fluctuating raw material costs, global steel price volatility, and economic conditions in its key markets.

What makes Grupo Simec's SBQ steel unique?

SBQ steel is tailored for high-performance applications, offering superior durability and precision compared to commodity steel products.

What is Grupo Simec's role in the construction industry?

Grupo Simec supplies structural steel products like I-beams and rebars, essential for non-residential construction and infrastructure projects.
Grupo Simec

NYSE:SIM

SIM Rankings

SIM Stock Data

4.06B
153.71M
0.17%
Steel
Basic Materials
Link
Mexico
Guadalajara