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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 audited operational results for the twelve-month period ending December 31, 2022. Net sales decreased by 3%, from Ps. 55,620 million in 2021 to Ps. 54,159 million in 2022, primarily due to a 10% drop in shipments of finished steel products. Sales outside Mexico fell by 11% to Ps. 24,515 million, while sales within Mexico increased by 6% to Ps. 29,644 million. Gross profit decreased from Ps. 15,652 million to Ps. 14,475 million, representing a gross margin of 27%. Operating income declined by 11% to Ps. 12,091 million, and net income dropped 18% from Ps. 9,444 million to Ps. 7,703 million. The company’s EBITDA also fell by 10%, totaling Ps. 13,207 million. Despite increased operating expenses (up 20%), the overall financial outlook remains cautious amid decreasing revenues and profits.
Grupo Simec (NYSE American: SIM) filed an Amendment No. 1 to its Annual Report on Form 20-F, related to the financial year ending December 31, 2021. This amendment corrects a risk factor concerning weaknesses in internal controls, specifically by removing an inadvertent reference to a material weakness from 2019 and adds a cross-reference to legal proceedings. The filing dated March 17, 2023, is available on the investor relations section of the company's website and can be requested in hard copy by shareholders.
Grupo Simec (NYSE: SIM) reported its 2022 financial results, showing a 1% decline in net sales, totaling Ps. 55,112 million compared to Ps. 55,620 million in 2021. This decrease was driven by a 10% drop in finished steel shipments, totaling 2.25 million tons. Sales within Mexico increased by 6% to Ps. 29,644 million, while international sales fell by 8%. The cost of sales rose 2%, impacting gross profit, which decreased 8% to Ps. 14,359 million. Net income dropped 9% to Ps. 8,639 million. Operating income and EBITDA declined by 11% each, indicating challenges in maintaining profitability amidst rising costs.
Grupo Simec (NYSE: SIM) reported its operational results for the first nine months of 2022. Net sales rose to Ps. 44,012 million, up from Ps. 42,736 million in 2021, driven by a 17% increase in average selling prices, despite a 12% decrease in shipment volumes. Costs of sales also increased to Ps. 32,243 million. Gross profit dipped 1% to Ps. 11,769 million. Year-to-date, net income fell by 3% to Ps. 8,037 million. In Q3 2022, net sales decreased by 5% compared to Q3 2021, with a significant drop in operating income and EBITDA by 30% and 28%, respectively.
On Sept. 28, 2022, Grupo Simec issued a warning regarding fraudulent investment schemes circulating on the internet. The company clarified that the only legitimate method to invest in Grupo Simec is via the Mexican Stock Exchange (BMV) and the Institutional Stock Exchange (BIVA). The firm strongly advises potential investors to consult their brokerage houses to verify any investment offers. Grupo Simec disclaims any responsibility for losses incurred due to these fraudulent activities.
Grupo Simec, S.A.B. de C.V. (NYSE: SIM) reported a 23% increase in net income for the first half of 2022, totaling Ps. 6,098 million, up from Ps. 4,977 million in 2021. Despite a 14% decline in shipments, net sales rose 7% to Ps. 30,579 million, driven by a 24% increase in average sales prices. Cost of sales increased 5% year-over-year, while gross profit surged 12% to Ps. 8,607 million. Operating income also saw a 12% growth to Ps. 7,479 million. Selling, general, and administrative expenses rose 15%, but EBITDA grew 10% to Ps. 8,029 million.
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