December 03, 2008

Grupo Simec 2007 net profit decline by 24% YoY

Mexico based steel producer Grupo Simec SAB de CV announced results for the Q4 of 2007 and full year of 2007. Its Q4 net profit declined to MXN 163 million from MXN 187 million while sales rose to MXN 5.824 million from MXN 4.898 million.

Grupo Simec said that its net profit decreased by 24% YoY to MXN 1,824 million in 2007 from MXN 2,399 million in 2006. Net interest income was MXN 273 million in 2007 as compared to MXN 47 million in 2006 due to larger cash balances during this year. Net sales increased 3% YoY to MXN 24,106 million in 2007 from MXN 23,515 million in 2006, largely due to higher shipments. Total sales outside of Mexico in 2007 increased by 7% YoY while total Mexican sales decreased by 7% YoY.

Grupo Simec also said it executed an agreement to acquire 100% of the shares of Corporacion Aceros DM, SA de CV and certain of its affiliates on February 21st 2008.

Simec owned by Mexico's Industrias CH is a mini mill steel producer that makes an array of non flat structural steel products. The company describes itself as the largest producer of special bar quality steel in North America.