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 July , 2008.
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: July 22, 2008. By: /s/ Luis Garcia Limon
------------------------------
Name: Luis Garcia Limon
Title: Chief Executive Officer
[LOGO] GRUPO
SIMEC
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 SIX MONTHS OF 2008
GUADALAJARA, MEXICO, July 21, 2008- Grupo Simec, S.A.B. de C.V. (AMEX-SIM)
("Simec") announced today its results of operations for the six-month period
ended June 30, 2008.
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 such acquisition was consummated. 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 it 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.
Six-Month Period Ended June 30, 2008 compared to Six-Month Period Ended June 30,
2007
Net Sales
Net sales increased 36% to Ps. 17,035 million in the six-month period ended June
30, 2008 (including the net sales generated by the newly acquired plants of
Grupo San of Ps. 513 million) compared to Ps. 12,557 million in the same period
of 2007. Shipments of finished steel products increased 13% to 1 million 562
thousand tons in the six-month period ended June 30, 2008 (including the net
sales generated by the newly acquired plants of Grupo San of 44 thousand tons)
compared to 1 million 383 thousand tons in the same period of 2007. Total sales
outside of Mexico in the six-month period ended June 30, 2008 increased 39% to
Ps. 12,172 million (including the net sales generated by the newly acquired
plants of Grupo San of Ps. 37 million) compared with Ps. 8,737 million in the
same period of 2007, while total Mexican sales increased 27% from Ps. 3,820
million in the six-month period ended June 30, 2007 to Ps. 4,863 million in the
same period of 2008 (including the net sales generated by the newly acquired
plants of Grupo San of Ps. 476 million). The increase in sales can be explained
due to higher shipments during the six-month period ended June 30, 2008,
compared with the same period in 2007 (179,000 tons increase) and 20% increase
in the average price of steel products.
Direct Cost of Sales
Direct cost of sales increased 36% from Ps. 10,136 million in the six-month
period ended June 30, 2007 to Ps. 13,744 million in the same period 2008
(including the cost of sales generated by the newly acquired plants of Grupo San
of Ps. 308 million). Direct cost of sales as a percentage of net sales
represented at 81% in the six-month period ended June 30, 2008 compared to 81%
in the same period of 2007. The increase in the Direct Cost of Sales is
attributable mainly to an increase of 20% in the average cost of raw materials
used to produce steel products in the six-month period ended June 30, 2008
versus the same period of 2007, primarily as a result of increases in the price
of scrap and certain other raw materials; as well as 13% increase in shipments.
Gross Profit
Gross profit in the six-month period ended June 30, 2008 was Ps. 3,291 million
(including the gross profit generated by the newly acquired plants of Grupo San
of Ps. 205 million) compared to Ps. 2,421 million in the same period of 2007.
Gross profit as a percentage of net sales in the six-month period ended June 30,
2008 was 19% compared to 19% in the same period of 2007. This was principally
due to an increase of 13% in sales volume.
Operating Expenses
Operating expenses increased 11% to Ps. 794 million in the six-month period
ended June 30, 2008 (including the operating expenses by the newly acquired
plants of Grupo San of Ps. 53 million) compared to Ps. 718 million in the same
period of 2007 and represented 5% of net sales in the six-month period ended
June 30, 2008 and 6% of net sales in the same period of 2007.
Operating Profit
Operating profit increased 47% to Ps. 2,497 million in the six-month period
ended June 30, 2008 (including the operating profit by the newly acquired plants
of Grupo San of Ps. 152 million) compared to Ps. 1,703 million in the same
period of 2007. Operating profit as a percentage of net sales was 15% in the
six-month period ended June 30, 2008 compared to 14% in the same period of 2007.
The increase in the operating profit was due principally to an increaset of 13%
in sales volume.
Comprehensive Financial Cost
Comprehensive financial cost in the six-month period ended June 30, 2008
represented an expense of Ps. 258 million compared with a gain of Ps. 117
million in the same period of 2007. Net interest income was Ps. 93 million in
the six-month period ended June 30, 2008 compared with Ps. 124 million in the
same period of 2007, reflecting the use of cash and debt for the acquisition of
Grupo San. At the same time, we registered an exchange loss of Ps. 351 million
in the six-month period ended June 30, 2008 compared with an exchange loss of
Ps. 31 million in the same period of 2007, reflecting a 5.7% increase in the
value of the peso versus the dollar at June 30, 2008 compared to December 31,
2007.
Other Expenses (Income) net
The company recorded other income Net of Ps. 4 million in the six-month period
ended June 30, 2008 compared to other income net for Ps. 18 million in the same
period of 2007.
Income Taxes
Income Taxes recorded Ps. 726 million in the six-month period ended June 30,
2008 compared to Ps. 542 million in the same period of 2007.
Net Profit
As a result of the foregoing, net profit increased by 17% to Ps. 1,517 million
in the six-month period ended June 30, 2008 from Ps. 1,296 million in the same
period of 2007.
Liquidity and Capital Resources
At June 30, 2008, Simec's total consolidated debt consisted of U.S. $90.3
million; U.S. $90 million is a credit bank and U.S. $302,000 of 8 7/8%
medium-term notes ("MTN's") due 1998 (accrued interest at June 30, 2008 was U.S.
$377,257 dollars). At December 31, 2007, Simec's total consolidated debt
consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998
(accrued interest at December 31, 2007 was U.S. $363,703 dollars).
Net resources provided by operations were Ps. 1,065 million in the six-month
period ended June 30, 2008 versus Ps. 1,159 million of net resources provided by
operations in the same period of 2007. Net resources provided by financing
activities were Ps. 2,117 million in the six-month period ended June 30, 2008
versus Ps. 2,410 million of net resources used by financing activities in the
same period 2007 (which amount includes the capital increase of Ps. 2,420
million in February 2007). Net resources used in investing activities (to
acquire property, plant and equipment, other non-current assets and liabilities)
were Ps. 8,895 million in the six-month period ended June 30, 2008 (which amount
includes Ps. 8,437 million used in the acquisition of Grupo San) versus net
resources used in investing activities (to acquire property, plant and equipment
and other non-current assets and liabilities) of Ps. 350 million in 2007.
Comparative second quarter 2008 vs. first quarter 2008
Net Sales
Net sales increased 34% from Ps. 7,288 million for the first quarter 2008 to Ps.
9,746 million for the second quarter 2008 (including the net sales generated by
the newly acquired plants of Grupo San of Ps. 513 million). Sales in tons of
finished steel increased 10% to 817 thousand tons in the second quarter 2008
compared with 745 thousand tons in the first quarter 2008. The total sales
outside of Mexico for the second quarter 2008 increased 24% to Ps. 6,749 million
compared with Ps. 5,423 million for the first quarter 2008. Total Mexican sales
increased 61% to Ps. 2,997 million in the second quarter 2008 from Ps. 1,865
million in the first quarter 2008. Prices of finished products sold in the
second quarter 2008 increased approximately 22% compared to the first quarter
2008.
Direct Cost of Sales
Direct cost of sales increased 27% from Ps. 6,050 million in the first quarter
2008 to Ps. 7,693 million for the second quarter 2008 (including the cost of
sales generated by the newly acquired plants of Grupo San of Ps. 308 million).
With respect to sales, in the second quarter 2008, the direct cost of sales
represents 79% compared to 83% for the first quarter 2008. The average cost of
raw materials used to produce steel products increased 14%
in the second quarter 2008 versus the first quarter 2008, primarily as a result
of increases in the price of scrap and certain other raw materials.
Gross Profit
Gross profit for the second quarter 2008 increased 66% to Ps. 2,053 million
(including the gross profit generated by the newly acquired plants of Grupo San
of Ps. 205 million) compared to Ps. 1,238 million in the first quarter 2008. The
gross profit as a percentage of net sales for the second quarter 2008 was 21%
compared with 17% for the first quarter 2008. The increase in gross profit was
principally due to the increase in sales volume.
Operating Expenses
Operating expenses increased 21% to Ps. 434 million in the second quarter 2008
(including the operating expenses by the newly acquired plants of Grupo San of
Ps. 53 million) compared to Ps. 360 million for the first quarter 2008.
Operating expenses as a percentage of net sales represented 4% during the second
quarter 2008 compared to 5% in the first quarter 2008.
Operating Profit
Operating profit increased 84% from Ps. 878 million in the first quarter 2008 to
Ps. 1,619 million for the second quarter 2008 (including the operating profit by
the newly acquired plants of Grupo San of Ps. 152 million). The operating profit
as a percentage of net sales in the second quarter 2008 was 17% compared to 12%
in the first quarter 2008. The increase in operating profit is due to the
increase in tons shipped.
Comprehensive Financial Cost
Comprehensive financial cost for the second quarter 2008 represented an expense
of Ps. 197 million compared with an expense of Ps. 62 million for the first
quarter 2008. Net interest income was Ps. 37 million in the second quarter 2008
compared with Ps. 55 million of net interest income in the first quarter 2008.
At the same time, we registered an exchange loss of Ps. 234 million in the
second quarter 2008 compared with an exchange loss of Ps. 117 million in the
first quarter 2007.
Other Expenses (Income) net
The company recorded other expense net for Ps. 2 million in the second quarter
2008 compared with other income net for Ps. 5 million for the first quarter
2008.
Income Taxes
Income Taxes for the second quarter 2008 was an expense of Ps. 495 million
compared to Ps. 230 million of expense for the first quarter 2008.
Net Profit
As a result of the foregoing, net profit was Ps. 925 million in the second
quarter 2008 compared to Ps. 592 million of net profit in the first quarter
2008.
Comparative second quarter 2008 vs. second quarter 2007
Net Sales
Net sales increased 55% from Ps. 6,287 million for the second quarter 2007
compared with Ps. 9,746 million for the same period 2008 (including the net
sales generated by the newly acquired plants of Grupo San of Ps. 513 million).
Sales in tons of finished steel increased 20% to 817 thousand tons in the second
quarter 2008 compared with 679 thousand tons in the same period 2007. The total
sales outside of Mexico for the second quarter 2008 increased 55% to Ps. 6,749
million compared with Ps. 4,353 million for the same period 2007. Total Mexican
sales increased 55% to Ps. 2,997 million in the second quarter 2008 from Ps.
1,934 millions in the same period
2007. Prices of finished products sold in the second quarter 2008 increased
approximately 29% compared to the second quarter 2007.
Direct Cost of Sales
Direct cost of sales increased 50% from Ps. 5,114 million in the second quarter
2007 to Ps. 7,693 million for the same period 2008 (including the cost of sales
generated by the newly acquired plants of Grupo San of Ps. 308 million). With
respect to sales, in the second quarter 2008, the direct cost of sales
represents 79% compared to 81% for the same period 2007. The average cost of raw
materials used to produce steel products increased 25% in the second quarter
2008 versus the second quarter 2007, primarily as a result of increases in the
price of scrap and certain other raw materials.
Gross Profit
Gross profit for the second quarter 2008 increased 75% to Ps. 2,053 million
(including the gross profit generated by the newly acquired plants of Grupo San
of Ps. 205 million) compared to Ps. 1,173 million in the same period 2007. The
gross profit as a percentage of net sales for the second quarter 2008 was 21%
compared with 19% for the same period 2007. The increase in gross profit is due
to the increase in tons shipped.
Operating Expenses
Operating expenses increased 23% to Ps. 434 million in the second quarter 2008
(including the operating expenses by the newly acquired plants of Grupo San of
Ps. 53 million) compared to Ps. 352 million for the same period 2007. Operating
expenses as a percentage of net sales represented 4% during the second quarter
2008 compared to 6% of the same period 2007.
Operating Profit
Operating profit increased 97% from Ps. 821 million in the second quarter 2007
to Ps. 1,619 million for the same period 2008 (including the operating profit by
the newly acquired plants of Grupo San of Ps. 152 million). The operating profit
as a percentage of net sales in the second quarter 2008 was 17% compared to 13%
in the same period 2007. The increase in operating profit is due to the increase
in the prices of finished products sold due to the reasons previously mentioned.
Comprehensive Financial Cost
Comprehensive financial cost for the second quarter 2008 represented an expense
of Ps. 197 million compared with a gain of Ps. 39 million for the second quarter
2007. Net interest income was Ps. 37 million in the second quarter 2008 compared
with Ps. 82 million in the second quarter 2007. At the same time, we registered
an exchange loss of Ps. 234 million in the second quarter 2008 compared with an
exchange loss of Ps. 95 million in the second quarter 2007.
Other Expenses (Income) net
The company recorded other expenses net for Ps. 2 million for the second quarter
2008 compared with other expenses net for Ps. 9 million for the same period
2007.
Taxes and Profit Sharing
Taxes and profit sharing for the second quarter 2008 increased to Ps. 495
million compared to Ps. 304 million for the same period 2007.
Net Profit
As a result of the foregoing, net profit increased by 69% to Ps. 925 million in
the second quarter 2008 from Ps. 547 million in the second quarter 2007.
------------------------------------------------------------------------------
Six months ended Six months ended 2008
Million of pesos June 30, June 30, vs.
2008 2007 2007
------------------------------------------------------------------------------
Sales 17,035 12,557 36%
------------------------------------------------------------------------------
Cost of Sales 13,744 10,136 36%
------------------------------------------------------------------------------
Gross Profit 3,291 2,421 36%
------------------------------------------------------------------------------
Operating Expenses 794 718 11%
------------------------------------------------------------------------------
Operating Profit 2,497 1,703 47%
------------------------------------------------------------------------------
EBITDA 2,763 1,958 41%
------------------------------------------------------------------------------
Net Profit 1,517 1,296 17%
------------------------------------------------------------------------------
Sales outside Mexico 12,172 8,737 39%
------------------------------------------------------------------------------
Sales in Mexico 4,863 3,820 27%
------------------------------------------------------------------------------
Total sales (tons) 1,562 1,383 13%
------------------------------------------------------------------------------
(Million of pesos) 2Q08 1Q08 2Q07 2Q08 vs. 2Q08 vs.
1Q08 2Q07
Sales 9,746 7,288 6,287 34% 55%
------------------------------------------------------------------------------------------------------------
Cost of Sales 7,693 6,050 5,114 27% 50%
------------------------------------------------------------------------------------------------------------
Gross Profit 2,053 1,238 1,173 66% 75%
------------------------------------------------------------------------------------------------------------
Operating Expenses 434 360 352 21% 23%
------------------------------------------------------------------------------------------------------------
Operating Profit 1,619 878 821 84% 97%
------------------------------------------------------------------------------------------------------------
EBITDA 1,755 1,008 949 74% 85%
------------------------------------------------------------------------------------------------------------
Net Profit 925 592 547 56% 69%
------------------------------------------------------------------------------------------------------------
Sales outside Mexico 6,749 5,423 4,353 24% 55%
------------------------------------------------------------------------------------------------------------
Sales in Mexico 2,997 1,865 1,934 61% 55%
------------------------------------------------------------------------------------------------------------
Total sales (tons) 817 745 679 10% 20%
------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Thousands of Million Average Thousands of Million of Average
Product tons six of pesos price per tons six pesos six price per
months ended six ton six months ended months ton six
June 30, 2008 months months June 30, 2007 ended June months
ended ended June 30, 2007 ended June
June 30, 30, 2008 30, 2007
---------------------------------------------------------------------------------------------------------
SBQ 1,144 12,873 11,253 982 9,466 9,640
---------------------------------------------------------------------------------------------------------
Light Structural 101 966 9,564 157 1,217 7,752
---------------------------------------------------------------------------------------------------------
Structural 110 1,120 10,182 121 996 8,231
---------------------------------------------------------------------------------------------------------
Rebar 194 1,875 9,665 122 860 7,049
---------------------------------------------------------------------------------------------------------
Others 13 201 - 1 18 -
---------------------------------------------------------------------------------------------------------
Total 1,562 17,035 10,906 1,383 12,557 9,080
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
Average Thousands Million Average
Thousands Million Average Thousands Million price of of price per
of tons of pesos price per of tons of pesos per ton tons pesos ton
Product 2Q08 2Q08 ton 2Q08 1Q08 1Q08 1Q08 2Q07 2Q07 2Q07
----------------------------------------------------------------------------------------------------------------------------
SBQ 579 7,124 12,304 565 5,749 10,175 466 4,607 9,886
----------------------------------------------------------------------------------------------------------------------------
Light Structural 47 512 10,894 54 453 8,389 95 761 8,011
----------------------------------------------------------------------------------------------------------------------------
Structural 55 616 11,200 55 504 9,164 60 499 8,317
----------------------------------------------------------------------------------------------------------------------------
Rebar 124 1,325 10,685 70 550 7,857 57 407 7,140
----------------------------------------------------------------------------------------------------------------------------
Others 12 169 - 1 32 - 1 13 -
----------------------------------------------------------------------------------------------------------------------------
Total 817 9,746 11,929 745 7,288 9,783 679 6,287 9,259
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
Any forward-looking information contained herein is inheritely 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: 2 YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.
CONSOLIDATED FINANCIAL STATEMENT
AT JUNE 30 OF 2008 AND 2007
(thousands of Mexican pesos)
------------------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
S
------------------------------------------------------------------------------------------------------------------------
AMOUNT % AMOUNT %
------------------------------------------------------------------------------------------------------------------------
s01 TOTAL ASSETS 29,319,233 100 22,367,424 100
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s02 CURRENT ASSETS 12,731,537 43 13,988,121 62
------------------------------------------------------------------------------------------------------------------------
s03 CASH AND SHORT-TERM INVESTMENTS 682,959 2 5,422,816 24
------------------------------------------------------------------------------------------------------------------------
s04 ACCOUNTS AND NOTES RECEIVABLE (NET) 4,581,721 16 2,955,282 13
------------------------------------------------------------------------------------------------------------------------
s05 OTHER ACCOUNTS AND NOTES RECEIVABLE 485,979 2 304,149 1
------------------------------------------------------------------------------------------------------------------------
s06 INVENTORIES 6,740,789 23 5,228,887 23
------------------------------------------------------------------------------------------------------------------------
s07 OTHER CURRENT ASSETS 240,089 1 76,987 0
------------------------------------------------------------------------------------------------------------------------
s08 LONG-TERM 0 0 84,164 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 84,164 0
------------------------------------------------------------------------------------------------------------------------
s12 PROPERTY, PLANT AND EQUIPMENT (NET) 9,413,206 32 7,770,232 35
------------------------------------------------------------------------------------------------------------------------
s13 LAND AND BUILDINGS 3,391,380 12 2,608,274 12
------------------------------------------------------------------------------------------------------------------------
s14 MACHINERY AND INDUSTRIAL EQUIPMENT 11,877,755 41 8,412,652 38
------------------------------------------------------------------------------------------------------------------------
s15 OTHER EQUIPMENT 230,955 1 109,119 0
------------------------------------------------------------------------------------------------------------------------
s16 ACCUMULATED DEPRECIATION 6,390,553 22 3,558,774 16
------------------------------------------------------------------------------------------------------------------------
s17 CONSTRUCTION IN PROGRESS 303,669 1 198,961 1
------------------------------------------------------------------------------------------------------------------------
s18 OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET) 7,071,947 24 430,417 2
------------------------------------------------------------------------------------------------------------------------
s19 OTHER ASSETS 102,543 0 94,490 0
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s20 TOTAL LIABILITIES 9,647,944 100 5,611,544 100
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s21 CURRENT LIABILITIES 6,080,054 63 3,174,057 57
------------------------------------------------------------------------------------------------------------------------
s22 SUPPLIERS 3,623,360 38 2,078,998 37
------------------------------------------------------------------------------------------------------------------------
s23 BANK LOANS 925,569 10 0 0
------------------------------------------------------------------------------------------------------------------------
s24 STOCK MARKET LOANS 3,106 0 3,385 0
------------------------------------------------------------------------------------------------------------------------
s103 OTHER LOANS WITH COST 0 0 197,731 0
------------------------------------------------------------------------------------------------------------------------
s25 TAXES PAYABLE 657,482 7 186,287 3
------------------------------------------------------------------------------------------------------------------------
s26 OTHER CURRENT LIABILITIES WITHOUT COST 870,537 9 707,656 13
------------------------------------------------------------------------------------------------------------------------
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 3,567,890, 37 2,437,487 43
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s33 CONSOLIDATED STOCKHOLDERS' EQUITY 19,671,289 100 16,755,880 100
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
s34 MINORITY INTEREST 2,653,495 13 2,458,999 15
------------------------------------------------------------------------------------------------------------------------
s35 MAJORITY INTEREST 17,017,794 87 14,296,881 85
------------------------------------------------------------------------------------------------------------------------
s36 CONTRIBUTED CAPITAL 8,350,900 42 7,181,744 43
------------------------------------------------------------------------------------------------------------------------
S79 CAPITAL STOCK 4,030,427 20 4,030,427 24
------------------------------------------------------------------------------------------------------------------------
s39 PREMIUM ON ISSUANCE OF SHARES 3,151,317 16 3,151,317 19
------------------------------------------------------------------------------------------------------------------------
s40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 1,169,156 6 0 0
------------------------------------------------------------------------------------------------------------------------
s41 EARNED CAPITAL 8,666,894 44 7,115,137 42
------------------------------------------------------------------------------------------------------------------------
s42 RETAINED EARNINGS AND CAPITAL RESERVES 9,807,191 50 8,096,362 48
------------------------------------------------------------------------------------------------------------------------
s44 OTHER ACCUMULATED COMPREHENSIVE RESULT (1,140,297) (6) (981,225) (6)
------------------------------------------------------------------------------------------------------------------------
s80 SHARES REPURCHASED 0 0 0 0
------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
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 682,959 100 5,422,816 100
-------------------------------------------------------------------------------------------------------------------------
s46 CASH 477,752 70 246,088 5
-------------------------------------------------------------------------------------------------------------------------
s47 SHORT-TERM INVESTMENTS 205,207 30 5,176,728 95
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
s07 OTHER CURRENT ASSETS 240,089 100 76,987 100
-------------------------------------------------------------------------------------------------------------------------
s81 DERIVATIVE FINANCIAL INSTRUMENTS 0 0 0 0
-------------------------------------------------------------------------------------------------------------------------
s82 DISCONTINUED OPERATIONS 0 0 0 0
-------------------------------------------------------------------------------------------------------------------------
s83 OTHER 240,089 100 76,987 100
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
s18 OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET) 7,071,947 100 430,417 100
-------------------------------------------------------------------------------------------------------------------------
s48 DEFERRED EXPENSES 281,730 4 385,846 90
-------------------------------------------------------------------------------------------------------------------------
s49 GOODWILL 6,688,578 95 0 0
-------------------------------------------------------------------------------------------------------------------------
s51 OTHER 101,639 1 44,571 10
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
s19 OTHER ASSETS 102,543 100 94,490 100
-------------------------------------------------------------------------------------------------------------------------
s84 INTANGIBLE ASSET FROM LABOR OBLIGATIONS 0 5 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 102,543 100 94,490 100
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
s21 CURRENT LIABILITIES 6,080,054 100 3,174,057 100
-------------------------------------------------------------------------------------------------------------------------
s52 FOREIGN CURRENCY LIABILITIES 1,876,180 31 2,375,702 75
-------------------------------------------------------------------------------------------------------------------------
s53 MEXICAN PESOS LIABILITIES 4,203,874 69 798,355 25
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
s26 OTHER CURRENT LIABILITIES WITHOUT COST 870,537 100 707,656 100
-------------------------------------------------------------------------------------------------------------------------
s88 DERIVATIVE FINANCIAL INSTRUMENTS 0 0 0 0
-------------------------------------------------------------------------------------------------------------------------
s89 INTEREST LIABILITIES 3,880 0 3,931 1
-------------------------------------------------------------------------------------------------------------------------
s68 PROVISIONS 0 0 292,514 41
-------------------------------------------------------------------------------------------------------------------------
s90 DISCONTINUED OPERATIONS 0 0 0 0
-------------------------------------------------------------------------------------------------------------------------
s58 OTHER CURRENT LIABILITIES 866,657 100 411,211 58
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
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 3,567,890 100 2,437,487 100
-------------------------------------------------------------------------------------------------------------------------
s66 DEFERRED TAXES 3,395,141 95 2,354,595 97
-------------------------------------------------------------------------------------------------------------------------
s91 OTHER LIABILITIES IN RESPECT OF SOCIAL INSURANCE 113,268 3 17,351 1
-------------------------------------------------------------------------------------------------------------------------
s92 DISCONTINUED OPERATIONS 0 0 0 0
-------------------------------------------------------------------------------------------------------------------------
s69 OTHER LIABILITIES 59,481 2 65,541 3
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
s79 CAPITAL STOCK 4,030,427 100 4,030,427 100
-------------------------------------------------------------------------------------------------------------------------
s37 CAPITAL STOCK (NOMINAL) 2,308,106 57 2,308,106 57
-------------------------------------------------------------------------------------------------------------------------
s69 RESTATEMENT OF CAPITAL STOCK 1,722,321 43 1,722,321 43
-------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
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 9,807,191 100 8,096,362 100
---------------------------------------------------------------------------------------------------------------------------
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 8,481,722 86 6,820,186 84
---------------------------------------------------------------------------------------------------------------------------
s45 NET INCOME FOR THE YEAR 1,124,857 11 1,075,564 13
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
s44 OTHER ACCUMULATED COMPREHENSIVE RESULT (1,140,297) 100 (981,225) 100
---------------------------------------------------------------------------------------------------------------------------
s70 ACCUMULATED MONETARY RESULT 0 0 0 0
---------------------------------------------------------------------------------------------------------------------------
s71 RESULT FROM HOLDING NON-MONETARY ASSETS 0 0 69,689 (7)
---------------------------------------------------------------------------------------------------------------------------
s96 CUMULATIVE RESULT FROM FOREIGN CURRENCY TRANSLATION
(169,784) 15 (75,866) 8
---------------------------------------------------------------------------------------------------------------------------
s97 CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL INSTRUMENTS
0 0 (4,535) 0
---------------------------------------------------------------------------------------------------------------------------
s98 CUMULATIVE EFFECT OF DEFERRED INCOME TAXES (970,513) 85 (970,513) 99
---------------------------------------------------------------------------------------------------------------------------
s99 LABOR OBLIGATION ADJUSTMENT 0 0 0 0
---------------------------------------------------------------------------------------------------------------------------
s100 OTHER 0 0 0 0
---------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR:2008
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 6,651,483 10,814,064
---------------------------------------------------------------------------------------------------------------
S73 PENSIONS FUND AND SENIORITY PREMIUMS 98,990 0
---------------------------------------------------------------------------------------------------------------
S74 EXECUTIVES (*) 60 51
---------------------------------------------------------------------------------------------------------------
S75 EMPLOYERS (*) 2,077 1,174
---------------------------------------------------------------------------------------------------------------
S76 WORKERS (*) 3,855 3,159
---------------------------------------------------------------------------------------------------------------
S77 COMMON SHARES (*) 474,621,611 474,621,611
---------------------------------------------------------------------------------------------------------------
S78 REPURCHASED SHARES (*) 0 0
---------------------------------------------------------------------------------------------------------------
S101 RESTRICTED CASH 0 0
---------------------------------------------------------------------------------------------------------------
S102 NET DEBT OF NON CONSOLIDATED COMPANIES 0 197,769
---------------------------------------------------------------------------------------------------------------
(*) THESE ITEMS SHOULD BE EXPRESSED IN UNITS
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR:2008
GRUPO SIMEC, S.A.B. DE C.V.
STATEMENTS OF INCOME
FROM JANUARY 1 TO JUNE 30 OF 2008 AND 2007
(thousands of Mexican pesos)
---------------------------------------------------------------------------------------------------------------------------
REF CATEGORIES CURRENT YEAR PREVIOUS YEAR
R
---------------------------------------------------------------------------------------------------------------------------
AMOUNT % AMOUNT %
---------------------------------------------------------------------------------------------------------------------------
r01 NET SALES 17,034,660 100 12,556,882 100
---------------------------------------------------------------------------------------------------------------------------
r02 COST OF SALES 13,743,665 81 10,135,937 81
---------------------------------------------------------------------------------------------------------------------------
r03 GROSS PROFIT 3,290,995 19 2,420,945 19
---------------------------------------------------------------------------------------------------------------------------
r04 OPERATING EXPENSES 793,922 5 717,738 6
---------------------------------------------------------------------------------------------------------------------------
r05 OPERATING INCOME 2,497,073 15 1,703,207 14
---------------------------------------------------------------------------------------------------------------------------
r08 OTHER INCOME AND (EXPENSE), NET 3,970 0 18,216 0
---------------------------------------------------------------------------------------------------------------------------
r06 COMPREHENSIVE FINANCING RESULT (258,458) (2) 116,567 1
---------------------------------------------------------------------------------------------------------------------------
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 2,242,585 13 1,837,990 15
---------------------------------------------------------------------------------------------------------------------------
r10 INCOME TAXES 725,611 4 542,220 4
---------------------------------------------------------------------------------------------------------------------------
r11 INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS 1,516,974 9 1,295,770 10
---------------------------------------------------------------------------------------------------------------------------
r14 DISCONTINUED OPERATIONS 0 0 0 0
---------------------------------------------------------------------------------------------------------------------------
r18 NET CONSOLIDATED INCOME 1,516,974 9 1,295,770 10
---------------------------------------------------------------------------------------------------------------------------
r19 NET INCOME OF MINORITY INTEREST 392,117 2 220,206 2
---------------------------------------------------------------------------------------------------------------------------
r20 NET INCOME OF MAJORITY INTEREST 1,124,857 7 1,075,564 9
---------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
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 17,034,660 100 12,556,882 100
---------------------------------------------------------------------------------------------------------------------------
r21 DOMESTIC 4,862,354 29 3,819,719 30
---------------------------------------------------------------------------------------------------------------------------
r22 FOREIGN 12,172,306 71 8,737,163 70
---------------------------------------------------------------------------------------------------------------------------
r23 TRANSLATED INTO DOLLARS (***) 1,152,841 770,997
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
r08 OTHER INCOME AND (EXPENSE), NET 3,970 100 18,216 100
---------------------------------------------------------------------------------------------------------------------------
r49 OTHER INCOME AND (EXPENSE), NET 14,685 370 18,216 100
---------------------------------------------------------------------------------------------------------------------------
r34 EMPLOYEES' PROFIT SHARING EXPENSES 10,715 270 0 0
---------------------------------------------------------------------------------------------------------------------------
r35 DEFERRED EMPLOYEES' PROFIT SHARING 0 0 0 0
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
r06 COMPREHENSIVE FINANCING RESULT (258,458) 100 116,567 100
---------------------------------------------------------------------------------------------------------------------------
r24 INTEREST EXPENSE 14,280 (6) 13,606 12
---------------------------------------------------------------------------------------------------------------------------
r42 GAIN (LOSS) ON RESTATEMENT OF UDI'S 0 0 0 0
---------------------------------------------------------------------------------------------------------------------------
r45 OTHER FINANCE COSTS 0 0 0 0
---------------------------------------------------------------------------------------------------------------------------
r26 INTEREST INCOME 106,609 (41) 137,980 118
---------------------------------------------------------------------------------------------------------------------------
r46 OTHER FINANCIAL PRODUCTS 0 0 0 0
---------------------------------------------------------------------------------------------------------------------------
r25 FOREIGN EXCHANGE GAIN (LOSS), NET (350,787) 136 (31,369) (27)
---------------------------------------------------------------------------------------------------------------------------
r28 RESULT FROM MONETARY POSITION 0 0 23,562 20
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
r10 INCOME TAXES 725,611 100 542,220 100
---------------------------------------------------------------------------------------------------------------------------
r32 INCOME TAX 383,276 53 316,096 58
---------------------------------------------------------------------------------------------------------------------------
r33 DEFERRED INCOME TAX 342,335 47 226,124 42
---------------------------------------------------------------------------------------------------------------------------
(***) THOUSANDS OF DOLLARS
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
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 17,271,602 12,621,811
---------------------------------------------------------------------------------------------------------------------------
r37 TAX RESULT FOR THE YEAR 0 0
---------------------------------------------------------------------------------------------------------------------------
r38 NET SALES (**) 28,583,872 23,308,292
---------------------------------------------------------------------------------------------------------------------------
r39 OPERATION INCOME (**) 3,077,882 3,056,513
---------------------------------------------------------------------------------------------------------------------------
r40 NET INCOME OF MAJORITY INTEREST (**) 1,678,350 1,812,216
---------------------------------------------------------------------------------------------------------------------------
r41 NET CONSOLIDATED INCOME (**) 1,946,380 2,045,261
---------------------------------------------------------------------------------------------------------------------------
r47 OPERATIVE DEPRECIATION AND AMORTIZATION 266,162 254,515
---------------------------------------------------------------------------------------------------------------------------
(**) RESTATED INFORMATION FOR THE LAST TWELVE MONTHS
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.
QUARTERLY STATEMENTS OF INCOME
FROM APRIL 1 TO JUNE 30 OF 2008 AND 2007
(thousands of Mexican pesos)
---------------------------------------------------------------------------------------------------------------------------
REF CATEGORIES CURRENT YEAR PREVIOUS YEAR
R
---------------------------------------------------------------------------------------------------------------------------
AMOUNT % AMOUNT %
---------------------------------------------------------------------------------------------------------------------------
r01 NET SALES 9,746,693 100 6,286,826 100
---------------------------------------------------------------------------------------------------------------------------
r02 COST OF SALES 7,693,302 79 5,114,212 81
---------------------------------------------------------------------------------------------------------------------------
r03 GROSS PROFIT 2,053,391 21 1,172,614 19
---------------------------------------------------------------------------------------------------------------------------
r04 OPERATING EXPENSES 434,548 4 351,825 6
---------------------------------------------------------------------------------------------------------------------------
r05 OPERATING INCOME 1,618,843 17 820,789 13
---------------------------------------------------------------------------------------------------------------------------
r08 OTHER INCOME AND (EXPENSE), NET (1,729) 0 (9,469) 0
---------------------------------------------------------------------------------------------------------------------------
r06 COMPREHENSIVE FINANCING RESULT (196,599) (2) 38,974 1
---------------------------------------------------------------------------------------------------------------------------
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 1,420,515 15 850,294 14
---------------------------------------------------------------------------------------------------------------------------
r10 INCOME TAXES 495,431 5 303,584 5
---------------------------------------------------------------------------------------------------------------------------
r11 INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS 925,084 9 546,710 9
---------------------------------------------------------------------------------------------------------------------------
r14 DISCONTINUED OPERATIONS 0 0 0 0
---------------------------------------------------------------------------------------------------------------------------
r18 NET CONSOLIDATED INCOME 925,084 9 546,710 9
---------------------------------------------------------------------------------------------------------------------------
r19 NET INCOME OF MINORITY INTEREST 273,100 3 91,306 1
---------------------------------------------------------------------------------------------------------------------------
r20 NET INCOME OF MAJORITY INTEREST 651,984 7 455,404 7
---------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.
QUARTERLY STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(thousands of Mexican pesos)
---------------------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
R
---------------------------------------------------------------------------------------------------------------------------
AMOUNT % AMOUNT %
---------------------------------------------------------------------------------------------------------------------------
rt01 NET SALES 9,746,693 100 6,286,826 100
---------------------------------------------------------------------------------------------------------------------------
rt21 DOMESTIC 2,997,397 31 1,933,623 31
---------------------------------------------------------------------------------------------------------------------------
rt22 FOREIGN 6,749,296 69 4,353,203 69
---------------------------------------------------------------------------------------------------------------------------
rt23 TRANSLATED INTO DOLLARS (***) 646,224 382,654
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
rt08 OTHER INCOME AND (EXPENSE), NET (1,729) 100 (9,649) 100
---------------------------------------------------------------------------------------------------------------------------
rt49 OTHER INCOME AND (EXPENSE), NET 8,986 (520) (9,469) 100
---------------------------------------------------------------------------------------------------------------------------
rt34 EMPLOYEES' PROFIT SHARING EXPENSES 10,715 (620) 0 0
---------------------------------------------------------------------------------------------------------------------------
rt35 DEFERRED EMPLOYEES' PROFIT SHARING 0 0 0 0
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
rt06 COMPREHENSIVE FINANCING RESULT (196,599) 100 38,974 100
---------------------------------------------------------------------------------------------------------------------------
rt24 INTEREST EXPENSE 9,232 (5) 7,494 19
---------------------------------------------------------------------------------------------------------------------------
rt42 GAIN (LOSS) ON RESTATEMENT OF UDI'S 0 0 0 0
---------------------------------------------------------------------------------------------------------------------------
rt45 OTHER FINANCE COSTS 0 0 0 0
---------------------------------------------------------------------------------------------------------------------------
rt26 INTEREST INCOME 46,187 (23) 89,248 229
---------------------------------------------------------------------------------------------------------------------------
rt46 OTHER FINANCIAL PRODUCTS 0 0 0 0
---------------------------------------------------------------------------------------------------------------------------
rt25 FOREIGN EXCHANGE GAIN (LOSS), NET (233,554) 119 (94,957) (244)
---------------------------------------------------------------------------------------------------------------------------
rt28 RESULT FROM MONETARY POSITION 0 0 52,177 134
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
rt10 INCOME TAXES 495,431 100 303,584 100
---------------------------------------------------------------------------------------------------------------------------
rt32 INCOME TAX 263,441 53 200,952 66
---------------------------------------------------------------------------------------------------------------------------
rt33 DEFERRED INCOME TAX 231,990 47 102,632 34
---------------------------------------------------------------------------------------------------------------------------
(***) THOUSANDS OF DOLLARS
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.
QUARTERLY STATEMENTS OF INCOME
OTHER CONCEPTS
(thousands of Mexican pesos)
-----------------------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
RT
-----------------------------------------------------------------------------------------------------------------------------
AMOUNT AMOUNT
-----------------------------------------------------------------------------------------------------------------------------
rt47 OPERATIVE DEPRECIATION AND ACCUMULATED IMPAIRMENT LOSSES 136,102 128,171
-----------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.
STATEMENTS OF CHANGES IN FINANCIAL POSITION
FROM JANUARY 1 TO JUNE 30 OF 2008 AND 2007
(thousands of pesos)
---------------------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
C
---------------------------------------------------------------------------------------------------------------------------
AMOUNT AMOUNT
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
c01 CONSOLIDATED NET INCOME 1,516,974 1,295,770
---------------------------------------------------------------------------------------------------------------------------
c02 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE CASH 760,758 480,640
---------------------------------------------------------------------------------------------------------------------------
c03 RESOURCES FROM NET INCOME FOR THE YEAR 2,277,732 1,776,410
---------------------------------------------------------------------------------------------------------------------------
c04 RESOURCES PROVIDED OR USED IN OPERATION (1,213,098) (617,141)
---------------------------------------------------------------------------------------------------------------------------
c05 RESOURCES PROVIDED BY (USED FOR) OPERATING ACTIVITIES 1,064,634 1,159,269
---------------------------------------------------------------------------------------------------------------------------
c06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL FINANCING
ACTIVITIES 947,556 (10,356)
---------------------------------------------------------------------------------------------------------------------------
c07 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING
ACTIVITIES 1,169,156 2,420,172
---------------------------------------------------------------------------------------------------------------------------
c08 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING
ACTIVITIES 2,116,712 2,409,816
---------------------------------------------------------------------------------------------------------------------------
c09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES (8,894,542) (350,182)
---------------------------------------------------------------------------------------------------------------------------
c10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS (5,713,196) 3,218,903
---------------------------------------------------------------------------------------------------------------------------
c11 CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF PERIOD 6,396,155 2,203,913
---------------------------------------------------------------------------------------------------------------------------
c12 CASH AND SHORT TERM INVESTMENTS AT THE END OF PERIOD 682,959 5,422,816
---------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
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 760,758 480,640
---------------------------------------------------------------------------------------------------------------------------
c13 DEPRECIATION AND AMORTIZATION FOR THE YEAR 266,162 254,515
---------------------------------------------------------------------------------------------------------------------------
c41 + (-) OTHER ITEMS 494,596 226,125
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
c04 RESOURCES PROVIDED OR USED IN OPERATION (1,213,098) (617,141)
---------------------------------------------------------------------------------------------------------------------------
c18 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE (1,707,977) (711,995)
---------------------------------------------------------------------------------------------------------------------------
c19 + (-) DECREASE (INCREASE) IN INVENTORIES (1,163,022) (176,692)
---------------------------------------------------------------------------------------------------------------------------
c20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNTS RECEIVABLE 181,340 (9,954)
---------------------------------------------------------------------------------------------------------------------------
c21 + (-) INCREASE (DECREASE) IN SUPPLIERS 1,273,403 230,228
---------------------------------------------------------------------------------------------------------------------------
c22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES 203,158 51,272
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
c06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL FINANCING
ACTIVITIES 947,556 (10,356)
---------------------------------------------------------------------------------------------------------------------------
c23 + BANK FINANCING 1,234,092 0
---------------------------------------------------------------------------------------------------------------------------
c24 + STOCK MARKET FINANCING (176) (21)
---------------------------------------------------------------------------------------------------------------------------
c25 + DIVIDEND RECEIVED 0 0
---------------------------------------------------------------------------------------------------------------------------
c26 OTHER FINANCING 0 0
---------------------------------------------------------------------------------------------------------------------------
c27 BANK FINANCING AMORTIZATION (308,523) 0
---------------------------------------------------------------------------------------------------------------------------
c28 (-) STOCK MARKET FINANCING AMORTIZATION 0 0
---------------------------------------------------------------------------------------------------------------------------
c29 (-) OTHER FINANCING AMORTIZATION 0 0
---------------------------------------------------------------------------------------------------------------------------
c42 + (-) OTHER ITEMS 22,163 (10,335)
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
C07 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING
ACTIVITIES 1,169,156 2,420,172
---------------------------------------------------------------------------------------------------------------------------
c30 + (-) INCREASE (DECREASE) IN CAPITAL STOCK 0 267,164
---------------------------------------------------------------------------------------------------------------------------
c31 (-) DIVIDENDS PAID 0 0
---------------------------------------------------------------------------------------------------------------------------
c32 + PREMIUM ON ISSUANCE OF SHARES 0 2,153,008
---------------------------------------------------------------------------------------------------------------------------
c33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES 1,169,156 0
---------------------------------------------------------------------------------------------------------------------------
c43 + (-) OTHER ITEMS 0 0
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
c09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES (8,894,542) (350,182)
---------------------------------------------------------------------------------------------------------------------------
c34 + (-) DECREASE (INCREASE) IN PERMANENT INVESTMENTS (8,437,170) 0
---------------------------------------------------------------------------------------------------------------------------
c35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT (192,059) (266,444)
---------------------------------------------------------------------------------------------------------------------------
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 (265,313) (83,738)
---------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.
STATE OF CASH FLOW (INDIRECT METHOD)
FROM JANUARY 1 TO JUNE 30 OF 2008 AND 2007
(thousands of pesos)
---------------------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
C
---------------------------------------------------------------------------------------------------------------------------
AMOUNT AMOUNT
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
ACTIVITIES OF OPERATION
---------------------------------------------------------------------------------------------------------------------------
e01 INCOME (LOSS) BEFORE INCOME TAXES 2,242,585 1,837,990
---------------------------------------------------------------------------------------------------------------------------
e02 + (-) ITEMS NOT REQUIRING CASH 152,261 0
---------------------------------------------------------------------------------------------------------------------------
e03 + (-) ITEMS RELATED TO INVESTING ACTIVITIES 159,553 116,535
---------------------------------------------------------------------------------------------------------------------------
e04 + (-) ITEMS RELATED TO FINANCING ACTIVITIES 14,280 13,606
---------------------------------------------------------------------------------------------------------------------------
e05 CASH FLOW BEFORE INCOME TAX 2,568,679 1,968,131
---------------------------------------------------------------------------------------------------------------------------
e06 CASH FLOW PROVIDED OR USED IN OPERATION (1,596,374) (933,237)
---------------------------------------------------------------------------------------------------------------------------
e07 CASH FLOW PROVIDED OF OPERATING ACTIVITIES 972,305 1,034,894
---------------------------------------------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES
---------------------------------------------------------------------------------------------------------------------------
e08 NET CASH FLOW FROM INVESTING ACTIVITIES (8,522,620) (212,201)
---------------------------------------------------------------------------------------------------------------------------
e09 CASH FLOW AFTER INVESTING ACTIVITIES (7,550,315) 822,693
---------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
---------------------------------------------------------------------------------------------------------------------------
e10 NET CASH FROM FINANCING ACTIVITIES 2,102,432 2,396,210
---------------------------------------------------------------------------------------------------------------------------
e11 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (5,447,883) 3,218,903
---------------------------------------------------------------------------------------------------------------------------
e12 TRANSLATION DIFFERENCES IN CASH AND CASH EQUIVALENTS (265,313) 0
---------------------------------------------------------------------------------------------------------------------------
e13 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD 6,396,155 2,203,913
---------------------------------------------------------------------------------------------------------------------------
e14 CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 682,959 5,422,816
---------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
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 152,261 0
---------------------------------------------------------------------------------------------------------------------------
e15 + ESTIMATES FOR THE PERIOD 0 0
---------------------------------------------------------------------------------------------------------------------------
e16 + PROVISIONS FOR THE PERIOD 152,261 0
---------------------------------------------------------------------------------------------------------------------------
e17 + (-) OTHER UNREALIZED ITEMS 0 0
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
e03 + (-) ITEMS RELATED TO INVESTING ACTIVITIES 159,553 116,535
---------------------------------------------------------------------------------------------------------------------------
e18 + DEPRECIATION AND AMORTIZATION FOR THE PERIOD 266,162 254,515
---------------------------------------------------------------------------------------------------------------------------
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 (106,609) (137,980)
---------------------------------------------------------------------------------------------------------------------------
e24 (-) + OTHER ITEMS 0 0
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
e04 + (-) ITEMS RELATED TO FINANCING ACTIVITIES 14,280 13,606
---------------------------------------------------------------------------------------------------------------------------
e25 + ACCRUED INTEREST 14,280 13,606
---------------------------------------------------------------------------------------------------------------------------
e26 + (-) OTHER ITEMS 0 0
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
e06 CASH FLOW PROVIDED OR USED IN OPERATION (1,596,374) (933,237)
---------------------------------------------------------------------------------------------------------------------------
e27 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE (1,707,977) (711,995)
---------------------------------------------------------------------------------------------------------------------------
e28 + (-) DECREASE (INCREASE) IN INVENTORIES (1,163,022) (176,692)
---------------------------------------------------------------------------------------------------------------------------
e29 + (-)DECREASE (INCREASE) IN IN OTHER ACCOUNT RECEIVABLES 181,340 (9,954)
---------------------------------------------------------------------------------------------------------------------------
e30 + (-) INCREASE DECREASE IN SUPPLIERS 1,273,403 230,228
---------------------------------------------------------------------------------------------------------------------------
e31 + (-)INCREASE DECREASE IN OTHER LIABILITIES 20,141 51,272
---------------------------------------------------------------------------------------------------------------------------
e32 + (-) INCOME TAXES PAID OR RETURNED (200,259) (316,096)
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
e08 NET CASH FLOW FROM INVESTING ACTIVITIES (8,522,620) (212,201)
---------------------------------------------------------------------------------------------------------------------------
e33 (-) PERMANENT INVESTMENT IN SHARES (8,437,170) 0
---------------------------------------------------------------------------------------------------------------------------
e34 + DISPOSITION OF PERMANENT INVESTMENT IN SHARES 0 0
---------------------------------------------------------------------------------------------------------------------------
e35 (-) INVESTMENT IN PROPERTY PLANT AND EQUIPMENT (192,059) (266,444)
---------------------------------------------------------------------------------------------------------------------------
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 106,609 137,980
---------------------------------------------------------------------------------------------------------------------------
e43 + (-) DECREASE (INCREASE) ADVANCES AND LOANS TO THIRD PARTS 0 0
---------------------------------------------------------------------------------------------------------------------------
e44 + (-) OTHER ITEMS 0 (83,737)
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
e10 NET CASH FRON FINANCING ACTIVITIES 2,102,432 2,396,210
---------------------------------------------------------------------------------------------------------------------------
e45 + BANK FINANCING 1,234,092 0
---------------------------------------------------------------------------------------------------------------------------
e46 + STOCK MARKET FINANCING (176) (21)
---------------------------------------------------------------------------------------------------------------------------
e47 + OTHER FINANCING 0 0
---------------------------------------------------------------------------------------------------------------------------
e48 (-) BANK FINANCING AMORTIZATION (308,523) 0
---------------------------------------------------------------------------------------------------------------------------
e49 (-) STOCK MARKET FINANCING AMORTIZATION 0 0
---------------------------------------------------------------------------------------------------------------------------
e50 (-) OTHER FINANCING AMORTIZATION 0 0
---------------------------------------------------------------------------------------------------------------------------
e51 + (-) INCREASE (DECREASE ) IN CAPITAL STOCK 0 267,164
---------------------------------------------------------------------------------------------------------------------------
e52 (-) DIVIDENS PAID 0 0
---------------------------------------------------------------------------------------------------------------------------
e53 + PREMIUM ON ISSUANCE OF SHARES 0 2,153,008
---------------------------------------------------------------------------------------------------------------------------
e54 + CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 1,169,156 0
---------------------------------------------------------------------------------------------------------------------------
e55 (-) INTEREST EXPENSE (14,280) (13,606)
---------------------------------------------------------------------------------------------------------------------------
e56 (-) REPURCHASE OF SHARES 0 0
---------------------------------------------------------------------------------------------------------------------------
e57 + (-) OTHER ITEMS 22,163 (10,335)
---------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
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 (**) $ 3.54 $ 4.11
---------------------------------------------------------------------------------------------------------------------------
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 (**) $ 3.54 $ 4.11
---------------------------------------------------------------------------------------------------------------------------
d05 DISCONTINUED OPERATIONS EFFECT ON EARNING (LOSS) PER SHARE
(**) $ 0.00 $ 0.00
---------------------------------------------------------------------------------------------------------------------------
d08 CARRYING VALUE PER SHARE $ 35.86 $ 30.12
---------------------------------------------------------------------------------------------------------------------------
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 1.63 times 1.55 times
---------------------------------------------------------------------------------------------------------------------------
d12 MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE 16.48 times 11.35 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: 2 YEAR: 2008
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 8.91% 10.32%
---------------------------------------------------------------------------------------------------------------------------
p02 NET INCOME TO STOCKHOLDERS' EQUITY (**) 9.89% 12.21%
---------------------------------------------------------------------------------------------------------------------------
p03 NET INCOME TO TOTAL ASSETS (**) 6.64% 9.14%
---------------------------------------------------------------------------------------------------------------------------
p04 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 0.00% 0.00%
---------------------------------------------------------------------------------------------------------------------------
p05 INCOME DUE TO MONETARY POSITION TO NET INCOME 0.00% 1.82%
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
ACTIVITY
---------------------------------------------------------------------------------------------------------------------------
p06 NET SALES TO NET ASSETS (**) 0.97 times 1.04 times
---------------------------------------------------------------------------------------------------------------------------
p07 NET SALES TO FIXED ASSETS (**) 3.04 times 3.00 times
---------------------------------------------------------------------------------------------------------------------------
p08 INVENTORIES TURNOVER (**) 4.96 times 3.62 times
---------------------------------------------------------------------------------------------------------------------------
p09 ACCOUNTS RECEIVABLE IN DAYS OF SALES 42 days 37 days
---------------------------------------------------------------------------------------------------------------------------
p10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 2.72% 11.61%
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
LEVERAGE
---------------------------------------------------------------------------------------------------------------------------
p11 TOTAL LIABILITIES TO TOTAL ASSETS 32.91% 25.09%
---------------------------------------------------------------------------------------------------------------------------
p12 TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY 0.49 times 0.33 times
---------------------------------------------------------------------------------------------------------------------------
p13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 19.45% 42.34%
---------------------------------------------------------------------------------------------------------------------------
p14 LONG-TERM LIABILITIES TO FIXED ASSETS 0.00% 0.00%
---------------------------------------------------------------------------------------------------------------------------
p15 OPERATING INCOME TO INTEREST PAID 174.87 times 125.18 times
---------------------------------------------------------------------------------------------------------------------------
p16 NET SALES TO TOTAL LIABILITIES (**) 2.96 times 4.15 times
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
LIQUIDITY
---------------------------------------------------------------------------------------------------------------------------
p17 CURRENT ASSETS TO CURRENT LIABILITIES 2.09 times 4.41 times
---------------------------------------------------------------------------------------------------------------------------
p18 CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES 0.99 times 2.76 times
---------------------------------------------------------------------------------------------------------------------------
p19 CURRENT ASSETS TO TOTAL LIABILITIES 1.32 times 2.49 times
---------------------------------------------------------------------------------------------------------------------------
p20 AVAILABLE ASSETS TO CURRENT LIABILITIES 11.23% 170.85%
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
(**) IN THESE RATIOS FOR THE DATA TAKE INTO CONSIDERATION THE LAST TWELVE MONTHS
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
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 such acquisition was consummated. 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 it 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.
Six-Month Period Ended June 30, 2008 compared to Six-Month Period Ended June 30,
2007
Net Sales
Net sales increased 36% to Ps. 17,035 million in the six-month period ended June
30, 2008 (including the net sales generated by the newly acquired plants of
Grupo San of Ps. 513 million) compared to Ps. 12,557 million in the same period
of 2007. Shipments of finished steel products increased 13% to 1 million 562
thousand tons in the six-month period ended June 30, 2008 (including the net
sales generated by the newly acquired plants of Grupo San of 44 thousand tons)
compared to 1 million 383 thousand tons in the same period of 2007. Total sales
outside of Mexico in the six-month period ended June 30, 2008 increased 39% to
Ps. 12,172 million (including the net sales generated by the newly acquired
plants of Grupo San of Ps. 37 million) compared with Ps. 8,737 million in the
same period of 2007, while total Mexican sales increased 27% from Ps. 3,820
million in the six-
month period ended June 30, 2007 to Ps. 4,863 million in the same period of 2008
(including the net sales generated by the newly acquired plants of Grupo San of
Ps. 476 million). The increase in sales can be explained due to higher shipments
during the six-month period ended June 30, 2008, compared with the same period
in 2007 (179,000 tons increase) and 20% increase in the average price of steel
products.
Direct Cost of Sales
Direct cost of sales increased 36% from Ps. 10,136 million in the six-month
period ended June 30, 2007 to Ps. 13,744 million in the same period 2008
(including the cost of sales generated by the newly acquired plants of Grupo San
of Ps. 308 million). Direct cost of sales as a percentage of net sales
represented at 81% in the six-month period ended June 30, 2008 compared to 81%
in the same period of 2007. The increase in the Direct Cost of Sales is
attributable mainly to an increase of 20% in the average cost of raw materials
used to produce steel products in the six-month period ended June 30, 2008
versus the same period of 2007, primarily as a result of increases in the price
of scrap and certain other raw materials; as well as 13% increase in shipments.
Gross Profit
Gross profit in the six-month period ended June 30, 2008 was Ps. 3,291 million
(including the gross profit generated by the newly acquired plants of Grupo San
of Ps. 205 million) compared to Ps. 2,421 million in the same period of 2007.
Gross profit as a percentage of net sales in the six-month period ended June 30,
2008 was 19% compared to 19% in the same period of 2007. This was principally
due to an increase of 13% in sales volume.
Operating Expenses
Operating expenses increased 11% to Ps. 794 million in the six-month period
ended June 30, 2008 (including the operating expenses by the newly acquired
plants of Grupo San of Ps. 53 million) compared to Ps. 718 million in the same
period of 2007 and represented 5% of net sales in the six-month period ended
June 30, 2008 and 6% of net sales in the same period of 2007.
Operating Profit
Operating profit increased 47% to Ps. 2,497 million in the six-month period
ended June 30, 2008 (including the operating profit by the newly acquired plants
of Grupo San of Ps. 152 million) compared to Ps. 1,703 million in the same
period of 2007. Operating profit as a percentage of net sales was 15% in the
six-month period ended June 30, 2008 compared to 14% in the same period of 2007.
The increase in the operating profit was due principally to an increaset of 13%
in sales volume.
Comprehensive Financial Cost
Comprehensive financial cost in the six-month period ended June 30, 2008
represented an expense of Ps. 258 million compared with a gain of Ps. 117
million in the same period of 2007. Net interest income was Ps. 93 million in
the six-month period ended June 30, 2008 compared with Ps. 124 million in the
same period of 2007, reflecting the use of cash and debt for the acquisition of
Grupo San. At the same time, we registered an exchange loss of Ps. 351 million
in the six-month period ended June 30, 2008 compared with an exchange loss of
Ps. 31 million in the same period of 2007, reflecting a 5.7% increase in the
value of the peso versus the dollar at June 30, 2008 compared to December 31,
2007.
Other Expenses (Income) net
The company recorded other income Net of Ps. 4 million in the six-month period
ended June 30, 2008 compared to other income net for Ps. 18 million in the same
period of 2007.
Income Taxes
Income Taxes recorded Ps. 726 million in the six-month period ended June 30,
2008 compared to Ps. 542 million in the same period of 2007.
Net Profit
As a result of the foregoing, net profit increased by 17% to Ps. 1,517 million
in the six-month period ended June 30, 2008 from Ps. 1,296 million in the same
period of 2007.
Liquidity and Capital Resources
At June 30, 2008, Simec's total consolidated debt consisted of U.S. $90.3
million; U.S. $90 million is a credit bank and U.S. $302,000 of 8 7/8%
medium-term notes ("MTN's") due 1998 (accrued interest at June 30, 2008 was U.S.
$377,257 dollars). At December 31, 2007, Simec's total consolidated debt
consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998
(accrued interest at December 31, 2007 was U.S. $363,703 dollars).
Net resources provided by operations were Ps. 1,065 million in the six-month
period ended June 30, 2008 versus Ps. 1,159 million of net resources provided by
operations in the same period of 2007. Net resources provided by financing
activities were Ps. 2,117 million in the six-month period ended June 30, 2008
versus Ps. 2,410 million of net resources used by financing activities in the
same period 2007 (which amount includes the capital increase of Ps. 2,420
million in February 2007). Net resources used in investing activities (to
acquire property, plant and equipment, other non-current assets and liabilities)
were Ps. 8,895 million in the six-month period ended June 30, 2008 (which amount
includes Ps. 8,437 million used in the acquisition of Grupo San) versus net
resources used in investing activities (to acquire property, plant and equipment
and other non-current assets and liabilities) of Ps. 350 million in 2007.
Comparative second quarter 2008 vs. first quarter 2008
Net Sales
Net sales increased 34% from Ps. 7,288 million for the first quarter 2008 to Ps.
9,746 million for the second quarter 2008 (including the net sales generated by
the newly acquired plants of Grupo San of Ps. 513 million). Sales in tons of
finished steel increased 10% to 817 thousand tons in the second quarter 2008
compared with 745 thousand tons in the first quarter 2008. The total sales
outside of Mexico for the second quarter 2008 increased 24% to Ps. 6,749 million
compared with Ps. 5,423 million for the first quarter 2008. Total Mexican sales
increased 61% to Ps. 2,997 million in the second quarter 2008 from Ps. 1,865
million in the first quarter 2008. Prices of finished products sold in the
second quarter 2008 increased approximately 22% compared to the first quarter
2008.
Direct Cost of Sales
Direct cost of sales increased 27% from Ps. 6,050 million in the first quarter
2008 to Ps. 7,693 million for the second quarter 2008 (including the cost of
sales generated by the newly acquired plants of Grupo San of Ps. 308 million).
With respect to sales, in the second quarter 2008, the direct cost of sales
represents 79% compared to 83% for the first quarter 2008. The average cost of
raw materials used to produce steel products increased 14% in the second quarter
2008 versus the first quarter 2008, primarily as a result of increases in the
price of scrap and certain other raw materials.
Gross Profit
Gross profit for the second quarter 2008 increased 66% to Ps. 2,053 million
(including the gross profit generated by the newly acquired plants of Grupo San
of Ps. 205 million) compared to Ps. 1,238 million in the first quarter 2008. The
gross profit as a percentage of net sales for the second quarter 2008 was 21%
compared with 17% for the first quarter 2008. The increase in gross profit was
principally due to the increase in sales volume.
Operating Expenses
Operating expenses increased 21% to Ps. 434 million in the second quarter 2008
(including the operating expenses by the newly acquired plants of Grupo San of
Ps. 53 million) compared to Ps. 360 million for the first quarter 2008.
Operating expenses as a percentage of net sales represented 4% during the second
quarter 2008 compared to 5% in the first quarter 2008.
Operating Profit
Operating profit increased 84% from Ps. 878 million in the first quarter 2008 to
Ps. 1,619 million for the second quarter 2008 (including the operating profit by
the newly acquired plants of Grupo San of Ps. 152 million). The operating profit
as a percentage of net sales in the second quarter 2008 was 17% compared to 12%
in the first quarter 2008. The increase in operating profit is due to the
increase in tons shipped.
Comprehensive Financial Cost
Comprehensive financial cost for the second quarter 2008 represented an expense
of Ps. 197 million compared with an expense of Ps. 62 million for the first
quarter 2008. Net interest income was Ps. 37 million in the second quarter 2008
compared with Ps. 55 million of net interest income in the first quarter 2008.
At the same time, we registered an exchange loss of Ps. 234 million in the
second quarter 2008 compared with an exchange loss of Ps. 117 million in the
first quarter 2007.
Other Expenses (Income) net
The company recorded other expense net for Ps. 2 million in the second quarter
2008 compared with other income net for Ps. 5 million for the first quarter
2008.
Income Taxes
Income Taxes for the second quarter 2008 was an expense of Ps. 495 million
compared to Ps. 230 million of expense for the first quarter 2008.
Net Profit
As a result of the foregoing, net profit was Ps. 925 million in the second
quarter 2008 compared to Ps. 592 million of net profit in the first quarter
2008.
Comparative second quarter 2008 vs. second quarter 2007
Net Sales
Net sales increased 55% from Ps. 6,287 million for the second quarter 2007
compared with Ps. 9,746 million for the same period 2008 (including the net
sales generated by the newly acquired plants of Grupo San of Ps. 513 million).
Sales in tons of finished steel increased 20% to 817 thousand tons in the second
quarter 2008 compared with 679 thousand tons in the same period 2007. The total
sales outside of Mexico for the second quarter 2008 increased 55% to Ps. 6,749
million compared with Ps. 4,353 million for the same period 2007. Total Mexican
sales increased 55% to Ps. 2,997 million in the second quarter 2008 from Ps.
1,934 millions in the same period 2007. Prices of finished products sold in the
second quarter 2008 increased approximately 29% compared to the second quarter
2007.
Direct Cost of Sales
Direct cost of sales increased 50% from Ps. 5,114 million in the second quarter
2007 to Ps. 7,693 million for the same period 2008 (including the cost of sales
generated by the newly acquired plants of Grupo San of Ps. 308 million). With
respect to sales, in the second quarter 2008, the direct cost of sales
represents 79% compared to 81% for the same period 2007. The average cost of raw
materials used to produce steel products increased 25% in the second quarter
2008 versus the second quarter 2007, primarily as a result of increases in the
price of scrap and certain other raw materials.
Gross Profit
Gross profit for the second quarter 2008 increased 75% to Ps. 2,053 million
(including the gross profit generated by the newly acquired plants of Grupo San
of Ps. 205 million) compared to Ps. 1,173 million in the same period 2007. The
gross profit as a percentage of net sales for the second quarter 2008 was 21%
compared with 19% for the same period 2007. The increase in gross profit is due
to the increase in tons shipped.
Operating Expenses
Operating expenses increased 23% to Ps. 434 million in the second quarter 2008
(including the operating expenses by the newly acquired plants of Grupo San of
Ps. 53 million) compared to Ps. 352 million for the same period 2007. Operating
expenses as a percentage of net sales represented 4% during the second quarter
2008 compared to 6% of the same period 2007.
Operating Profit
Operating profit increased 97% from Ps. 821 million in the second quarter 2007
to Ps. 1,619 million for the same period 2008 (including the operating profit by
the newly acquired plants of Grupo San of Ps. 152 million). The operating profit
as a percentage of net sales in the second quarter 2008 was 17% compared to 13%
in the same period 2007. The increase in operating profit is due to the increase
in the prices of finished products sold due to the reasons previously mentioned.
Comprehensive Financial Cost
Comprehensive financial cost for the second quarter 2008 represented an expense
of Ps. 197 million compared with a gain of Ps. 39 million for the second quarter
2007. Net interest income was Ps. 37 million in the second quarter 2008 compared
with Ps. 82 million in the second quarter 2007. At the same time, we registered
an exchange loss of Ps. 234 million in the second quarter 2008 compared with an
exchange loss of Ps. 95 million in the second quarter 2007.
Other Expenses (Income) net
The company recorded other expenses net for Ps. 2 million for the second quarter
2008 compared with other expenses net for Ps. 9 million for the same period
2007.
Taxes and Profit Sharing
Taxes and profit sharing for the second quarter 2008 increased to Ps. 495
million compared to Ps. 304 million for the same period 2007.
Net Profit
As a result of the foregoing, net profit increased by 69% to Ps. 925 million in
the second quarter 2008 from Ps. 547 million in the second quarter 2007.
------------------------------------------------------------------------------
Six months ended Six months ended 2008
Million of pesos June 30, 2008 June 30, 2007 vs.
2007
------------------------------------------------------------------------------
Sales 17,035 12,557 36%
------------------------------------------------------------------------------
Cost of Sales 13,744 10,136 36%
------------------------------------------------------------------------------
Gross Profit 3,291 2,421 36%
------------------------------------------------------------------------------
Operating Expenses 794 718 11%
------------------------------------------------------------------------------
Operating Profit 2,497 1,703 47%
------------------------------------------------------------------------------
EBITDA 2,763 1,958 41%
------------------------------------------------------------------------------
Net Profit 1,517 1,296 17%
------------------------------------------------------------------------------
Sales outside Mexico 12,172 8,737 39%
------------------------------------------------------------------------------
Sales in Mexico 4,863 3,820 27%
------------------------------------------------------------------------------
Total sales (tons) 1,562 1,383 13%
------------------------------------------------------------------------------
(Million of pesos) 2Q08 1Q08 2Q07 2Q08 vs. 2Q08 vs.
1Q08 2Q07
Sales 9,746 7,288 6,287 34% 55%
------------------------------------------------------------------------------------------------------------
Cost of Sales 7,693 6,050 5,114 27% 50%
------------------------------------------------------------------------------------------------------------
Gross Profit 2,053 1,238 1,173 66% 75%
------------------------------------------------------------------------------------------------------------
Operating Expenses 434 360 352 21% 23%
------------------------------------------------------------------------------------------------------------
Operating Profit 1,619 878 821 84% 97%
------------------------------------------------------------------------------------------------------------
EBITDA 1,755 1,008 949 74% 85%
------------------------------------------------------------------------------------------------------------
Net Profit 925 592 547 56% 69%
------------------------------------------------------------------------------------------------------------
Sales outside Mexico 6,749 5,423 4,353 24% 55%
------------------------------------------------------------------------------------------------------------
Sales in Mexico 2,997 1,865 1,934 61% 55%
------------------------------------------------------------------------------------------------------------
Total sales (tons) 817 745 679 10% 20%
------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
Product Million Average price Thousands Average price
Thousands of of pesos per ton of tons Million of per ton
tons six six months six months six months pesos six six months
months ended ended ended ended months ended ended
June 30,2008 June 30, 2008 June 30, 2008 June 30, 2007 June 30,2007 June 30, 2007
---------------------------------------------------------------------------------------------------------------------------
SBQ 1,144 12,873 11,253 982 9,466 9,640
---------------------------------------------------------------------------------------------------------------------------
Light Structural 101 966 9,564 157 1,217 7,752
---------------------------------------------------------------------------------------------------------------------------
Structural 110 1,120 10,182 121 996 8,231
---------------------------------------------------------------------------------------------------------------------------
Rebar 194 1,875 9,665 122 860 7,049
---------------------------------------------------------------------------------------------------------------------------
Others 13 201 - 1 18 -
---------------------------------------------------------------------------------------------------------------------------
Total 1,562 17,035 10,906 1,383 12,557 9,080
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Average Average
Thousands Million Average Thousands Million price per Thousands Million price
of tons of pesos price per of tons of pesos ton of tons of pesos per ton
Product 2Q08 2Q08 ton 2Q08 1Q08 1Q08 1Q08 2Q07 2Q07 2Q07
------------------------------------------------------------------------------------------------------------------------------------
SBQ 579 7,124 12,304 565 5,749 10,175 466 4,607 9,886
------------------------------------------------------------------------------------------------------------------------------------
Light Structural 47 512 10,894 54 453 8,389 95 761 8,011
------------------------------------------------------------------------------------------------------------------------------------
Structural 55 616 11,200 55 504 9,164 60 499 8,317
------------------------------------------------------------------------------------------------------------------------------------
Rebar 124 1,325 10,685 70 550 7,857 57 407 7,140
------------------------------------------------------------------------------------------------------------------------------------
Others 12 169 - 1 32 - 1 13 -
------------------------------------------------------------------------------------------------------------------------------------
Total 817 9,746 11,929 745 7,288 9,783 679 6,287 9,259
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Any forward-looking information contained herein is inheritely 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: 2 YEAR: 2008
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. Principles of Consolidation - As part of the financial debt restructuring
agreement into during 1997, Compania Siderurgica de Guadalajara, S.A. de C.V.
("CSG") assumed all of the debt of the Company in return for an equity interest
in its subsidiaries. As a result of the above, the Company is the principal
shareholder of CSG, and CSG is the principal shareholder of the other
subsidiaries that Grupo Simec, S.A. de C.V. ("Simec") controlled before the
restructuring.
The main subsidiaries of CSG 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
o Corporacion Aceros DM, S.A. de C.V.
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 December 31, 2003 the fair value of natural gas in force during
2004, 2005 and 2006 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 June 30, 2008 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
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 June 30, 2008 sales
to five customers accounted for approximately 29.8% 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:
At June 30, 2008 Simec's total consolidated debt consisted of U.S. $90.3
million, U.S. $90 million is a credib bank and U.S. $302,000 of 8 7/8%
medium-term notes ("MTN's") due 1998 (accrued interest at June 30, 2008 was U.S.
$377,257 dollars). At December 31, 2007, Simec's total consolidated debt
consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998
(accrued interest at December 31, 2007 was U.S. $363,703 dollars.
(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. 12,089 (U.S. $1,175,468) at June 30, 2008,
(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: 2 YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.
RELATIONS OF SHARES INVESTMENTS
CONSOLIDATED
-----------------------------------------------------------------------------------------------------------------------------
COMPANY NAME MAIN ACTIVITIES NUMBER OF OWNERSHIP
SHARES
-----------------------------------------------------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------------------------------------------
Corporacion Aceros DM Production and sales of steel products 100.00
-----------------------------------------------------------------------------------------------------------------------------
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: 2 YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.
CREDITS BREAK DOWN
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
-----------------------------------------------------------------------------------------------------------------------------------
Amortization Rate of Denominated in Pesos (Thousands of Pesos) Denominated in Foreign Currency (Thousands of
Pesos)
-----------------------------------------------------------------------------------------------------------------------------------
Credit Type / Date Interest
Institution Time Interval Time Interval
-----------------------------------------------------------------------------------------------------------------------------------
Current Until Until Until Until Until Current Until 1 Until Until Until Until
1 2 3 4 5 2 3 4 5
-----------------------------------------------------------------------------------------------------------------------------------
Years Years
Year Year Years Years Years or Year Year Years Years Years or
-----------------------------------------------------------------------------------------------------------------------------------
More More
-----------------------------------------------------------------------------------------------------------------------------------
BANKS
-----------------------------------------------------------------------------------------------------------------------------------
Banco Inbursa, Libor +
S.A. 29/05/2008 1.45 0 0 0 0 0 0 0 925,569 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL BANKS 0 0 0 0 0 0 0 925,569 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 3,106 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL STOCK
EXCHANGE 0 0 0 0 0 0 3,106 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
SUPPLIERS
-----------------------------------------------------------------------------------------------------------------------------------
Various 823,632 0 0 0 0 0 2,799,728 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL SUPPLIERS 823,632 0 0 0 0 2,799,728 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
OTHER LOANS
WITH COST
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL 0 0 0 0 0 0 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
OTHER CURRENT
LIABILITIES
WITHOUT COST
-----------------------------------------------------------------------------------------------------------------------------------
Various 391,186 0 0 0 0 0 479,351 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL 391,186 0 0 0 0 0 479,351 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL 1,214,818 0 0 0 0 0 3,282,185 925,569 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------------
NOTES: The exchange rate of the peso to the U.S. Dollar at June 30, 2008 was Ps.
10.2841
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER:2 YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.
MONETARY FOREIGN CURRENCY POSITION
(Thousands of Mexican Pesos)
CONSOLIDATED
-----------------------------------------------------------------------------------------------------------------------------
DOLLARS OTHER CURRENCIES TOTAL
-----------------------------------------------------------------------------------------------------------------------------
FOREING CURRENCY POSITION THOUSANDS OF THOUSANDS OF THOUSANDS OF THOUSANDS OF THOUSANDS OF
DOLLARS PESOS DOLLARS PESOS PESOS
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 360,647 3,708,919 1 15 3,708,934
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
LIABILITIES POSITION 408,223 4,198,207 414 5,667 4,203,874
-----------------------------------------------------------------------------------------------------------------------------
SHORT TERM LIABILITIES POSITION 408,223 4,198,207 414 5,667 4,203,874
-----------------------------------------------------------------------------------------------------------------------------
LONG TERM LIABILITIES POSITION 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
NET BALANCE (47,576) (489,288) (413) (5,652) (494,940)
-----------------------------------------------------------------------------------------------------------------------------
NOTES
THE EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT JUNE 30, 2008 WAS PS.
10.2841
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER:2 YEAR: 2008
GRUPO SIMEC, S.A.B. 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 2.09 times.
B) Accomplished the actual situation is 0.33
C) Accomplished the actual situation is 193.50
As of June 30, 2008, the remaining balance of the MTNs not exchanged
amounts to Ps. 3,106 ($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:2 YEAR: 2008
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 89.06
-----------------------------------------------------------------------------------------------------------------------------
MEXICALI MINI MILL PRODUCTION AND SALES OF STEEL PRODUCTS 250 96.94
-----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAS DEL ACERO Y DEL ALAMBRE
SALE OF STEEL PRODUCTS 0 0
-----------------------------------------------------------------------------------------------------------------------------
APIZACO AND CHOLULA PLANTS PRODUCTION AND SALES OF STEEL PRODUCTS 460 96.12
-----------------------------------------------------------------------------------------------------------------------------
CANTON CASTER FACILITY PRODUCTION OF BILLET 1,380 67.70
-----------------------------------------------------------------------------------------------------------------------------
LORAIN CASTER FACILITY PRODUCTION OF BILLET 1,150 90.40
-----------------------------------------------------------------------------------------------------------------------------
LORAIN HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL PRODUCTS 840 82.70
-----------------------------------------------------------------------------------------------------------------------------
LACKAWANNA HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL PRODUCTS 600 91.40
-----------------------------------------------------------------------------------------------------------------------------
MASSILLON COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS 125 84.60
-----------------------------------------------------------------------------------------------------------------------------
GARY COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS 70 53.60
-----------------------------------------------------------------------------------------------------------------------------
ONTARIO COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS 60 53.80
-----------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
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 24.70
------------------------------------------------------------------------------------------------------------------------
SCRAP VARIOUS PLANTS IN MEXICO YES 55.14
------------------------------------------------------------------------------------------------------------------------
PLANTS IN USA COKE VARIOUS NO 4.50
------------------------------------------------------------------------------------------------------------------------
PLANTS IN USA PELLETS VARIOUS NO 3.00
------------------------------------------------------------------------------------------------------------------------
FERROALLOYS VARIOUS PLANTS IN MEXICO YES 7.15
------------------------------------------------------------------------------------------------------------------------
PLANTS IN USA FERROALLOYS VARIOUS NO 14.00
------------------------------------------------------------------------------------------------------------------------
ELECTRODES VARIOUS PLANTS IN MEXICO VARIOUS YES 1.69
------------------------------------------------------------------------------------------------------------------------
PLANTS IN USA ELECTRODES VARIOUS NO 0.80
------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
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 85 886,814
----------------------------------------------------------------------------------------------------------------------
COMMERCIAL PROFILES 29 300,048
----------------------------------------------------------------------------------------------------------------------
REBAR 129 1,355,133
----------------------------------------------------------------------------------------------------------------------
FLAT BAR 53 482,878
----------------------------------------------------------------------------------------------------------------------
STEEL BARS 162 1,636,614
----------------------------------------------------------------------------------------------------------------------
OTHER 1 75,994
----------------------------------------------------------------------------------------------------------------------
BILLET 6 40,277
----------------------------------------------------------------------------------------------------------------------
MALLA 2 26,861
----------------------------------------------------------------------------------------------------------------------
CASTILLOS 2 29,933
----------------------------------------------------------------------------------------------------------------------
ALAMBRON 2 27,802
----------------------------------------------------------------------------------------------------------------------
T O T A L 4,862,354
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
FOREIGN SALES 12,172,306
----------------------------------------------------------------------------------------------------------------------
TOTAL 17,034,660
----------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.
SELLS DISTRIBUTION BY PRODUCT
CONSOLIDATED
FOREIGN SELLS
-----------------------------------------------------------------------------------------------------------------------------
MAIN PRODUCTS NET SELLS MAIN
-----------------------------------------------------------------------------------------------------------------------------
VOLUME AMOUNT TRADEMARKS COSTUMERS
-----------------------------------------------------------------------------------------------------------------------------
EXPORTS
-----------------------------------------------------------------------------------------------------------------------------
STRUCTURAL PROFILES 25 233,159
-----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PROFILES 12 110,612
-----------------------------------------------------------------------------------------------------------------------------
REBAR 65 519,804
-----------------------------------------------------------------------------------------------------------------------------
STEEL BARS 26 258,460
-----------------------------------------------------------------------------------------------------------------------------
FLAT BAR 7 72,317
-----------------------------------------------------------------------------------------------------------------------------
BILLET 0 0
-----------------------------------------------------------------------------------------------------------------------------
FOREIGN SUBSIDIARIES
-----------------------------------------------------------------------------------------------------------------------------
HOT-ROLLED BARS 536 6,294,268
-----------------------------------------------------------------------------------------------------------------------------
COLD-FINISHED BARS 74 1,192,492
-----------------------------------------------------------------------------------------------------------------------------
SEMI-FINISHED SEAMLESS TUBE ROUNDS 206 2,017,556
-----------------------------------------------------------------------------------------------------------------------------
OTHER SEMI-FINISHED TRADE PRODUCTS 140 1,473,638
-----------------------------------------------------------------------------------------------------------------------------
T O T A L 12,172,306
-----------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.
CONSTRUCTION IN PROGRESS
CONSOLIDATED
THE PROJECTS IN PROGRESS AT JUNE 30, 2008, ARE:
PROJECTS IN PROGRESS TOTAL INVESTMENT
PROJECTS IN REPUBLIC 148,965
PROJECTS IN MEXICALI 98,046
PROJECTS IN TLAXCALA 17,555
PROJECTS IN GUADALAJARA 35,153
PROJECTS IN SAN LUIS (GRUPO SAN) 3,950
-------
TOTAL INVESTMENT AT JUNE 30, 2008 303,669
=======
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
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
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.
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.
CONSOLIDATED
INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK
CHARACTERISTICS OF THE SHARES
-------------------------------------------------------------------------------------------------------------------------
SERIES NOMINAL VALID NUMBER OF SHARES CAPITAL STOCK
VALUE CUPON (Thousands of Pesos)
-------------------------------------------------------------------------------------------------------------------------
FIXED VARIABLE FREE
PORTION PORTION MEXICAN SUSCRIPTION FIXED VARIABLE
-------------------------------------------------------------------------------------------------------------------------
B 90,850,050 383,771,561 0 474,621,611 441,786 1,866,175
-------------------------------------------------------------------------------------------------------------------------
TOTAL 90,850,050 383,771,561 0 474,621,611 441,786 1,866,175
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING THE INFORMATION : 474,621,611
-------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
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 2007, respectively, 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.
Six Six
months months
ended ended
June 30, June 30,
-----------
2008 2007
------------ ----------
Net sales Ps. 19,779 Ps. 14,472
Marginal profit 4,404 2,941
Net income Ps. 1,784 Ps. 1,431
------------ ----------
Earnings per share 4.72 4.91
============ ==========
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2008
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 SECOND QUARTER REPORT.
ING LUIS GARCIA LIMON C.P. JOSE FLORES FLORES
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
GUADALAJARA, JAL, AT JULY 21 OF 2008.