Mexican steelmaker Grupo Simec announced Friday its results of operations for the twelve-month period ended December 31, 2014 and December 31, 2013.
Net sales increased 11 percent by the combination of higher shipments of finished steel products by 6 percent and the average sales price per ton of 4 percent compared the same period of 2013, the sale rose from 24.369 billion pesos in the twelve-month period ended December 31, 2013 to 26.962 billion pesos in the same period of 2014. Shipments of finished steel products increased 6 percent to 2.197 million tons in the twelve-month period ended December 31, 2014 compared to 2.064 million tons in the same period of 2013. Total sales outside of Mexico in the twelve-month period ended December 31, 2014 increased 18 percent to 13.400 billion pesos compared with 11.347 billion pesos in the same period of 2013. Total sales in Mexico increased 4 percent from 13.022 billion pesos in the twelve-month period ended December 31, 2013 to 13.562 billion pesos in the same period of 2014. The increase in sales is due to the increase of the average sales price of 4 percent and higher shipments of finished steel products by 6 percent.
Gross profit of the company in the twelve-month period ended December 31, 2014 was of 1.969 billion pesos compared to 1.959 billion pesos in the same period of 2013. Gross profit as a percentage of net sales represented 7 percent in the twelve-month period ended December 31, 2014 and 8 percent in the same period of 2013. The increase in the gross profit is due to higher shipments of finished steel products in 2014, compared with the same period of 2013.
As for the fourth quarter of 2014, the company’s net sales decreased 4 percent from 7.021 billion pesos in the third quarter of 2014 to 6.736 billion pesos for the fourth quarter of 2014. Sales in tons decreased from 583,000 tons in the third quarter of 2014 to 548,000 tons in the fourth quarter of the same period a decrease of 6 percent. Total sales outside of Mexico for the fourth quarter of 2014 decreased 6 percent from 3.482 billion pesos in the third quarter to 3.262 billion pesos in the four quarter of 2014. Sales in Mexico diminished to 3.474 billion pesos in the fourth quarter of 2014 compared 3.539 billion pesos in the third quarter of 2014 an decrease of 2 percent. Prices of finished products sold in the fourthquarter of 2014 increased approximately 2 percent compared to the third quarter of the same period.
Gross profit of the company for the fourth quarter of 2014 decreased 17 percent to 378 million pesos compared to 457 million pesos in the third quarter of 2014. The gross profit as a percentage of net sales for the fourth quarter was of 6 percent and 7 percent for the third quarter of 2014.
1 US$ = 14.93 Mexican pesos (as of February 27, 2015)