GUADALAJARA, Mexico, Jan 26, 2015 /PRNewswire/ -- Grupo Simec, S.A.B. de CV (NYSE: SIM) (SIMEC-B) (Simec), informs investors, that due to the repeated questions from analysis and investors, about the effects on income and profits derived from the surprising decision by the Department of Commerce of the United States of America (Department of Commerce: DOC) to impose a dumping fee of 66.70% on rebar exports made by the company to the United States of America, the following:
During the years 2012, 2013 and 2014 (January to September), the company exported to the United States of America 2'199, 1'682 and 1'204 metric tons of rebar respectively. This accounted to 0.10%, 0.08% and 0.07% of the total steel shipped respectively, and a similar but lower percentage of EBITDA, due to the lower profit margin of the rebar within the steel products mix manufactured by Simec.
In relation to the final decision of the Department of Commerce of the United States of America, issued on September 8, 2014 about the antidumping review promoted by various domestic producers of the United States of America against rebar imports originated in Mexico and Turkey and which imposed to Simec a dumping fee and the subsequent injury determination, issued by the International Trade Commission (ITC) on October 14, 2014; is important to clarify that, this does not impact significantly on our results, since our sales of rebar to the United States of America is insignificant, as mentioned in the previous paragraph.
During the period of the antidumping review (July 1, 2012 to June 30, 2013), the total sales of rebar into the United States of America was 1'489 metric tons; representing 0.25% of the total exports of the company.
Despite the aforementioned above, Simec is submitting the appropriate legal actions to the NAFTA panel to reverse the dumping fee that was imposed in the mentioned procedure. With the advice of Greenberg Tauring LLP, the company has expressed disagreement with the decision of the authorities of the United States of America; and requested the possibility to export to the market of that country in the near future.
Mario Moreno Cortez
SOURCE Grupo Simec, S.A.B. de C.V.