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 Jun, 2011.

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: Jul 27, 2011. By: /s/ Luis García Limón
    Name: Luis García Limón
    Title: Chief Executive Officer




GUADALAJARA, MEXICO, Jul 27, 2011- 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, 2011.

Comparative first six months of 2011 vs. first six months of 2010

Net Sales

Net sales of the Company increased 8% from Ps. 12,760 million in the first half of 2010 compared to Ps. 13,758 million in the same period of 2011. Shipments of finished steel products decreased 2% from 1,162 thousand tons in the first half of 2010 compared to 1,139 thousand tons in the same period of 2011. Total sales outside of Mexico in the first half of 2011 increased 6% to Ps. 7,575 million compared to Ps. 7,129 million in the same period of 2010, while total Mexican sales increased 10% from Ps. 5,631 million in the first half of 2010 to Ps. 6,183 million in the same period of 2011. The increase in sales for the first six months of 2011 compared to the first six months of 2010, is due to increase in the average sales price, better bland of steel shipment, and the increase in the sales price from the other steel products, while the volume of shipments decrease approximately 23 thousands a fall of 2%.

Cost of Sales

Cost of sales increased 9% from Ps.11,095 million in the first six months of 2010, to Ps. 12,075 million in the same period of 2011.Cost of sales as a percentage of net sales represented 88% in the first half of 2011 compared to 87% in the same period of 2010. The increase in cost of sales is due to the bland of steel shipments, while the cost of certain raw materials reflect mixed results and the net of this main consumption, reflect a low decrease.

Gross Profit

Gross profit of the Company for the first half of 2011 increased 1% from Ps. 1,665 million in the first half of 2010, to Ps. 1,683 million in the same period of 2011. Marginal profit as percentage of net sales in the first half of 2011 was of 12% while to the same period of 2010 was of 13%. The gross profit is similar in both periods, reflected by the increase in the shipments of special bar quality (SBQ), which sales and cost are higher than commercial products.

Operating Expenses

Selling, general and administrative expense decrease 29%, or Ps. 638 million in the first six months of 2010 to Ps. 453 million in the same period 2011, selling, general and administrative expense represented 5% of the net sales of the first six months of 2010 and 3% of net sales in the first half of 2011.

Operating Income

Operating income increased 20% from Ps. 1,027 million for the first six months of 2010 compared to Ps. 1,230 million in the same period of 2011. Operating income as percentage of net sales was 9% in the first half of 2011 compared to 8% in the same period of 2010, respectively. The increase in operating income is due to a better bland of shipments and the reduction in the selling, general and administrative expense.

Ebitda

The ebitda of the first six months of 2011, increase Ps 139 million or 9% this is due to a better bland of steel products shipments and the reduction of selling, general and administrative expense compared to ebitda of Ps.1,547 million of the first half of 2010,and Ps. 1,686 million in the first half of 2011



Comprehensive Financial Cost

Comprehensive financial cost for the first half of 2011 represented an expense of Ps.172 million compared with an expense of Ps. 38 million for the first six months of 2010. The comprehensive financial cost is comprised by the exchange loss of Ps.177 million in the first half of 2011 compared with an exchange loss of Ps. 41 million in the first half of 2010.Also recorded an income interest net of Ps. 5 million and Ps. 3 million in 2011 and 2010 respectively. As of June 30, 2011 the mexican peso record an revaluation of 4% versus dollar compared the exchange rate of Mexican peso to dollar as of December 31, 2010.

Other Expenses (Income) net

The Company recorded other expense net of Ps. 36 million in the first half of 2010 while in the same period of 2011 the other expense reflected an expense net of Ps. 8 million.

Income Taxes

The Company recorded an income tax of Ps. 14 million in the first half of 2010 compared to Ps. 23 million of income tax in the same period of 2011.

Net Income

As a result of the foregoing, the Company record a decrease in net income of 5% from Ps.1,010 million in the first half of 2010 to Ps. 961 million in the same period of 2011.

Comparative second quarter of 2011 vs. first quarter of 2011

Net Sales

Net sales of the Company increase 10% in the second quarter of 2011 compared to the first quarter of the same period of the year, from Ps. 6,565 million in the first quarter of 2011 compared to Ps. 7,193 million in the second quarter of 2011. Shipments of finished steel products increased 12% from 538 thousand tons in the first quarter of 2011 to 601 thousand tons in the second quarter of 2011. Total sales outside of Mexico in the second quarter of 2011 increased 6% to rose to Ps. 3,897 million compared to Ps. 3,678 million in the first quarter of 2011.Total Mexican sales also show the same trend of growth, 14% from Ps. 2,887 million in the first quarter of 2011 to Ps. 3,296 million in the second quarter of 2011. The increase in sales of the second quarter is due to a; better bland of steel products shipments, increase in volume of shipments and a decrease in the average sales price compared to the first quarter of the same year, the volume shipment was better in 63 thousand ton, compared to the first quarter of 2011.

Cost of Sales

Cost of sales increased 13% from Ps. 5,682 million in the first quarter of 2011 to Ps. 6,393 million in the second quarter of 2011. Cost of sales as a percentage of net sales represented 89% in the second quarter of 2011 while in the first quarter of the same year represented 87%, the average cost of sales by ton record an increase between the two quarter of 1%.The increase in the cost of sales is due to a better bland of steel shipments which cost is higher and an increase in volume of products shipments.

Gross Profit

Gross profit of the Company for the second quarter of 2011 decreased 9% to Ps. 883 million in the first quarter to Ps. 800 million in the second quarter of 2011. Gross profit as a percentage of net sales in the second quarter of 2011 was 11% compared to 13% in the first quarter 2011. The decreased in the gross profit in the second quarter of 2011 is due for the bland of steel shipments and the fall in the average sales price in 2%.

Operating Expenses



Selling, general and administrative expense fell 39% from Ps. 282 million in the first quarter of 2011 to Ps. 171 million in the second quarter of 2011, and represented 4% and 2% of net sales in the first and second quarter of 2011 respectively.

Operating Income

Operating income increased 5%, to Ps. 629 million in the second quarter of 2011 compared to Ps. 601 million in the first quarter of 2011. Operating income as percentage of net sales was 9% in the first and second quarter of 2011respectively. The increase in operating income is due to a better bland of steel products shipments, volume and reduction in selling, general and administrative expense.

Ebitda

The ebitda in the second quarter of 2011 recorded an increase of 3% compared to the first quarter of the same year, this is due to volume and bland of steel products shipment, and a reduction in the selling, general and administrative expense compared to the first quarter from Ps 831 million in the first quarter to Ps 855 million in the second quarter of 2011.

Comprehensive Financial Cost

Comprehensive financial cost of the Company in the first quarter of 2011 represented an expense of Ps. 84 million compared with an expense of Ps. 87 million for the second quarter of 2011.The comprehensive financial cost is comprised for: the interest expense net, represented an income interest net of Ps. 3 million in the second quarter of 2011, while in the first quarter of 2011 we had an income interest net of Ps. 2 million. Also we record an exchange loss net of Ps. 90 million in the second quarter of 2011 compared an exchange loss net of Ps. 86 million in the first quarter of the same year.

Other Expenses (Income) net

The Company recorded other expense net of Ps. 9 million in the second quarter of 2011 compared to other income net of Ps. 1 million in the first quarter of 2011.

Income Taxes

The Company recorded an income tax of Ps. 11 million in the second quarter of 2011 compared to an income tax of Ps. 11 million in the first quarter of the same year.

Net Income

As a result of the foregoing, the Company record a net income fell of 1% from a net income of Ps. 483 million in the first quarter of 2011 compared to a net income of Ps. 478 million in the second quarter of 2011.

Liquidity and Capital Resources

As of June 30, 2011, Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998, or Ps. 3.6 million (accrued interest on June 30, 2011 was U.S. $459,000, or Ps. 5.4 million). As of December 31, 2010, Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998, or Ps. 3.7 million (accrued interest on December 31, 2010 was U.S. $445,000, or Ps. 5.5 million).

Comparative second quarter of 2011 vs second quarter of 2010

Net Sales

Net sales of the Company increased 13% from Ps. 6,367 million in the second quarter of 2010 to Ps. 7,193 million in the second quarter of 2011. Sales in tons of finished steel increased 8% to 558 thousand tons in the second quarter of 2010 compared with 601thousand tons in the second quarter of 2011. The total sales outside of



Mexico for the second quarter of 2011 increased 4% from Ps. 3,749 million to Ps. 3,897 million for the second quarter of 2011. Total Mexican sales increase 26% from Ps. 2,618 million in the second quarter of 2010 to Ps. 3,296 million in the second quarter of 2011. Prices of finished products sold in the second quarter of 2011 increased 5% compared to the second quarter of 2010.

Cost of Sales

Cost of sales increased 12% in the second quarter of 2011 compared to same period of 2010, from Ps. 5,704 million in the second quarter of 2010 to Ps. 6,393 million in the second quarter of 2011. With respect to sales, in the second quarter of 2010, the direct cost of sales represent 90% compared to 89% for the second quarter of 2011. The average cost of raw materials used to produce steel products increased 4% in the second quarter of 2011 versus the second quarter of 2010, primarily as a result of better bland of steel products shipments.

Gross (Loss) Profit

Gross profit of the Company for the second quarter of 2011 rose to Ps. 800 million compared to Ps.663 million in the second quarter of 2010, this represented an increase of 21%. The gross profit as a percentage of net sales for the second quarter of 2011 was 11% compared to 10% for the second quarter of 2010. The increase in gross profit is due to the increase in volume, bland of steel products shipments and the average sales price.

Operating Expenses

The selling, general and administrative expense decreased 31% in the second quarter of 2011 from Ps. 248 million in the second quarter of 2010 to Ps. 171 million in the second quarter of 2011.The selling, general and administrative expense as a percentage of net sales represented 2% during the second quarter of 2011 and 4% the second quarter of 2010.

Operating (Loss) Income

Operating income rose to Ps. 629 million in the second quarter 2011 compared to Ps. 415 million in the second quarter of 2010, this represented the 52% of increase. The operating income as a percentage of net sales in the second quarter of 2010 was 6% compared to 9% in the second quarter of 2011. The increase in the operating income is due to better bland of steel products shipments, volume, average sales price and reduction in selling, general and administrative expense.

Ebitda

The ebitda of the second quarter of 2011increasecompared to 2010 in 26% from Ps 676 million in the second quarter of 2010compared to Ps.855 million of the same period of 2011,this is due to the above explained in the operating income.

Comprehensive Financial Cost

Comprehensive financial cost of the Company for the second quarter of 2011 represented an expense of Ps. 87 million compared with an expense of Ps. 14 million for the second quarter of 2010. The comprehensive financial cost is comprised for: The interest cost recorded was an income net of Ps. 3 million in the second quarter of 2011, compared to an income net of Ps. zero. for the same period of 2010. Also recorded an exchange loss of Ps. 90 million in the second quarter of 2011 and Ps.14 million in the second quarter of 2010.

Other Expenses (Income) net

The company recorded other expense net of Ps. 9 million in the second quarter of 2011 compared with other expense net of Ps.46 million for the second quarter of 2010.

Income Taxes

The company record an income tax for Ps. 11 million in the second quarter of 2011 compared to Ps. 33 million of income for income tax for the second quarter of 2010.



Net Income (Loss)

As a result of the foregoing, the Company net income was of Ps. 478 million in the second quarter of 2011 compared to Ps.439 million for the second quarter of 2010.

Note. In accordance with Mexican Financial Reporting Standards (MFRS), from 2011, only allowed the valuation of inventory through the system absorbing cost, and some figures have been adjusted in the income statement of 2010 for purposes of comparisons.

(millon of pesos) 1H ‘11 1H ‘10 Year 11 vs
'10
Sales 13,758 12,760 8%
Cost of Sales 12,075 11,095 9%
Gross Profit 1,683 1,665 1%
Operating Expenses 453 638 -29%
Operating Profit 1,230 1,027 20%
EBITDA 1,686 1,547 9%
Net income before Minoritary 1,073 967 11%
Sales Outside Mexico 7,575 7,129 6%
Sales in Mexico 6,183 5,631 10%
Total Sales (Tons) 1,139 1162 -2%

Quarter
         
(millones of pesos) 2Q‘11 1Q ‘11 2Q ‘10 2Q´11vs
1Q´11
2Q´11 vs
2Q '10
Sales 7,193 6,565 6,367 10% 13%
Cost of Sales 6,393 5,682 5,704 13% 12%
Gross Profit 800 883 663 -9% 21%
Operating Expenses 171 282 248 -39% -31%
Operating Profit 629 601 415 5% 52%
EBITDA 855 831 676 3% 26%
Net Income before Minoritary 544 529 388 3% 40%
Sales Outside Mexico 3,897 3,678 3,749 6% 4%
Sales in Mexico 3,296 2,887 2,618 14% 26%
Total Sales (Tons) 601 538 558 12% 8%



Product Thousand of
Tons
Jan-Jun 2011
Million of
Pesos
Jan-Jun
2011
Average
Price per
Ton
Jan-Jun
2011
Thousand
of Tons
Jan – Jun
2010
Million of
Pesos
Jan- Jun
2010
Average
Price per
Ton
Jan-Jun
2010
        
Commercial Profiles 419 4,148 9,900 542 4,810 8,874      
Special Profiles 720 9,610
13,347
620 7,950
12,823
     
                   
                   
                   
Total 1,139 13,758
12,079
1,162 12,760
10,981
     
                   

Product Thousand of
Tons
Apr-Jun 2011
Million of
Pesos
Apr-Jun
2011
Average
Price per
Ton
Apr-Jun
2011
Thousand
of Tons
Jan – Mar
2011
Million of
Pesos

Jan- Mar

2011
Average
Price per

Ton

Jan-Mar

2011
Thousand
of Tons

Apr-Jun

2010
Million of
Pesos

Apr-Jun

2010
Average
Price per

Ton

Apr-Jun

2010
Commercial Profiles 222 2,163 9,746 197 1,984
10,073
250 2,277 9,108
Special Profiles 379 5,029
13,269
341 4,581
13,434
308 4,090
13,279
                   
                   
                   
Total 601 7,193
11,968
538 6,565
12,203
558 6,367
11,410
                   

Any forward-looking information contained herein is inherently 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: 2011
     
GRUPO SIMEC, S.A.B. DE C.V.    

CONSOLIDATED FINANCIAL STATEMENT
AT JUNE 30 OF 2011 AND 2010
(thousands of Mexican pesos)

REF
S
CONCEPTS CURRENT YEAR PREVIOUS YEAR
    AMOUNT % AMOUNT %
s01 TOTAL ASSETS 28,065,851 100 27,433,035 100
 
s02 CURRENT ASSETS 13,327,,499 47 11,913,535 43
s03 CASH AND SHORT-TERM INVESTMENTS 4,047,112 14 2,868,445 10
s04 ACCOUNTS AND NOTES RECEIVABLE (NET) 3,271,900 12 3,232,511 12
s05 OTHER ACCOUNTS AND NOTES RECEIVABLE 744,856 3 560,912 2
s06 INVENTORIES 5,192,598 19 5,044,796 18
s07 OTHER CURRENT ASSETS 71,033 0 206,871 1
s08 LONG-TERM 0 0 0 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 0 0
s12 PROPERTY, PLANT AND EQUIPMENT (NET) 9,231,223 33 9,563,054 35
s13 LAND AND BULIDINGS 3,985,966 14 3,724,126 14
s14 MACHINERY AND INDUSTRIAL EQUIPMENT 13,039,559 46 12,982,644 47
s15 OTHER EQUIPMENT 244,918 1 232,798 1
s16 ACCUMULATED DEPRECIATION 8,465,457 30 7,807,070 28
s17 CONSTRUCTION IN PROGRESS 426,237 2 430,556 2
s18 OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET) 3,948,380 14 4,329,433 16
s19 OTHER ASSETS 1,558,749 6 1,627,013 1
 
s20 TOTAL LIABILITIES 6,637,447 100 6,633,206 100
 
s21 CURRENT LIABILITIES 3,921,440 59 3,840,858 58
s22 SUPPLIERS 2,429,174 37 2,294,030 35
s23 BANK LOANS 0 0 0 0
s24 STOCK MARKET LOANS 3,575 0 3,822 0
s103 OTHER LOANS WITH COST 633,838 10 586,824 9
s25 TAXES PAYABLE 367,020 6 147,557 2
s26 OTHER CURRENT LIABILITIES WITHOUT COST 487,833 7 808,625 12
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 2,716,007 41 2,792,348 42
 
s33 CONSOLIDATED STOCKHOLDERS’ EQUITY 21,428,404 100 20,799,829 100
 
s34 MINORITY INTEREST 1,818,002 8 2,080,577 10
s35 MAJORITY INTEREST 19,610,402 92 18,719,252 90
s36 CONTRIBUTED CAPITAL 8,350,900 39 8,350,900 40
S79 CAPITAL STOCK 4,142,696 19 4,142,696 20
s39 PREMIUM ON ISSUANCE OF SHARES 4,208,204 20 4,208,204 20
s40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0 0 0
s41 EARNED CAPITAL 11,259,502 53 10,368,352 50
s42 RETAINED EARNINGS AND CAPITAL RESERVES 10,940,361 51 10,038,287 48
s44 OTHER ACCUMULATED COMPREHENSIVE RESULT 319,141 1 330,065 2
s80 SHARES REPURCHASED 0 0 0 0



MEXICAN STOCK EXCHANGE

SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.    

CONSOLIDATED FINANCIAL STATEMENT
BREAKDOWN OF MAIN CONCEPTS
(thousands of Mexican pesos)

REF
S
CONCEPTS
CURRENT YEAR
PREVIOUS YEAR
    AMOUNT % AMOUNT %
s03 CASH AND SHORT-TERM INVESTMENTS 4,047,112 100 2,868,445 100
s46 CASH 1,305,835 32 2,003,547 70
s47 SHORT-TERM INVESTMENTS 2,741,277 68 864,898 30
 
s07 OTHER CURRENT ASSETS 71,033 100 206,871 100
s81 DERIVATIVE FINANCIAL INSTRUMENTS 0 0 0 0
s82 DISCONTINUED OPERATIONS 0 0 0 0
s83 OTHER 71,033 100 206,871 100
 
s18 OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET) 3,948,380 100 4,329,433 100
s48 DEFERRED EXPENSES 2,139,506 54 2,520,375 58
s49 GOODWILL 1,798,293 46 1,798,293 42
s51 OTHER 10,581 0 10,765 0
 
s19 OTHER ASSETS 1,558,749 100 1,627,013 100
s84 INTANGIBLE ASSET FROM LABOR OBLIGATIONS 0 0 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 1,558,749 100 1,627,013 100
 
s21 CURRENT LIABILITIES 3,921,440 100 3,840,858 100
s52 FOREIGN CURRENCY LIABILITIES 2,831,444 72 2,502,693 65
s53 MEXICAN PESOS LIABILITIES 1,089,996 28 1,338,165 35
 
s26 OTHER CURRENT LIABILITIES WITHOUT COST 487,833 100 808,625 100
s88 DERIVATIVE FINANCIAL INSTRUMENTS 6,035 1 169,894 21
s89 INTEREST LIABILITIES 5,430 1 5,463 1
s68 PROVISIONS 0 0 0 0
s90 DISCONTINUED OPERATIONS 0 0 0 0
s58 OTHER CURRENT LIABILITIES 476,368 98 633,268 78
 
s27 LONG-TERM LIABILITIES 0 100 0 100
s59 FOREIGN CURRENCY LIABILITIES 0 0 0 0
s60 MEXICAN PESOS LIABILITIES 0 0 0 0
 
s31 DEFERRED LIABILITIES 0 100 0 100
s65 NEGATIVE GOODWILL 0 0 0 0
s67 OTHER 0 0 0 0
 
s32 OTHER NON CURRENT LIABILITIES WITHOUT COST 2,716,007 100 2,792,348 100
s66 DEFERRED TAXES 2,617,154 96 2,705,881 97
s91 OTHER LIABILITIES IN RESPECT OF SOCIAL INSURANCE 45,321 2 32,955 1
s92 DISCONTINUED OPERATIONS 0 0 0 0
s69 OTHER LIABILITIES 53,532 2 53,512 2
 
s79 CAPITAL STOCK 4,142,696 100 4,142,696 100
s37 CAPITAL STOCK (NOMINAL) 2,420,230 58 2,420,230 58
s69 RESTATEMENT OF CAPITAL STOCK 1,722,466 42 1,722,466 42



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.    

CONSOLIDATED FINANCIAL STATEMENT
BREAKDOWN OF MAIN CONCEPTS
(thousands of Mexican pesos)

REF
S
CONCEPTS
CURRENT YEAR
PREVIOUS YEAR
AMOUNT
%
AMOUNT
%
s42 RETAINED EARNINGS AND CAPITAL RESERVES 10,940,361 100 10,038,287 100
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 9,778,636 89 8,875,093 88
s45 NET INCOME FOR THE YEAR 961,113 9 962,582 10
 
s44 OTHER ACCUMULATED COMPREHENSIVE RESULT 319,141 100 330,065 100
s70 ACCUMULATED MONETARY RESULT 0 0 0 0
s71 RESULT FROM HOLDING NON-MONETARY ASSETS 0 0 0 0
s96
CUMULATIVE RESULT FROM FOREIGN CURRENCY
TRANSLATION
323,366 101 448,991 136
s97 CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL
INSTRUMENTS
(4,225) (1) (118,926) (36)
s98 CUMULATIVE EFFECT OF DEFERRED INCOME TAXES 0 0 0 0
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: 2011
GRUPO SIMEC, S.A. DE C.V.    

BALANCE SHEETS
OTHER CONCEPTS
(thousands of Mexican pesos)

REF
S
CONCEPTS
CURRENT YEAR PREVIOUS YEAR
    AMOUNT AMOUNT
 
S72 WORKING CAPITAL 9,406,059 8,072,677
S73 PENSIONS FUND AND SENIORITY PREMIUMS 0 0
S74 EXECUTIVES (*) 54 56
S75 EMPLOYERS (*) 1,479 1,421
S76 WORKERS (*) 3,127 3,048
S77 COMMON SHARES (*) 497,709,214 497,709,214
S78 REPURCHASED SHARES (*) 0 0
S101 RESTRICTED CASH 0 0
S102 NET DEBT OF NON CONSOLIDATED COMPANIES 633,838 586,824

(*)      THESE ITEMS SHOULD BE EXPRESSED IN UNITS
 


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.    

STATEMENTS OF INCOME
FROM JANUARY 1 TO JUNE 30 OF 2011 AND 2010
(thousands of Mexican pesos)

REF
R
CATEGORIES CURRENT YEAR PREVIOUS YEAR
    AMOUNT % AMOUNT %
r01 NET SALES 13,758,184 100 12,759,896 100
r02 COST OF SALES 12,074,630 88 10,772,164 84
r03 GROSS PROFIT 1,683,554 12 1,987,732 16
r04 OPERATING EXPENSES 453,331 3 1,007,880 8
r05 OPERATING INCOME 1,230,223 9 979,852 8
r08 OTHER INCOME AND (EXPENSE), NET (8,308) 0 (35,911) 0
r06 COMPREHENSIVE FINANCING RESULT (171,535) (1) (38,311) 0
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 1,050,380 8 905,630 7
r10 INCOME TAXES (22,701) 0 (13,556) 0
r11 INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS 1,073,081 8 919,186 7
r14 DISCONTINUED OPERATIONS 0 0 0 0
r18 NET CONSOLIDATED INCOME 1,073,081 8 919,186 7
r19 NET INCOME OF MINORITY INTEREST 111,968 1 (43,396) 0
r20 NET INCOME OF MAJORITY INTEREST 961,113 7 962,582 8



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.    

STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(thousands of Mexican pesos)

REF
R
CONCEPTS
CURRENT YEAR
PREVIOUS YEAR
AMOUNT
%
AMOUNT
%
r01 NET SALES 13,758,184 100 12,759,896 100
r21 DOMESTIC 6,183,036 45 5,630,508 44
r22 FOREIGN 7,575,148 55 7,129,388 56
r23 TRANSLATED INTO DOLLARS (***) 639,852 5 565,855 4
 
r08 OTHER INCOME AND (EXPENSE), NET (8,308) 100 (35,911) 100
r49 OTHER INCOME AND (EXPENSE), NET (8,308) 100 (35,911) 100
r34 EMPLOYEES’ PROFIT SHARING EXPENSES 0 0 0 0
r35 DEFERRED EMPLOYEES’ PROFIT SHARING 0 0 0 0
 
r06 COMPREHENSIVE FINANCING RESULT (171,535) 100 (38,311) 100
r24 INTEREST EXPENSE 5,409 (3) 6,096 (16)
r42 GAIN (LOSS) ON RESTATEMENT OF UDI’S 0 0 0 0
r45 OTHER FINANCE COSTS 0 0 0 0
r26 INTEREST INCOME 9,920 (6) 8,531 (22)
r46 OTHER FINANCIAL PRODUCTS 0 0 0 0
r25 FOREIGN EXCHANGE GAIN (LOSS), NET (176,046) 103 (40,746) 106
r28 RESULT FROM MONETARY POSITION 0 0 0 0
 
r10 INCOME TAXES (22,701) 100 (13,556) 100
r32 INCOME TAX 16,712 (74) 32,391 (239)
r33 DEFERRED INCOME TAX (39,413) 174 (45,947) 339

(***)      THOUSANDS OF DOLLARS
 


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.    

STATEMENTS OF INCOME
OTHER CONCEPTS
(thousands of Mexican pesos)

REF
R
CONCEPTS CURRENT YEAR PREVIOUS YEAR
    AMOUNT AMOUNT
 
r36 TOTAL SALES 13,914,351 13,292,195
r37 TAX RESULT FOR THE YEAR 0 0
r38 NET SALES (**) 25,574,724 22,749,360
r39 OPERATION INCOME (**) 1,336,681 (552,918)
r40 NET INCOME OF MAJORITY INTEREST (**) 903,558 (781,538)
r41 NET CONSOLIDATED INCOME (**) 760,316 (181,863)
r47 OPERATIVE DEPRECIATION AND AMORTIZATION 456,201 519,626

(**)      RESTATED INFORMATION FOR THE LAST TWELVE MONTHS
 


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.    

QUARTERLY STATEMENTS OF INCOME
FROM JANUARY 1 TO JUNE 30 OF 2011 AND 2010
(thousands of Mexican pesos)

REF
R
CATEGORIES
CURRENT YEAR
PREVIOUS YEAR
AMOUNT
%
AMOUNT
%
r01 NET SALES 7,192,733 100 6,366,902 100
r02 COST OF SALES 6,392,363 89 5,503,367 86
r03 GROSS PROFIT 800,370 11 863,535 14
r04 OPERATING EXPENSES 171,072 2 495,799 8
r05 OPERATING INCOME 629,298 9 367,736 6
r08 OTHER INCOME AND (EXPENSE), NET (9,246) 0 (46,140) 0
r06 COMPREHENSIVE FINANCING RESULT (87,256) (1) (13,965) 0
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 532,796 7 307,631 5
r10 INCOME TAXES (11,532) 0 (34,090) 0
r11 INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS 544,328 8 341,721 5
r14 DISCONTINUED OPERATIONS 0 0 0 0
r18 NET CONSOLIDATED INCOME 544,328 8 341,721 5
r19 NET INCOME OF MINORITY INTEREST 66,068 1 (50,805) 0
r20 NET INCOME OF MAJORITY INTEREST 478,260 7 392,526 6



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.    

QUARTERLY STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(thousands of Mexican pesos)

REF
R
CONCEPTS CURRENT YEAR PREVIOUS YEAR
         
    AMOUNT % AMOUNT %
rt01 NET SALES 7,192,733 100 6,366,902 100
rt21 DOMESTIC 3,295,911 46 2,617,696 41
rt22 FOREIGN 3,896,822 54 3,749,206 59
rt23 TRANSLATED INTO DOLLARS (***) 329,154 5 297,383 5
 
rt08 OTHER INCOME AND (EXPENSE), NET (9,246) 100 (46,140) 100
rt49 OTHER INCOME AND (EXPENSE), NET (9,246) 100 (46,140) 100
rt34 EMPLOYEES’ PROFIT SHARING EXPENSES 0 0 0 0
rt35 DEFERRED EMPLOYEES’ PROFIT SHARING 0 0 0 0
 
rt06 COMPREHENSIVE FINANCING RESULT (87,256) 100 (13,965) 100
rt24 INTEREST EXPENSE 2,200 (3) 6,096 (44)
rt42 GAIN (LOSS) ON RESTATEMENT OF UDI’S 0 0 0 0
rt45 OTHER FINANCE COSTS 0 0 0 0
rt26 INTEREST INCOME 4,541 (5) 5,951 (43)
rt46 OTHER FINANCIAL PRODUCTS 0 0 0 0
rt25 FOREIGN EXCHANGE GAIN (LOSS), NET (89,597) 103 (13,820) 99
rt28 RESULT FROM MONETARY POSITION 0 0 0 0
 
rt10 INCOME TAXES (11,532) 100 (34,090) 100
rt32 INCOME TAX (5,421) 47 10,160 (30)
rt33 DEFERRED INCOME TAX (6,111) 53 (44,250) 130

(***)      THOUSANDS OF DOLLARS
 


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.    

QUARTERLY STATEMENTS OF INCOME
OTHER CONCEPTS
(thousands of Mexican pesos)

REF
RT
CONCEPTS
CURRENT
YEAR
PREVIOUS
YEAR
    AMOUNT AMOUNT
rt47
OPERATIVE DEPRECIATION AND AMORTIZATION 226,162 261,142



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR:20110
GRUPO SIMEC, S.A.B. DE C.V.    

STATE OF CASH FLOW DIRECT METHOD)
FROM JANUARY 1 TO JUNE 30 OF 2011 AND 2010
(thousands of pesos)

REF
C
CONCEPTS CURRENT YEAR PREVIOUS YEAR
    AMOUNT AMOUNT
 
  ACTIVITIES OF OPERATION    
e01 INCOME (LOSS) BEFORE INCOME TAXES 1,050,380 905,630
e02 + (-) ITEMS NOT REQUIRING CASH 0 0
e03 + (-) ITEMS RELATED TO INVESTING ACTIVITIES 446,269 510,910
e04 + (-) ITEMS RELATED TO FINANCING ACTIVITIES (7,142) 6,096
e05 CASH FLOW BEFORE INCOME TAX 1,489,507 1,422,636
e06 CASH FLOW PROVIDED OR USED IN OPERATION (624,583) (189,578)
e07 CASH FLOW PROVIDED OF OPERATING ACTIVITIES 864,924 1,233,058
  INVESTMENT ACTIVITIES    
e08 NET CASH FLOW FROM INVESTING ACTIVITIES (202,006) (156,141)
e09 CASH FLOW AFTER INVESTING ACTIVITIES 662,918 1,076,917
  FINANCING ACTIVITIES    
e10 NET CASH FROM FINANCING ACTIVITIES 0) (156,808)
e11
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS
662,918 920,109
e12
TRANSLATION DIFFERENCES IN CASH AND CASH
EQUIVALENTS
(723) (564)
e13 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD 3,384,917 1,948,900
e14 CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 4,047,112 2,868,445



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.    

STATE OF CASH FLOW (INDIRECT METHOD)
BREAKDOWN OF MAIN CONCEPTS
(thousands of pesos)

REF
C
CONCEPTS
CURRENT YEAR
PREVIOUS YEAR
    AMOUNT AMOUNT
e02 + (-) ITEMS NOT REQUIRING CASH 0 0
e15 + ESTIMATES FOR THE PERIOD 0 0
e16 + PROVISIONS FOR THE PERIOD 0 0
e17 + (-) OTHER UNREALIZED ITEMS 0 0
 
e03 + (-) ITEMS RELATED TO INVESTING ACTIVITIES 446,269 510,910
e18 + DEPRECIATION AND AMORTIZATION FOR THE PERIOD 456,201 519,626
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 (9,920) .(8,531)
e24 (-) + OTHER ITEMS (12) (185)
 
e04 + (-) ITEMS RELATED TO FINANCING ACTIVITIES (7,142) 6,096
e25 + ACCRUED INTEREST (7,142) 6,096
e26 + (-) OTHER ITEMS 0 0
 
e06 CASH FLOW PROVIDED OR USED IN OPERATION (624,583) (189,578)
e27 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE (848,133) (1,198,395)
e28 + (-) DECREASE (INCREASE) IN INVENTORIES (174,817) 119,260
e29 + (-)DECREASE (INCREASE) IN IN OTHER ACCOUNT RECEIVABLES 86,132 883,412
e30 + (-) INCREASE DECREASE IN SUPPLIERS 333,720 398,802
e31 + (-)INCREASE DECREASE IN OTHER LIABILITIES (21,479) (377,980)
e32 + (-) INCOME TAXES PAID OR RETURNED (6) (14,677)
 
e08 NET CASH FLOW FROM INVESTING ACTIVITIES (202,006) (156,141)
e33 (-) PERMANENT INVESTMENT IN SHARES 0 0
e34 + DISPOSITION OF PERMANENT INVESTMENT IN SHARES 0 0
e35 (-) INVESTMENT IN PROPERTY PLANT AND EQUIPMENT (188,346) (164,672)
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 9,920 8,531
e43 + (-) DECREASE (INCREASE) ADVANCES AND LOANS TO THIRD PARTS 0 0
e44 + (-) OTHER ITEMS (23,580) 0
 
e10 NET CASH FRON FINANCING ACTIVITIES 0 (156,808)
e45 + BANK FINANCING 0 0
e46 + STOCK MARKET FINANCING 0 0
e47 + OTHER FINANCING 0 208,836
e48 (-) BANK FINANCING AMORTIZATION 0 0
e49 (-) STOCK MARKET FINANCING AMORTIZATION 0 0
e50 (-) OTHER FINANCING AMORTIZATION 0 (359,548)
e51 + (-) INCREASE (DECREASE ) IN CAPITAL STOCK 0 0
e52 (-) DIVIDENS PAID 0 0
e53 + PREMIUM ON ISSUANCE OF SHARES 0 0
e54 + CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0
e55 (-) INTEREST EXPENSE 0 (6,096)
e56 (-) REPURCHASE OF SHARES 0 0
e57 + (-) OTHER ITEMS 0 0



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.    

DATE PER SHARE
CONSOLIDATED

REF
D
CATEGORIES QUARTER OF PRESENT
FINANCIAL YEAR
QUARTER OF PREVIOUS
FINANCIAL YEAR
 
 
d01 BASIC PROFIT PER ORDINARY SHARE (**) $  1.81 $ (0.37)
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 (**) $  1.81 $(0.37)
d05
DISCONTINUED OPERATIONS EFFECT ON EARNING (LOSS) PER SHARE (**) $  0.00 $  0.00
d08 CARRYING VALUE PER SHARE $39.40 $37.61
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                0.68 times               0.81 times
d12 MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE              16.28 times             (82.92) 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: 2011
GRUPO SIMEC, S.A.B. DE C.V.    

RATIOS
CONSOLIDATED

REF
P
CATEGORIES QUARTER OF PRESENT
FINANCIAL YEAR
QUARTER OF PREVIOUS
FINANCIAL YEAR
 
  YIELD    
p01 NET INCOME TO NET SALES 7.80% 7.20%
p02 NET INCOME TO STOCKHOLDERS’ EQUITY (**) 3.55% (0.87%)
p03 NET INCOME TO TOTAL ASSETS (**) 2.71% (0.66%)
p04 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 0.00% 0.00%
p05 INCOME DUE TO MONETARY POSITION TO NET INCOME 0.00% 0.00%
 
  ACTIVITY    
p06 NET SALES TO NET ASSETS (**) 0.91 times 0.83 times
p07 NET SALES TO FIXED ASSETS (**) 2.77 times 2.38 times
p08 INVENTORIES TURNOVER (**) 2.33 times 2.14 times
p09 ACCOUNTS RECEIVABLE IN DAYS OF SALES 37 days 39 days
p10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 0.85% 4.25%
 
  LEVERAGE    
p11 TOTAL LIABILITIES TO TOTAL ASSETS 23.65% 24.18%
p12 TOTAL LIABILITIES TO STOCKHOLDERS’ EQUITY 0.31 times 0.32 times
p13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 42.66% 37.73%
p14 LONG-TERM LIABILITIES TO FIXED ASSETS 0.00% 0.00%
p15 OPERATING INCOME TO INTEREST PAID 227.44 times 160.74 times
p16 NET SALES TO TOTAL LIABILITIES (**) 3.85 times 3.43 times
 
  LIQUIDITY    
p17 CURRENT ASSETS TO CURRENT LIABILITIES 3.40 times 3.10 times
p18 CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES 2.07 times 1.79 times
p19 CURRENT ASSETS TO TOTAL LIABILITIES 2.01 times 1.80 times
p20 AVAILABLE ASSETS TO CURRENT LIABILITIES 103.20% 74.68%



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.    

DIRECTOR REPORT

Comparative first six months of 2011 vs. first six months of 2010

Net Sales

Net sales of the Company increased 8% from Ps. 12,760 million in the first half of 2010 compared to Ps. 13,758 million in the same period of 2011. Shipments of finished steel products decreased 2% from 1,162 thousand tons in the first half of 2010 compared to 1,139 thousand tons in the same period of 2011. Total sales outside of Mexico in the first half of 2011 increased 6% to Ps. 7,575 million compared to Ps. 7,129 million in the same period of 2010, while total Mexican sales increased 10% from Ps. 5,631 million in the first half of 2010 to Ps. 6,183 million in the same period of 2011. The increase in sales for the first six months of 2011 compared to the first six months of 2010, is due to increase in the average sales price, better bland of steel shipment, and the increase in the sales price from the other steel products, while the volume of shipments decrease approximately 23 thousands a fall of 2%.

Cost of Sales

Cost of sales increased 9% from Ps.11,095 million in the first six months of 2010, to Ps. 12,075 million in the same period of 2011.Cost of sales as a percentage of net sales represented 88% in the first half of 2011 compared to 87% in the same period of 2010. The increase in cost of sales is due to the bland of steel shipments, while the cost of certain raw materials reflect mixed results and the net of this main consumption, reflect a low decrease.

Gross Profit

Gross profit of the Company for the first half of 2011 increased 1% from Ps. 1,665 million in the first half of 2010, to Ps. 1,683 million in the same period of 2011. Marginal profit as percentage of net sales in the first half of 2011 was of 12% while to the same period of 2010 was of 13%. The gross profit is similar in both periods, reflected by the increase in the shipments of special bar quality (SBQ), which sales and cost are higher than commercial products.

Operating Expenses

Selling, general and administrative expense decrease 29%, or Ps. 638 million in the first six months of 2010 to Ps. 453 million in the same period 2011, selling, general and administrative expense represented 5% of the net sales of the first six months of 2010 and 3% of net sales in the first half of 2011.

Operating Income

Operating income increased 20% from Ps. 1,027 million for the first six months of 2010 compared to Ps. 1,230 million in the same period of 2011. Operating income as percentage of net sales was 9% in the first half of 2011 compared to 8% in the same period of 2010, respectively. The increase in operating income is due to a better bland of shipments and the reduction in the selling, general and administrative expense.

Ebitda



The ebitda of the first six months of 2011, increase Ps 139 million or 9% this is due to a better bland of steel products shipments and the reduction of selling, general and administrative expense compared to ebitda of Ps.1,547 million of the first half of 2010,and Ps. 1,686 million in the first half of 2011

Comprehensive Financial Cost

Comprehensive financial cost for the first half of 2011 represented an expense of Ps.172 million compared with an expense of Ps. 38 million for the first six months of 2010. The comprehensive financial cost is comprised by the exchange loss of Ps.177 million in the first half of 2011 compared with an exchange loss of Ps. 41 million in the first half of 2010.Also recorded an income interest net of Ps. 5 million and Ps. 3 million in 2011 and 2010 respectively. As of June 30, 2011 the mexican peso record an revaluation of 4% versus dollar compared the exchange rate of Mexican peso to dollar as of December 31, 2010.

Other Expenses (Income) net

The Company recorded other expense net of Ps. 36 million in the first half of 2010 while in the same period of 2011 the other expense reflected an expense net of Ps. 8 million.

Income Taxes

The Company recorded an income tax of Ps. 14 million in the first half of 2010 compared to Ps. 23 million of income tax in the same period of 2011.

Net Income

As a result of the foregoing, the Company record a decrease in net income of 5% from Ps.1,010 million in the first half of 2010 to Ps. 961 million in the same period of 2011.

Comparative second quarter of 2011 vs. first quarter of 2011

Net Sales

Net sales of the Company increase 10% in the second quarter of 2011 compared to the first quarter of the same period of the year, from Ps. 6,565 million in the first quarter of 2011 compared to Ps. 7,193 million in the second quarter of 2011. Shipments of finished steel products increased 12% from 538 thousand tons in the first quarter of 2011 to 601 thousand tons in the second quarter of 2011. Total sales outside of Mexico in the second quarter of 2011 increased 6% to rose to Ps. 3,897 million compared to Ps. 3,678 million in the first quarter of 2011. Total Mexican sales also show the same trend of growth, 14% from Ps. 2,887 million in the first quarter of 2011 to Ps. 3,296 million in the second quarter of 2011. The increase in sales of the second quarter is due to a; better bland of steel products shipments, increase in volume of shipments and a decrease in the average sales price compared to the first quarter of the same year, the volume shipment was better in 63 thousand ton, compared to the first quarter of 2011.

Cost of Sales

Cost of sales increased 13% from Ps. 5,682 million in the first quarter of 2011 to Ps. 6,393 million in the second quarter of 2011. Cost of sales as a percentage of net sales represented 89% in the second quarter of 2011 while in the first quarter of the same year represented 87%, the average cost of sales by ton record an increase between the two quarter of 1%.The increase in the cost of sales is due to a better bland of steel shipments which cost is higher and an increase in volume of products shipments.



Gross Profit

Gross profit of the Company for the second quarter of 2011 decreased 9% to Ps. 883 million in the first quarter to Ps. 800 million in the second quarter of 2011. Gross profit as a percentage of net sales in the second quarter of 2011 was 11% compared to 13% in the first quarter 2011. The decreased in the gross profit in the second quarter of 2011 is due for the bland of steel shipments and the fall in the average sales price in 2%.

Operating Expenses

Selling, general and administrative expense fell 39% from Ps. 282 million in the first quarter of 2011 to Ps. 171 million in the second quarter of 2011, and represented 4% and 2% of net sales in the first and second quarter of 2011 respectively.

Operating Income

Operating income increased 5%, to Ps. 629 million in the second quarter of 2011 compared to Ps. 601 million in the first quarter of 2011. Operating income as percentage of net sales was 9% in the first and second quarter of 2011respectively. The increase in operating income is due to a better bland of steel products shipments, volume and reduction in selling, general and administrative expense.

Ebitda

The ebitda in the second quarter of 2011 recorded an increase of 3% compared to the first quarter of the same year, this is due to volume and bland of steel products shipment, and a reduction in the selling, general and administrative expense compared to the first quarter from Ps 831 million in the first quarter to Ps 855 million in the second quarter of 2011.

Comprehensive Financial Cost

Comprehensive financial cost of the Company in the first quarter of 2011 represented an expense of Ps. 84 million compared with an expense of Ps. 87 million for the second quarter of 2011.The comprehensive financial cost is comprised for: the interest expense net, represented an income interest net of Ps. 3 million in the second quarter of 2011, while in the first quarter of 2011 we had an income interest net of Ps. 2 million. Also we record an exchange loss net of Ps. 90 million in the second quarter of 2011 compared an exchange loss net of Ps. 86 million in the first quarter of the same year.

Other Expenses (Income) net

The Company recorded other expense net of Ps. 9 million in the second quarter of 2011 compared to other income net of Ps. 1 million in the first quarter of 2011.

Income Taxes

The Company recorded an income tax of Ps. 11 million in the second quarter of 2011 compared to an income tax of Ps. 11 million in the first quarter of the same year.

Net Income

As a result of the foregoing, the Company record a net income fell of 1% from a net income of Ps. 483 million in the first quarter of 2011 compared to a net income of Ps. 478 million in the second quarter of 2011.

Liquidity and Capital Resources

As of June 30, 2011, Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998, or Ps. 3.6 million (accrued interest on June 30, 2011 was U.S. $459,000, or Ps. 5.4 million). As of December 31, 2010, Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998, or Ps. 3.7 million (accrued interest on December 31, 2010 was U.S. $445,000, or Ps. 5.5 million).



Comparative second quarter of 2011 vs second quarter of 2010

Net Sales

Net sales of the Company increased 13% from Ps. 6,367 million in the second quarter of 2010 to Ps. 7,193 million in the second quarter of 2011. Sales in tons of finished steel increased 8% to 558 thousand tons in the second quarter of 2010 compared with 601thousand tons in the second quarter of 2011. The total sales outside of Mexico for the second quarter of 2011 increased 4% from Ps. 3,749 million to Ps. 3,897 million for the second quarter of 2011. Total Mexican sales increase 26% from Ps. 2,618 million in the second quarter of 2010 to Ps. 3,296 million in the second quarter of 2011. Prices of finished products sold in the second quarter of 2011 increased 5% compared to the second quarter of 2010.

Cost of Sales

Cost of sales increased 12% in the second quarter of 2011 compared to same period of 2010, from Ps. 5,704 million in the second quarter of 2010 to Ps. 6,393 million in the second quarter of 2011. With respect to sales, in the second quarter of 2010, the direct cost of sales represent 90% compared to 89% for the second quarter of 2011. The average cost of raw materials used to produce steel products increased 4% in the second quarter of 2011 versus the second quarter of 2010, primarily as a result of better bland of steel products shipments.

Gross (Loss) Profit

Gross profit of the Company for the second quarter of 2011 rose to Ps. 800 million compared to Ps.663 million in the second quarter of 2010, this represented an increase of 21%. The gross profit as a percentage of net sales for the second quarter of 2011 was 11% compared to 10% for the second quarter of 2010. The increase in gross profit is due to the increase in volume, bland of steel products shipments and the average sales price.

Operating Expenses

The selling, general and administrative expense decreased 31% in the second quarter of 2011 from Ps. 248 million in the second quarter of 2010 to Ps. 171 million in the second quarter of 2011.The selling, general and administrative expense as a percentage of net sales represented 2% during the second quarter of 2011 and 4% the second quarter of 2010.

Operating (Loss) Income

Operating income rose to Ps. 629 million in the second quarter 2011 compared to Ps. 415 million in the second quarter of 2010, this represented the 52% of increase. The operating income as a percentage of net sales in the second quarter of 2010 was 6% compared to 9% in the second quarter of 2011. The increase in the operating income is due to better bland of steel products shipments, volume, average sales price and reduction in selling, general and administrative expense.

Ebitda

The ebitda of the second quarter of 2011increase compared to 2010 in 26% from Ps 676 million in the second quarter of 2010compared to Ps.855 million of the same period of 2011,this is due to the above explained in the operating income.

Comprehensive Financial Cost

Comprehensive financial cost of the Company for the second quarter of 2011 represented an expense of Ps. 87 million compared with an expense of Ps. 14 million for the second quarter of 2010. The comprehensive financial cost is comprised for: The interest cost recorded was an income net of Ps. 3 million in the second quarter of 2011, compared to an income net of Ps. zero. for the same period of 2010. Also recorded an exchange loss of Ps. 90 million in the second quarter of 2011 and Ps.14 million in the second quarter of 2010.



Other Expenses (Income) net

The company recorded other expense net of Ps. 9 million in the second quarter of 2011 compared with other expense net of Ps.46 million for the second quarter of 2010.

Income Taxes

The company record an income tax for Ps. 11 million in the second quarter of 2011 compared to Ps. 33 million of income for income tax for the second quarter of 2010.

Net Income (Loss)

As a result of the foregoing, the Company net income was of Ps. 478 million in the second quarter of 2011 compared to Ps.439 million for the second quarter of 2010.

Note. In accordance with Mexican Financial Reporting Standards (MFRS), from 2011, only allowed the valuation of inventory through the system absorbing cost, and some figures have been adjusted in the income statement of 2010 for purposes of comparisons.

(millon of pesos) 1H ‘11 1H ‘10 Year 11 vs
'10
Sales 13,758 12,760 8%
Cost of Sales 12,075 11,095 9%
Gross Profit 1,683 1,665 1%
Operating Expenses 453 638 -29%
Operating Profit 1,230 1,027 20%
EBITDA 1,686 1,547 9%
Net income before Minoritary 1,073 967 11%
Sales Outside Mexico 7,575 7,129 6%
Sales in Mexico 6,183 5,631 10%
Total Sales (Tons) 1,139 1162 -2%

Quarter          
(millones of pesos) 2Q‘11 1Q ‘11 2Q ‘10 2Q´11vs
1Q´11
2Q´11 vs
2Q '10
Sales 7,193 6,565 6,367 10% 13%
Cost of Sales 6,393 5,682 5,704 13% 12%
Gross Profit 800 883 663 -9% 21%
Operating Expenses 171 282 248 -39% -31%
Operating Profit 629 601 415 5% 52%
EBITDA 855 831 676 3% 26%
Net Income before Minoritary 544 529 388 3% 40%
Sales Outside Mexico 3,897 3,678 3,749 6% 4%
Sales in Mexico 3,296 2,887 2,618 14% 26%
Total Sales (Tons) 601 538 558 12% 8%



Product Thousand of
Tons
Jan-Jun 2011
Million of
Pesos
Jan-Jun
2011
Average
Price per
Ton
Jan-Jun
2011
Thousand
of Tons
Jan – Jun
2010
Million of
Pesos
Jan- Jun
2010
Average
Price per
Ton
Jan-Jun
2010
           
Commercial
Profiles
419 4,148 9,900 542 4,810 8,874      
Special Profiles 720 9,610 13,347 620 7,950 12,823      
                   
                   
                   
Total 1,139 13,758 12,079 1,162 12,760 10,981      
                   

Product Thousand of
Tons
Apr-Jun 2011
Million of
Pesos
Apr-Jun
2011
Average
Price per
Ton
Apr-Jun
2011
Thousand
of Tons
Jan – Mar
2011
Million of
Pesos

Jan- Mar

2011
Average
Price per

Ton

Jan-Mar

2011
Thousand
of Tons

Apr-Jun

2010
Million of
Pesos

Apr-Jun

2010
Average
Price per

Ton

Apr-Jun

2010
Commercial
Profiles
222 2,163 9,746 197 1,984 10,073 250 2,277 9,108
 
Special Profiles 379 5,029 13,269 341 4,581 13,434 308 4,090 13,279
                   
                   
                   
Total 601 7,193 11,968 538 6,565 12,203 558 6,367 11,410
                   

Any forward-looking information contained herein is inherently 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: 2011
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 Investigación y Desarrollo de Normas de Información Financiera, A.C. (CINIF)

b. 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 – Are valued to the full cost average by Domestic subsidiaries, and the foreing subsidiaries are valued on a last-in, first-out(LIFO). For translation effects into MFRS the inventories have been adjusted from LIFO to average full cost system.

Billet finished goods and work in process, have been valued to the full cost.
Raw materials, materials, supplies and rollers, at the average cost.

The Company presents as non-current inventories certains raw materials (Coke) 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-- During 2010, 2009 and 2008 the Company used derivative financial instruments for hedging risks associated with natural gas prices for which it conducted studies on historical consumption, future requirement and commitments acquired, thus diminishing its exposure to risks other than its normal operating risks.

To mitigate the risks associated with changes in natural gas prices occurring naturally as a result of the supply and demand on international markets, the Company uses natural gas cash-flow exchange contracts or natural gas swaps to offset fluctuations in the price of natural gas, whereby the Company receives a floating price and pays fixed price. Fluctuations in natural gas prices from volumes consumed are recognized as part of the Company’s operating cost.



The fair value of these assets or liabilities is restated at the end of each month based on the new estimate. The Company periodically evaluates the changes in cash flows of the derivative instrument to analyze if the swaps are highly effective for mitigating the exposure to natural gas price fluctuations. A hedge instrument is considered to be highly effective when changes in its fair value or cash flows of the primary position are compensated on a regular or cumulatively basis, by changes in fair value or cash flows of the hedging instrument in a range between 80% and 125%. In 2010, 2009 and 2008 the fair value of derivatives that did not qualify for hedge accounting was adjusted through Statement of Income. For the derivatives that qualified for hedge accounting their fair value was adjusted through the Stockholders’ equity in the caption Fair value of derivative financial instruments until such time as the related item the derivative hedges is recognized in income. At that time, the fair value included in Stockholders’ equity is also recognized in income. 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.

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 December 31, 2010 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 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, 2011 sales of ten customers accounted for approximately 39.6% 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:

As of June 30, 2011, Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998, or Ps. 3.6 million (accrued interest on March 31, 2011 was U.S. $452,297, or Ps. 3.7 million). As of December 31, 2010, Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998 (accrued interest on December 31, 2010 was U.S. $445,314).



(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. 5,077 (U.S. $424,207) at June 30, 2011, (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: 2011
GRUPO SIMEC, S.A.B. DE C.V.      

RELATIONS OF SHARES INVESTMENTS

CONSOLIDATED

COMPANY NAME MAIN ACTIVITIES NUMBER OF
SHARES
OWNERSHIP
SUBSIDIARIES      
Cia Siderurgica de Guadalajara Production and sales of steel products   99.99
Simec International Production and sales of steel products   99.99
Arrendadora Simec Production and sales of steel products   100.00
Undershaft Sub-Holding   100.00
Pacific Steel Scrap purchase   100.00
Cia. Siderúrgica del Pacífico Rent of land   99.99
Coordinadora de Servicios Siderúrgicos 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 Siderúrgicos de Tlaxcala Administrative services   100.00
Administradora de Servicios Siderúrgicos de Tlaxcala Administrative services   100.00
Operadora de Servicios de la Industria Siderúrgica Administrative services   100.00
SimRep Sub-Holding   50.22
Republic Engineered Products Production and sales of steel products   50.22
CSG Comercial Sales of steel products   99.95
Comercializadora de Productos de Aceros de Tlaxcala Sales of steel products   99.95
Siderúrgica de Baja California Sales of steel products   99.95
Corporación Aceros DM Sub-Holding   99.99
Productos Siderurgicos de Tlaxcala Sales of steel products   100.00
Comercializadora MSAN Sales of steel products   100.00
Comercializadora Aceros DM Sales of steel products   100.00
Promotora de Aceros San Luis Sales of steel products   100.00
Corporativos G&DL Administrative services   85.00
Procesadora Industrial Administrative services   99.99
Acero Transporte San Freight services   100.00
Simec International 2 Production and sales of steel products   99.99
Simec International 3 Production and sales of steel products   99.99
Simec International 4 Production and sales of steel products   99.99
Simec International 5 Production and sales of steel products   99.99
Simec International 6 Production and sales of steel products   99.99
Simec International 7 Production and sales of steel products   99.99
Corporación ASL Sales of steel products   99.99
Simec Acero Sales of steel products   100.00
Simec USA Sales of steel products   100.00
Simec Steel Sales of steel products   100.00
Pacific Steel Projects Administrative services   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: 2011
GRUPO SIMEC, S.A.B. DE C.V.      

CREDITS BREAK DOWN
(THOUSANDS OF MEXICAN PESOS)

CONSOLIDATED

   Credit Type /
Institution
Amortization Rate of Denominated in Pesos (Thousands of Pesos) Denominated in Foreign Currency (Thousands of Pesos)
Date Interest Time Interval Time Interval
      Current Until
1
Until
2
Until
3
Until
4
Until
5
Current Until
1
Until
2
Until
3
Until
4
Until
5
      Year Year Years Years Years Years or Year Year Years Years Years Years or
                More           More
BANKS                            
      0 0 0 0 0 0 0 0 0 0 0 0
      0 0 0 0 0 0 0 0 0 0 0 0
 
TOTAL
BANKS
    0 0 0 0 0 0 0 0 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 3,575 0 0 0 0 0
                             
                             
TOTAL
STOCK
EXCHANGE
    0 0 0 0 0 0 3,575 0 0 0 0 0
                             
                             
                             
SUPPLIERS                            
Various     600,885 0 0 0 0 0 1,828,289 0 0 0 0 0
                             
TOTAL
SUPPLIERS
    600,885 0 0 0 0 0 1,828,289 0 0 0 0 0
OTHER
LOANS WITH
COST
  0.25             633,838          



TOTAL       0 0 0 0 0 0 0 0 0 0 0 0
OTHER
CURRENT
LIABILITIES
WITHOUT
COST
                                           
Various       122,091 0 0 0 0 0 365,742 0 0 0 0 0
TOTAL       122,091 0 0 0 0 0 365,742 0 0 0 0 0
                                              
                                              
TOTAL       722,976 0 0 0 0 0 2,831,444 0   0 0 0

NOTES: The exchange rate of the peso to the U.S. Dollar at June 30, 2011 was Ps. 11.8389



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A.B. DE C.V.
QUARTER: 2 YEAR: 2011

MONETARY FOREIGN CURRENCY POSITION
(Thousands of Mexican Pesos)

CONSOLIDATED

  DOLLARS OTHER CURRENCIES TOTAL
FOREING CURRENCY POSITION THOUSANDS
OF DOLLARS
THOUSANDS
OF PESOS
THOUSANDS
OF DOLLARS
THOUSANDS
OF PESOS
THOUSANDS
OF PESOS
           
           
TOTAL ASSETS 467,138 5,530,397 00 0 5,530,397
           
LIABILITIES POSITION 243,686 2,884,976 0 0 2,884,976
SHORT TERM LIABILITIES POSITION 239,164 2,831,444 0 0 2,831,444
LONG TERM LIABILITIES POSITION 4,522 53,532 0 0 53,532
           
NET BALANCE 223,452 2,645,421 0 0 2,645,421

NOTES
THE EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT JUNE 30, 2011 WAS PS. 11.8389



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A.B. DE C.V.
QUARTER: 2 YEAR: 2011

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 3.40 times.
 
  B)      Accomplished the actual situation is 0.31
 
  C)      Accomplished the actual situation is 331.5
     
  As of June 30, 2011, the remaining balance of the MTNs not exchanged amounts to Ps. 3,575 ($302,000 dollars).
   
  C.P. Adolfo Luna Luna
Chief Financial Officer

BONDS AND/OR MEDIUM TERM NOTES CERTIFICATE



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
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 74.70
MEXICALI MINI MILL PRODUCTION AND SALES OF STEEL
PRODUCTS
250 59.20
APIZACO AND CHOLULA PLANTS PRODUCTION AND SALES OF STEEL
PRODUCTS
460 90.80
CANTON CASTER FACILITY PRODUCTION OF BILLET 1,380 74.20
LORAIN CASTER FACILITY PRODUCTION OF BILLET 1,150 0.00
LORAIN HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL
PRODUCTS
840 50.40
LACKAWANNA HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL
PRODUCTS
600 72.30
MASSILLON COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL
PRODUCTS
125 60.10
GARY COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL
PRODUCTS
70 51.50
ONTARIO COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL
PRODUCTS
60 50.30
SAN LUIS POTOSI COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL
PRODUCTS
600 72.30



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  

MAIN RAW MATERIALS

CONSOLIDATED

DOMESTIC MAIN SUPPLIERS FOREIGN MAIN SUPPLIERS DOMESTIC
SUBSTITUTION
COST
PRODUCTION (%)
PLANTS IN USA   SCRAP VARIOUS NO 47.15
SCRAP VARIOUS PLANTS IN MEXICO     55.94
FERROALLOYS VARIOUS PLANTS IN MEXICO   YES 6.74
PLANTS IN USA   FERROALLOYS VARIOUS NO 13.44
ELECTRODES VARIOUS PLANTS IN MEXICO VARIOUS YES 1.93
PLANTS IN USA   ELECTRODES VARIOUS NO 1.99



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  

SELLS DISTRIBUTION BY PRODUCT

CONSOLIDATED

DOMESTIC SALES

MAIN PRODUCTS NET SALES MAIN DESTINATION
  VOLUME AMOUNT TRADEMARKS CUSTOMERS
COMMERCIAL PROFILES 467 4,524,700    
SPECIAL PROFILES 237 2,589,616    
OTHERS   79,913    
         
T O T A L   7,194,229    
         
FOREIGN SALES 435 6,563,955    
TOTAL   13,758,184    



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  

SELLS DISTRIBUTION BY PRODUCT

CONSOLIDATED

FOREIGN SALES

MAIN PRODUCTS NET SELLS MAIN
  VOLUME AMOUNT TRADEMARKS CUSTOMERS
EXPORTS        
COMMERCIAL PROFILES 83 892,693    
SPECIAL PROFILES 7 70,695    
OTHERS 0 47,972    
FOREIGN SUBSIDIARIES        
SPECIAL PROFILES 435 6,563,955    
         
T O T A L   7,575,315    



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  

CONSTRUCTION IN PROGRESS

CONSOLIDATED

THE PROJECTS IN PROGRESS AT JUNE 30, 2011, ARE:

         PROJECTS IN PROGRESS TOTAL INVESTMENT
 
PROJECTS IN REPUBLIC 70,313
PROJECTS IN MEXICALI 4,867
PROJECTS IN TLAXCALA 337,343
PROJECTS IN GUADALAJARA 9,678
PROJECTS IN SAN LUIS POTOSI 4,036
 
TOTAL INVESTMENT AT  
JUNE 30, 2011 426,237
 



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
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 – Transactions in foreign currencies are recorded at the exchange rates prevailing at the celebration and liquidation dates. The assets and liabilities in foreign currencies are translated at the exchange rates prevailing at the date of the consolidated balance sheet. The exchange gains or losses incurred in connection with those assets or liabilities are included in the Statement of income, as part of the comprehensive financing cost. Note 3 presents the consolidated position in foreign currencies at the end of each year and the exchange rates used in the translation.

The functional and reporting currency of the Company is the Mexican peso. The financial statements of foreign subsidiaries were translated to Mexican pesos in accordance with the New Mexican Financial Reporting Standard MFRS B-15 "Conversion of foreign currencies” that came into effect on January 1, 2008. Under this Standard, the first step to convert financial information from operations abroad is the determination of the functional currency. The functional currency is the currency of the primary economic environment of the foreign operation or, if different, the currency that mainly impacts its cash flows. The new rule incorporates the concepts of recording currency that is the currency in which the entity maintains its accounting records, whether for legal or information purposes and the reporting currency, which is the currency chosen by the Company to report its financial information.

The U.S. dollar was considered as the functional currency of the subsidiary SimRep, therefore the financial statements of this subsidiary were translated into Mexican pesos by applying: i) the exchange rates at the balance sheet date to all assets and liabilities and (ii) the historical exchange rate at stockholders’ equity accounts and revenues, costs and expenses. The difference resulting from the translation or consolidation processes or from applying the equity method, is recognized as a cumulative translation adjustment as part of Translation effect in foreign subsidiaries in Stockholders’ equity.

The Mexican Peso was considered the functional currency of the subsidiary Pacific Steel and the U.S. dollar as its recording currency; therefore the financial statements were translated to Mexican pesos as follows: i) monetary assets and liabilities by applying the exchange rates at the balance sheet date; ii) non-monetary assets and liabilities, as well as stockholders’ equity accounts, at the historical exchange rate; and iii) revenues, costs and expenses at the historical exchange rate. Translation differences were carried directly to the income statement under the caption Foreign exchange loss, net.



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
GRUPO SIMEC, S.A.B. DE C.V.  

CONSOLIDATED

INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK
CHARACTERISTICS OF THE SHARES

SERIES NOMINAL
VALUE
VALID
COUPON
NUMBER OF SHARES CAPITAL STOCK
(Thousands of Pesos)
      FIXED
PORTION
VARIABLE
PORTION
MEXICAN FREE
SUBSCRIPTION
FIXED VARIABLE
B     90,850,050 406,859,164 0 497,709,214 441,786 1,978,444
TOTAL     90,850,050 406,859,164 0 497,709,214 441,786 1,978,444

TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING THE INFORMATION:     497,709,214


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
QUARTER: 2 YEAR: 2011
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 ADOLFO LUNA LUNA 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. ADOLFO LUNA LUNA
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER

GUADALAJARA, JAL, AT JUL 27 OF 2011.