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                                                                 May                                                                 , 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: May 2, 2008. By: /s/ Luis García Limón
   
    Name: Luis García Limón
    Title: Chief Executive Officer





PRESS RELEASE Contact: Sergio Vigil González
    José Flores Flores
    Grupo Simec, S.A. de C.V.
    Calzada Lázaro Cárdenas 601
    44440 Guadalajara, Jalisco, México
    52 55 1165 1025
    52 33 3770 6734

GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FOR THE FIRST THREE MONTHS OF 2008

GUADALAJARA, MEXICO, April 28, 2008- Grupo Simec, S.A.B. de C.V. (AMEX-SIM) (“Simec”) announced today its results of operations for the three-month period ended March 31, 2008.

Acquisition of Corporacion Aceros DM, S.A. de C.V.

On February 21, 2008, Simec has executed an agreement to acquire 100% of the shares of Corporación Aceros DM, S.A. de C.V. and certain of its affiliates (“Grupo San”).

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 Potosí, Mexico. Its plants and its 1,457 employees rely on cutting edge technology to produce 700 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 and sales mix, with 50% of sales in Mexico and 50% 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 and ICH have already identified significant synergies and economies of scale that will increase the company’s operating margins. Grupo San’s central location in Mexico, where Simec and ICH are 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 corrugated 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.

Simec, the main subsidiary of ICH, will acquire 100% of the shares of Grupo San. The transaction is valued at 850 million U.S. dollars, 85% of which will be paid with cash generated by the company’s operations and by the company’s public offering, which took place in February 2007.

This acquisition confirms the growth strategy that has characterized ICH, reaffirming its position as a consolidator in the steel sector.


This acquisition is subject to the approval of Mexico’s federal competition commission, Comisión Federal de Competencia. On March 25, 2008 this operation was approved by Simec’s Shareholders Meeting.

Grupo San’s shareholders were advised by Lehman Brothers, Inc. and by the law office of Galicia y Robles, S.C. Simec was represented by the law office of Mijares, Angoitia, Cortés y Fuentes, S.C.

Comparative first quarter 2008 vs first quarter 2007

Net Sales

Net sales increased 17% to Ps. 7,288 million in the first quarter 2008 compared to Ps. 6,237 million in the same period 2007. Shipments of finished steel products increased 6% to 745 thousand tons in the first quarter 2008 compared to 704 thousand tons in the same period 2007. Total sales outside of Mexico in the first quarter 2008 increased 24% to Ps. 5,423 million compared with Ps. 4,360 million in the same period 2007, while total Mexican sales decreased 1% from Ps. 1,877 million in the first quarter 2007 to Ps. 1,865 millions in the same period 2008. The increase in sales can be explained due to higher shipments during the first quarter 2008, comparing with the same period in 2007 (41,000 tons increase) and 10% increase 10% in the average price of steel products.

Direct Cost of Sales

Direct cost of sales increased 21% from Ps. 4,995 million in the fist quarter 2007 to Ps. 6,050 million in the same period 2008. Direct cost of sales as a percentage of net sales represented at 83% in the first quarter 2008 compared to 80% in the same period 2007. The increase in the Direct Cost of Sales is attributable mainly to an increase of 14% in real terms in the average cost of raw materials used to produce steel products in the first quarter 2008 versus the same period 2007, primarily as a result of increases in the price of scrap and certain other raw materials.

Gross Profit

Gross profit in the first quarter 2008 was Ps. 1,238 million compared to Ps. 1,242 million in the same period 2007. Gross profit as a percentage of net sales in the first quarter 2008 was 17% compared to 20% in the same period 2007. The decline in gross profit is due to the increase in cost of goods sold due to the reasons previously mentioned.

Operating Expenses

Operating expenses decreased 1% to Ps. 360 million in the first quarter 2008 compared to Ps. 364 million in the same period 2007 and represented 5% of net sales in the first quarter 2008 and 6% of net sales in the same period 2007.

Operating Profit

Operating profit was the same, Ps. 878 million for the first quarter 2008 and the first quarter 2007. Operating profit as a percentage of net sales was 12% in the first quarter 2008compared to 14% in the same period 2007. The decline in operating profit is due to the increase in cost of goods sold due to the reasons previously mentioned.

Comprehensive Financial Cost

Comprehensive financial cost in the first quarter 2008 represented an expense of Ps. 62 million compared with a gain of Ps. 77 million in the same period 2007. Net interest income was Ps. 55 million in the first quarter 2008 compared with Ps. 42 million in the same period 2007 due to larger cash balances this year, partly reflecting our capital increase in February 2007. At the same time we registered an exchange loss of Ps. 117 million in the first quarter 2008 compared with an exchange gain of Ps. 63 million in the same period 2007, reflecting a 1.6% decrease in the value of the peso versus the dollar in the first quarter 2008 compared to same period 2007.


Other Expenses (Income) net

The company recorded other income Net of Ps. 6 million in the first quarter 2008 compared to other income net for Ps. 27 million in the same period 2007.

Income Taxes

Income Taxes recorded Ps. 230 million in the first quarter 2008 compared to Ps. 237 million in the same period of 2007.

Net Profit

As a result of the foregoing, net profit decreased by 21% to Ps. 592 million in the first quarter 2008 from Ps. 745 million in the same period 2007.

Liquidity and Capital Resources

At March 31, 2008 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 March 31, 2008 was U.S. $370,827 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. 467 million in the first quarter 2008 versus Ps. 654 million of net resources provided by operations in the same period 2007. Net resources provided by financing activities were Ps. 25 million in the first quarter 2008 versus Ps. 2,421 million of net resources used by financing activities in the same period 2007 (which amount includes the capital increase of Ps. 2,421 million in February 2007). Net resources used in investing activities (to acquire property, plant and equipment, other non-current assets and liabilities) were Ps. 136 million in the first quarter 2008 versus net resources used in investing activities (to acquire property, plant and equipment and other non-current assets and liabilities) of Ps. 56 million in 2006.

Comparative first quarter 2008 vs fourth quarter 2007

Net Sales

Net sales increased 25% from Ps. 5,824 million for the fourth quarter 2007 to Ps. 7,288 million for the first quarter 2008. Sales in tons of finished steel increased 10% to 745 thousand tons in the first quarter 2008 compared with 675 thousand tons in the fourth quarter 2007. The total sales outside of Mexico for the first quarter 2008 increased 27% to Ps. 5,423 million compared with Ps. 4,264 million for the fourth quarter 2007. Total Mexican sales increased 20% to 1,865 million in the first quarter 2008 from Ps. 1,560 millions in the fourth quarter 2007. Prices of finished products sold in the first quarter 2008 increased approximately 13% compared to the fourth quarter 2007.

Direct Cost of Sales

Direct cost of sales increased 11% from Ps. 5,436 million in the fourth quarter 2007 to Ps. 6,050 million for the first quarter 2008. With respect to sales, in the first quarter 2008, the direct cost of sales represents 83% compared to 93% for the fourth quarter 2007. The average cost of raw materials used to produce steel products increased 1% in the first quarter 2008 versus the fourth quarter 2007, primarily as a result of increases in the price of scrap and certain other raw materials

 


Gross Profit

Gross profit for the first quarter 2008 increased 219% to Ps. 1,238 million compared to Ps. 388 million in the fourth quarter 2007. The gross profit as a percentage of net sales for the first quarter 2008 was 17% compared with 7% for the fourth quarter of 2007. The increase in gross profit is due to the increase in the prices of finished products sold due to the reasons previously mentioned.

Operating Expenses

Operating expenses increased 2% to Ps. 360 million in the first quarter 2008 compared to Ps. 352 million for the fourth quarter 2007. Operating expenses as a percentage of net sales represented 5% during the first quarter 2008 compared to 6% in the fourth quarter 2007.

Operating Profit

Operating profit increased 2,339% from Ps. 36 million in the fourth quarter 2007 to Ps. 878 million for the first quarter 2008. The operating profit as a percentage of net sales in the first quarter 2008 was 12% compared to 1% in the fourth quarter 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 first quarter 2008 represented an expense of Ps. 62 million compared with an expense of Ps. 167 million for the fourth quarter 2007. Net interest income was Ps. 55 million in the first quarter 2008 compared with Ps. 55 million of net interest income in the fourth quarter 2007. At the same time we registered an exchange loss of Ps. 117 million in the first quarter 2008 compared with an exchange gain of Ps. 35 million in the fourth quarter 2007.

Other Expenses (Income) net

The company recorded other income net for Ps. 6 million in the first quarter 2008 compared with other expense net for Ps. 24 million for the fourth quarter 2007.

Income Taxes

Income Taxes for the first quarter 2008 was an expense of Ps. 230 million compared to Ps. 119 million of income for the fourth quarter 2007

Net Profit

As a result of the foregoing, net profit was Ps. 592 million in the first quarter 2008 compared to Ps. 35 million of loss profit in the fourth quarter 2007.

1Q’08 vs 1Q’08 vs
(Millions of pesos) 1Q’08 1Q’07 4Q’07 1Q’07 4Q’07
Sales 7,288 6,237 5,824 17%   25%  
Cost of Sales 6,050 4,995 5,436 21%   11%  
Gross Profit 1,238 1,242 388 0%   219%  
Operating Expenses 360 364 352 -1%   2%  
Operating Profit 878 878 36 0%   2,339%  
EBITDA 1,008 1,003 206 0%   389%  
Net Profit 592 745      (35 ) -21%   1,791%  
Sales outside Mexico 5,423 4,360 4,264 24%   27%  
Sales in Mexico 1,865 1,877 1,560 -1%   20%  
Total sales (tons) 745 704 675 6%   10%  


Product Thousands
of tons
first
quarter
2008
Millions
of pesos
first
quarter
2008
Average
price
per ton
first
quarter
2008
Thousands
of tons
first
quarter
2007
Millions
of pesos
first
quarter
2007
Average
price
per ton
first
quarter
2007  
SBQ 565   5,749   10,175   516   4,833   9,366  
Light Structural 54   453   8,389   62   454   7,323  
Structural 55   504   9,164   61   494   8,098  
Rebar 70   550   7,857   64   451   7,047  
Others 1   32   -   1   5   -  
Total 745   7,288   9,783   704   6,237   8,859  

Product Thousands
of tons
fourth
quarter
2007
Millions
of pesos
fourth
quarter
2007
Average price
per ton
fourth
quarter
2007  
SBQ 497   4,524   9,102  
Light Structural 59   457   7,754  
Structural 45   357   7,930  
Rebar 70   456   6,510  
Others 4   31   0  
Total 675   5,824   8,629  

     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: 1  YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.  

CONSOLIDATED FINANCIAL STATEMENT
AT MARCH 31 OF 2008 AND 2007
(thousands of Mexican pesos)

REF
S
  CONCEPTS CURRENT YEAR PREVIOUS YEAR
             
      AMOUNT   AMOUNT %
s01    TOTAL ASSETS 23,918,476   100 21,498,680 100
 
s02   CURRENT ASSETS 15,576,282   65 13,280,741 62
s03   CASH AND SHORT-TERM INVESTMENTS 6,752,074   28 5,223,119 24
s04   ACCOUNTS AND NOTES RECEIVABLE (NET) 3,276,302   14 2,783,778 13
s05   OTHER ACCOUNTS AND NOTES RECEIVABLE 647,164   3 291,056 1
s06   INVENTORIES 4,838,058   20 4,920,740 23
s07   OTHER CURRENT ASSETS 62,684   0 62,048 0
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) 7,858,403   33 7,668,980 36
s13   LAND AND BUILDINGS 2,619,470   11 2,607,253 12
s14   MACHINERY AND INDUSTRIAL EQUIPMENT 9,035,151   38 8,242,635 38
s15   OTHER EQUIPMENT 110,082   0 108,810 1
s16   ACCUMULATED DEPRECIATION 4,151,159   17 3,441,523 16
s17   CONSTRUCTION IN PROGRESS 244,859   1 151,805 1
s18   OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET) 381,248   2 454,963 2
s19   OTHER ASSETS 102,543   0 93,996 0
 
s20   TOTAL LIABILITIES 6,115,488   100 5,302,903 100
 
s21   CURRENT LIABILITIES 3,261,652   53 3,003,745 57
s22   SUPPLIERS 2,330,209   38 1,758,580 33
s23   BANK LOANS 0   0 0 0
s24   STOCK MARKET LOANS 3,230   0 3,434 0
s103   OTHER LOANS WITH COST 0   0 0 0
s25   TAXES PAYABLE 292,065   5 315,188 6
s26   OTHER CURRENT LIABILITIES WITHOUT COST 636,148   10 926,543 17
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 2,853,836   47 2,299,158 43
 
s33   CONSOLIDATED STOCKHOLDERS’ EQUITY 17,802,988   100 16,195,777 100
 
s34   MINORITY INTEREST 2,493,092   14 2,420,149 15
s35   MAJORITY INTEREST 15,309,896   86 13,775,628 85
s36   CONTRIBUTED CAPITAL 7,181,743   40 7,181,743 44
S79   CAPITAL STOCK 4,030,427   23 4,030,427 25
s39   PREMIUM ON ISSUANCE OF SHARES 3,151,316   18 3,151,316 19
s40   CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0   0 0 0
s41   EARNED CAPITAL 8,128,153   46 6,593,885 41
s42   RETAINED EARNINGS AND CAPITAL RESERVES 9,155,207   51 7,638,476 47
s44   OTHER ACCUMULATED COMPREHENSIVE RESULT (1,027,054)   (6) (1,044,591) (6)
s80   SHARES REPURCHASED 0   0 0 0


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  YEAR: 2008
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 6,752,074   100 5,223,119   100
   s46 CASH 423,838   6 406,164   8
   s47 SHORT-TERM INVESTMENTS 6,328,236   94 4,816,955   92
 
   s07 OTHER CURRENT ASSETS 62,684   100 62,048   100
   s81 DERIVATIVE FINANCIAL INSTRUMENTS 0   0 0   0
   s82 DISCONTINUED OPERATIONS 0   0 0   0
   s83 OTHER 62,684   100 62,048   100
 
   s18 OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET) 381,248   100 454,963   100
   s48 DEFERRED EXPENSES 282,583   74 350,891   77
   s49 GOODWILL 36,887   10 40,557   9
   s51 OTHER 61,778   16 63,515   14
 
   s19 OTHER ASSETS 102,543   100 93,996   100
   s84 INTANGIBLE ASSET FROM LABOR OBLIGATIONS 5,084   5 5,724   6
   s85 DERIVATIVE FINANCIAL INSTRUMENTS 0   0 0   0
   s50 DEFERRED TAXES 0   0 0   0
   s86 DISCONTINUED OPERATIONS 0   0 0   0
   s87 OTHER 97,459   95 88,272   94
 
   s21 CURRENT LIABILITIES 3,261,652   100 3,003,745   100
   s52 FOREIGN CURRENCY LIABILITIES 2,438,287   75 1,932,196   64
   s53 MEXICAN PESOS LIABILITIES 823,365   25 1,071,549   36
 
   s26 OTHER CURRENT LIABILITIES WITHOUT COST 636,148   100 926,543   100
   s88 DERIVATIVE FINANCIAL INSTRUMENTS 0   0 0   0
   s89 INTEREST LIABILITIES 3,966   1 3,906   0
   s68 PROVISIONS 0   0 309,643   33
   s90 DISCONTINUED OPERATIONS 0   0 0   0
   s58 OTHER CURRENT LIABILITIES 632,182   99 612,994   66
 
   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 2,853,836   100 2,299,158   100
   s66 DEFERRED TAXES 2,772,284   97 2,205,866   96
   s91 OTHER LIABILITIES IN RESPECT OF SOCIAL INSURANCE 18,990   1 16,675   1
   s92 DISCONTINUED OPERATIONS 0   0 0   0
   s69 OTHER LIABILITIES 62,562   2 76,617   3
 
   s79 CAPITAL STOCK 4,030,427   100 4,030,427   100
   s37 CAPITAL STOCK (NOMINAL) 2,307,961   57 2,307,961   57
   s69 RESTATEMENT OF CAPITAL STOCK 1,722,466   43 1,722,466   43


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1 YEAR: 2008
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 9,155,207   100 7,638,476   100
s93   LEGAL RESERVE 0   0 0   0
s43   RESERVE FOR REPURCHASE OF SHARES 200,612   2 200,624   3
s94   OTHER RESERVES 0   0 0   0
s95   RETAINED EARNINGS 8,481,722   93 6,820,939   89
s45   NET INCOME FOR THE YEAR 472,873   5 616,913   8
 
s44   OTHER ACCUMULATED COMPREHENSIVE RESULT (1,027,054)   100 (1,044,591)   100
s70   ACCUMULATED MONETARY RESULT 0   0 0   0
s71   RESULT FROM HOLDING NON-MONETARY ASSETS 0   0 (46,913)   4
s96   CUMULATIVE RESULT FROM FOREIGN CURRENCY            
    TRANSLATION (56,541)   6 (22,608)   2
s97   CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL            
    INSTRUMENTS 0   0 (4,557)   0
s98   CUMULATIVE EFFECT OF DEFERRED INCOME TAXES (970,513)   94 (970,513)   93
s99   LABOR OBLIGATION ADJUSTMENT 0   0 0   0
s100   OTHER 0   0 0   0


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.  

BALANCE SHEETS
OTHER CONCEPTS
(thousands of Mexican pesos)

REF
S
  CONCEPTS CURRENT YEAR  PREVIOUS YEAR
           
      AMOUNT  AMOUNT
 
S72     WORKING CAPITAL 12,314,630   10,276,996  
S73   PENSIONS FUND AND SENIORITY PREMIUMS 0   0  
S74   EXECUTIVES (*) 45   54  
S75   EMPLOYERS (*) 1,220   1,153  
S76   WORKERS (*) 3,183   3,082  
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   0  

(*)      THESE ITEMS SHOULD BE EXPRESSED IN UNITS
 

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.  

STATEMENTS OF INCOME
FROM JANUARY 1 TO MARCH 31 OF 2008 AND 2007
(thousands of Mexican pesos)

REF
R
  CATEGORIES CURRENT YEAR PREVIOUS YEAR
               
      AMOUNT % AMOUNT %
r01     NET SALES 7,287,967   100 6,237,228   100
r02   COST OF SALES 6,050,363   83 4,995,433   80
r03   GROSS PROFIT 1,237,604   17 1,241,795   20
r04   OPERATING EXPENSES 359,374   5 363,997   6
r05   OPERATING INCOME 878,230   12 877,798   14
r08   OTHER INCOME AND (EXPENSE), NET 5,699   0 27,540   0
r06   COMPREHENSIVE FINANCING RESULT (61,859)   0 77,187   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 822,070   11 982,525   16
r10   INCOME TAXES 230,180   3 237,387   4
r11   INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS 591,890   8 745,138   12
r14   DISCONTINUED OPERATIONS 0   0 0   0
r18   NET CONSOLIDATED INCOME 591,890   8 745,138   12
r19   NET INCOME OF MINORITY INTEREST 119,017   2 128,225   2
r20   NET INCOME OF MAJORITY INTEREST 472,873   6 616,913   10


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  YEAR: 2008
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 7,287,967   100 6,237,228   100
r21   DOMESTIC 1,864,957   26 1,876,221   30
r22   FOREIGN 5,423,010   74 4,361,007   70
r23   TRANSLATED INTO DOLLARS (***) 506,617     388,343    
 
r08   OTHER INCOME AND (EXPENSE), NET 5,699   100 27,540   100
r49   OTHER INCOME AND (EXPENSE), NET 5,699   100 27,540   100
r34   EMPLOYEES’ PROFIT SHARING EXPENSES 0   0 0   0
r35   DEFERRED EMPLOYEES’ PROFIT SHARING 0   0 0   0
 
r06   COMPREHENSIVE FINANCING RESULT (61,859)   100 77,187   100
r24   INTEREST EXPENSE 5,048   (8) 6,080   8
r42   GAIN (LOSS) ON RESTATEMENT OF UDI’S 0   0 0   0
r45   OTHER FINANCE COSTS 0   0 0   0
r26   INTEREST INCOME 60,422   (98) 48,476   63
r46   OTHER FINANCIAL PRODUCTS 0   0 0   0
r25   FOREIGN EXCHANGE GAIN (LOSS), NET (117,233)   190 63,255   82
r28   RESULT FROM MONETARY POSITION 0   0 (28,464)   (37)
 
r10   INCOME TAXES 230,180   100 237,387   100
r32   INCOME TAX 119,835   52 114,542   48
r33   DEFERRED INCOME TAX 110,345   48 122,845   52

(***)      THOUSANDS OF DOLLARS
 

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  YEAR: 2008
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 7,379,364   6,270,299  
r37 TAX RESULT FOR THE YEAR 0   0  
r38 NET SALES (**) 25,156,833   24,306,753  
r39 OPERATION INCOME (**) 2,184,449   3,653,043  
r40 NET INCOME OF MAJORITY INTEREST (**) 1,385,017   2,377,095  
r41 NET CONSOLIDATED INCOME (**) 1,471,926   2,644,986  
r47 OPERATIVE DEPRECIATION AND AMORTIZATION 130,060   125,683  

(**)      RESTATED INFORMATION FOR THE LAST TWELVE MONTHS
 

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.  

STATEMENTS OF CHANGES IN FINANCIAL POSITION
FROM JANUARY 1 TO MARCH 31 OF 2008 AND 2007
(thousands of pesos)

REF
C
CONCEPTS CURRENT YEAR PREVIOUS YEAR
         
    AMOUNT AMOUNT
 
c01 CONSOLIDATED NET INCOME 591,890     745,138    
c02 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE CASH 240,405   248,529  
c03 RESOURCES FROM NET INCOME FOR THE YEAR 832,295   993,667  
c04 RESOURCES PROVIDED OR USED IN OPERATION (365,028)   (339,673)  
c05 RESOURCES PROVIDED BY (USED FOR) OPERATING        
  ACTIVITIES 467,267   653,994  
c06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL FINANCING        
  ACTIVITIES 24,881   82  
c07 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING        
  ACTIVITIES 0   2,420,726  
c08 RESOURCES PROVIDED BY (USED FOR) FINANCING        
  ACTIVITIES 24,881   2,420,808  
c09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT        
  ACTIVITIES (136,229)   (55,839)  
c10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM        
  INVESTMENTS 355,919   3,018,963  
c11 CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF        
  PERIOD 6,396,155   2,204,156  
c12 CASH AND SHORT TERM INVESTMENTS AT THE END OF PERIOD 6,752,074   5,223,119  


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.  

STATEMENTS OF CHANGES IN FINANCIAL POSITION
BREAKDOWN OF MAIN CONCEPTS
(thousands of pesos)

REF
C
CONCEPTS CURRENT YEAR PREVIOUS YEAR
         
    AMOUNT AMOUNT
 
c02 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE        
  CASH 240,405    248,529    
c13 DEPRECIATION AND AMORTIZATION FOR THE YEAR 130,060   125,683  
c41 + (-) OTHER ITEMS 110,345   122,846  
 
c04 RESOURCES PROVIDED OR USED IN OPERATION (365,028)   (339,673)  
c18 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE (795,113)   (540,243)  
c19 + (-) DECREASE (INCREASE) IN INVENTORIES 92,346   132,012  
c20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNTS RECEIVABLE (63,841)   18,117  
c21 + (-) INCREASE (DECREASE) IN SUPPLIERS 225,974   (90,384)  
c22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES 175,606   140,825  
 
c06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL        
  FINANCING ACTIVITIES 24,881   82  
c23 + BANK FINANCING 0   0  
c24 + STOCK MARKET FINANCING (52)   28  
c25 + DIVIDEND RECEIVED 0   0  
c26 OTHER FINANCING 0   54  
c27 BANK FINANCING AMORTIZATION 0   0  
c28 (-) STOCK MARKET FINANCING AMORTIZATION 0   0  
c29 (-) OTHER FINANCING AMORTIZATION 0   0  
c42 + (-) OTHER ITEMS 24,933   0  
 
C07 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING        
  ACTIVITIES 0   2,420,726  
c30 + (-) INCREASE (DECREASE) IN CAPITAL STOCK 0   267,015  
c31 (-) DIVIDENDS PAID 0   0  
c32 + PREMIUM ON ISSUANCE OF SHARES 0   2,153,711  
c33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES 0   0  
c43 + (-) OTHER ITEMS 0   0  
 
c09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT        
  ACTIVITIES (136,229)   (55,839)  
c34 + (-) DECREASE (INCREASE) IN PERMANENT INVESTMENTS 0   0  
c35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT (75,913)   (56,220)  
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 (60,316)   381  


MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC QUARTER: 1  YEAR: 2008
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 (**)  $  2.92   $  5.64  
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 (**) $  2.92   $  5.64  
d05 DISCONTINUED OPERATIONS EFFECT ON EARNING (LOSS) PER        
  SHARE (**)  $  0.00    $  0.00  
d08 CARRYING VALUE PER SHARE  $32.26    $29.02  
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  1.24  times 1.60  times
d12 MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE  13.69  times 8.36  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: 1  YEAR: 2008
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 8.12% 11.95%
p02 NET INCOME TO STOCKHOLDERS’ EQUITY (**) 9.05% 17.26%
p03 NET INCOME TO TOTAL ASSETS (**) 6.15% 12.30%
p04 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 0.00% 0.00%
p05 INCOME DUE TO MONETARY POSITION TO NET INCOME 0.00% (3.82)%
 
  ACTIVITY    
p06 NET SALES TO NET ASSETS (**) 1.05 times 1.13 times
p07 NET SALES TO FIXED ASSETS (**) 3.20 times 3.17 times
p08 INVENTORIES TURNOVER (**) 4.46 times 5.94 times
p09 ACCOUNTS RECEIVABLE IN DAYS OF SALES 35 days 35 days
p10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 0.00% 11.58%
 
  LEVERAGE    
p11 TOTAL LIABILITIES TO TOTAL ASSETS 25.57% 24.67%
p12 TOTAL LIABILITIES TO STOCKHOLDERS’ EQUITY 0.34 times 0.33 times
p13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 39.87% 36.44%
p14 LONG-TERM LIABILITIES TO FIXED ASSETS 0.00% 0.00%
p15 OPERATING INCOME TO INTEREST PAID 173.98 times 144.37 times
p16 NET SALES TO TOTAL LIABILITIES (**) 4.11 times 4.58 times
 
  LIQUIDITY    
p17 CURRENT ASSETS TO CURRENT LIABILITIES 4.78 times 4.42 times
p18 CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES 3.29 times 2.78 times
p19 CURRENT ASSETS TO TOTAL LIABILITIES 2.55 times 2.50 times
p20 AVAILABLE ASSETS TO CURRENT LIABILITIES 207.01% 173.89%
 
  CASH FLOW    
p21 RESOURCES FROM NET INCOME TO NET SALES 11.42% 15.93%
p22 RESOURCES FROM CHANGES IN WORKING CAPITAL TO NET    
  SALES (5.01)% (5.45)%
p23 RESOURCES GENERATED (USED) IN OPERATING TO INTEREST    
  PAID 92.56 times 107.56 times
p24 EXTERNAL FINANCING TO RESOURCES PROVIDED BY (USED    
  FOR) FINANCING 100.00% 0.00%
p25 INTERNAL FINANCING TO RESOURCES PROVIDED (USED FOR)    
  FINANCING 0.00% 100.00%
p26 RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES 55.72% 100.68%

(**)      IN THESE RATIOS FOR THE DATA TAKE INTO CONSIDERATION THE LAST TWELVE MONTHS
 

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  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, Simec has executed an agreement to acquire 100% of the shares of Corporación Aceros DM, S.A. de C.V. and certain of its affiliates (“Grupo San”).

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 Potosí, Mexico. Its plants and its 1,457 employees rely on cutting edge technology to produce 700 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 and sales mix, with 50% of sales in Mexico and 50% 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 and ICH have already identified significant synergies and economies of scale that will increase the company’s operating margins. Grupo San’s central location in Mexico, where Simec and ICH are 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 corrugated 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.

Simec, the main subsidiary of ICH, will acquire 100% of the shares of Grupo San. The transaction is valued at 850 million U.S. dollars, 85% of which will be paid with cash generated by the company’s operations and by the company’s public offering, which took place in February 2007.

This acquisition confirms the growth strategy that has characterized ICH, reaffirming its position as a consolidator in the steel sector.

This acquisition is subject to the approval of Mexico’s federal competition commission, Comisión Federal de Competencia. On March 25, 2008 this operation was approved by Simec’s Shareholders Meeting.

Grupo San’s shareholders were advised by Lehman Brothers, Inc. and by the law office of Galicia y Robles, S.C. Simec was represented by the law office of Mijares, Angoitia, Cortés y Fuentes, S.C.


Comparative first quarter 2008 vs first quarter 2007

Net Sales

Net sales increased 17% to Ps. 7,288 million in the first quarter 2008 compared to Ps. 6,237 million in the same period 2007. Shipments of finished steel products increased 6% to 745 thousand tons in the first quarter 2008 compared to 704 thousand tons in the same period 2007. Total sales outside of Mexico in the first quarter 2008 increased 24% to Ps. 5,423 million compared with Ps. 4,360 million in the same period 2007, while total Mexican sales decreased 1% from Ps. 1,877 million in the first quarter 2007 to Ps. 1,865 millions in the same period 2008. The increase in sales can be explained due to higher shipments during the first quarter 2008, comparing with the same period in 2007 (41,000 tons increase) and 10% increase 10% in the average price of steel products.

Direct Cost of Sales

Direct cost of sales increased 21% from Ps. 4,995 million in the fist quarter 2007 to Ps. 6,050 million in the same period 2008. Direct cost of sales as a percentage of net sales represented at 83% in the first quarter 2008 compared to 80% in the same period 2007. The increase in the Direct Cost of Sales is attributable mainly to an increase of 14% in real terms in the average cost of raw materials used to produce steel products in the first quarter 2008 versus the same period 2007, primarily as a result of increases in the price of scrap and certain other raw materials.

Gross Profit

Gross profit in the first quarter 2008 was Ps. 1,238 million compared to Ps. 1,242 million in the same period 2007. Gross profit as a percentage of net sales in the first quarter 2008 was 17% compared to 20% in the same period 2007. The decline in gross profit is due to the increase in cost of goods sold due to the reasons previously mentioned.

Operating Expenses

Operating expenses decreased 1% to Ps. 360 million in the first quarter 2008 compared to Ps. 364 million in the same period 2007 and represented 5% of net sales in the first quarter 2008 and 6% of net sales in the same period 2007.

Operating Profit

Operating profit was the same, Ps. 878 million for the first quarter 2008 and the first quarter 2007. Operating profit as a percentage of net sales was 12% in the first quarter 2008 compared to 14% in the same period 2007. The decline in operating profit is due to the increase in cost of goods sold due to the reasons previously mentioned.

Comprehensive Financial Cost

Comprehensive financial cost in the first quarter 2008 represented an expense of Ps. 62 million compared with a gain of Ps. 77 million in the same period 2007. Net interest income was Ps. 55 million in the first quarter 2008 compared with Ps. 42 million in the same period 2007 due to larger cash balances this year, partly reflecting our capital increase in February 2007. At the same time we registered an exchange loss of Ps. 117 million in the first quarter 2008 compared with an exchange gain of Ps. 63 million in the same period 2007, reflecting a 1.6% decrease in the value of the peso versus the dollar in the first quarter 2008 compared to same period 2007.

Other Expenses (Income) net

The company recorded other income Net of Ps. 6 million in the first quarter 2008 compared to other income net for Ps. 27 million in the same period 2007.

Income Taxes

Income Taxes recorded Ps. 230 million in the first quarter 2008 compared to Ps. 237 million in the same period of 2007.


Net Profit

As a result of the foregoing, net profit decreased by 21% to Ps. 592 million in the first quarter 2008 from Ps. 745 million in the same period 2007.

Liquidity and Capital Resources

At March 31, 2008 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 March 31, 2008 was U.S. $370,827 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. 467 million in the first quarter 2008 versus Ps. 654 million of net resources provided by operations in the same period 2007. Net resources provided by financing activities were Ps. 25 million in the first quarter 2008 versus Ps. 2,421 million of net resources used by financing activities in the same period 2007 (which amount includes the capital increase of Ps. 2,421 million in February 2007). Net resources used in investing activities (to acquire property, plant and equipment, other non-current assets and liabilities) were Ps. 136 million in the first quarter 2008 versus net resources used in investing activities (to acquire property, plant and equipment and other non-current assets and liabilities) of Ps. 56 million in 2006.

Comparative first quarter 2008 vs fourth quarter 2007

Net Sales

Net sales increased 25% from Ps. 5,824 million for the fourth quarter 2007 to Ps. 7,288 million for the first quarter 2008. Sales in tons of finished steel increased 10% to 745 thousand tons in the first quarter 2008 compared with 675 thousand tons in the fourth quarter 2007. The total sales outside of Mexico for the first quarter 2008 increased 27% to Ps. 5,423 million compared with Ps. 4,264 million for the fourth quarter 2007. Total Mexican sales increased 20% to 1,865 million in the first quarter 2008 from Ps. 1,560 millions in the fourth quarter 2007. Prices of finished products sold in the first quarter 2008 increased approximately 13% compared to the fourth quarter 2007.

Direct Cost of Sales

Direct cost of sales increased 11% from Ps. 5,436 million in the fourth quarter 2007 to Ps. 6,050 million for the first quarter 2008. With respect to sales, in the first quarter 2008, the direct cost of sales represents 83% compared to 93% for the fourth quarter 2007. The average cost of raw materials used to produce steel products increased 1% in the first quarter 2008 versus the fourth quarter 2007, primarily as a result of increases in the price of scrap and certain other raw materials

Gross Profit

Gross profit for the first quarter 2008 increased 219% to Ps. 1,238 million compared to Ps. 388 million in the fourth quarter 2007. The gross profit as a percentage of net sales for the first quarter 2008 was 17% compared with 7% for the fourth quarter of 2007. The increase in gross profit is due to the increase in the prices of finished products sold due to the reasons previously mentioned.

Operating Expenses

Operating expenses increased 2% to Ps. 360 million in the first quarter 2008 compared to Ps. 352 million for the fourth quarter 2007. Operating expenses as a percentage of net sales represented 5% during the first quarter 2008 compared to 6% in the fourth quarter 2007.


Operating Profit

Operating profit increased 2,339% from Ps. 36 million in the fourth quarter 2007 to Ps. 878 million for the first quarter 2008. The operating profit as a percentage of net sales in the first quarter 2008 was 12% compared to 1% in the fourth quarter 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 first quarter 2008 represented an expense of Ps. 62 million compared with an expense of Ps. 167 million for the fourth quarter 2007. Net interest income was Ps. 55 million in the first quarter 2008 compared with Ps. 55 million of net interest income in the fourth quarter 2007. At the same time we registered an exchange loss of Ps. 117 million in the first quarter 2008 compared with an exchange gain of Ps. 35 million in the fourth quarter 2007.

Other Expenses (Income) net

The company recorded other income net for Ps. 6 million in the first quarter 2008 compared with other expense net for Ps. 24 million for the fourth quarter 2007.

Income Taxes

Income Taxes for the first quarter 2008 was an expense of Ps. 230 million compared to Ps. 119 million of income for the fourth quarter 2007.

Net Profit

As a result of the foregoing, net profit was Ps. 592 million in the first quarter 2008 compared to Ps. 35 million of loss profit in the fourth quarter 2007.

1Q’08 vs
1Q’07
1Q’08 vs
4Q’07
(Millions of pesos) 1Q’08 1Q’07 4Q’07
Sales 7,288 6,237 5,824 17%   25%  
Cost of Sales 6,050 4,995 5,436 21%   11%  
Gross Profit 1,238 1,242 388 0%   219%  
Operating Expenses 360 364 352 -1%   2%  
Operating Profit 878 878 36 0%   2,339%  
EBITDA 1,008 1,003 206 0%   389%  
Net Profit 592 745      (35 ) -21%   1,791%  
Sales outside Mexico 5,423 4,360 4,264 24%   27%  
Sales in Mexico 1,865 1,877 1,560 -1%   20%  
Total sales (tons) 745 704 675 6%   10%  

  Thousands
of tons
first
quarter
2008
Millions
of pesos
first
quarter
2008
Average
price
per ton
first
quarter
2008
Thousands
of tons
first
quarter
2007
Millions
of pesos
first
quarter
2007
Average
price
per ton
first
quarter
2007
 
 
 
 
Product
SBQ 565    5,749    10,175    516    4,833    9,366   
Light Structural 54   453   8,389   62   454   7,323  
Structural 55   504   9,164   61   494   8,098  
Rebar 70   550   7,857   64   451   7,047  
Others 1   32   -   1   5   -  
Total 745   7,288   9,783   704   6,237   8.859  



Product Thousands
of tons
fourth
quarter
2007
Millions
of pesos
fourth
quarter
2007
Average price
per ton
fourth
quarter
2007
SBQ 497   4,524   9,102  
Light Structural 59   457   7,754  
Structural 45   357   7,930  
Rebar 70   456   6,510  
Others 4   31   0  
Total 675   5,824   8,629  

     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: 1  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 Investigación y Desarrollo de Normas de Información Financiera, A.C. (CINIF)

b. Principles of Consolidation – As part of the financial debt restructuring agreement into during 1997, Compañía Siderúrgica 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:

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 March 31, 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 March 31, 2008 sales to five customers accounted for approximately 34.5% 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 March 31, 2008 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 March 31, 2008 was U.S. $370,827 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. 13,263 (U.S. $1,239,969) at March 31, 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: 1  YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.  

RELATIONS OF SHARES INVESTMENTS

CONSOLIDATED

COMPANY NAME MAIN ACTIVITIES NUMBER OF
SHARES
OWNERSHIP
     
SUBSIDIARIES      
Cia. Siderúrgica 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. 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
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
Siderúrgica de Baja California Sales of steel products   99.95
 
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: 1  YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.  

     CREDITS BREAK DOWN
(THOUSANDS OF MEXICAN PESOS)

CONSOLIDATED

      Denominated in Pesos
(Thousands of Pesos)
Denominated in Foreign Currency
(Thousands of Pesos)
 
Time Interval
  
 Time Interval   
Credit Type /
Institution  
 Amortization
Date
Rate of
Interest
 
Current
Year
Until
1Year
Until
2Years
Until
3Years
Until
4Years
Until
5 Years

or More
Current
Year
Until
1Year
Until
2Years
Until
3Years
Until
4Years
Until
5 Years

or More
BANKS                                 
With                                
Warranty     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 0 3,230   0 0 0 0
 
TOTAL                                
STOCK                                
EXCHANGE     0 0   0 0 0 0 0 3,230   0 0 0 0
 
SUPPLIERS                                
 
Various     0 348,854   0 0 0 0 0 1,981,355   0 0 0 0
 
TOTAL                                
SUPPLIERS     0 348,854   0 0 0 0 0 1,981,355   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     185,348   0 0 0 0 0 450,800   0 0 0 0
TOTAL     185,348   0 0 0 0 0 450,800   0 0 0 0
                                 
TOTAL     534,202   0 0 0 0 0 2,435,385   0 0 0 0

NOTES: The exchange rate of the peso to the U.S. Dollar at March 31, 2008 was Ps. 10.6962


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.  

MONETARY FOREIGN CURRENCY POSITION
(Thousands of Mexican Pesos)

CONSOLIDATED

  DOLLARS OTHER CURRENCIES TOTAL
THOUSANDS
OF PESOS
FOREIGN CURRENCY POSITION THOUSANDS
OF DOLLARS
THOUSANDS
OF PESOS
THOUSANDS
OF DOLLARS
THOUSANDS
OF PESOS
 
 
 
TOTAL ASSETS 869,120 9,305,651 0 0 9,305,651
 
LIABILITIES POSITION 227,744 2,347,704 52 583 2,438,287
SHORT TERM LIABILITIES POSITION 227,744 2,347,704 52 583 2,438,287
LONG TERM LIABILITIES POSITION 0 0 0 0 0
 
NET BALANCE 641,376 6,867,947 (52) (583) 6,867,364

NOTES

     THE EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT MARCH 31, 2008 WAS PS. 10.6962


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  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 4.479 times.
 
  B)      Accomplished the actual situation is 0.26
 
  C)      Accomplished the actual situation is 199.74
     
     
     
  As of March 31, 2008, the remaining balance of the MTNs not exchanged amounts to Ps. 3,230 ($302,000 dollars).

C.P. José Flores Flores
Chief Financial Officer

BONDS AND/OR MEDIUM TERM NOTES CERTIFICATE


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  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 95.83
MEXICALI MINI MILL PRODUCTION AND SALES OF STEEL    
  PRODUCTS 250 88.43
INDUSTRIAS DEL ACERO Y DEL ALAMBRE SALE OF STEEL PRODUCTS 0 95.81
APIZACO AND CHOLULA PLANTS PRODUCTION AND SALES OF STEEL    
  PRODUCTS 460 0
CANTON CASTER FACILITY PRODUCTION OF BILLET 1,380 66.20
LORAIN CASTER FACILITY PRODUCTION OF BILLET 1,150 88.80
LORAIN HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL    
  PRODUCTS 840 80.40
LACKAWANNA HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL    
  PRODUCTS 600 89.00
MASSILLON COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL    
  PRODUCTS 125 78.60
GARY COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL    
  PRODUCTS 70 46.00
ONTARIO COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL    
  PRODUCTS 60 45.60


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  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 19.40
SCRAP VARIOUS PLANTS IN MEXICO     50.25
PLANTS IN USA   COKE VARIOUS NO 4.20
PLANTS IN USA   PELLETS VARIOUS NO 1.60
FERROALLOYS VARIOUS PLANTS IN MEXICO   YES 7.50
PLANTS IN USA   FERROALLOYS VARIOUS NO 14.90
ELECTRODES VARIOUS PLANTS IN MEXICO VARIOUS YES 2.30
PLANTS IN USA   ELECTRODES VARIOUS NO 1.30


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  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 44 410,976    
COMMERCIAL PROFILES 12 103,126    
REBAR 37 317,658    
FLAT BAR 33 276,843    
STEEL BARS 82 724,652    
OTHER 0 24,433    
BILLET 1 7,269    
HOT-ROLLED BARS        
COLD-FINISHED BARS        
SEMI-FINISHED SEAMLESS TUBE ROUNDS        
OTHER SEMI-FINISHED TRADE PRODUCTS        
TOTAL   1,864,957    
 
FOREIGN SALES   5,423,010    
TOTAL   7,287,967    


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  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   11 92,692      
COMMERCIAL PROFILES   8 63,700      
REBAR   33 232,699      
STEEL BARS   24 205,327      
FLAT BAR   1 9,797      
BILLET   0 0      
 
FOREIGN SUBSIDIARIES            
HOT-ROLLED BARS   268 2,858,766      
COLD-FINISHED BARS   35 537,781      
SEMI-FINISHED SEAMLESS TUBE            
ROUNDS   103 943,839      
OTHER SEMI-FINISHED TRADE            
PRODUCTS   53 478,409      
TOTAL     5,423,010      



MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  YEAR: 2008
GRUPO SIMEC, S.A.B. DE C.V.  

CONSTRUCTION IN PROGRESS
 
             CONSOLIDATED

THE PROJECTS IN PROGRESS AT MARCH 31, 2008, ARE:

             PROJECTS IN PROGRESS TOTAL INVESTMENT
 
PROJECTS IN REPUBLIC 114,909
PROJECTS IN MEXICALI 94,452
PROJECTS IN TLAXCALA 8,455
PROJECTS IN GUADALAJARA 27,043
 
TOTAL INVESTMENT AT  
MARCH 31, 2008 244,859
 


MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC QUARTER: 1  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: 1  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 COUPON         (Thousands of Pesos)
       FIXED VARIABLE   FREE    
      PORTION PORTION MEXICAN SUBCRIPTION 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: 1  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 FIRST QUARTER REPORT.

ING LUIS GARCIA LIMON C.P. JOSE FLORES FLORES
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER

GUADALAJARA, JAL, AT APRIL 28 OF 2008.