6-K 1 e17764_6k.htm FORM 6K

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

For the month of May , 2004.

Group Simec, Inc. (Translation of Registrant’s Name Into English)

Mexico (Jurisdiction of incorporation or organization)

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 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. de C.V. (Registrant)

Date: May 5, 2004. By: /s/ LUIS GARCÍA LIMÓN Name: Luis García Limón
Title: Chief Executive Officer

PRESS RELEASE :Contact Adolfo Luna Luna
José Flores Flores
Grupo Simec, S.A. de C.V.
Calzada Lazaro Cardenas 601
44440 Guadalajara, Jalisco, Mexico
52 33 1057 5740

GRUPO SIMEC ANNOUNCES FINAL AUDITED RESULTS OF OPERATIONS FOR THE YEAR
ENDED DECEMBER 31, 2003

GUADALAJARA, MEXICO, May 3, 2004- Grupo Simec, S.A. de C.V. (AMEX-SIM) (“Simec”) announced today its final audited results of operations for the year ended December 31, 2003. Net sales increased 27% to Ps. 2,786 million in 2003 compared to Ps. 2,196 million in 2002, primarily due to higher finished product prices and also resulting from modestly higher production levels. Primarily as a result of the foregoing and significantly lower financial expense in 2003, Simec recorded net income of Ps. 293 million in 2003 versus net income of Ps. 123 million for 2002.

Simec sold 628,243 metric tons of basic steel products during 2003 as compared to 609,202 metric tons in 2002. Exports of basic steel products were 80,744 metric tons in 2003 versus 80,179 metric tons in 2002. Additionally Simec sold 63,616 tons of billet in 2003 as compared to 23,137 tons of billet in 2002. Prices of finished products sold in 2003 increased 18% in real terms versus 2002.

Simec’s direct cost of sales was Ps. 1,830 million in 2003, or 66% of net sales, versus Ps. 1,470 million, or 67% of net sales, for 2002. Indirect manufacturing, selling, general and administrative expenses (including depreciation) was Ps. 464 million during 2003, compared to Ps. 461 million in 2002.

Simec’s operating income increased 86% to Ps. 492 million during 2003 from Ps. 265 million in 2002. Operating income was 18% of net sales in 2003 compared to 12% of net sales in 2002.

Simec recorded other expense, net, from other financial operations of Ps. 30 million in 2003 compared to other expense, net, of Ps. 37 million in 2002. In addition, Simec recorded a provision for income tax and employee profit sharing of Ps. 145 million in 2003 versus a positive provision of Ps. 23 million in 2002.

Simec recorded financial expense of Ps. 24 million in 2003 compared to financial expense of Ps. 128 million in 2002 as a result of (i) net interest expense of Ps. 13 million in 2003 compared to net interest expense of Ps. 55 million in 2002, reflecting lower debt levels in 2003, (ii) an exchange loss of Ps. 2 million in 2003 compared to an exchange loss of Ps. 104 million in 2002, reflecting lower debt levels in 2003 and a decrease of 9% in the value of the peso versus the dollar in 2003 compared to a decrease of 12.8% in the value of the peso versus the dollar in 2002 and (iii) a loss from monetary position of Ps. 9 million in 2003 compared to a gain from monetary position of Ps. 31 million in 2002, reflecting the domestic inflation rate of 4% in 2003 compared to the domestic inflation rate of 5.7% in 2002 and lower debt levels during 2003.

At December 31, 2003, Simec’s total consolidated debt consisted of approximately $2 million of U.S. dollar-denominated debt, while at December 31, 2002, Simec had outstanding approximately $47.8 million of U.S. dollar-denominated debt. Simec’s lower debt level at December 31, 2003 reflects the prepayment of $31.4

million of bank debt in 2003, the conversion to common stock in March 2003 of $16.1 million of loans (plus accrued interest thereon) from Simec’s parent company Industrias CH, S.A. de C.V. (“ICH”) at a conversion price equivalent to U.S. $1.35 (Ps. 14.588) per American Depositary Share and the conversion to common stock in November 2003 of a capital contribution from ICH made to Simec in May 2003, in the amount of $14.5 million (the proceeds of which were used to retire debt owed to ICH) at a conversion price equivalent to U.S $1.41 (Ps. 14.588) per American Depositary Share. Simec currently owes no amounts to ICH.

All figures were prepared in accordance with Mexican generally accepted accounting principles and are stated in constant Pesos at December 31, 2003.

Simec is a mini-mill steel producer in Mexico and manufactures a broad range of non-flat structural steel products.

###

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

CONSOLIDATED FINANCIAL STATEMENT
AT DECEMBER 31 OF 2003 AND 2002
(thousands of pesos)

JUDGED INFORMATION

REF		CATEGORIES		QUARTER OF PRESENT FINANCIAL YEAR				QUARTER OF PREVIOUS FINANCIAL YEAR
S				AMOUNT		%		AMOUNT		%
1		TOTAL ASSETS		6,005,226		100		5,429,329		100
2		CURRENT ASSETS		1,259,953		21		876,770		16
3		CASH AND SHORT-TERM INVESTMENTS		516,152		9		113,388		2
4		ACCOUNTS AND DOCUMENTS RECEIVABLE (NET)		431,314		7		421,522		8
5		OTHER ACCOUNTS AND DOCUMENTS RECEIVABLE		19,066		0		55,812		1
6		INVENTORIES		288,892		5		279,833		5
7		OTHER CURRENT ASSETS		4,529		0		6,215		0
8		LONG-TERM		10,300		0		0		0
9		ACCOUNTS AND DOCUMENTS RECEIVABLE (NET)		10,300		0		0		0
10		INVESTMENT IN SHARES OF SUBSIDIARIES AND NON-CONSOLIDATED		0		0		0		0
11		OTHER INVESTMENTS		0		0		0		0
12		PROPERTY, PLANT AND EQUIPMENT		4,477,292		75		4,272,492		79
13		PROPERTY		1,917,795		32		1,909,988		35
14		MACHINERY AND INDUSTRIAL		4,516,011		75		3,806,468		70
15		OTHER EQUIPMENT		135,491		2		194,563		4
16		ACCUMULATED DEPRECIATION		2,092,527		35		1,668,270		31
17		CONSTRUCTION IN PROGRESS		522		0		29,743		1
18		DEFERRED ASSETS (NET)		257,681		4		280,067		5
19		OTHER ASSETS		0		0		0		0
20		TOTAL LIABILITIES		1,378,786		100		1,691,944		100
21		CURRENT LIABILITIES		324,509		23		886,596		52
22		SUPPLIERS		206,955		15		216,619		13
23		BANK LOANS		19,078		1		354,694		21
24		STOCK MARKET LOANS		3,393		0		3,238		0
25		TAXES TO BE PAID		38,970		3		48,876		3
26		OTHER CURRENT LIABILITIES		56,113		4		263,169		16
27		LONG-TERM LIABILITIES		0		0		0		0
28		BANK LOANS		0		0		0		0
29		STOCK MARKET LOANS		0		0		0		0
30		OTHER LOANS		0		0		0		0
31		DEFERRED LOANS		1,054,277		77		805,348		48
32		OTHER LIABILITIES		0		0		0		0
33		CONSOLIDATED STOCKHOLDERS’ EQUITY		4,626,440		100		3,737,385		100
34		MINORITY INTEREST		251		0		251		0
35		MAJORITY INTEREST		4,626,189		100		3,737,134		100
36		CONTRIBUTED CAPITAL		3,716,531		80		3,357,889		90
37		PAID-IN CAPITAL STOCK (NOMINAL)		1,925,252		42		1,575,987		42
38		RESTATEMENT OF PAID-IN CAPITAL STOCK		1,167,815		25		1,158,438		31
39		PREMIUM ON SALES OF SHARES		623,464		13		623,464		17
40		CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES		0		0		0		0
41		CAPITAL INCREASE (DECREASE)		909,658		20		379,245		10
42		RETAINES EARNINGS AND CAPITAL RESERVE		1,251,369		27		1,128,619		30
43		REPURCHASE FUND OF SHARES		80,070		2		80,070		2
44		EXCESS (SHORTFALL) IN RESTATEMENT OF STOCKHOLDERS EQUITY		(714,764	)	(15	)	(952,194	)	(25	)
45		NET INCOME FOR THE YEAR		292,983		6		122,750		3

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

CONSOLIDATED FINANCIAL STATEMENT
BREAKDOWN OF MAIN CATEGORIES
(thousands of pesos)

JUDGED INFORMATION

REF		CATEGORIES		QUARTER OF PRESENT FINANCIAL YEAR				QUARTER OF PREVIOUS FINANCIAL YEAR
S				AMOUNT		%		AMOUNT		%
3		CASH AND SHORT-TERM INVESTMENTS		516,152		100		113,388		100
46		CASH		164,753		32		85,744		76
47		SHORT-TERM INVESTMENTS		351,399		68		27,644		24
18		DEFERRED ASSETS (NET)		257,681		100		280,067		100
48		AMORTIZED OR REDEEMED EXPENSES		257,681		100		277,747		199
49		GOODWILL		0		0		0		0
50		DEFERRED TAXES		0		0		0		0
51		OTHERS		0		0		2,320		1
21		CURRENT LIABILITIES		324,509		100		886,596		100
52		FOREIGN CURRENCY LIABILITIES		84,180		26		566,906		64
53		MEXICAN PESOS LIABILITIES		240,329		74		319,690		36
24		STOCK MARKET LOANS		3,393		100		3,238		100
54		COMMERCIAL PAPER		0		0		0		0
55		CURRENT MATURITIES OF MEDIUM TERM NOTES		3,393		100		3,238		100
56		CURRENT MATURITIES OF BONDS		0		0		0		0
26		OTHER CURRENT LIABILITIES		56,113		100		263,169		100
57		OTHER CURRENT LIABILITIES WITH COST		0		0		157,823		60
58		OTHER CURRENT LIABILITIES WITHOUT COST		56,113		100		105,346		40
27		LONG-TERM LIABILITIES		0		0		0		0
59		FOREIGN CURRENCY LIABILITIES		0		0		0		0
60		MEXICAN PESOS LIABILITIES		0		0		0		0
29		STOCK MARKET LOANS		0		0		0		0
61		BONDS		0		0		0		0
62		MEDIUM TERM NOTES		0		0		0		0
30		OTHER LOANS		0		0		0		0
63		OTHER LOANS WITH COST		0		0		0		0
64		OTHER LOANS WITHOUT COST		0		0		0		0
31		DEFERRED LOANS		1,054,277		100		805,348		100
65		NEGATIVE GOODWILL		0		0		0		0
66		DEFERRED TAXES		1,045,289		99		796,682		99
67		OTHERS		8,988		1		8,666		1
32		OTHER LIABILITIES		0		0		0		0
68		RESERVES		0		0		0		0
69		OTHER LIABILITIES		0		0		0		0
44		EXCESS (SHORTFALL) IN RESTATEMENT OF STOCKHOLDERS” EQUITY		(714,764	)	(100	)	(952,194	)	(100	)
70		ACCUMULATED INCOME DUE TO MONETARY POSITION		(714,764	)	(100	)	(952,194	)	(100	)
71		INCOME FROM NON-MONETARY POSITION ASSETS		0		0		0		0

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

CONSOLIDATED FINANCIAL STATEMENT
OTHER CONCEPTS
(thousands of pesos)

JUDGED INFORMATION

REF		CATEGORIES		QUARTER OF PRESENT FINANCIAL YEAR		QUARTER OF PREVIOUS FINANCIAL YEAR
S				AMOUNT		AMOUNT
72		WORKING CAPITAL		935,444		(9,826	)
73		PENSIONS FUND AND SENIORITY PREMIUMS		0		0
74		EXECUTIVES (*)		25		28
75		EMPLOYERS (*)		374		390
76		WORKERS (*)		889		915
77		COMMON SHARES (*)		131,973,022		2,160,625,03
78		REPURCHASED SHARES (*)		0		0

(*)    THESE ITEMS SHOULD BE EXPRESSED IN UNITS

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

CONSOLIDATED EARNING STATEMENT
FROM JANUARY 1 TO DECEMBER 31 OF 2003 AND 2002
(thousands of pesos)

JUDGED INFORMATION

REF		CATEGORIES		QUARTER OF PRESENT FINANCIAL YEAR				QUARTER OF PREVIOUS FINANCIAL YEAR
R				AMOUNT		%		AMOUNT		%
1		NET SALES		2,785,567		100		2,196,321		100
2		COST OF SALES		1,829,981		66		1,469,625		67
3		GROSS INCOME		955,586		34		726,696		33
4		OPERATING EXPENSES		463,689		17		461,392		21
5		OPERATING INCOME		491,897		18		265,304		12
6		TOTAL FINANCING COST		24,412		1		128,628		6
7		INCOME AFTER FINANCING COST		467,485		17		136,676		6
8		OTHER FINANCIAL OPERATIONS		29,621		1		37,148		2
9		INCOME BEFORE TAXES AND WORKERS’ PROFIT SHARING		437,864		16		99,528		5
10		RESERVE FOR TAXES AND WORKERS’ PROFIT SHARING		144,880		5		(23,231	)	(1	)
11		NET INCOME AFTER TAXES AND WORKERS’ PROFIT SHARING		292,984		11		122,759		6
12		SHARE IN NET INCOME OF SUBSIDIARIES AND NON-CONSOLIDATED ASSOCIATES		0		0		0		0
13		CONSOLIDATED NET INCOME FROM CONTINUOS OPERATIONS		292,984		11		122,759		6
14		INCOME FROM DISCONTINUOUS OPERATIONS		0		0		0		0
15		CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS		292,984		11		122,759		6
16		EXTRAORDINARY ITEMS NET EXPENSES (INCOME)		0		0		0		0
17		NET EFFECT AT THE BEGINNING OF THE YEAR BY ACCOUNTING PRINCIPLES		0		0		0		0
18		NET CONSOLIDATED INCOME		292,984		11		122,759		6
19		NET INCOME OF MINORITY INTEREST		1		0		9		0
20		NET INCOME OF MAJORITY INTEREST		292,983		1		122,750		6

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

CONSOLIDATED EARNING STATEMENT
BREAKDOWN OF MAIN CONCEPTS
(thousands of pesos)

JUDGED INFORMATION

REF		CATEGORIES		QUARTER OF PRESENT FINANCIAL YEAR				QUARTER OF PREVIOUS FINANCIAL YEAR
R				AMOUNT		%		AMOUNT		%
1		NET SALES		2,785,567		100		2,196,321		100
21		DOMESTIC		2,466,394		89		1,929,930		88
22		FOREIGN		319,173		11		266,391		12
23		TRANSLATED INTO DOLLARS (***)		28,810				25,655
6		TOTAL FINANCING COST		24,412		100		128,628		100
24		INTEREST PAID		17,751		73		56,608		44
25		EXCHANGE LOSSES		2,544		10		103,693		81
26		INTEREST EARNED		5,411		22		1,130		1
27		EXCHANGE PROFITS		0		0		0		0
28		GAIN FROM MONETARY POSITION		9,528		39		(30,543	)	(24	)
8		OTHER FINANCIAL OPERATIONS		29,621		100		37,148		100
29		OTHER NET EXPENSES (INCOME) NET		29,621		100		37,148		100
30		(PROFIT) LOSS ON SALE OF OWN SHARES		0		0		0		0
31		(PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS		0		0		0		0
10		RESERVE FOR TAXES AND WORKERS’ PROFIT SHARING		144,880		100		(23,231	)	100
32		INCOME TAX		26,762		18		35,411		152
33		DEFERRED INCOME TAX		113,272		78		(58,962	)	(254	)
34		WORKERS’ PROFIT SHARING		4,846		0		320		1
35		DEFERRED WORKERS’ PROFIT SHARING		0		0		0		0

(***)   THOUSANDS OF DOLLARS

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

CONSOLIDATED EARNING STATEMENT
OTHER CONCEPTS
(thousands of pesos)

JUDGED INFORMATION

REF		CATEGORIES		QUARTER OF PRESENT FINANCIAL YEAR		QUARTER OF PREVIOUS FINANCIAL YEAR
R				AMOUNT		AMOUNT
36		TOTAL SALES		2,986,121		2,339,693
37		NET FISCAL INCOME OF THE YEAR		0		0
38		NET SALES (**)		2,785,567		2,196,321
39		OPERATION INCOME (**)		491,897		265,304
40		NET INCOME OF MAJORITY INTEREST (**)		292,983		122,750
41		NET CONSOLIDATED INCOME (**)		292,984		122,759

(**)   THE RESTATED INFORMATION FOR THE LAST TWELVE MONTHS SHOULD BE USED

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

CONSOLIDATED EARNING STATEMENT OF THE FOURTH QUARTER
FROM OCTOBER 1 TO DECEMBER 31 OF 2003 AND 2002
(thousands of pesos)

JUDGED INFORMATION

REF		CATEGORIES		QUARTER OF PRESENT FINANCIAL YEAR				QUARTER OF PREVIOUS FINANCIAL YEAR
R				AMOUNT		%		AMOUNT		%
1		NET SALES		755,843		100		579,992		100
2		COST OF SALES		500,915		66		385,442		66
3		GROSS INCOME		254,928		34		194,550		34
4		OPERATING EXPENSES		110,851		15		118,050		20
5		OPERATING INCOME		144,077		19		76,500		13
6		TOTAL FINANCING COST		(126	)	0		10,870		2
7		INCOME AFTER FINANCING COST		144,203		19		65,630		13
8		OTHER FINANCIAL OPERATIONS		29,906		4		48,011		8
9		INCOME BEFORE TAXES AND WORKERS’ PROFIT SHARING		114,297		15		17,619		3
10		RESERVE FOR TAXES AND WORKERS’ PROFIT SHARING		106,889		14		(37,726	)	(7	)
11		NET INCOME AFTER TAXES AND WORKERS’ PROFIT SHARING		7,408		1		55,345		10
12		SHARE IN NET INCOME OF SUBSIDIARIES AND NON-CONSOLIDATED  ASSOCIATES		0		0		0		0
13		CONSOLIDATED NET INCOME FROM CONTINUOS OPERATIONS		7,408		1		55,345		10
14		INCOME FROM DISCONTINUOUS OPERAATIONS		0		0		0		0
15		CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS		7,408		1		55,345		10
16		EXTRAORDINARY ITEMS NET EXPENSES (INCOME)		0		0		0		0
17		NET EFFECT AT THE BEGINNING OF THE YEAR BY CHANGES IN ACCOUNTING PRINCIPLES		0		0		0		0
18		NET CONSOLIDATED INCOME		7,408		1		55,345		10
19		NET INCOME OF MINORITY INTEREST		1		0		9		0
20		NET INCOME OF MAJORITY INTEREST		7,407		1		55,336		10

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

CONSOLIDATED EARNING STATEMENT OF THE FOURTH QUARTER
BREAKDOWN OF MAIN CONCEPTS
FROM OCTOBER 1 TO DECEMBER 31 OF 2003 AND 2002
(thousands of pesos)

JUDGED INFORMATION

REF		CATEGORIES		QUARTER OF PRESENT FINANCIAL YEAR				QUARTER OF PREVIOUS FINANCIAL YEAR
R				AMOUNT		%		AMOUNT		%
1		NET SALES		755,843		100		579,992		100
21		DOMESTIC		643,566		85		516,482		89
22		FOREIGN		112,277		15		63,510		11
23		TRANSLATED INTO DOLLARS (***)		16,567				5,959
6		TOTAL FINANCING COST		(126	)	100		10,870		100
24		INTEREST PAID		482		383		9,673		89
25		EXCHANGE LOSSES		0		0		6,646		61
26		INTEREST EARNED		2,730		2,167		214		2
27		EXCHANGE PROFITS		6,717		5,331		0		0
28		GAIN FROM MONETARY POSITION		8,839		7,015		(5,235	)	(48	)
8		OTHER FINANCIAL OPERATIONS		29,906		100		48,011		100
29		OTHER NET EXPENSES (INCOME) NET		29,906		100		48,011		100
30		(PROFIT) LOSS ON SALE OF OWN SHARES		0		0		0		0
31		(PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS		0		0		0		0
10		RESERVE FOR TAXES AND WORKERS’ PROFIT SHARING		106,889		100		(37,726	)	100
32		INCOME TAX		2,789		3		7,706		20
33		DEFERRED INCOME TAX		100,363		94		(45,639	)	(121	)
34		WORKERS’ PROFIT SHARING		3,737		3		207		1
35		DEFERRED WORKERS’ PROFIT SHARING		0		0		0		0

(***)   THOUSANDS OF DOLLARS

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
FROM JANUARY 1 TO DECEMBER 31 OF 2003 AND 2002
(thousands of pesos)

JUDGED INFORMATION

REF		CATEGORIES		QUARTER OF PRESENT FINANCIAL YEAR		QUARTER OF PREVIOUS FINANCIAL YEAR
C				AMOUNT		AMOUNT
1		CONSOLIDATED NET INCOME		292,984		122,759
2		+ (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE CASH		313,523		134,362
3		CASH FLOW FROM NET INCOME OF THE YEAR		606,507		257,121
4		CASH FLOW FROM CHANGE IN WORKING CAPITAL		(217,345	)	72,264
5		CASH GENERATED (USED) IN OPERATING ACTIVITIES		389,162		329,385
6		CASH FLOW FROM EXTERNAL FINANCING		(335,386	)	(529,118	)
7		CASH FLOW FROM INTERNAL FINANCING		358,642		290,596
8		CASH FLOW GENERATED (USED) BY FINANCING		23,256		(238,522	)
9		CASH FLOW GENERATED (USED) IN INVESTMENT ACTIVITIES		(9,654	)	(44,811	)
10		NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS		402,764		46,052
11		CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF PERIOD		113,388		67,336
12		CASH AND SHORT TERM INVESTMENTS AT THE END OF PERIOD		516,152		113,388

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

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

JUDGED INFORMATION

REF		CATEGORIES		QUARTER OF PRESENT FINANCIAL YEAR		QUARTER OF PREVIOUS FINANCIAL YEAR
C				AMOUNT		AMOUNT
2		+ (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE CASH		313,523		134,362
13		DEPRECIATION AND AMORTIZATION FOR THE YEAR		182,180		162,106
14		+ (-) NET INCREASE (DECREASE) IN PENSIONS FUND AND SENIORITY PREMIUMS		247		139
15		+ (-) NET LOSS (PROFIT) IN MONEY EXCHANGE		0		0
16		+ (-) NET LOSS (PROFIT) IN ASSETS AND LIABILITIES ACTUALIZATION		0		0
17		+ (-) OTHER ITEMS		0		0
40		+ (-) OTHER ITEMS WHICH DO NOT AFFECT EBITDA		131,096		(27,883	)
4		CASH FLOW CHANGE IN WORKING CAPITAL		(217,345	)	72,264
18		+ (-) DECREASE (INCREASE) IN ACCOUNT RECEIVABLES		(20,092	)	(77,511	)
19		+ (-) DECREASE (INCREASE) IN INVENTORIES		(9,059	)	18,531
20		+ (-) DECREASE (INCREASE) IN OTHER ACCOUNT RECEIVABLES		38,432		10,768
21		+ (-) DECREASE (INCREASE) IN SUPPLIER ACCOUNT		(9,664	)	73,836
22		+ (-) DECREASE (INCREASE) IN OTHER LIABILITIES		(216,962	)	46,640
6		CASH FLOW FROM EXTERNAL FINANCING		(335,386	)	(529,118	)
23		+ SHORT-TERM BANK AND STOCK MARKET FINANCING		1,579		40,922
24		+ LONG-TERM BANK AND STOCK MARKET FINANCING		0		0
25		+ DIVIDEND RECEIVED		0		0
26		OTHER FINANCING		75		(892	)
27		BANK FINANCING AMORTIZATION		(337,040	)	(567,110	)
28		(-) STOCK MARKET AMORTIZATION		0		(2,038	)
29		(-) OTHER FINANCING AMORTIZATION		0		0
7		CASH FLOW FROM INTERNAL FINANCING		358,642		290,596
30		+ (-) INCREASE (DECREASE) IN CAPITAL STOCK		358,642		290,596
31		(-) DIVIDENDS PAID		0		0
32		+ PREMIUM ON SALE OF SHARES		0		0
33		+ CONTRIBUTION FOR FUTURE CAPITAL INCREASES		0		0
9		CASH FLOW GENERATED (UTILIZED) IN INVESTMENT ACTIVITIES		(9,654	)	(44,811	)
34		+ (-) INCREASE 8DECREASE) IN STOCK INVESTMENTS OF A PERMANENT NATURE		0		0
35		(-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT		(58,841	)	(9,271	)
36		(-) INCREASE IN CONSTRUCTION PROGRESS		0		0
37		+ SALE OF OTHER PERMANET INVESTMENTS		0		0
38		+ SALE OF TANGIBLE FIXED ASSETS		0		0
39		+ (-) OTHER ITEMS		49,187		(35,540	)

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

RATIOS
CONSOLIDATED

JUDGED INFORMATION

REF		CATEGORIES		QUARTER OF PRESENT FINANCIAL YEAR		QUARTER OF PREVIOUS FINANCIAL YEAR
P
		YIELD
1		NET INCOME TO NET SALES		10.52%		5.59%
2		NET INCOME TO STOCKHOLDERS’ EQUITY (**)		6.33%		3.28%
3		NET INCOME TO TOTAL ASSETS (**)		4.88%		2.26%
4		CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME		0.00%		0.00%
5		INCOME DUE TO MONETARY POSITION TO NET INCOME		(3.25)%		24.88%
		ACTIVITY
6		NET SALES TO NET ASSETS (**)		0.46	times	0.40	times
7		NET SALES TO FIXED ASSETS (**)		0.62	times	0.51	times
8		INVENTORIES ROTATION (**)		6.33	times	5.25	times
9		ACCOUNTS RECEIVABLE IN DAYS OF SALES		49	days	60	days
10		PAID INTEREST TO TOTAL LIABILITIES WITH COST (**)		79.00%		8.40%
		LEVERAGE
11		TOTAL LIABILITIES TO TOTAL ASSETS		22.96%		31.16%
12		TOTAL LIABILITIES TO STOCKHOLDERS’ EQUITY		0.30	times	0.45	times
13		FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES		6.11%		33.51%
14		LONG-TERM LIABILITIES TO FIXED ASSETS		0.00%		0.00%
15		OPERATING INCOME TO INTEREST PAID		27.71	times	4.69%	times
16		NET SALES TO TOTAL LIABILITIES (**)		2.02	times	1.30%	times
		LIQUIDITY
17		CURRENT ASSETS TO CURRENT LIABILITIES		3.88	times	0.99	times
18		CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES		2.99	times	0.67	times
19		CURRENT ASSETS TO TOTAL LIABILITIES		0.91	times	0.52	times
20		AVAILABLE ASSETS TO CURRENT LIABILITIES		159.06%		12.79%
		CASH FLOW
21		CASH FLOW FROM NET INCOME TO NET SALES		21.77%		11.71%
22		CASH FLOW FROM CHANGES IN WORKING CAPITAL TO NET SALES		(7.80)%		3.29%
23		CASH GENERATED (USED) IN OPERATING TO INTEREST PAID		21.92	times	5.82	times
24		EXTERNAL FINANCING TO CASH GENERATED (USED) IN FINANCING		(1,442.15)%		221.83%
25		INTERNAL FINANCING TO CASH GENERATED (USED) IN FINANCING		1,542.15%		(121.83)%
26		ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT TO CASH GENERATED (USED) IN INVESTMENT ACTIVITIES		609.50%		20.69%

(**)   IN THESE RATIOS PROVIDE INFORMATION FOR THE LAST TWELVE MONTHS

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

DATE PER SHARE
CONSOLIDATED
(Pesos)

JUDGED INFORMATION

REF	CATEGORIES	QUARTER OF PRESENT FINANCIAL YEAR		QUARTER OF PREVIOUS FINANCIAL YEAR
D
1	BASIC PROFIT PER ORDINARY SHARE (**)	$ 2.46		$ 0.06
2	BASIC PROFIT PER PREFERENCE SHARE (**)	$ 0.00		$ 0.00
3	DILUTED PROFIT PER ORDINARY SHARE (**)	$ 0.00		$ 0.00
4	CONTINUOUS OPERATING PROFIT PER COMMON SHARE (**)	$ 2.46		$ 0.06
5	EFFECT OF DISCONTINUED OPERATIONS ON CONTINUOUS OPERATING PROFIT PER SHARE (**)	$ 0.00		$ 0.00
6	EFFECT OF EXTRAORDINARY PROFIT AND LOSS ON CONTINUOUS OPERATING PROFIT PER SHARE (**)	$ 0.00		$ 0.00
7	EFFECT BY CHANGES IN ACCOUNTING POLICIES ON CONTINUOUS OPERATING PROFIT PER SHARE (**)	$ 0.00		$ 0.00
8	CARRYING VALUE PER SHARE	$ 35.05		$ 1.73
9	CASHH DIVIDEND ACCUMULATED PER SHARE	$ 0.00		$ 0.00
10	DIVIDEND IN SHARES PER SHARE	0.00	shares	0.00	shares
11	MARKET PRICE TO CARRYING VALUE	1.07	times	0.31	times
12	MARKET PRICE TO BASIC PROFIT PER COMMON SHARE (**)	15.24	times	8.83	times
13	MARKET PRICE TO BASIC PROFIT PER PREFERENCE 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
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

FINANCIAL STATEMENT NOTES

CONSOLIDATED

JUDGED INFORMATION

s35.- Stockholders’ Equity:
Effects of inflation – The effects of inflation on stockholders’ equity at December 31, 2004 are as follows:

		Historical  Cost			Restated Amount
								Total
Capital stock	Ps.	1,925,252		Ps.	1,167,815		Ps.	3,093,067
Additional paid-in capital		549,517			73,947			623,464
Retained earnings		1,151,557			472,865			1,624,422
Excess resulting from restating    Stockholders’ equity to reflect    Certain effects of inflation		—			113,238			113,238
										Effect deferred income tax Bulletin D-4		(662,340	)		(165,662	)		(828,002	)

s39.- Premium in subscription of Capital Stock made in March 29, 2001.

s44.- 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. Simec’s long-term liabilities resulting from the adoption of this Bulletin was Ps. 1,045,289 at December 31, 2003 compared to Ps. 796,682 at December 31, 2002. The effect on Simec’s consolidated statement of income in 2003 was an increase of Ps. 113,272 in the provision for income tax and employee profit sharing compared to a decrease of Ps. 58,962 in the same period of 2002. These provisions do not affect the cash flow of Simec.

r24.- Simec doesn’t have interest paid in UDI’s

r26.- Simec doesn’t have interest earned in UDI’s

c02.- Consolidated Statements of Changes in Financial Position The net loss in money exchange and net profit in liabilities actualization are as follows:

		December 31, 2003			December 31, 2002
Net loss (profit) in money exchange	Ps.	5,527		Ps.	73,246
Net loss (profit) in liabilities actualization		(13,702	)		(47,788	)

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

		DIRECTOR REPORT
		ANNEX 1		CONSOLIDATED

JUDGED INFORMATION

INFORMATION CONCERNING LIQUIDITY AND CAPITAL RESOURCES AND DEBT OBLIGATIONS WITH BANKS AND COMMERCIAL CREDITORS

Liquidity and Capital Resources

At December 31, 2003, Simec’s total consolidated debt consisted of approximately $2.0 million of U.S. dollar-denominated debt, while at December 31, 2002, Simec had outstanding approximately $47.8 million of U.S. dollar-denominated debt (including $14.4 million of debt owed to its parent company Industrias CH, S.A. de C.V. (“ICH”)). Simec’s lower debt level at December 31, 2003 reflected (i) the prepayment of $30 million of bank debt in 2003 (Simec financed $16.2 million of this prepayment with loans from ICH), (ii) the semi-annual amortization installments on its bank debt of $1.4 million in 2003, (iii) the conversion to common stock in March 2003 of $16.1 million of loans (plus accrued interest thereon) from ICH at a conversion price equivalent to U.S. $1.35 (Ps.14.588) per American Depositary Share and (iv) the conversion to common stock in November 2003 of a capital contribution from ICH made to Simec in May 2003, in the amount of $14.5 million (the proceeds of which were used to retire debt owed to ICH) at a conversion price equivalent to U.S $1.41 (Ps. 14.588) per American Depositary Share. Simec’s outstanding $1.7 million of bank debt at December 31, 2003 consisted of (i) $0.2 million which matures in 2007 and amortizes in equal semi-annual installments and (ii) $1.5 million which matures in 2009 and has no amortization payments. In addition Simec had outstanding $302,000 of 8 7/8% MTN’s due 1998 (accrued interest at December 31, 2003 was $254,860) which were issued in 1993 as part of a $68 million issuance. At December 31, 2003 Simec owed no debt to ICH.

In December 2003 Simec acquired Administradora de Cartera de Occidente, S.A. de C.V. (“Acosa”) from ICH for nominal consideration. Acosa’s sole assets are a portfolio of defaulted receivables it acquired in June 2003 from various Mexican banks which are in the process of liquidation. The purchase price of the portfolio is payable by Acosa solely from recoveries if any, net of expenses of collection, with respect to the defaulted receivables; upon payment of the purchase price from recoveries on the portfolio, Acosa and the Mexican banks will share in any additional recoveries, net of expenses of collection, on a 50%/50% basis.

At December 31, 2003, Compañia Siderúrgica de Guadalajara, S.A. de C.V. (“CSG”) was not in compliance with various financial covenants contained in its bank loan instruments pursuant to which Simec’s $1.7 million of bank debt is outstanding. In accordance with Mexican generally accepted accounting principles, Simec’s long term bank debt has been reclassified as current liabilities. This noncompliance results from intercompany debt owed from CSG to its parent company Simec.

In February 2003, Simec effected a 1 for 20 reverse split of its Series B common stock; as a result its American Depositary Shares now represent 1 share of Series B Common Stock. In March 2003, ICH converted approximately $16.1 million of loans to Simec plus accrued interest thereon (which loans were made to fund the prepayment of Simec bank debt) into common shares of Simec at a conversion price equivalent to U.S. $1.35 per American Depositary Share. On October 2, 2003, certain minority shareholders of Simec exercised their pre-emptive rights arising as a result of the conversion of ICH debt to purchase capital stock for Ps. 19.4 million at the price per share of Ps. 14.588 (the equivalent of U.S. $1.35 per American Depositary Share). In November 2003, ICH converted into common shares of Simec the capital contribution to Simec made in May 2003, in the

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

		DIRECTOR REPORT
		ANNEX 1		CONSOLIDATED

JUDGED INFORMATION

amount of $14.5 million (the proceeds of which were used to retire debt owed to ICH) for capital stock was issued in the fourth quarter of 2003, at a conversion price equivalent to U.S $1.41 (Ps. 14.588) per American Depositary Share. The minority shareholders of Simec could exercise their pre-emptive rights arising as a result of the conversion by ICH of the capital contribution to Simec made in May 2003 to purchase Series B Common Stock at the price share of Ps. 14.588 when the Comisión Nacional Bancaria y de Valores approves the actualization of the capital stock of Simec.

Net resources provided by operations were Ps. 389 million in 2003 (which amount reflects the conversion of loans of ICH into common shares of Simec for Ps. 184 million) versus Ps. 329 million of net resources provided in operations in 2002. Net resources provided by financing activities were Ps. 23 million in 2003 (which amount reflects the semi-annual amortization installments on its bank debt of Ps. 15 million ($1.4 million), the prepayment of Ps. 322 million ($30 million) of bank debt, the conversion by ICH of Ps. 184 million of loans (plus accrued interest thereon) into common shares, the increase of the capital stock by the minority shareholders for Ps. 19 million and the conversion into common shares of the capital contribution from ICH to Simec in the amount of Ps. 151 million ($14.5 million) in November 2003 versus Ps. 239 million of net resources used in financing activities in 2002 (which amount reflects the semi-annual amortization installments on its bank debt of Ps. 69 million ($6.7 million), the prepayment of Ps. 500 million ($48 million) of bank debt, the conversion by ICH of Ps. 263 million of loans into common shares and the exercise by certain minority shareholders of their pre-emptive rights arising as a result of the conversion of ICH debt to purchase capital stock for Ps. 28 million). Net resources used in investing activities (to acquire property, plant and equipment and other non-current assets) were Ps. 10 million in 2003 versus net resources used in investing activities of Ps. 45 million in 2002.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

Year Ended December 31, 2003 compared to Year Ended December 31, 2002

Net Sales

Net sales of Simec increased 27% to Ps. 2,786 million in 2003 compared to Ps. 2,196 million in 2002. Sales in tons of basic steel products increased 3% to 628,243 tons in 2003 compared to 609,202 tons in 2002. Exports of basic steel products were 80,744 tons in 2003 versus 80,179 tons in 2002. Additionally, Simec sold 63,616 tons of billet in 2003 compared to 23,137 tons of billet in 2002. The average price of steel products increased 18% in real terms in 2003 versus 2002.

Direct Cost of Sales

Simec’s direct cost of sales increased 24% to Ps. 1,830 million in 2003 compared to Ps. 1,470 million in 2002. Direct cost of sales as a percentage of net sales decreased to 66% in 2003 from 67% in 2002. The average cost of raw materials used to produce steel products increased 14% in real terms in 2003 versus 2002 primarily as a result of increases in the price of scrap, electricity and gas.

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

		DIRECTOR REPORT
		ANNEX 1		CONSOLIDATED

JUDGED INFORMATION

Marginal Profit

Simec’s marginal profit increased 32% to Ps. 956 million in 2003 compared to Ps. 726 million in 2002. As a percentage of net sales, marginal profit was 34% in 2003 compared to 33% in 2002.

Indirect Manufacturing, Selling, General And Administrative Expenses

Indirect manufacturing, selling, general, and administrative expenses (which include depreciation and amortization) increased 0.6% to Ps. 464 million in 2003 from Ps. 461 million in 2002; Simec recorded an increase of Ps. 20 million in depreciation and amortization expense which in 2003 was Ps. 182 million compared to Ps. 162 million in 2002.

Operating Income

Simec’s operating income increased 86% to Ps. 492 million in 2003 compared to Ps. 265 million in 2002. Operating income was 18% of net sales in 2003 and 12% of net sales in 2002.

Financial Income (Expense)

Simec recorded financial expense in 2003 of Ps. 24 million compared to financial expense of Ps. 128 million in 2002. Simec recorded an exchange loss of approximately Ps. 2 million in 2003 compared to an exchange loss of Ps. 104 million in 2002, reflecting the 9% decrease in the value of the peso versus the dollar in 2003 versus a decrease of 12.8% in the value of the peso versus the dollar in 2002 and lower debt levels in 2003. Net interest expense was Ps. 13 million in 2003 versus Ps. 55 million in 2002 reflecting a lower amount of debt outstanding during 2003. Simec recorded a loss from monetary position of Ps. 9 million in 2003 compared to a gain from monetary position of Ps. 31 million in 2002, reflecting the domestic inflation rate of 4% in 2003 as compared to 5.7% in 2002 and lower debt levels during 2003.

Other Income (Expense), Net

Simec recorded other expense, net, of Ps. 30 million in 2003 (reflecting (i) a reserve of Ps. 11 million relating to the clean-up of contaminated land at the Pacific Steel facilities, (ii) a reserve of Ps. 18 million relating to the realizable value of idle machinery and equipment and (iii) other expense, net related to other financial operations of Ps. 1 million) compared to other expense, net, of Ps. 37 million in 2002 (reflecting (i) other income relating to tax benefits associated with the acquisition of machinery and equipment made in 2001 of Ps. 6 million, (ii) a gain of Ps. 2 million in respect of $200,000 principal amount of Simec’s MTNs which were acquired at 50% of the principal amount thereof, without provision for accrued interest, and were subsequently cancelled, (iii) income of Ps. 3 million relating to insurance payments received in respect of the breakdown of the scrap shredder machine at the Mexicali mini-mill, (iv) expenses relating to an adjustment in the value of the land of its subsidiary Pacific Steel of Ps. 21 million, (v) expenses of Ps. 2 million for fees relating to obtaining the approval of the Comisión Nacional Bancaria y de Valores to increase the capital stock of Simec, (vi) a reserve of Ps. 10 million relating to the realizable value of idle machinery and equipment, (vii) a reserve of Ps. 8 million relating to the clean-up of contaminated land at the Pacific Steel facilities and (viii) expenses related to other financial operations of Ps. 7 million).

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

		DIRECTOR REPORT
		ANNEX 1		CONSOLIDATED

JUDGED INFORMATION

Income Tax and Employee Profit Sharing

Simec recorded a provision of Ps. 145 million for income tax and employee profit sharing in 2003 (including an increase in the provision of Ps. 113 million from the application of Bulletin D-4 with respect to deferred income tax described below) compared to a positive provision of Ps. 23 million in 2002 (including a decrease in the provision of Ps. 59 million from the application of Bulletin D-4 with respect to deferred income tax described below).

Net Income

As a result of the foregoing, Simec recorded net income of Ps. 293 million in 2003 compared to net income of Ps. 123 million in 2002.

Recent Pronouncements Applicable to Mexican GAAP

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. Simec’s long-term liabilities resulting from the adoption of this Bulletin was Ps. 1,045 million at December 31, 2003 compared to Ps. 797 million at December 31, 2002. The effect on Simec’s consolidated statement of income in 2003 was an increase of Ps. 113 million in the provision for income tax and employee profit sharing compared to a decrease of Ps. 59 million in 2002. These provisions do not affect the cash flow of Simec.

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

		FINANCIAL STATEMENT NOTES
		ANNEX 2		CONSOLIDATED

JUDGED INFORMATION

(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 - The consolidated financial statements have been prepared in accordance with principles generally accepted in Mexico, which include the recognition of the effects of inflation on the financial information and the presentation in constant Mexican pesos.

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:

• Compañía Siderúrgica de California, S.A. de C.V.

• Industrias del Acero y del Alambre, S.A. de C.V.

• Pacific Steel Inc.

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 includes 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 - The inventories are originally stated at average cost and subsequently adjusted to replacement value at the balance sheet date. The replacement values do not exceed market and are determined as follows:

Billet finished goods and work in process - At the latest production cost for the month.

Raw materials - According to purchase prices prevailing in the market at the balance sheet date.

Materials, supplies and rollers - At historical cost, restated by applying the steel industry inflation index.

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

		FINANCIAL STATEMENT NOTES
		ANNEX 2		CONSOLIDATED

JUDGED INFORMATION

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. 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. 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 capitalized amounts are restated using a factor derived from the NCPI cumulative from the date of capitalization through period-end and are amortized over the average depreciation period of the corresponding assets. The estimated useful lives of assets as of December 31, 2003 are as follows:

			Years
	Buildings		15 to 50
	Machinery and equipment		10 to 40

f. Other assets - Organization and pre-operating expenses are capitalized and restated using a factor derived from the NCPI cumulative from the date of generation through period-end, and their amortization is calculated by the straight-line method over a period of 20 years.

g. 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.

h. 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.

i. Cost of sales - Cost of sales related to sales of inventory items is recorded at standard cost, which approximates the replacement cost at the date of sale.

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

		FINANCIAL STATEMENT NOTES
		ANNEX 2		CONSOLIDATED

JUDGED INFORMATION

j. Income tax and employee profit sharing - 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).

The financial statements of foreign subsidiaries are translated into Mexican pesos in conformity with Bulletin B-15 “Transactions in Foreign Currency and Translation of Financial Statements of Foreign Operations”. All foreign subsidiaries are considered to be “integrated foreign operations”, as defined in Bulletin B-15, and accordingly such financial statements were translated as follows:

• Monetary items at the exchange rate at the balance sheet date.

• Non-monetary items and stockholders’ equity at the exchange rate prevailing at the date the transactions occurred.

• Income and expense items at an appropriate average exchange rate.

• The resulting foreign currency translation differences are included in the financial income (expense) in the statement of income (loss).

• All resulting Mexican peso amounts are restated for the effects of inflation in accordance with the dispositions of Bulletin B-10 using the NCPI, where such effects are considered significant.

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 December 31, 2003 and 2002. 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.

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

		FINANCIAL STATEMENT NOTES
		ANNEX 2		CONSOLIDATED

JUDGED INFORMATION

n. Gain on monetary position - The gain on monetary position in the consolidated statements of income (loss) is determined by applying to net monetary assets or liabilities at the beginning of each month the factor of inflation derived from the NCPI and is restated at period-end with the corresponding factor.

o. Restatement of capital stock and retained earnings (losses) - This is determined by multiplying capital stock contributions and retained earnings (losses) by factors derived from the NCPI, which measure the cumulative inflation from the date when capital stock contributions were made and earnings (losses) were generated, through the latest period-end.

p. Effect of restatement of stockholders’ equity - The effect resulting from restating stockholders’ equity includes the accumulated effect from holding non-monetary assets, which represents the change in the specific price level of those assets compared to the change in the NCPI.

(2) Financial Debt:

At December 31, 2003, Simec’s total consolidated debt consisted of approximately $2.0 million of U.S. dollar-denominated debt, while at December 31, 2002, Simec had outstanding approximately $47.8 million of U.S. dollar-denominated debt (including $14.4 million of debt owed to its parent company Industrias CH, S.A. de C.V.) (“ICH”); Simec’s lower debt level at December 31, 2003 reflected the prepayment of $30 million of bank debt in 2003 (Simec financed $16.2 million of this prepayment with loans from ICH), the semi-annual amortization installment on its bank debt of $1.4 million in May and November 2003, the conversion to common stock in March 2003 of $16.1 million of loans (plus accrued interest thereon) from ICH at a conversion price equivalent to U.S. $1.35 (Ps.14.588) per American Depositary Share and the conversion to common stock in November 2003 of a capital contribution from ICH made to Simec in May 2003, in the amount of $14.5 million (the proceeds of which were used to retire debt owed to ICH) at a conversion price equivalent to U.S $1.41 (Ps. 14.588) per American Depositary Share. Simec’s remaining outstanding $1.7 million of bank debt consisted of (i) $0.2 million which matures in 2007 and amortizes in equal semi-annual installments and (ii) $1.5 million which matures in 2009 and has no amortization payments. In addition Simec had outstanding $302,000 of 8 7/8% MTN’s due 1998 (accrued interest at December 31, 2003 was $254,860) which were issued in 1993 as part of a $68 million issuance. At December 31, 2003 Simec owed no debt to ICH.

(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. 18,665 (U.S. $1,661,181) at December 31, 2003, (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
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

		FINANCIAL STATEMENT NOTES
		ANNEX 2		CONSOLIDATED

JUDGED INFORMATION

c. Compañía Siderúrgica de Guadalajara, S.A. de C.V. has entered into a gas and liquid oxygen purchase agreement with Praxair de México, S.A. de C.V., under which it is committed to acquire monthly over a fifteen-year period beginning January 1, 1989, a certain amount of product. At present required purchases amount to Ps. 1,644 per month.

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

		RELATIONS OF SHARES INVESTMENTS
		ANNEX 3		CONSOLIDATED

JUDGED INFORMATION

COMPANY NAME	MAIN ACTIVITIES		NUMBER OF SHARES		OWNERSHIP		TOTAL AMOUNT (Thousands of Pesos)
SUBSIDIARIES							ACQUISITION COST		PRESENT VALUE
1 CIA SIDERURGICA DE GUADALAJARA	MINI-MILL		474,393,215		99.99		38,359		2,119,779
2 ADMINISTRADORA DE CARTERA DEOCCIDENTE			49,999		99.99		50		(4,384)
TOTAL INVESTMENT IN SUBSIDIARIES							38,409		2,115,395
ASSOCIATEDS			0		0.00		0		0
TOTAL INVESTMENT IN ASSOCIATEDS							0		0
OTHER PERMANENT INVESTMENTS									0
TOTAL									2,115,395

NOTES

 

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

CREDITS BREAK DOWN
(THOUSANDS OF PESOS)
ANNEX 5

JUDGED INFORMATION CONSOLIDATED

			Denominated In Pesos
					Credit Type / Institution	Amortization Date	Rate of Interest	Until 1 Year	More Than 1 Year
BANKS WITH WARRANTY
BANCO BILBAO VIZCAYA	11/15/2009	5.81
BANCO BILBAO VIZCAYA	11/15/2007	5.81
TOTAL BANKS			0	0
LISTED IN THE MEXICAN STOCK EXCHANGE
UNSECURED DEBT
MEDIUM TERM NOTES	12/15/1998	9.33	0	0
TOTAL STOCK EXCHANGE			0	0
SUPPLIERS
VARIOUS			168,983	0
TOTAL SUPPLIERS			168,983	0
OTHER CURRENT LIABILITIES AND OTHER CREDITS
					VARIOUS			32,376	0
OTHER CURRENT LIABILITIES AND OTHER CREDITS			32,376	0
TOTAL GENERAL			201,359	0

JUDGED INFORMATION CONSOLIDATED

	Amortization of Credits in Foreign Currency With National Entities (Thousands of Pesos)
	Time Interval
Credit Type / Institution	Current Year	Until 1 Year	Until 2 Years	Until 3 Years	Until 4 Years	Until 5 Years or More
							BANKS WITH WARRANTY
BANCO BILBAO VIZCAYA		16,421
BANCO BILBAO VIZCAYA		2,657
TOTAL BANKS	0	19,078	0	0	0	0
LISTED IN THE MEXICAN STOCK EXCHANGE
UNSECURED DEBT
MEDIUM TERM NOTES	0	0	0	0	0	0
TOTAL STOCK EXCHANGE	0	0	0	0	0	0
SUPPLIERS
VARIOUS	0	13,032	0	0	0	0
TOTAL SUPPLIERS	0	13,032	0	0	0	0
OTHER CURRENT LIABILITIES AND OTHER CREDITS
							VARIOUS	0	135	0	0	0	0
OTHER CURRENT LIABILITIES AND OTHER CREDITS	0	135	0	0	0	0
TOTAL GENERAL	0	32,245	0	0	0	0

JUDGED INFORMATION CONSOLIDATED

	Amortization of Credits in Foreign Currency With Foreing Entities (Thousands of Pesos)
	Time Interval
Credit Type / Institution	Current Year	Until 1 Year	Until 2 Years	Until 3 Years	Until 4 Years	Until 5 Years or More
							BANKS WITH WARRANTY
BANCO BILBAO VIZCAYA
BANCO BILBAO VIZCAYA
TOTAL BANKS	0	0	0	0	0	0
LISTED IN THE MEXICAN STOCK EXCHANGE
UNSECURED DEBT
MEDIUM TERM NOTES	3,393	0	0	0	0	0
TOTAL STOCK EXCHANGE	3,393	0	0	0	0	0
SUPPLIERS
VARIOUS	0	24,940	0	0	0	0
TOTAL SUPPLIERS	0	24,940	0	0	0	0
OTHER CURRENT LIABILITIES AND OTHER CREDITS
							VARIOUS	0	23,602	0	0	0	0
OTHER CURRENT LIABILITIES AND OTHER CREDITS	0	23,602	0	0	0	0
TOTAL GENERAL	3,393	48,542	0	0	0	0

NOTES:

	1.	-	At December 31, 2003, Compañía Siderúrgica de Guadalajara, S.A. de C.V. ("CSG") was not in compliance with various financial covenants contained in its bank loan instruments. In accordance with Mexican generally accepted accounting principles, Simec's long term bank debt has been reclassified as current liabilities.
	2.	-	Simec's bank debt is secured by a lien on all of the plant, property and equipment of Simec
	3.	-	The exchange rate of the peso to the U.S. Dollar at December 31, 2003 was Ps. 11.2360

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

MONETARY POSITION IN FOREIGN EXCHANGE
(Thousands of Pesos)

JUDGED INFORMATION ANNEX 6 CONSOLIDATED

	DOLLARS				OTHER CURRENCIES				TOTAL
TRADE BALANCE	THOUSANDS OF DOLLARS		THOUSANDS OF PESOS		THOUSANDS OF DOLLARS		THOUSANDS OF PESOS		THOUSANDS OF PESOS
FOREIGN MONETARY POSITION
TOTAL ASSETS	45,275		508,696		0		0		508,696
LIABILITIES POSITION	7,159		80,440		333		3,740		84,180
SHORT TERM LIABILITIES POSITION	7,159		80,440		333		3,740		84,180
LONG TERM LIABILITIES POSITION	0		0		0		0		0
NET BALANCE	38,116		428,256		(333	)	(3,740	)	424,516

NOTES

THE EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT DECEMBER 31, 2003 WAS PS. 11.2360

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

INTEGRATION AND INCOME
CALCULATION BY MONETARY POSITION
(Thousands of Pesos)

JUDGED INFORMATION ANNEX 7 CONSOLIDATED

MONTH	MONETARY ASSETS		MONETARY LIABILITIES		(ASSET) LIABILITIES MONETARY POSITION		MONTHLY INFLATION		MONTHLY PROFIT AND (LOSS)
JANUARY	599,332		870,175		270,843		0.40		1,095
FEBRUARY	496,349		770,972		274,623		0.28		763
MARCH	540,635		777,637		237,002		0.63		1,496
APRIL	541,513		566,310		24,797		0.17		42
MAY	578,184		548,013		(30,171	)	(0.32	)	97
JUNE	547,495		340,066		(207,429	)	0.08		(171	)
JULY	604,584		323,902		(280,682	)	0.14		(407	)
AUGUST	664,648		310,488		(354,160	)	0.30		(1,063	)
SEPTEMBER	750,161		319,022		(431,139	)	0.60		(2,567	)
OCTOBER	805,442		329,170		(476,272	)	0.37		(1,746	)
NOVEMBER	870,617		336,930		(533,687	)	0.83		(4,430	)
DECEMBER	945,456		328,828		(616,628	)	0.43		(2,651	)
ACTUALIZATION									14
CAPITALIZATION									0
FOREIGN CORPORATION									0
OTHER									0
TOTAL									(9,528	)

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

BONDS AND MEDIUM TERM NOTES LISTING IN STOCK MARKET

JUDGED INFORMATION ANNEX 8 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 3.88 times.

 B) Accomplished the actual situation is 0.23

 C) Accomplished the actual situation is 37.99

As of December 31, 2003, the remaining balance of the MTNs not exchanged amounts to Ps. 3,393 ($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
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

		PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
	JUDGED INFORMATION	ANNEX 9		CONSOLIDATED

PLANT OR CENTER		ECONOMIC ACTIVITY	PLANT CAPACITY		UTILIZATION (%)
GUADALAJARA MINI MILL		PRODUCTION AND SALES OF STEEL PRODUCTS	480		85
MEXICALI MINI MILL		PRODUCTION AND SALES OF STEEL PRODUCTS	250		79
INDUSTRIAS DEL ACERO Y DEL ALAMBRE		SALE OF STEEL PRODUCTS	0		0

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

		MAIN RAW MATERIALS
	JUDGED INFORMATION	ANNEX 10		CONSOLIDATED

DOMESTIC		MAIN SUPPLIERS		FOREIGN		MAIN SUPPLIERS		DOM. SUBSTI- TUTION		COST PRODUCTION (%)
SCRAP		VARIOUS		SCRAP		VARIOUS		YES		51.64
ELECTRICITY		C.F.E.						NO		12.60
FERROALLOYS		MINERA AUTLAN		FERROALLOYS		GFM TRADING		YES		6.53
ELECTRODES		UCAR CARBON MEXICANA		ELECTRODES		SGL CARBON GROUP		YES		2.42

MEXICAN STOCK EXCHANGE SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC GRUPO SIMEC, S.A. DE C.V.					QUARTER: 4      YEAR: 2003
	SELLS DISTRIBUTION BY PRODUCT
JUDGED INFORMATION		ANNEX 11			CONSOLIDATED
		DOMESTIC SELLS			MAIN
			DESTINATION
MAIN PRODUCTS	TOTAL PRODUCTION	NET SELLS
				TRADEMARKS	COSTUMERS

	VOLUME		AMOUNT		VOLUME		AMOUNT
STRUCTURAL PROFILES	184		522,811		173		753,113
COMMERCIAL PROFILES	56		140,394		47		192,823
REBAR	125		293,672		93		374,006
FLAT BAR	25		66,300		17		71,840
STEEL BARS	213		578,625		209		857,202
OTHER
					8		46,656
BILLET	64		121,067		64		170,754
T O T A L			1,722,869				2,466,394

 

MEXICAN STOCK EXCHANGE SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC GRUPO SIMEC, S.A. DE C.V.					QUARTER: 4      YEAR: 2003
	SELLS DISTRIBUTION BY PRODUCT
JUDGED INFORMATION		ANNEX 11			CONSOLIDATED
		FOREIGN SELLS			MAIN
			DESTINATION
MAIN PRODUCTS	TOTAL PRODUCTION	NET SELLS
				TRADEMARKS	COSTUMERS

	VOLUME		AMOUNT		VOLUME		AMOUNT
STRUCTURAL PROFILES					11		42,569
COMMERCIAL PROFILES					12		47,303
REBAR					46		178,174
STEEL BARS					9		37,677
FLAT BAR					3		13,450
T O T A L							319,173

	MEXICAN STOCK EXCHANGE SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC GRUPO SIMEC, S.A. DE C.V.					QUARTER: 4      YEAR: 2003
JUDGED INFORMATION	INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK CHARACTERISTICS OF THE SHARES				CONSOLIDATED

				NUMBER OF SHARES
SERIES	NOMINAL VALUE	VALID CUPON	PORTION		PORTION	MEXICAN	FREE SUSCRIPTION		CAPITAL STOCK (Thousands of Pesos)
									FIXED	VARIABLE
B		0	15,283,350		116,689,672		131,973,022		222,963	1,702,289
TOTAL			15,283,350		116,689,672	0	131,973,022		222,963	1,702,289

TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING THE INFORMATION : 131,973,022

SHARES PROPORTION BY :

CPO’S :	0
ADRS’s :	1,268,213 ADR’S OF 1 SHARE EACH ONE:
UNITS :	0
GDRS’s :	0
ADS’s :	0
GDS’s :	0

					REPURCHASED OWN SHARES
					MARKET VALUE OF THE SHARE
	SERIES		NUMBER OF SHARES		AT REPURCHASE		AT QUARTER

NOTES

 

		MEXICAN STOCK EXCHANGE SIFIC / ICS
STOCK EXCHANGE CODE: SIMEC GRUPO SIMEC, S.A. DE C.V.				QUARTER: 4      YEAR: 2003
		CONSTRUCTION IN PROGRESS (Proyect, Total Investment and % of Advance)
JUDGED INFORMATION		ANNEX 13		CONSOLIDATED

THE PROYECTS IN PROGRESS AT DECEMBER 31, 2003, ARE:

PROYECTS IN PROGRESS	TOTAL INVESTMENT			PHISICAL ADVANCE			FINISHED AT
VARIOUS		522
TOTAL INVESTMENT AT DECEMBER 31, 2003		522

 

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

FOREIGN CURRENCY TRANSACTION AND EXCHANGE DIFFERENCES

	ANNEX 14	CONSOLIDATED
JUDGED INFORMATION

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).

The financial statements of foreign subsidiaries are translated into Mexican pesos in conformity with Bulletin B-15 “Transactions in Foreign Currency and Translation of Financial Statements of Foreign Operations”. All foreign subsidiaries are considered to be “integrated foreign operations”, as defined in Bulletin B-15, and accordingly such financial statements were translated as follows:

• Monetary items at the exchange rate at the balance sheet date.

• Non-monetary items and stockholders’ equity at the exchange rate prevailing at the date the transactions occurred.

• Income and expense items at an appropriate average exchange rate.

• The resulting foreign currency translation differences are included in the financial income (expense) in the statement of income (loss).

• All resulting Mexican peso amounts are restated for the effects of inflation in accordance with the dispositions of Bulletin B-10 using the NCPI, where such effects are considered significant.

MEXICAN STOCK EXCHANGE
SIFIC / ICS

STOCK EXCHANGE CODE: SIMEC
GRUPO SIMEC, S.A. DE C.V. QUARTER: 4 YEAR: 2003

CONSOLIDATED

JUDGED INFORMATION

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 FOURTH QUARTER REPORT.

ING LUIS GARCIA LIMON
CHIEF EXECUTIVE OFFICER C.P. ADOLFO LUNA LUNA
CHIEF FINANCIAL OFFICER

GUADALAJARA, JAL, AT APRIL 30 OF 2004