Steel Mills
Ternium Reports Strong Q4 2013
Written by Sandy Williams
February 19, 2014
Latin America steel producer Ternium reports net sales of $2.1 billion on 2.23 million tons of steel shipments and 994,000 tons of iron ore shipments in the fourth quarter 2013. Steel shipments were down 3 percent from third quarter but up 3.0 percent from fourth quarter 2012. Net income was $171.1 million, up from $136 million in the third quarter. Operating income increased to $295.6 million due to higher steel revenue per ton in Mexico and other markets and a slight reduction in operating cost per ton.
Net income for 2013 was 592.9 million, up from $402 million in 2012. Steel shipments for the year were up 3 percent to 8.9 million tons while iron ore shipments increased 128 percent to 4.2 million tons.
The steel segment operating income was $257.2 million in the fourth quarter due to higher sales and lower operating costs. Sales in Mexico increased 4 percent to $1.08 billion on shipments of 1.27 million tons.
The Pesquereia Project in Mexico, which includes the galvanizing plant Tenigal, a joint venture by Ternium and Nippon Steel, and a Ternium cold rolling plant, is in the ramp up phase. Ternium and hopes the Project will attract auto manufacturers to the area.
In its outlook, Ternium said it expects improved sales to industrial customers in Mexico in the first quarter of 2014 which may be offset by seasonally weaker volumes in Argentina.
Sandy Williams
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