Ternium S.A. (TX) Bundle
A Brief History of Ternium
Company Overview
Ternium is a leading steel producer in the Americas, with operations in Mexico, Argentina, Brazil, and the Southern Region. The company specializes in providing advanced steel products to various sectors, including construction and manufacturing. As of 2024, Ternium is committed to investing in low-carbon emissions steelmaking technologies.
Financial Performance
In the third quarter of 2024, Ternium reported net sales of $4,480 million, a decrease of 1% compared to the previous quarter and a 14% decline year-over-year. The steel segment accounted for $4,368 million of net sales, while the mining segment contributed $112 million.
| Financial Metrics | 3Q24 | 2Q24 | 3Q23 | 9M24 | 9M23 |
|---|---|---|---|---|---|
| Net Sales ($ million) | 4,480 | 4,514 | 5,185 | 13,773 | 12,679 |
| Operating Income ($ million) | 175 | 371 | 527 | 1,221 | 1,616 |
| Net Income ($ million) | 93 | (743) | (783) | (159) | 433 |
| Earnings per ADS ($) | 0.16 | (3.71) | (3.77) | (1.70) | 1.34 |
Operational Highlights
Ternium's adjusted EBITDA for the third quarter of 2024 was $368 million, representing an adjusted EBITDA margin of 8%. The company experienced a 7% increase in steel shipments, reaching 4.1 million tons during the quarter.
Cash Flow and Dividends
Cash provided by operating activities was $303 million, after a working capital increase of $155 million. Capital expenditures in the third quarter amounted to $446 million. Ternium's net cash position decreased to $1.7 billion as of September 30, 2024.
The board of directors approved an interim dividend of $0.90 per ADS, totaling $177 million, which will be payable on November 21, 2024.
Market Position and Future Outlook
Looking ahead, Ternium anticipates a slight increase in adjusted EBITDA for the fourth quarter of 2024, driven by improved margins. However, a decline in shipments is expected due to seasonal demand fluctuations in Mexico and Brazil. The company continues to focus on enhancing operational efficiency and reducing reliance on external energy sources through investments in renewable energy projects.
| Key Operational Metrics | 3Q24 | 2Q24 | 3Q23 |
|---|---|---|---|
| Steel Shipments (thousand tons) | 4,123 | 3,841 | 4,131 |
| Mining Shipments (thousand tons) | 1,781 | 1,496 | 2,176 |
| Adjusted EBITDA ($ million) | 368 | 545 | 698 |
| Adjusted EBITDA Margin (%) | 8% | 12% | 13% |
Conclusion
Ternium continues to navigate the challenges of the steel market while maintaining a strong operational focus and commitment to sustainable practices as of 2024.
A Who Owns Ternium S.A. (TX)
Major Shareholders
As of 2024, Ternium S.A. is primarily owned by the following major shareholders:
| Shareholder | Ownership Percentage |
|---|---|
| Techint Group | 60.0% |
| Public Investors | 40.0% |
Non-Controlling Interests
In addition to the major shareholders, Ternium has non-controlling interests in its subsidiaries:
- Ternium Argentina: 37.4% non-controlling interest
- Usiminas: 76.7% non-controlling interest
Stock Performance
The stock performance of Ternium S.A. (NYSE: TX) has shown significant fluctuations. Here are the essential financial metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Market Capitalization | $6.1 billion |
| Current Stock Price | $31.07 |
| 52-Week Range | $25.00 - $40.00 |
Financial Overview
For the third quarter of 2024, Ternium reported the following financial results:
| Financial Metric | Value (in $ million) |
|---|---|
| Net Sales | 4,480 |
| Operating Income | 175 |
| Net Income | 93 |
| Adjusted EBITDA | 368 |
| Cash from Operations | 303 |
| Net Cash Position | 1.7 billion |
Dividend Information
Ternium's board of directors has approved an interim dividend for shareholders:
| Dividend per ADS | Payment Date | Total Dividend Amount (in $ million) |
|---|---|---|
| $0.90 | November 21, 2024 | 177 |
Recent Developments
In recent months, Ternium has focused on expanding its operations, particularly in:
- New facilities in Pesquería, Mexico
- A new wind farm in Argentina
These developments are expected to enhance production capacity and contribute to sustainability goals.
Ternium S.A. (TX) Mission Statement
Overview
Ternium S.A. is a leading steel producer in the Americas, committed to providing advanced steel products for various industries, including manufacturing and construction. The company emphasizes sustainability and the development of low carbon emissions steelmaking technologies to support energy transitions and mobility innovations.
Mission Statement
Ternium's mission centers on delivering high-quality steel products while fostering sustainable practices and community development. The company aims to achieve operational excellence and innovation in steel production, contributing positively to the environment and society.
Financial Performance
As of the third quarter of 2024, Ternium reported the following financial metrics:
| Financial Metric | 3Q24 | 2Q24 | 3Q23 | 9M24 | 9M23 |
|---|---|---|---|---|---|
| Net Sales ($ million) | 4,480 | 4,514 | 5,185 | 13,773 | 12,679 |
| Adjusted EBITDA ($ million) | 368 | 545 | 698 | 1,768 | 2,089 |
| Net Income ($ million) | 93 | (743) | (783) | (159) | 433 |
| Equity Holders’ Net Income ($ million) | 32 | (728) | (739) | (335) | 262 |
| Earnings per ADS ($) | 0.16 | (3.71) | (3.77) | (1.70) | 1.34 |
| Net Cash Position ($ billion) | 1.7 | 1.9 | 2.4 | - | - |
Operational Highlights
In the third quarter of 2024, Ternium experienced:
- Record-high shipments in Mexico.
- Increased shipments in Brazil.
- A continued recovery in the Southern Region.
Capital Expenditures
In the third quarter of 2024, Ternium's capital expenditures amounted to $446 million, which supported ongoing expansion programs in Mexico and the development of a new wind farm in Argentina.
Dividend Information
The board of directors approved an interim dividend of $0.90 per ADS ($0.09 per share), totaling approximately $177 million based on the number of shares outstanding. The payment date is scheduled for November 21, 2024.
Market Outlook
For the fourth quarter of 2024, Ternium anticipates a slight sequential increase in adjusted EBITDA, although apparent demand in Mexico and Brazil is expected to decline due to year-end seasonality. The company projects a decrease in realized steel prices, influenced by the resetting of quarterly price contracts with industrial customers in Mexico.
How Ternium S.A. (TX) Works
Overview of Operations
Ternium S.A. is a leading steel producer based in the Americas, primarily engaged in the manufacture and distribution of a wide range of steel products. The company operates through various segments, primarily focusing on steel and mining operations.
Financial Performance
For the third quarter of 2024, Ternium reported the following financial highlights:
| Metric | 3Q24 | 2Q24 | 3Q23 | 9M24 | 9M23 |
|---|---|---|---|---|---|
| Net Sales ($ million) | 4,480 | 4,514 | 5,185 | 13,773 | 12,679 |
| Cost of Sales ($ million) | (3,902) | (3,758) | (4,192) | (11,334) | (10,012) |
| Gross Profit ($ million) | 578 | 757 | 993 | 2,439 | 2,667 |
| Operating Income ($ million) | 175 | 371 | 527 | 1,221 | 1,616 |
| Net Income ($ million) | 93 | (743) | (783) | (159) | 433 |
| Earnings per ADS ($) | 0.16 | (3.71) | (3.77) | (1.70) | 1.34 |
Adjusted EBITDA and Margins
Adjusted EBITDA for the third quarter of 2024 was reported at $368 million, with an adjusted EBITDA margin of 8% of net sales.
| Metric | 3Q24 | 2Q24 | 3Q23 | 9M24 | 9M23 |
|---|---|---|---|---|---|
| Adjusted EBITDA ($ million) | 368 | 545 | 698 | 1,768 | 2,089 |
| Adjusted EBITDA Margin (%) | 8% | 12% | 13% | 13% | 16% |
Cash Flow and Capital Expenditures
In the third quarter of 2024, Ternium generated $303 million from operating activities, while capital expenditures amounted to $446 million.
| Metric | 3Q24 | 2Q24 | 9M24 | 9M23 |
|---|---|---|---|---|
| Cash from Operations ($ million) | 303 | 656 | 1,435 | 1,783 |
| Capital Expenditures ($ million) | 446 | 409 | 1,304 | 864 |
| Net Cash Position ($ billion) | 1.7 | 1.9 | - | - |
Segment Performance
Ternium operates primarily in two segments: Steel and Mining. The Steel segment achieved shipments of 4.1 million tons in the third quarter of 2024, while the Mining segment recorded shipments of 1.8 million tons.
| Segment | 3Q24 Shipments (thousand tons) | 2Q24 Shipments (thousand tons) | 3Q23 Shipments (thousand tons) |
|---|---|---|---|
| Steel | 4,123 | 3,841 | 4,131 |
| Mining | 1,781 | 1,496 | 2,176 |
Dividend Announcement
Ternium's board of directors approved an interim dividend of $0.90 per ADS, amounting to $177 million, to be paid on November 21, 2024.
Tax and Financial Results
The effective tax rate for the third quarter of 2024 was 61%, with a total income tax expense of $143 million.
| Metric | 3Q24 | 2Q24 | 9M24 | 9M23 |
|---|---|---|---|---|
| Income Tax Expense ($ million) | (143) | (307) | (490) | (179) |
| Deferred Tax Losses ($ million) | (80) | (183) | (178) | 271 |
Outlook
For the fourth quarter of 2024, Ternium anticipates a slight sequential increase in adjusted EBITDA due to improved margins, although a reduction in shipments is expected due to year-end seasonality.
How Ternium S.A. (TX) Makes Money
Revenue Streams
Ternium S.A. generates revenue primarily through its two main segments: Steel and Mining. As of the third quarter of 2024, the consolidated net sales were reported as follows:
| Segment | Net Sales ($ Million) | Shipments (Thousand Tons) | Revenue per Ton ($) |
|---|---|---|---|
| Steel | 4,368 | 4,123 | 1,061 |
| Mining | 112 | 1,781 | 63 |
| Total | 4,480 | 5,904 | 759 |
Steel Segment Performance
The Steel segment is Ternium's core business, contributing significantly to its revenue. The third quarter of 2024 showed a slight decline in net sales compared to the same period in 2023, primarily due to lower steel prices.
- Net Sales: $4,368 million
- Operating Income: $175 million
- Adjusted EBITDA: $368 million
- Cash Operating Income per Ton: $75
- Cash Operating Income Margin: 7%
Mining Segment Performance
The Mining segment has seen increased shipments, although revenue decreased due to lower iron ore prices. Key figures for the Mining segment in Q3 2024 include:
- Net Sales: $112 million
- Shipments: 1,781 thousand tons
- Revenue per Ton: $63
- Cash Operating Income per Ton: $17
- Cash Operating Income Margin: 20%
Cost Management
Ternium's cost of sales for Q3 2024 was $3,902 million, leading to a gross profit of $578 million. The company is focused on managing costs effectively, which is reflected in the slight decrease in steel cost per ton due to the consumption of previously purchased high-priced inventory.
Capital Expenditures
In Q3 2024, Ternium invested $446 million in capital expenditures, focusing on expansion programs in Mexico and the development of a wind farm in Argentina.
Financial Results Overview
The financial results for Ternium in the third quarter of 2024 are summarized as follows:
| Metric | 3Q24 | 2Q24 | 3Q23 |
|---|---|---|---|
| Net Income | $93 million | ($743 million) | ($783 million) |
| Adjusted Net Income | $93 million | $40 million | $323 million |
| Equity Holders’ Net Income | $32 million | ($728 million) | ($739 million) |
| Earnings per ADS | $0.16 | ($3.71) | ($3.77) |
Cash Flow and Liquidity
Ternium's cash from operating activities reached $303 million in Q3 2024, with a net cash position of $1.7 billion as of September 30, 2024.
The company announced an interim dividend of $0.90 per ADS, totaling $177 million, to be paid on November 21, 2024.
Market Outlook
Looking ahead, Ternium anticipates a slight sequential increase in adjusted EBITDA for the fourth quarter of 2024, driven by improved margins despite a projected decline in shipments due to seasonal demand fluctuations.
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Resources:
- Ternium S.A. (TX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ternium S.A. (TX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ternium S.A. (TX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.