In the third quarter of 2024, Ternium, a prominent steel manufacturer, presented a complex financial landscape marked by both challenges and achievements. The company reported a decrease in net sales to $4.48 billion, a 1% drop from the previous quarter and a 14% decrease year-over-year. This decline was attributed to lower steel prices in key markets and reduced industrial contract prices in Mexico.
Despite the fall in sales, Ternium experienced a significant boost in its shipments. Steel product shipments saw a 7% increase from the second quarter, maintaining stability year-over-year. Mining product shipments also rose by 19% compared to the previous quarter, although they saw an 18% decrease year-over-year. This increase in shipments highlights Ternium's capacity to leverage its extensive network and production capabilities to meet varying market demands.
The company's net income for the third quarter stood at $93 million, a stark contrast to the loss of $743 million in the previous quarter. This recovery can be attributed to several strategic maneuvers, including efficient inventory management and cost control measures that mitigated the impact of falling prices.
Ternium's operational strategy also included significant capital investments, totaling $446 million in the third quarter, directed towards expansion programs in Mexico and a new wind farm in Argentina. These investments are part of Ternium's long-term strategy to enhance its production capabilities and sustainability measures.
Looking ahead, Ternium anticipates a slight increase in its adjusted EBITDA for the fourth quarter of 2024, driven by improved margins. However, the company remains cautious about potential declines in shipment volumes due to seasonal demand fluctuations in its primary markets of Mexico and Brazil.
