Latest news with #Ternium
Yahoo
9 hours ago
- Business
- Yahoo
Steelmaker Ternium pushes for stronger USMCA trade pact in face of tariffs
By Kylie Madry MEXICO CITY (Reuters) -Ternium, a steelmaker with a massive Mexico business, on Wednesday pushed for stronger terms of a regional trade agreement ahead of a pending review, despite current headwinds from steel tariffs imposed by the government of U.S. President Donald Trump. WHY IT'S IMPORTANT Shipments from Mexico to the U.S. under the U.S.-Mexico-Canada (USMCA) trade agreement are currently exempt from tariffs, though steel products face a whopping 50% tariff. The U.S. and Mexico are negotiating a deal to reduce or eliminate the steel tariffs on imports up to a certain volume, Reuters reported last week. CONTEXT The USMCA deal is up for review next year, though some officials believe it may come sooner. In a presentation to analysts in New York on Wednesday, Ternium pushed for stronger "rules of origin" as part of the review to protect the region against what it called unfair trade. Steelmakers have accused China of engaging in a practice known as dumping, in which they sell their product abroad below market value. Products can be shipped through another country before reaching their final destination, often making their origin unclear. KEY QUOTE "While management acknowledges the adverse effects on the global economy, they view the U.S. (tariffs) as beneficial for long-term globalization," analysts at J.P. Morgan said in a note to clients. BY THE NUMBERS The U.S. shipped 2.28 million metric tons more of steel to Mexico than Mexico shipped to the U.S. in 2024, Ternium said, though the U.S. government has previously accused Mexico of flooding its domestic market with steel. WHAT'S NEXT Ternium is looking to boost its market share in Mexico's local market in the coming years, management said. In Brazil, it said Chinese imports continue to pressure the market. Ternium could also acquire the remaining shares it does not currently hold in Brazil's Usiminas, the J.P. Morgan analysts said, though it is not a priority at the moment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
9 hours ago
- Business
- Reuters
Steelmaker Ternium pushes for stronger USMCA trade pact in face of tariffs
MEXICO CITY, June 18 (Reuters) - Ternium (TX.N), opens new tab, a steelmaker with a massive Mexico business, on Wednesday pushed for stronger terms of a regional trade agreement ahead of a pending review, despite current headwinds from steel tariffs imposed by the government of U.S. President Donald Trump. Shipments from Mexico to the U.S. under the U.S.-Mexico-Canada (USMCA) trade agreement are currently exempt from tariffs, though steel products face a whopping 50% tariff. The U.S. and Mexico are negotiating a deal to reduce or eliminate the steel tariffs on imports up to a certain volume, Reuters reported last week. The USMCA deal is up for review next year, though some officials believe it may come sooner. In a presentation to analysts in New York on Wednesday, Ternium pushed for stronger "rules of origin" as part of the review to protect the region against what it called unfair trade. Steelmakers have accused China of engaging in a practice known as dumping, in which they sell their product abroad below market value. Products can be shipped through another country before reaching their final destination, often making their origin unclear. "While management acknowledges the adverse effects on the global economy, they view the U.S. (tariffs) as beneficial for long-term globalization," analysts at J.P. Morgan said in a note to clients. The U.S. shipped 2.28 million metric tons more of steel to Mexico than Mexico shipped to the U.S. in 2024, Ternium said, though the U.S. government has previously accused Mexico of flooding its domestic market with steel. Ternium is looking to boost its market share in Mexico's local market in the coming years, management said. In Brazil, it said Chinese imports continue to pressure the market. Ternium could also acquire the remaining shares it does not currently hold in Brazil's Usiminas ( opens new tab, the J.P. Morgan analysts said, though it is not a priority at the moment.
Yahoo
21-03-2025
- Business
- Yahoo
Ternium Announces Annual and Extraordinary General Meetings of Shareholders
LUXEMBOURG / / March 21, 2025 / Ternium S.A. (NYSE:TX) announced today that its annual general meeting of shareholders will be held on Tuesday, May 6, 2025, at 9:00 a.m. CET and that an extraordinary general meeting of shareholders will be held immediately after the adjournment of the annual general meeting of shareholders. Both meetings will be held at Ternium S.A.'s registered office located at 26, Boulevard Royal, 4th Floor, L-2449 Luxembourg, Grand Duchy of Luxembourg. Each holder of ADSs as of March 31, 2025, shall be entitled to instruct The Bank of New York, the depositary bank, as to the exercise of the voting rights pertaining to the shares represented by such holder's ADSs. The following documents are available on the Investor's section in our website at Notice and Agenda for the meeting. Shareholder Meeting Brochure and Proxy Statement, including the proposed amendments to the articles of association for approval by the extraordinary general meeting of shareholders. 2024 Annual Report. Copies of these documents are also available, free of charge, at Ternium S.A.'s registered office in Luxembourg, between 10:00 a.m. and 5:00 p.m. CET. In addition, shareholders registered in the share register may obtain electronic copies of such documents, free of charge, by sending an e-mail request to ir@ Forward Looking Statements Some of the statements contained in this press release are "forward-looking statements". Forward-looking statements are based on management's current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to gross domestic product, related market demand, global production capacity, tariffs, cyclicality in the industries that purchase steel products and other factors beyond Ternium's control. About Ternium Ternium is a leading steel producer in the Americas, providing advanced steel products to a wide range of manufacturing industries and the construction sector. We invest in low carbon emissions steelmaking technologies to support the energy transition and the mobility of the future. We also support the development of our communities, specially through educational programs in Latin America. More information about Ternium is available at Contact: Sebastián MartíTernium - Investor Relations+1 (866) 890 0443+54 (11) 4018 SOURCE: Ternium S.A. View the original press release on ACCESS Newswire Sign in to access your portfolio
Yahoo
23-02-2025
- Business
- Yahoo
Ternium (NYSE:TX) Is Due To Pay A Dividend Of $1.80
The board of Ternium S.A. (NYSE:TX) has announced that it will pay a dividend of $1.80 per share on the 14th of May. However, the dividend yield of 9.2% is still a decent boost to shareholder returns. See our latest analysis for Ternium While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. Ternium isn't generating any profits, and it is paying out a very high proportion of the cash it is earning. These payout levels would generally be quite difficult to keep up. Over the next year, EPS is forecast to grow rapidly. If the dividend continues along recent trends, we estimate the payout ratio could reach 557%, which is unsustainable. The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the annual payment back then was $0.75, compared to the most recent full-year payment of $2.70. This implies that the company grew its distributions at a yearly rate of about 14% over that duration. Dividends have grown rapidly over this time, but with cuts in the past we are not certain that this stock will be a reliable source of income in the future. With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. Ternium's earnings per share has shrunk at 12% a year over the past five years. Such rapid declines definitely have the potential to constrain dividend payments if the trend continues into the future. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this becomes a long term trend. Overall, the dividend looks like it may have been a bit high, which explains why it has now been cut. The company isn't making enough to be paying as much as it is, and the other factors don't look particularly promising either. Considering all of these factors, we wouldn't rely on this dividend if we wanted to live on the income. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 1 warning sign for Ternium that you should be aware of before investing. Is Ternium not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Globe and Mail
18-02-2025
- Business
- Globe and Mail
Ternium Announces Fourth Quarter and Full Year 2024 Results
LUXEMBOURG / ACCESS Newswire Ternium S.A. (NYSE:TX) today announced its results for the fourth quarter and full year ended December 31, 2024. The financial and operational information contained in this press release is based on Ternium S.A.'s operational data and consolidated condensed financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and presented in US dollars ($) and metric tons. This press release includes certain non-IFRS alternative performance measures such as Adjusted EBITDA, Cash Operating Income, Adjusted Net Income, Adjusted Equity Holders' Net Income, Adjusted Earnings per ADS, Free Cash Flow and Net Cash. The reconciliation of these figures to the most directly comparable IFRS measures is included in Exhibit I. Fourth Quarter of 2024 Highlights Summary of Fourth Quarter and Full Year 2024 Results Fourth Quarter and Full Year 2024 Highlights The Mexican steel market experienced a downturn in the fourth quarter of 2024, due to year-end seasonality and a weakened commercial market. This weakness was partly influenced by uncertainties arising from the change in government administration in both Mexico and the United States, as well as heightened rhetoric from the U.S. on trade measures. Despite this, for the full year 2024 steel sales volumes in Mexico remained relatively stable, as the weakness in the commercial market was largely offset by continued growth of Ternium's steel shipments to industrial customers. The Brazilian steel market softened in the fourth quarter, largely due to year-end seasonality. For the full year 2024, Usiminas successfully capitalized on an increased local demand for steel products, despite facing substantial steel imports into Brazil, aided by an improved operating performance. With Ternium fully consolidating Usiminas' results from July 2023 onwards, reported steel shipments for 2024 saw a significant increase compared to those of 2023. In the Southern Region, steel sales volumes in the fourth quarter of 2024 reflected a seasonal demand decline in Argentina. For the full year 2024, the company experienced a 20% decrease in steel shipments in the Southern Region primarily in connection with the Argentine government's economic stabilization measures, which had a significant impact in the first quarter followed by a gradual improvement throughout the year. In Other Markets, steel shipments in the fourth quarter reflected a decrease in sales volumes in the US. For the full year 2024, steel sales volumes improved across the board following a relatively weak performance in the prior year. Ternium's realized steel prices continued to decline in the fourth quarter of 2024. The company's steel cost per ton also fell, although it lagged behind the reduction in raw material and slab market prices as the company consumed previously purchased higher-priced inventories. For the full year 2024, realized steel prices decreased by $116 year-over-year. This decline was partially offset by a decrease in steel cost per ton. Ternium's net income totaled $333 million in the fourth quarter of 2024. The company recorded a $404 million provision reversal for ongoing litigation related to the acquisition of a participation in Usiminas in 2012. Excluding this provision reversal, Adjusted Net Loss was $71 million. For the full year 2024, Ternium's net income totaled $174 million. During the year, the company recorded a net $410 million provision for the aforementioned litigation. Excluding this provision, Adjusted Net Income for 2024 was $584 million. In 2024, dividends paid to the company's shareholders amounted to $609 million. Capital expenditures for the year reached $1.9 billion, showcasing Ternium's progress in expanding its industrial center in Pesquería, Mexico, and the construction of a new wind farm in Argentina, which was inaugurated by the end of the year. Despite these significant cash disbursements, the company's net cash position at the end of 2024 was $1.6 billion. Strong operating cash flow of $1.9 billion and a $457 million increase in the fair value of financial instruments helped maintain this solid financial position. Annual Dividend Proposal Ternium's board of directors proposed an annual dividend of $2.70 per ADS ($0.27 per share), or $530 million based on total shares of common stock outstanding net of treasury shares, be approved at the company's annual general shareholders' meeting, which is scheduled to be held on May 6, 2025. Based on current market price of Ternium's ADS, the proposed annual dividend is equivalent to a dividend yield of 9%. The annual dividend would include the interim dividend of $0.90 per ADS ($0.09 per share), or $177 million, paid in the fourth quarter. If the board of directors' proposal is approved at the shareholders' meeting, a net dividend of $1.80 per ADS ($0.18 per share), or $353 million, will be paid on May 14, 2025, with record date on May 9, 2025. Outlook Ternium expects a slight sequential increase in adjusted EBITDA for the first quarter of 2025 driven by improved margins and shipments, with volume recovery in Brazil and stable shipments in Mexico and Argentina. The company anticipates that cost per ton will decrease in the first quarter due to the gradual consumption of lower-priced slabs and raw material inventories, while a sequentially lower revenue per ton is expected to partially offset this cost reduction. The recent surge in US trade action is creating significant uncertainty in global markets. Within Ternium's markets, the company anticipates that this development will continue to affect Mexico's apparent steel demand until a definitive understanding of the final measures is achieved. Ternium's new push-pull pickling line at the Pesquería industrial center along with four lines in the new finishing center, all part of the company's downstream expansion project in Mexico, continue to progress in their ramp-up process. Ternium expects to start-up the remainder of the lines in this project, a cold rolling mill and a hot-dip galvanizing line, by the end of the year. The company's newly built wind farm in Argentina commenced electricity generation in December 2024. All of the 22 wind turbines have already been installed. Upon full operation, the wind farm is projected to produce approximately 480 GWh annually, mostly offsetting the company's procurement of third-party electricity in the country. This initiative provides substantial economic benefits and assists the company in achieving its decarbonization goals. Adjusted EBITDA Adjusted EBITDA in the fourth quarter of 2024 equals Net Income adjusted to exclude: Depreciation and amortization; Income tax results; Net financial result; Equity in earnings of non-consolidated companies; Provision reversal for ongoing litigation related to the acquisition of a participation in Usiminas; and Impairment of Las Encinas' mining assets. And adjusted to include the proportional EBITDA in Unigal (70% participation). Adjusted EBITDA Margin equals Adjusted EBITDA divided by net sales. For more information see Exhibit I - Alternative performance measures - "Adjusted EBITDA". Steel Segment Fourth Quarter of 2024 Results In the fourth quarter of 2024, the Steel Segment's shipments and net sales decreased sequentially by 9% and 14%, respectively. This decline primarily reflects a seasonal activity slowdown, along with a drop in Mexican commercial market demand. Additionally, realized steel prices fell across all of Ternium's markets. On a year-over-year basis, the fourth quarter Steel Segment's shipments and net sales dropped by 7% and 21%, respectively. Sales volumes saw a slight increase in Brazil but declined in other steel markets. Steel prices experienced a year-over-year decrease in all markets. In Mexico, steel shipments decreased sequentially in the fourth quarter of 2024 due to seasonally lower demand and a weaker commercial market. Compared to the prior-year fourth quarter, shipments also decreased, as the softness in the commercial market was partially offset by the continued growth in Ternium's sales volumes to industrial customers. In Brazil, shipments declined sequentially in the fourth quarter primarily due to seasonally lower steel demand. However, year-over-year, sales volumes in this period showed a slight improvement. In the Southern Region, steel shipments decreased sequentially in the fourth quarter reflecting seasonally lower demand. In a year-over-year comparison, sales volumes decreased in the period due to the negative impact on activity of the Argentine government's economic stabilization measures. In Other Markets, sales volumes decreased in the fourth quarter on a sequential and year-over-year basis. The decline was primarily due to lower shipments in the US market. The Steel Segment's Cash Operating Income per Ton and Margin decreased both sequentially and year-over-year in the fourth quarter of 2024. In this period, revenue per ton decreased by $57 sequentially and by $177 compared with the prior-year fourth quarter. These declines were partially offset by a decrease in cost per ton of steel, which, however, continued to lag behind the reduction in raw material and slab market prices. In addition, the year-over-year decrease in the cost per ton of steel reflected incremental efficiency gains achieved at Usiminas' blast furnace operations. The Steel Segment's net sales in 2024 experienced a slight decline compared to 2023. Realized steel prices decreased by 10% year-over-year reflecting the overall market trend. This decline was mostly offset by an increase in reported shipments, primarily due to the full consolidation of Usiminas' results partially offset by lower sales volumes in the Southern Region. In Mexico, sales volumes remained relatively stable year-over-year in 2024. The weakness in the country's commercial steel market was largely offset by sustained growth in Ternium's shipments to industrial customers. Over the past few years, shipments in Mexico have increased significantly. In Brazil, shipments increased in 2024 due to the full year consolidation of Usiminas' results. Additionally, sales volumes in the country were bolstered by Usiminas' enhanced operating performance and stronger local demand for steel products. In the Southern Region, shipments experienced a significant decrease reflecting the Argentine government's economic stabilization measures, which had a significant impact in the first quarter followed by a gradual improvement throughout the year. In Other Markets, sales volumes improved in 2024, albeit starting from relatively weak shipments in 2023. Mining Segment Fourth Quarter of 2024 Results In the fourth quarter of 2024, the Mining Segment's net sales decreased sequentially by 6%. On a sequential basis, the Mining Segment's shipments remained stable. However, on a year-over-year basis, shipments decreased by 9% in the fourth quarter, primarily due to lower production levels in our Mexican and Brazilian operations. The Mining Segment's Cash Operating Income per Ton and Margin increased sequentially in the fourth quarter of 2024 due to lower operating costs, partially offset by a decrease in realized iron ore prices. The reduction in operating costs was partly attributed to a lower-priced mix of sales. In 2024, the Mining Segment's net sales increased by 21% year-over-year, driven by a 39% increase in the Mining Segment's shipments partially offset by a 13% decline in realized iron ore prices. The year-over-year increase in the Mining Segment's shipments primarily reflected the full year consolidation of Usiminas' results, partially offset by lower production levels in our Mexican and Brazilian operations. Net Financial Results Net financial results showed a loss of $67 million in the fourth quarter of 2024. In this period, Ternium reported a $72 million net foreign exchange loss, primarily due to the adverse effect of the Brazilian Real's depreciation against the US dollar on Usiminas' US dollar denominated liabilities, given that Usiminas uses the Brazilian Real as its functional currency. For the full year 2024, net financial results showed a loss of $194 million, including the negative impact of the Brazilian Real's depreciation on Usiminas' US dollar denominated liabilities. Additionally, net financial results for 2024 reflected a loss of $121 million due to Ternium's divestment of Argentine government bond holdings, resulting in the recycling of changes in the fair value of financial instruments from Other Comprehensive Income to Financial Results. $ MILLION 4Q24 3Q24 4Q23 2024 2023 Net interest results 18 17 49 102 130 Net foreign exchange result (72 ) 57 171 (104 ) 98 Change in fair value of financial assets (3 ) 11 (85 ) (133 ) (58 ) Other financial expense, net (11 ) (11 ) (32 ) (58 ) (46 ) Net financial results (67 ) 74 103 (194 ) 123 Income Tax Results Ternium Mexico, Ternium Argentina and Ternium Brasil use the US dollar as their functional currency and are, therefore, affected by deferred tax results. These results account for the impact of local currency fluctuations against the US dollar, as well as for the effect of local inflation. In addition, in the fourth quarter of 2024 the effective tax rate was influenced by a provision reversal for ongoing litigation related to the acquisition of a participation in Usiminas; for the full year 2024 it was influenced by a net provision related to the same litigation; and for the full year 2023 it was influenced by certain non-cash effects related to the increase in the participation in Usiminas. $ MILLION 4Q24 3Q24 4Q23 2024 2023 Current income tax expense (10 ) (63 ) (141 ) (323 ) (591 ) Deferred tax (loss) gain (54 ) (80 ) (15 ) (231 ) 257 Income tax expense (64 ) (143 ) (156 ) (554 ) (334 ) Result before income tax 397 236 709 728 1,321 Effective tax rate 16 % 61 % 22 % 76 % 25 % Excluding provision (reversal) charge for ongoing litigation related to the acquisition of a participation in Usiminas in 2012 (404 ) 31 - 410 - Excluding non-cash effects in the 3Q23 related to the increase in the participation in Usiminas - - - - 1,106 Result before income tax excluding provision and non-cash effects (7 ) 267 709 1,138 2,427 Effective tax rate excluding provision and non-cash effects -936 % 54 % 22 % 49 % 14 % Net Income In the fourth quarter of 2024, Ternium recorded net income of $333 million, which included a provision reversal of $404 million for ongoing litigation related to the acquisition of a participation in Usiminas. Excluding this provision reversal, Adjusted Net Loss amounted to $71 million, with an operating income of $42 million and a financial result loss of $67 million. Adjusted Equity Holder's Net Loss was $83 million in the fourth quarter, or $0.42 per ADS, mainly after accounting for the participation of a 76.7% non-controlling interest in Usiminas and a 37.4% non-controlling interest in Ternium Argentina. For the full year 2024, net income was $174 million, which included a net provision of $410 million for ongoing litigation related to the acquisition of a participation in Usiminas. Excluding this provision, Adjusted Net Income amounted to $584 million, with an operating income of $1.3 billion, deferred tax losses of $231 million and a financial result loss of $194 million. Adjusted Equity Holder's Net Income was $316 million in 2024, or $1.61 per ADS. $ MILLION 4Q24 3Q24 4Q23 2024 2023 Owners of the parent 281 32 414 (54 ) 676 Non-controlling interest 52 61 140 227 310 Net Income 333 93 554 174 986 Excluding provision (reversal) charge for ongoing litigation related to the acquisition of a participation in Usiminas in 2012 (404 ) 31 - 410 - Excluding non-cash effects in the 3Q23 related to the increase in the participation in Usiminas - - - - 1,106 Adjusted Net (Loss) Income (71 ) 124 554 584 2,092 $ per ADS 4Q24 3Q24 4Q23 2024 2023 Earnings (Losses) per ADS 1.43 0.16 2.11 (0.27 ) 3.44 Adjusted (Losses) Earnings per ADS (0.42 ) 0.30 2.11 1.61 8.59 Cash Flow and Liquidity In the fourth quarter of 2024, cash from operations amounted to $472 million, with a $257 million decrease in working capital. This decrease included a $194 million net reduction in trade and other receivables, mainly due to lower net sales. In addition, inventories decreased by $113 million during the period, primarily due to lower inventory costs, partially offset by higher steel volumes. Conversely, trade payables and other liabilities saw a net decrease of $49 million in the fourth quarter. Capital expenditures totaled $561 million, primarily reflecting progress in the construction of the new facilities at Ternium's industrial center in Pesquería, Mexico, as well as the completion of the new wind farm in Argentina. In 2024, cash from operations reached $1.9 billion, with working capital remaining relatively unchanged year-over-year. Inventories increased by $109 million, as higher steel and raw material inventory volumes were partially offset by lower inventory costs. In addition, trade payables and other liabilities recorded a net decrease of $35 million in 2024. On the other hand, trade and other receivables saw a net decrease of $128 million amid lower realized steel prices. Capital expenditures amounted to $1.9 billion in 2024. Throughout the year, the company advanced the construction of the new downstream and upstream facilities in its industrial center in Pesquería, Mexico, including the start-up of a new push-pull pickling line and finishing facilities and built a new wind farm in Argentina. Furthermore, the company advanced several projects aimed at further improving environmental and safety conditions throughout its main facilities. In 2024, alongside the development of its capital expenditure program, Ternium paid dividends totaling $609 million to its shareholders and $54 million to the minority interest. Despite these significant cash disbursements, Ternium maintained a robust Net Cash position of $1.6 billion as of year-end 2024. This was supported by the aforementioned cash generated from operating activities and a $457 million increase in the fair value of financial instruments. Conference Call and Webcast Ternium will host a conference call on February 19, 2025, at 8:30 a.m. ET in which management will discuss fourth quarter and full year 2024 results. A webcast link will be available in the Investor Center section of the company's website at Forward Looking Statements Some of the statements contained in this press release are "forward-looking statements". Forward-looking statements are based on management's current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to gross domestic product, related market demand, global production capacity, tariffs, cyclicality in the industries that purchase steel products, and other factors beyond Ternium's control. About Ternium Ternium is a leading steel producer in the Americas, providing advanced steel products to a wide range of manufacturing industries and the construction sector. We invest in low carbon emissions steelmaking technologies to support the energy transition and the mobility of the future. We also support the development of our communities, especially through educational programs in Latin America. More information about Ternium is available at $ MILLION 4Q24 3Q24 4Q23 2024 2023 Net sales 3,876 4,480 4,931 17,649 17,610 Cost of sales (3,426 ) (3,902 ) (4,039 ) (14,760 ) (14,051 ) Gross profit 450 578 892 2,889 3,559 Selling, general and administrative expenses (373 ) (412 ) (432 ) (1,651 ) (1,472 ) Other operating (expense) income, net (35 ) 9 121 25 110 Operating income 42 175 582 1,263 2,198 Financial expense (52 ) (54 ) (44 ) (196 ) (125 ) Financial income 71 71 94 298 255 Other financial (expense) income, net (86 ) 57 54 (296 ) (6 ) Equity in earnings of non-consolidated companies 18 17 24 69 105 Effect related to the increase of the participation in Usiminas - - - - (171 ) Recycling of other comprehensive income related to Usiminas - - - - (935 ) Provision reversal (charge) for ongoing litigation related to the acquisition of a participation in Usiminas 404 (31 ) - (410 ) - Profit before income tax results 397 236 709 728 1,321 Income tax expense (64 ) (143 ) (156 ) (554 ) (334 ) Profit for the period 333 93 554 174 986 Attributable to: Owners of the parent 281 32 414 (54 ) 676 Non-controlling interest 52 61 140 227 310 Profit for the period 333 93 554 174 986 Statement of Financial Position $ MILLION DECEMBER 31, 2024 DECEMBER 31, 2023 Property, plant and equipment, net 8,381 7,638 Intangible assets, net 1,022 996 Investments in non-consolidated companies 469 517 Other investments 23 211 Deferred tax assets 1,194 1,713 Receivables, net 961 1,073 Total non-current assets 12,050 12,149 Receivables, net 902 1,173 Derivative financial instruments 4 15 Inventories, net 4,751 4,948 Trade receivables, net 1,562 2,065 Other investments 2,160 1,976 Cash and cash equivalents 1,691 1,846 Total current assets 11,071 12,024 Non-current assets classified as held for sale 7 7 Total assets 23,129 24,179 Statement of Financial Position (cont.) $ MILLION DECEMBER 31, 2024 DECEMBER 31, 2023 Capital and reserves attributable to the owners of the parent 11,968 12,419 Non-controlling interest 4,163 4,393 Total equity 16,132 16,812 Provisions 553 840 Deferred tax liabilities 89 171 Non current tax liabilities 21 - Other liabilities 766 1,149 Trade payables 5 12 Lease liabilities 164 189 Borrowings 1,560 1,206 Total non-current liabilities 3,158 3,567 Provision for ongoing litigation related to the acquisition of a participation in Usiminas 410 - Current income tax liabilities 107 137 Other liabilities 630 430 Trade payables 1,926 2,233 Derivative financial instruments 50 8 Lease liabilities 46 52 Borrowings 670 940 Total current liabilities 3,839 3,801 Total liabilities 6,997 7,367 Total equity and liabilities 23,129 24,179 Statement of Cash Flows $ MILLION 4Q24 3Q24 4Q23 2024 2023 Result for the period 333 93 554 174 986 Adjustments for: Depreciation and amortization 189 184 191 743 658 Income tax accruals less payments 23 204 (45 ) 498 (161 ) Equity in earnings of non-consolidated companies (18 ) (17 ) (24 ) (69 ) (105 ) Provision (reversal) charge for ongoing litigation related to the acquisition of a participation in Usiminas (404 ) 31 - 410 - Interest accruals less payments / receipts, net (7 ) 3 (34 ) (16 ) (45 ) Changes in provisions 10 (1 ) (61 ) (60 ) (64 ) Changes in working capital 257 (176 ) 320 (16 ) 321 Net foreign exchange results and others 56 (17 ) (225 ) 211 (236 ) Impairment of Las Encinas' mining assets 32 - 42 32 42 Non-cash effects related to the increase of the participation in Usiminas - - - - 1,106 Net cash provided by operating activities 472 303 718 1,906 2,501 Capital expenditures and advances to suppliers for PP&E (561 ) (446 ) (597 ) (1,865 ) (1,461 ) Decrease (increase) in other investments 296 (164 ) 129 462 (718 ) Proceeds from the sale of property, plant & equipment 1 0 1 2 2 Dividends received from non-consolidated companies 21 3 28 26 43 Acquisition of business: Purchase consideration - - - - (119 ) Cash acquired - - - - 781 Net cash used in investing activities (243 ) (606 ) (439 ) (1,375 ) (1,470 ) Dividends paid in cash to company's shareholders (177 ) - (216 ) (609 ) (569 ) Dividends paid in cash to non-controlling interest (5 ) (3 ) - (54 ) - Finance lease payments (15 ) (13 ) (16 ) (61 ) (59 ) Proceeds from borrowings 272 852 119 1,559 355 Repayments of borrowings (139 ) (652 ) (121 ) (1,323 ) (493 ) Net cash (used in) provided by financing activities (63 ) 183 (234 ) (488 ) (766 ) Increase (decrease) in cash and cash equivalents 165 (121 ) 45 42 264 Exhibit I - Alternative Performance Measures These non-IFRS measures should not be considered in isolation of, or as a substitute for, measures of performance prepared in accordance with IFRS. These non-IFRS measures do not have a standardized meaning under IFRS and, therefore, may not correspond to similar non-IFRS financial measures reported by other companies. Adjusted EBITDA $ MILLION 4Q24 3Q24 4Q23 2024 2023 Net income 333 93 554 174 986 Adjusted to exclude: Depreciation and amortization 189 184 191 743 658 Income tax results 64 143 156 554 334 Net financial results 67 (74 ) (103 ) 194 (123 ) Equity in earnings of non-consolidated companies (18 ) (17 ) (24 ) (69 ) (105 ) Provision (reversal) charge for ongoing litigation related to the acquisition of a participation in Usiminas (404 ) 31 - 410 - Impairment of Las Encinas' mining assets 32 - 42 32 42 Reversal of other Usiminas contingencies recognized as part of the PPA - - (63 ) (34 ) (63 ) Non-cash effects related to the increase in the participation in Usiminas - - - - 1,106 Reversal of Usiminas' post-retirement liabilities - - (109 ) - (109 ) Adjusted to include: Proportional EBITDA in Unigal (70% participation) 6 8 8 33 14 Adjusted EBITDA 270 368 651 2,038 2,740 Divided by: net sales 3,876 4,480 4,931 17,649 17,610 Adjusted EBITDA Margin (%) 7 % 8 % 13 % 12 % 16 % Exhibit I - Alternative Performance Measures (cont.) Cash Operating Income - Steel Segment $ MILLION 4Q24 3Q24 4Q23 2024 2023 Operating Income - Management View (Note "Segment Information" to Ternium's Financial Statements as of the corresponding dates) 308 381 606 1,560 2,391 Plus/Minus differences in cost of sales (IFRS) (259 ) (219 ) (138 ) (330 ) (296 ) Excluding depreciation and amortization 142 138 154 552 542 Excluding reversal of other Usiminas contingencies - - (63 ) (34 ) (63 ) Excluding reversal of Usiminas' post-retirement liabilities - - (109 ) - (109 ) Including proportional EBITDA in Unigal (70% participation) 6 8 8 33 14 Cash Operating Income 197 309 458 1,780 2,479 Divided by steel shipments (thousand tons) 3,764 4,123 4,035 15,622 14,213 Cash Operating Income per Ton - Steel 52 75 113 114 174 Divided by steel net sales 3,767 4,368 4,750 17,220 17,281 Cash Operating Income Margin - Steel (%) 5 % 7 % 10 % 10 % 14 % Cash Operating Income - Mining Segment $ MILLION 4Q24 3Q24 4Q23 2024 2023 Operating Result - Management View (Note "Segment Information" to Ternium's Financial Statements as of the corresponding dates) (35 ) (58 ) 51 (166 ) 16 Plus/minus differences in cost of sales (IFRS) 15 64 55 194 66 Excluding depreciation and amortization 47 46 37 192 115 Impairment of Las Encinas' mining assets 32 - 42 32 42 Cash Operating Income 60 52 185 252 239 Divided by mining shipments (thousand tons) 2,995 3,020 3,277 11,385 8,176 Cash Operating Income per Ton - Mining 20 17 57 22 29 Divided by mining net sales 249 264 404 1,059 875 Cash Operating Income Margin - Mining (%) 24 % 20 % 46 % 24 % 27 % Exhibit I - Alternative Performance Measures (cont.) Adjusted Net Income $ MILLION 4Q24 3Q24 4Q23 2024 2023 Net income 333 93 554 174 986 Excluding provision (reversal) charge for ongoing litigation related to the acquisition of a participation in Usiminas (404 ) 31 - 410 - Excluding non-cash effects in the 3Q23 related to the increase in the participation in Usiminas - - - - 1,106 Adjusted Net Income (Loss) (71 ) 124 554 584 2,092 Note: In the press release announcing third quarter of 2024 results, reported third quarter of 2024 Adjusted Net Income did not exclude the provision charge for ongoing litigation related to the acquisition of a participation in Usiminas. To enhance comparability, in this press release the mentioned provision was excluded in all reported periods. Adjusted Equity Holders' Net Income and Adjusted Earnings per ADS $ MILLION 4Q24 3Q24 4Q23 2024 2023 Equity holders' net income (loss) 281 32 414 (54 ) 676 Excluding provision (reversal) charge for ongoing litigation related to the acquisition of a participation in Usiminas (364 ) 28 - 370 - Excluding non-cash effects in the 3Q23 related to the increase in the participation in Usiminas - - - - 1,010 Adjusted Equity Holders' Net (Loss) Income (83 ) 60 414 316 1,686 Divided by: outstanding shares of common stock, net of treasury shares (expressed in million of ADS equivalent) 196 196 196 196 196 Adjusted (Losses) Earnings per ADS ($) (0.42 ) 0.30 2.11 1.61 8.59 Free Cash Flow $ MILLION 4Q24 3Q24 4Q23 2024 2023 Net cash provided by operating activities 472 303 718 1,906 2,501 Excluding capital expenditures and advances to suppliers for PP&E (561 ) (446 ) (597 ) (1,865 ) (1,461 ) Free Cash Flow (90 ) (143 ) 121 41 1,040 Exhibit I - Alternative Performance Measures (cont.) Net Cash $ BILLION DECEMBER 31, 2024 SEPTEMBER 30, 2024 DECEMBER 31, 2023 Cash and cash equivalents 1.7 1.6 1.8 Plus: other investments (current and non-current) 2.2 2.3 2.2 Less: borrowings (current and non-current) (2.2 ) (2.2 ) (2.1 ) Net Cash 1.6 1.7 1.9 Note: Ternium Argentina's consolidated position of cash and cash equivalents and other investments amounted to $1.3 billion as of December 31, 2024, $1.2 billion as of September 30, 2024, and $1.1 billion as of December 31, 2023. Contact: Sebastián Martí Ternium - Investor Relations +1 (866) 890 0443 +54 (11) 4018 8389 SOURCE: Ternium S.A. View the original press release on ACCESS Newswire
