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Ternium S.A. (NYSE: TX) is Latin America's premier flat steel producer with an integrated network of production facilities in Mexico, Brazil, Argentina, Colombia, the southern United States, and Central America. The company is renowned for its high value-added steel products that cater to a wide array of industries, including automotive, construction, home appliances, capital goods, container, food, and energy sectors. With a workforce exceeding 16,800 employees and an annual production capacity of approximately 10.9 million tons of finished steel products and 4.0 million tons of iron ore pellets, Ternium is a significant player in the steel industry.
Ternium's operations are divided into two primary segments: Steel and Mining. The Steel segment includes the production of slabs, billets, round bars, hot-rolled coils, sheets, bars, stirrups, wire rods, and steel pipes. This segment also benefits from Ternium's strategic involvement in Usiminas, a leading steel manufacturer in Brazil, which enhances its market reach and operational capabilities. The Mining segment focuses on the extraction and processing of iron ore, producing concentrates and pellets for both internal use and external sales.
The company is committed to innovation and sustainability, as evidenced by its ongoing projects. Ternium is currently constructing a state-of-the-art steel slab mill in Pesquería, Nuevo León, Mexico. This facility is designed to integrate with the existing downstream operations and includes advanced technologies for carbon capture and the potential to switch from natural gas to hydrogen for Direct Reduced Iron (DRI) production. This emphasis on sustainability extends to water use, with the new facility relying on industrially treated wastewater.
Financially, Ternium continues to perform robustly. Recent reports indicate substantial profitability despite market challenges. For example, in the second quarter of 2023, the company achieved an operating income of $731.7 million and an adjusted EBITDA of $882.6 million, driven by strategic pricing and cost management. Moreover, Ternium's acquisition of additional shares in Usiminas in July 2023 further solidified its market position, with consolidation expected to reflect positively on financial statements.
Ternium's strategic initiatives, such as the ongoing expansion of its facilities in Pesquería and its new port facility in Brownsville, Texas, underscore its commitment to enhancing production capacity and operational efficiency. These expansions are expected to support the growing steel demand in the USMCA region, driven by nearshoring and industrial growth in Mexico.
The company also places a significant emphasis on community development and educational programs, reflecting its broader commitment to social responsibility. For investors, Ternium represents a stable and growth-oriented opportunity in the steel industry, marked by its strategic expansions, robust market presence, and commitment to sustainability.
Ternium S.A. (NYSE:TX) reported robust financial results for Q4 and FY 2021, highlighting record profitability. The company shipped 12.1 million tons of steel, a 6% increase from 2020, and achieved net sales of $16.1 billion, an 84% rise year-over-year. Operating income reached $5.3 billion, with an EBITDA of $5.9 billion, reflecting a 285% increase. Ternium proposed a $0.26 annual dividend per share, totaling $510.4 million. Despite strong performance, Q4 shipments fell 8% sequentially, attributed to inventory issues and lower market activity in Mexico, leading to cautious expectations for 2022 amidst stabilizing steel prices.
Tul, an e-commerce platform supporting community hardware stores, has raised $181 million in a Series B funding round led by 8VC and Avenir, totaling nearly $210 million in funding to date. The capital will facilitate Tul's expansion into Brazil and other Latin American markets, targeting a total addressable market of $120 billion as locally-owned stores account for 50% of the region's hardware sales. Tul aims to digitize operations and enhance inventory management for underserved hardware stores, vital for self-built homes.
Ternium S.A. (NYSE:TX) announced a $1.0 billion bid to acquire a 28.73% stake in Ternium Mexico S.A. de C.V. from its subsidiary Ternium Argentina S.A. (BYMA: TXAR). This acquisition will streamline the corporate structure, enhancing management efficiency and stakeholder analysis. Currently, Ternium owns 71.27% of Ternium Mexico and 62.49% of Ternium Argentina. The transaction requires 95% approval from Ternium Argentina's shareholders and includes a $900 million dividend. If approved, the deal is expected to finalize in Q1 2022.
Ternium S.A. (NYSE:TX) reported a strong performance for Q3 and the first nine months of 2021, with net sales reaching $4.6 billion, a 115% increase year-over-year, driven by a rise in steel shipments to 3.1 million tons. EBITDA for Q3 stood at $1.9 billion, 432% higher than last year, resulting in an EBITDA margin of 41%. Net income was $1.4 billion, marking a significant recovery. For the first nine months, net sales totaled $11.8 billion, a 91% increase, with free cash flow at $1.1 billion. An interim dividend of $0.08 per share has been declared.
Ternium S.A. (NYSE:TX) has signed a memorandum of understanding with Vale S.A. to explore steelmaking solutions aimed at reducing CO2 emissions. The partnership will evaluate the feasibility of investments in an iron ore briquetting plant in Brazil and low-carbon product manufacturing using Tecnored, HYL, and other technologies. This initiative supports Vale's goal to cut 15% of net Scope 3 emissions by 2035 and Ternium's target to lower its CO2 intensity by 20% by 2030. Both companies aim for substantial advancements in environmental sustainability within the steel industry.
Ternium S.A. (NYSE:TX) has been acquitted of all charges in the Notebooks Case involving its Chairman, Paolo Rocca. A first-instance judge ruled that Rocca's involvement does not tarnish his reputation. The decision was uncontested by the prosecutor or the government unit involved. This ruling may strategically strengthen Ternium's position in the market by alleviating potential reputational risks associated with legal challenges.
Ternium S.A. (NYSE:TX) reported strong financial results for Q2 and H1 2021, with net sales reaching $3.92 billion in Q2, up 125% year-on-year, and $7.17 billion for H1, an increase of 78%. Operating income increased significantly to $1.27 billion in Q2 and $2.18 billion for H1. EBITDA was $1.42 billion for Q2 and $2.48 billion for H1, with margins improving to 36% and 35%, respectively. Free cash flow for Q2 was $467 million and $665 million for H1. The net debt position was $0.2 billion, reflecting strong operational performance amid rising steel demand.
Ternium S.A. (NYSE:TX) held its annual general meeting on May 3, 2021, where all resolutions were unanimously approved. Shareholders endorsed the consolidated financial statements for the year ending December 31, 2020, and a dividend of $0.21 per share, payable on May 11, 2021, to shareholders of record by May 6, 2021. The board of directors was reduced to eight members, all of whom were re-elected. Additionally, PricewaterhouseCoopers was re-appointed as independent auditors for fiscal year 2021.
Ternium S.A. (NYSE:TX) has filed its annual report on Form 20-F for the fiscal year ending December 31, 2020, with the U.S. Securities and Exchange Commission (SEC). The report is accessible via the SEC website and Ternium's official site under the Investor section. Shareholders and interested parties can request a physical copy of the report at no cost. Ternium is recognized as Latin America's leading flat steel producer, serving multiple industries including automotive and construction through its extensive manufacturing and distribution capabilities.
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