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Ternium Announces Third Quarter and First Nine Months of 2024 Results

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Ternium (NYSE:TX) reported its Q3 2024 results with Adjusted EBITDA of $368 million, reflecting relatively low margins despite strong shipment levels. The company achieved record-high sales volumes in Mexico, with increased shipments in Brazil and continued recovery in the Southern Region. However, steel revenue per ton decreased due to lower steel prices and reduced industrial contract prices in Mexico.

The company's net cash position decreased to $1.7 billion from $1.9 billion in the previous quarter. The board approved an interim dividend of $0.90 per ADS, payable on November 21, 2024. For Q4 2024, Ternium expects a slight sequential increase in adjusted EBITDA due to improved margins, despite anticipated lower shipments due to year-end seasonality.

Ternium (NYSE:TX) ha riportato i risultati del terzo trimestre 2024 con un EBITDA rettificato di 368 milioni di dollari, riflettendo margini relativamente bassi nonostante forti volumi di spedizione. L'azienda ha raggiunto volumi di vendita record in Messico, con aumenti delle spedizioni in Brasile e una continua ripresa nella Regione Meridionale. Tuttavia, i ricavi del settore dell'acciaio per tonnellata sono diminuiti a causa dei prezzi più bassi dell'acciaio e della riduzione dei prezzi dei contratti industriali in Messico.

La posizione di cassa netta dell'azienda è scesa a 1,7 miliardi di dollari rispetto ai 1,9 miliardi del trimestre precedente. Il consiglio di amministrazione ha approvato un dividendo intermedio di 0,90 dollari per ADS, che sarà pagato il 21 novembre 2024. Per il quarto trimestre 2024, Ternium prevede un lieve aumento sequenziale nell'EBITDA rettificato a causa di margini migliorati, nonostante si prevedano spedizioni più basse a causa della stagionalità di fine anno.

Ternium (NYSE:TX) reportó sus resultados del tercer trimestre de 2024 con un EBITDA ajustado de 368 millones de dólares, reflejando márgenes relativamente bajos a pesar de los sólidos niveles de envío. La compañía logró volúmenes de ventas récord en México, con un aumento de los envíos a Brasil y una continua recuperación en la Región Sur. Sin embargo, los ingresos del acero por tonelada disminuyeron debido a los precios más bajos del acero y a la reducción de los precios de contratos industriales en México.

La posición de efectivo neto de la compañía disminuyó a 1.7 mil millones de dólares desde 1.9 mil millones en el trimestre anterior. La junta aprobó un dividendo interino de 0.90 dólares por ADS, que se pagará el 21 de noviembre de 2024. Para el cuarto trimestre de 2024, Ternium espera un ligero aumento secuencial en el EBITDA ajustado debido a márgenes mejorados, a pesar de la previsión de menores envíos debido a la estacionalidad de fin de año.

테르니움 (NYSE:TX)은 2024년 3분기 결과를 보고하며 조정 EBITDA가 3억 6천8백만 달러에 달했으며, 강한 출하량에도 불구하고 상대적으로 낮은 마진을 기록했습니다. 이 회사는 멕시코에서 기록적인 판매량을 달성했으며, 브라질에서 출하량이 증가하고 남부 지역의 지속적인 회복이 있었습니다. 그러나 멕시코에서 낮은 강철 가격과 산업 계약 가격 감소로 인해 톤당 강철 수익이 감소했습니다.

회사의 순 현금 자산은 17억 달러로 감소했습니다, 이전 분기의 19억 달러에서 감소했습니다. 이사회는 ADS당 0.90 달러의 중간 배당금을 승인했으며, 이는 2024년 11월 21일에 지급될 예정입니다. 2024년 4분기에는 연말 시즌성으로 인한 예상 출하량 감소에도 불구하고 개선된 마진에 따라 조정 EBITDA가 소폭 증가할 것으로 기대하고 있습니다.

Ternium (NYSE:TX) a publié ses résultats du 3ème trimestre 2024, avec un EBITDA ajusté de 368 millions de dollars, reflétant des marges relativement faibles malgré des niveaux d'expédition solides. L'entreprise a atteint des volumes de ventes record au Mexique, avec des expéditions en augmentation au Brésil et une reprise continue dans la région Sud. Cependant, le chiffre d'affaires en acier par tonne a baissé en raison de la diminution des prix de l'acier et des prix des contrats industriels au Mexique.

La position de trésorerie nette de l'entreprise a diminué à 1,7 milliard de dollars contre 1,9 milliard de dollars au trimestre précédent. Le conseil d'administration a approuvé un dividende intérimaire de 0,90 dollar par ADS, payable le 21 novembre 2024. Pour le 4ème trimestre 2024, Ternium prévoit une légère augmentation séquentielle de l'EBITDA ajusté en raison de l'amélioration des marges, malgré une baisse anticipée des expéditions en raison de la saisonnalité de fin d'année.

Ternium (NYSE:TX) hat seine Ergebnisse für das 3. Quartal 2024 bekannt gegeben, mit einem bereinigten EBITDA von 368 Millionen Dollar, was relativ niedrige Margen angesichts starker Versandmengen widerspiegelt. Das Unternehmen erzielte Rekordverkaufsvolumen in Mexiko, mit erhöhten Versandmengen in Brasilien und einer anhaltenden Erholung in der Südregion. Allerdings sanken die Stahlumsätze pro Tonne aufgrund niedrigerer Stahlpreise und reduzierter Industrietarifpreise in Mexiko.

Die netto verfügbare Zahlungsmittelposition des Unternehmens sank auf 1,7 Milliarden Dollar im Vergleich zu 1,9 Milliarden Dollar im vorherigen Quartal. Der Vorstand genehmigte eine Zwischendividende von 0,90 Dollar pro ADS, die am 21. November 2024 gezahlt wird. Für das 4. Quartal 2024 erwartet Ternium einen leichten sequenziellen Anstieg des bereinigten EBITDA aufgrund verbesserter Margen, trotz der erwarteten niedrigeren Versandmengen wegen der Saisonalität zum Jahresende.

Positive
  • Record-high sales volumes achieved in Mexico
  • Net cash position remains strong at $1.7 billion
  • Interim dividend of $0.90 per ADS approved
  • New push-pull pickling line and three finishing lines started operations
  • Expected slight increase in Q4 2024 adjusted EBITDA
Negative
  • Adjusted EBITDA decreased due to lower margins
  • Steel revenue per ton declined due to lower prices
  • Net cash position decreased by $200 million quarter-over-quarter
  • Working capital increased by $155 million
  • Expected decline in Q4 2024 shipments due to seasonality

Insights

Ternium's Q3 2024 results show mixed performance with some concerning trends. While shipments reached record levels in Mexico, $368 million Adjusted EBITDA reflects compressed margins due to lower steel prices. Net cash position declined to $1.7 billion from $1.9 billion in Q2.

Key concerns include declining steel prices in main markets, lower industrial contract prices in Mexico and continued high-cost inventory consumption. The $0.90 per ADS dividend (~5.3% yield) and strong balance sheet provide some comfort, but Q4 outlook suggests continued margin pressure despite expected cost improvements.

Notable investments in expansion programs and renewable energy initiatives demonstrate long-term strategic focus, though $446 million in capital expenditures impacted free cash flow.

Market dynamics show concerning trends across regions. While Mexico achieved record-high shipments, increasing Chinese imports into Brazil pose a competitive threat. Argentina's market shows recovery but remains below historical volumes.

The operational landscape reveals efficiency improvements in blast furnace operations, particularly in fuel consumption. The new push-pull pickling line and three finishing lines starting operations in Pesquería represent significant capacity expansion. The upcoming wind farm in Argentina will enhance cost competitiveness through renewable energy integration.

LUXEMBOURG / ACCESSWIRE / November 5, 2024 / Ternium S.A. (NYSE:TX) today announced its results for the third quarter and first nine months ended September 30, 2024.

The financial and operational information contained in this press release is based on Ternium S.A.'s operational data and consolidated condensed interim financial statements prepared in accordance with IAS 34 "Interim financial reporting" (IFRS) and presented in US dollars ($) and metric tons. Interim financial figures are unaudited. This press release includes certain non-IFRS alternative performance measures such as Adjusted EBITDA, Cash Operating Income, Net Cash, Free Cash Flow, Adjusted Net Income, Adjusted Equity Holders' Net Income and Adjusted Earnings per ADS. The reconciliation of these figures to the most directly comparable IFRS measures is included in Exhibit I.

Third Quarter of 2024 Highlights

Summary of Third Quarter of 2024 Results

1 American Depositary Share. Each ADS represents 10 shares of Ternium's common stock. Results are based on a weighted average number of shares of common stock outstanding (net of treasury shares) of 1,963,076,776.

Third Quarter of 2024 Highlights

Ternium achieved a strong level of shipments in the third quarter of 2024, on record-high sales volumes in Mexico, higher shipments in Brazil and a continued recovery in the Southern Region.

However, Adjusted EBITDA was $368 million in the third quarter of 2024, reflecting a relatively low margin. Steel revenue per ton decreased sequentially in the third quarter due to lower steel prices in Ternium's main steel markets and a decrease in industrial contract prices in Mexico. This was partially offset by a modest decrease in steel cost per ton, as the company consumed previously purchased high-priced inventory during the third quarter.

Capital expenditures in the third quarter of 2024 amounted to $446 million, as Ternium progressed with its expansion programs in Mexico and with its new wind farm in Argentina. Cash provided by operating activities was $303 million after a working capital increase of $155 million. Consequently, Ternium's net cash position decreased to $1.7 billion as of the end of September 2024 from net cash position of $1.9 billion as of the end of June.

Interim Dividend Payment

Ternium's board of directors approved the payment of an interim dividend of $0.90 per ADS ($0.09 per share), or $177 million based on total shares of common stock outstanding net of treasury shares.

The payment date of the interim dividend will be November 21, 2024, with an ex-dividend date on November 15, 2024 and record date on November 18, 2024.

Outlook

Ternium expects a slight sequential increase in adjusted EBITDA for the fourth quarter of 2024 due to improved margins partially offset by a reduction in shipments. Apparent demand in Mexico and Brazil is anticipated to decline due to year-end seasonality in the fourth quarter. Conversely, apparent demand in Argentina is expected to remain relatively stable, albeit at levels below historical volumes.

The company anticipates a continued decrease in cost per ton, as a result of the gradual consumption of lower-priced slabs and raw material inventories. However, realized steel prices are projected to decline in the fourth quarter of 2024 compared to the third quarter of 2024, mainly due to the reset of quarterly price contracts with industrial customers in Mexico at reduced levels.

During the third quarter, the company's new push-pull pickling line in the Pesquería industrial center, as well as three of the five finishing lines in Ternium's downstream expansion project, have started operations and are currently ramping up. In addition, our new wind farm in Argentina is expected to begin operations by year-end, boosting our use of self-generated renewable energy and reducing reliance on external sources. This will represent a significant milestone in our commitment to renewable energy and decarbonization.

Analysis of Third Quarter of 2024 Results

Consolidated Net Sales

Adjusted EBITDA

Adjusted EBITDA in the third quarter of 2024 equals Net Income adjusted to exclude:

  • Depreciation and Amortization;

  • Income Tax Results;

  • Net Financial Result;

  • Equity in Results of Non-consolidated Companies; and

  • Provision for ongoing litigation related to the acquisition of a participation in Usiminas.

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

The Steel Segment shipments increased 7% sequentially in the third quarter of 2024. However, net sales in period remained stable compared to the second quarter of 2024 due to lower realized steel prices. The sequential decrease in revenue per ton was due to lower steel prices in Ternium's main steel markets and lower contract prices in Mexico.

On a year-over-year basis, the Steel Segment shipments remained stable. Nevertheless, net sales decreased year-over-year as a result of lower steel prices in Ternium's main steel markets.

In Mexico, shipments achieved a new record-high in the third quarter of 2024. Sales volumes to the industrial sector increased sequentially, including higher shipments to automotive manufacturers and a recovery in the sales to the HVAC sector. Shipments to the commercial market improved sequentially, albeit from a relatively low base.

In Brazil, shipments to industrial customers and distributors increased sequentially in the third quarter of 2024. On the other hand, sales volumes to automotive manufacturers remained unchanged. Demand for steel products in the country was strong. However, imports of steel products continued increasing in the third quarter, mainly from China.

In the Southern Region, steel shipments continued to recover in the quarter, mainly reflecting better demand in Argentina from the construction sector, the automotive industry, and agribusiness and transportation equipment manufacturers.

Note: For information on the Steel Segment's Cash Operating Income per Ton and Margin, see Exhibit I - Alternative performance measures - "Cash Operating Income - Steel Segment".

The Steel Segment's Cash Operating Income per Ton and Margin decreased sequentially in the third quarter of 2024 due to lower revenue per ton partially offset by slightly lower cost per ton.

Ternium's and Usiminas' blast furnace operations recorded efficiency gains in the period, particularly in fuel consumption. In addition, labor and maintenance costs decreased sequentially in the third quarter.

On the other hand, the company consumed high-cost inventory in the period. The decrease in raw material and slab market prices during 2024 was not totally reflected on Ternium's cost of sales in the third quarter, as the company consumed inventories produced in prior periods.

Mining Segment

The Mining Segment shipments increased 13% sequentially in the third quarter of 2024, supported by higher production levels in our Mexican and Brazilian mining operations. However, net sales decreased slightly in the period reflecting lower iron ore market prices.

On a year-over-year basis, iron ore shipments decreased in the third quarter of 2024 reflecting lower production levels in our Mexican and Brazilian operations. Net sales decreased slightly year-over-year in the third quarter, as lower sales volumes were partially offset by higher realized iron ore prices. The increase in revenue per ton was the result of an improved sales mix of iron ore products, partially offset by lower iron ore market prices.

Note: For information on the Mining Segment's Cash Operating Income per Ton and Margin, see Exhibit I - Alternative performance measures - "Cash Operating Income - Mining Segment".

The Mining Segment's Cash Operating Income per Ton and Margin decreased in the third quarter of 2024 due to lower iron ore realized prices, partially offset by a slight decrease in cost per ton. On a year-over-year basis, the Mining Segment's Cash Operating Income per Ton and Margin increased in the third quarter reflecting a slight increase in realized iron ore prices and a slight decrease in cost per ton.

Net Financial Results

Net financial results were a gain of $74 million in the third quarter of 2024. Of note in the period was a $57 million net foreign exchange gain, mainly reflecting the positive impact of the depreciation of the Mexican Peso and the appreciation of the Brazilian Real vis-a-vis the US dollar on Ternium Mexico's net short local currency position and Usiminas' US dollar denominated debt, respectively. Usiminas uses the Brazilian Real as functional currency.

$ MILLION

3Q24

2Q24

3Q23

9M24

9M23

Net interest results

17

28

30

83

80

Net foreign exchange result

57

(49

)

(33

)

(32

)

(73

)

Change in fair value of financial assets

11

(5

)

36

(131

)

26

Other financial expense, net

(11

)

(13

)

(4

)

(47

)

(13

)

Net financial results

74

(39

)

30

(127

)

20

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. Effective tax rates in the second quarter and first nine months of 2024 included, in addition, the effect of a provision for ongoing litigation related to the acquisition of a participation in Usiminas and, in the third quarter and first nine months of 2023, certain non-cash effects related to the increase in the participation in Usiminas.

$ MILLION

3Q24

2Q24

3Q23

9M24

9M23

Current income tax expense

(63

)

(124

)

(164

)

(312

)

(450

)

Deferred tax (loss) gain

(80

)

(183

)

(89

)

(178

)

271

Income tax expense

(143

)

(307

)

(253

)

(490

)

(179

)

Result before income tax

236

(436

)

(530

)

331

611

Effective tax rate

61

%

-70

%

-48

%

148

%

29

%

Excluding provision in the 2Q24 for ongoing litigation related to the acquisition of a participation in Usiminas in 2012

-

(783

)

-

(783

)

-

Excluding non-cash effects in the 3Q23 related to the increase in the participation in Usiminas

-

-

(1,106

)

-

(1,106

)

Result before income tax excluding provision and non-cash effects

236

347

576

1,114

1,717

Effective tax rate excluding provision and non-cash effects

61

%

88

%

44

%

44

%

10

%

Net Income

Net Income was $93 million in the third quarter of 2024, on operating income of $175 million. Of note in the period were financial result gains of $74 million and deferred tax losses of $80 million.

Equity Holder's Net Income was $32 million in the third quarter, or $0.16 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.

$ MILLION

3Q24

2Q24

3Q23

9M24

9M23

Owners of the parent

32

(728

)

(739

)

(335

)

262

Non-controlling interest

61

(16

)

(44

)

176

170

Net Income (Loss)

93

(743

)

(783

)

(159

)

433

Excluding provision in the 2Q24 for ongoing litigation related to the acquisition of a participation in Usiminas in 2012

-

(783

)

-

(783

)

-

Excluding non-cash effects in the 3Q23 related to the increase in the participation in Usiminas

-

-

(1,106

)

-

(1,106

)

Adjusted Net Income

93

40

323

624

1,539

Cash Flow and Liquidity

Cash from operations reached $303 million in the third quarter of 2024, including a $155 million increase in working capital. The change in working capital was due to a $258 million decrease in trade payables and other liabilities, partially offset by a $54 million decrease in inventories and a $49 million net decrease in trade and other receivables. Capital expenditures amounted to $446 million in the third quarter of 2024. Among other initiatives, Ternium made progress in the construction of new facilities in its Pesquería industrial center and in the construction of a new wind farm in Argentina.

Ternium's net cash position in the third quarter decreased to $1.7 billion as of September 30, 2024, and included Ternium Argentina's total position of cash and cash equivalents and other investments of $1.1 billion.

On November 21, 2024, the company will pay an interim dividend to shareholders of $0.90 per ADS ($0.09 per share), or $177 million based on total shares of common stock outstanding net of treasury shares.

Conference Call and Webcast

Ternium will host a conference call on November 6, 2024, at 8:30 a.m. ET in which management will discuss third quarter of 2024 results. A webcast link will be available in the Investor Center section of the company's website at www.ternium.com.

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 www.ternium.com.

Income Statement

$ MILLION

3Q24

2Q24

3Q23

9M24

9M23

Net sales

4,480

4,514

5,185

13,773

12,679

Cost of sales

(3,902

)

(3,758

)

(4,192

)

(11,334

)

(10,012

)

Gross profit

578

757

993

2,439

2,667

Selling, general and administrative expenses

(412

)

(435

)

(443

)

(1,278

)

(1,040

)

Other operating income

9

49

(22

)

60

(11

)

Operating income

175

371

527

1,221

1,616

Financial expense

(54

)

(45

)

(47

)

(144

)

(81

)

Financial income

71

73

78

227

161

Other financial (expense) income, net

57

(67

)

0

(210

)

(60

)

Equity in earnings of non-consolidated companies

17

15

19

51

81

Effect related to the increase of the participation in Usiminas

-

-

(171

)

-

(171

)

Recycling of other comprehensive income related to Usiminas

-

-

(935

)

-

(935

)

Provision for ongoing litigation related to the acquisition of a participation in Usiminas

(31

)

(783

)

-

(814

)

-

Profit (Loss) before income tax results

236

(436

)

(530

)

331

611

Income tax (expense) credit

(143

)

(307

)

(253

)

(490

)

(179

)

Profit (Loss) for the period

93

(743

)

(783

)

(159

)

433

Attributable to:

Owners of the parent

32

(728

)

(739

)

(335

)

262

Non-controlling interest

61

(16

)

(44

)

176

170

Net Profit (Loss) for the period

93

(743

)

(783

)

(159

)

433

Statement of Financial Position

$ MILLION

SEPTEMBER 30, 2024

DECEMBER 31, 2023

Property, plant and equipment, net

8,142

7,638

Intangible assets, net

1,062

996

Investments in non-consolidated companies

517

517

Other investments

27

211

Deferred tax assets

1,432

1,713

Receivables, net

1,013

1,073

Total non-current assets

12,194

12,149

Receivables, net

940

1,173

Derivative financial instruments

24

15

Inventories, net

5,019

4,948

Trade receivables, net

1,896

2,065

Other investments

2,243

1,976

Cash and cash equivalents

1,614

1,846

Total current assets

11,737

12,024

Non-current assets classified as held for sale

8

7

Total assets

23,938

24,179

Statement of Financial Position (cont.)

$ MILLION

SEPTEMBER 30, 2024

DECEMBER 31, 2023

Capital and reserves attributable to the owners of the parent

11,941

12,419

Non-controlling interest

4,385

4,393

Total equity

16,326

16,812

Provisions

627

840

Deferred tax liabilities

106

171

Other liabilities

1,087

1,149

Trade payables

6

12

Lease liabilities

167

189

Borrowings

1,597

1,206

Total non-current liabilities

3,590

3,567

Provision for ongoing litigation related to the acquisition of a participation in Usiminas

814

-

Current income tax liabilities

124

137

Other liabilities

445

430

Trade payables

1,992

2,233

Derivative financial instruments

7

8

Lease liabilities

50

52

Borrowings

590

940

Total current liabilities

4,022

3,801

Total liabilities

7,612

7,367

Total equity and liabilities

23,938

24,179

Statement of Cash Flows

$ MILLION

3Q24

2Q24

3Q23

9M24

9M23

Result for the period

93

(743

)

(783

)

(159

)

433

Adjustments for:

Depreciation and amortization

184

199

165

554

467

Income tax accruals less payments

204

283

158

474

(116

)

Equity in earnings of non-consolidated companies

(17

)

(15

)

(19

)

(51

)

(81

)

Provision for ongoing litigation related to the acquisition of a participation in Usiminas

31

783

-

814

-

Interest accruals less payments/receipts, net

3

(11

)

1

(10

)

(11

)

Changes in provisions

(1

)

(62

)

(4

)

(70

)

(4

)

Changes in working capital

(155

)

169

388

(252

)

1

Net foreign exchange results and others

(38

)

52

8

134

(12

)

Non-cash effects related to the increase of the participation in Usiminas

-

-

1,106

-

1,106

Net cash provided by operating activities

303

656

1,020

1,435

1,783

Capital expenditures and advances to suppliers for PP&E

(446

)

(409

)

(430

)

(1,304

)

(864

)

(Increase) Decrease in other investments

(164

)

329

(333

)

166

(847

)

Proceeds from the sale of property, plant & equipment

0

1

1

2

2

Dividends received from non-consolidated companies

3

1

-

5

15

Acquisition of business:

Purchase consideration

-

-

(119

)

-

(119

)

Cash acquired

-

-

781

-

781

Net cash used in investing activities

(606

)

(79

)

(100

)

(1,132

)

(1,031

)

Dividends paid in cash to company's shareholders

-

(432

)

-

(432

)

(353

)

Dividends paid in cash to non-controlling interest

(3

)

(46

)

-

(49

)

-

Finance lease payments

(13

)

(15

)

(16

)

(46

)

(43

)

Proceeds from borrowings

852

303

163

1,286

236

Repayments of borrowings

(652

)

(365

)

(145

)

(1,183

)

(372

)

Net cash provided by (used in) financing activities

183

(556

)

3

(425

)

(532

)

(Decrease) Increase in cash and cash equivalents

(121

)

22

923

(123

)

220

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

3Q24

2Q24

3Q23

9M24

9M23

Net result

93

(743

)

(783

)

(159

)

433

Adjusted to exclude:

Depreciation and amortization

184

199

165

554

467

Income tax results

143

307

253

490

179

Net financial result

(74

)

39

(30

)

127

(20

)

Equity in earnings of non-consolidated companies

(17

)

(15

)

(19

)

(51

)

(81

)

Non-cash effects related to the increase in the participation in Usiminas

-

-

1,106

-

1,106

Provision for ongoing litigation in the 2Q24 related to the acquisition of a participation in Usiminas

31

783

814

-

Reversal of other Usiminas contingencies recognized as part of the PPA

-

(34

)

(34

)

-

Adjusted to include:

Proportional EBITDA in Unigal (70% participation)

8

9

6

27

6

Adjusted EBITDA

368

545

698

1,768

2,089

Divided by: net sales

4,480

4,514

5,185

13,773

12,679

Adjusted EBITDA Margin (%)

8

%

12

%

13

%

13

%

16

%

Exhibit I - Alternative Performance Measures (cont.)

Cash Operating Income - Steel Segment

$ MILLION

3Q24

2Q24

3Q23

9M24

9M23

Operating Income - Management View (Note "Segment Information" to Ternium's Financial Statements as of the corresponding dates)

381

278

667

1,252

1,784

Plus/Minus differences in cost of sales (IFRS)

(219

)

88

(162

)

(71

)

(157

)

Excluding depreciation and amortization

138

134

136

410

389

Excluding reversal of other Usiminas contingencies

-

(34

)

-

(34

)

-

Including proportional EBITDA in Unigal (70% participation)

8

9

6

27

6

Cash Operating Income

309

476

647

1,583

2,021

Divided by steel shipments (thousand tons)

4,123

3,841

4,131

11,858

10,179

Cash Operating Income per Ton - Steel

75

124

157

134

199

Divided by steel net sales

4,368

4,395

5,036

13,453

12,531

Cash Operating Income Margin - Steel (%)

7

%

11

%

13

%

12

%

16

%

Cash Operating Income - Mining Segment

$ MILLION

3Q24

2Q24

3Q23

9M24

9M23

Operating Income - Management View (Note "Segment Information" to Ternium's Financial Statements as of the corresponding dates)

(58

)

(52

)

(4

)

(131

)

(35

)

Plus/minus differences in cost of sales (IFRS)

64

61

17

179

11

Excluding depreciation and amortization

46

65

29

145

78

Cash Operating Income

52

74

42

192

54

Divided by mining shipments (thousand tons)

3,020

2,674

3,232

8,389

4,899

Cash Operating Income per Ton - Mining

17

28

13

23

11

Divided by mining net sales

264

271

276

810

471

Cash Operating Income Margin - Mining (%)

20

%

27

%

15

%

24

%

12

%

Exhibit I - Alternative Performance Measures (cont.)

Adjusted Net Result

$ MILLION

2Q24

3Q23

9M24

9M23

Net (Loss) income

(743

)

(783

)

(159

)

433

Excluding non-cash effects related to the increase in the participation in Usiminas

-

(1,106

)

-

(1,106

)

Excluding provision for ongoing litigation related to the acquisition of a participation in Usiminas

(783

)

-

(783

)

-

Adjusted Net Income

40

323

624

1,539

Adjusted Equity Holders' Net Result and Adjusted Earnings (Losses) per ADS

$ MILLION

2Q24

3Q23

9M24

9M23

Equity holders' net income

(728

)

(739

)

(335

)

262

Excluding non-cash effects related to the increase in the participation in Usiminas

-

(1,010

)

-

(1,010

)

Excluding provision for ongoing litigation related to the acquisition of a participation in Usiminas

(706

)

-

(706

)

-

Adjusted Equity Holders' Net Income

(21

)

271

372

1,272

Divided by: outstanding shares of common stock, net of treasury shares (expressed in million of ADS equivalent)

196

196

196

196

Adjusted (Losses) Earnings per ADS ($)

(0.11

)

1.38

1.89

6.48

Free Cash Flow

$ MILLION

3Q24

2Q24

3Q23

9M24

9M23

Net cash provided by operating activities

303

656

1,020

1,435

1,783

Excluding capital expenditures and advances to suppliers for PP&E

(446

)

(409

)

(430

)

(1,304

)

(864

)

Free cash flow

(143

)

247

590

130

919

Exhibit I - Alternative Performance Measures (cont.)

Net Cash Position

$ BILLION

SEPTEMBER 30,
2024

JUNE 30,
2024

SEPTEMBER 30,
2023

Cash and cash equivalents2

1.6

1.7

1.8

Plus: other investments (current and non-current)2

2.3

2.1

2.7

Less: borrowings (current and non-current)

(2.2

)

(2.0

)

(2.2

)

Net cash position

1.7

1.9

2.4

2 Ternium Argentina's consolidated position of cash and cash equivalents and other investments amounted to $1.1 billion and $1.3 billion as of September 30 and June 30, 2024, respectively, and $1.2 billion as of September 30, 2023.

Sebastián Martí
Ternium - Investor Relations
+1 (866) 890 0443
+54 (11) 4018 8389
www.ternium.com

SOURCE: Ternium S.A.



View the original press release on accesswire.com

FAQ

What was Ternium's (TX) Adjusted EBITDA in Q3 2024?

Ternium's Adjusted EBITDA in Q3 2024 was $368 million.

What is the amount of Ternium's (TX) interim dividend for Q3 2024?

Ternium approved an interim dividend of $0.90 per ADS ($0.09 per share), totaling $177 million.

What was Ternium's (TX) net cash position as of September 30, 2024?

Ternium's net cash position was $1.7 billion as of September 30, 2024.

What is Ternium's (TX) outlook for Q4 2024?

Ternium expects a slight sequential increase in adjusted EBITDA for Q4 2024 due to improved margins, partially offset by lower shipments due to year-end seasonality.

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