During the initial half-yearly period of 2022, Ternium’s steel shipments fell by 4% from 1H2021 to 5.909 million tons.
SEATTLE (Scrap Monster): Leading steelmaker Ternium announced results for the second quarter and six-month period ended June 30, 2022.
The quarterly steel shipments totalled 2.957 million tons, flat when compared with 2.951 million tons in the quarter before, but down by 4% when matched with the shipments of 3.068 million tons in the year ago quarter. The operating income dipped 16% year-on-year to $1,071 million, while the adjusted EBITDA recorded decline by 14% to $1,225 million during the quarter.
During the initial half-yearly period of 2022, Ternium’s steel shipments fell by 4% from 1H2021 to 5.909 million tons. The company reported adjusted EBITDA of $2.4 billion, adjusted EBITDA margin of 28% and adjusted EBITDA per ton of $412. The free cash flow after capital expenditures of $285.6 million totalled $401.4 million.
The Jan-June ’21 steel shipments in Mexico dropped by 5%. The shipments in the Southern region too witnessed year-on-year decline by 6% in the first half of 2022, mainly on account of soft steel demand in Argentina. In the Other Markets region, the steel shipments by the company remained more or less stable.
Ternium expects decline in steel prices to negatively affect its margins in the third quarter of the year. The company foresees rise in cost per ton, due to high raw material and slab costs. It anticipates reduced EBITDA in Q3 2022.
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