SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TERNIUM S.A.
By:
/s/ Pablo Brizzio
By:
/s/ Máximo Vedoya
Name: Pablo Brizzio Name: Máximo Vedoya
Title: Chief Financial Officer Title: Chief Executive Officer
Dated:
July 31, 2018
Sebastián Martí
Ternium - Investor Relations
+1 (866) 890 0443
+54 (11) 4018 8389
www.ternium.com
Ternium Announces
Second
Quarter and
First Half
2018
Results
Luxembourg,
July 31, 2018
– Ternium S.A. (NYSE: TX) today announced its results for the
second
quarter period that ended
June 30, 2018
.
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 (USD) and metric tons.
Summary of
Second
Quarter
2018
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q 2018
|
|
1Q 2018
|
|
2Q 2017
|
|
|
|
|
|
|
|
|
|
|
Steel Shipments (tons)
|
3,322,000
|
|
|
3,523,000
|
|
-6
|
%
|
|
2,641,000
|
|
26
|
%
|
|
Iron Ore Shipments (tons)
|
916,000
|
|
|
929,000
|
|
-1
|
%
|
|
875,000
|
|
5
|
%
|
|
Net Sales (USD million)
|
3,134.0
|
|
|
2,961.3
|
|
6
|
%
|
|
2,322.7
|
|
35
|
%
|
|
Operating Income (USD million)
|
650.3
|
|
|
523.1
|
|
24
|
%
|
|
392.8
|
|
66
|
%
|
|
EBITDA
1
(USD million)
|
787.6
|
|
|
665.1
|
|
18
|
%
|
|
497.9
|
|
58
|
%
|
|
EBITDA Margin (% of net sales)
|
25.1
|
%
|
|
22.5
|
%
|
|
|
|
21.4
|
%
|
|
|
|
EBITDA per Ton
2
(USD)
|
237.1
|
|
|
188.8
|
|
|
|
|
188.5
|
|
|
|
|
Income Tax Expense (USD million)
|
(175.7)
|
|
|
(41.2)
|
|
|
|
|
(59.1)
|
|
|
|
|
Net Income (USD million)
|
337.8
|
|
|
422.1
|
|
|
|
|
281.8
|
|
|
|
|
Equity Holders' Net Income (USD million)
|
326.6
|
|
|
366.7
|
|
|
|
|
249.7
|
|
|
|
|
Earnings per ADS
3
(USD)
|
1.66
|
|
|
1.87
|
|
|
|
|
1.27
|
|
|
|
|
|
|
|
•
|
EBITDA of USD
787.6
million,
18%
higher sequentially, with higher EBITDA margin and lower shipments.
|
|
|
|
|
•
|
Earnings per ADS of USD
1.66
, a sequential decrease of
USD
0.20
p
er ADS.
|
|
|
|
|
•
|
Capital expenditures of USD
135.5
million, up from USD
102.4
million in the
first
quarter
2018
.
|
|
|
|
|
•
|
Free cash flow of USD414.6 million after USD89.7 million in the first quarter 2018.
|
|
|
|
|
•
|
Dividends paid to shareholders and non-controlling interest of USD244.9 million.
|
|
|
|
|
•
|
Net debt position of USD
2.4
billion at the end of June 2018, down from USD
2.6
billion at the end of March 2018 and equivalent to 1.0 time net debt to EBITDA.
|
Ternium’s operating income in the
second
quarter
2018
was USD
650.3
million, a USD
127.3
million increase compared to operating income in the
first
quarter
2018
due mainly to a USD94 increase in steel revenue per ton, partially offset by a USD54 increase in the steel segment’s operating cost per ton
4
and lower steel shipments. The decrease in shipments mainly reflected lower shipments of slabs to third parties, as a consequence of a higher level of slab integration among Ternium subsidiaries, and slightly weaker demand in Mexico and Argentina. Revenue per ton increased mainly as a result of higher realized prices in Mexico
and Other Markets, and a lower participation of slabs in the sales mix. Cost per ton increased mainly reflecting higher purchased slab costs.
Compared to the
second
quarter
2017
, the company’s operating income in the
second
quarter
2018
increased USD
257.5
million, due mainly to a 681,000-ton increase in shipments and a USD
56
increase in steel revenue per ton, partially offset by a USD28 increase in the steel segment’s operating cost per ton. The increase in shipments mainly reflected the consolidation of Ternium Brasil's sales in 2018, as demand for steel products remained relatively stable. Revenue per ton increased mainly as a result of higher realized prices in Ternium's main steel markets, partially offset by a higher participation of slabs in the sales mix. Cost per ton increased mainly reflecting higher raw material and purchased slab costs, partially offset by the consolidation of Ternium Brasil's slabs sales in 2018.
The company’s net income in the
second
quarter
2018
was USD
337.8
million, compared to USD
422.1
million in the
first
quarter
2018
. The USD
84.3
million decrease in net income was mainly due to higher net financial expenses and a higher effective tax rate, mostly as a result of the effect of foreign exchange rates fluctuations, partially offset by higher operating income. Changes in the value of the Mexican peso versus the US dollar produced significant sequential fluctuations in the effective tax rate, due to changes on deferred taxes, as well as in foreign exchange results in Ternium’s Mexican subsidiaries. In addition, a significant depreciation of the Argentine peso in the second quarter 2018 resulted in non-cash net foreign exchange losses and net financial instrument losses in Ternium Argentina.
Relative to the prior-year-period, net income in the
second
quarter
2018
increased USD
56.0
million, mainly due to higher operating income, partially offset by higher net financial expenses and a higher effective tax rate, mostly as a result of the effect of foreign exchange rate fluctuations.
Summary of
First Half
2018
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
1H 2018
|
|
1H 2017
|
|
|
|
|
|
|
|
Steel Shipments (tons)
|
6,844,000
|
|
|
5,116,000
|
|
34
|
%
|
|
Iron Ore Shipments (tons)
|
1,845,000
|
|
|
1,738,000
|
|
6
|
%
|
|
Net Sales (USD million)
|
6,095.3
|
|
|
4,397.8
|
|
39
|
%
|
|
Operating Income (USD million)
|
1,173.4
|
|
|
757.0
|
|
55
|
%
|
|
EBITDA (USD million)
|
1,452.7
|
|
|
962.6
|
|
51
|
%
|
|
EBITDA Margin (% of net sales)
|
23.8
|
%
|
|
21.9
|
%
|
|
|
|
EBITDA per Ton (USD)
|
212.2
|
|
|
188.2
|
|
|
|
|
Net Income (USD million)
|
759.9
|
|
|
592.2
|
|
|
|
|
Equity Holders' Net Income (USD million)
|
693.3
|
|
|
511.0
|
|
|
|
|
Earnings per ADS (USD)
|
3.53
|
|
|
2.60
|
|
|
|
|
|
|
|
•
|
EBITDA
5
of USD
1.5
billion, a
51%
year-over-year increase mainly as a result of higher EBITDA per ton and higher shipments.
|
|
|
|
|
•
|
Earnings per ADS of USD
3.53
, a year-over-year increase of USD
0.93
per ADS.
|
|
|
|
|
•
|
Capital expenditures of USD
237.9
million, up from USD
182.5
million in the
first half
2017
.
|
Operating income in the
first half
2018
was USD
1.2
billion, a USD
416.4
million increase compared to operating income in the
first half
2017
mainly due to a
1.7
million-ton increase in steel shipments and a USD
23
higher steel revenue per ton, partially offset by USD14 higher steel operating cost per ton. In the
first half 2018, steel demand and prices were higher year-over-year in all of Ternium's main markets. In addition, the consolidation of Ternium Brasil's slab sales in 2018 contributed to a 1.5 million-ton year-over-year increase in Other Markets' shipments, and partially offset the increase in realized prices. Cost per ton increased mainly reflecting higher raw material and purchased slab costs, partially offset by the consolidation of Ternium Brasil's slab sales in 2018.
Net income in the
first half
2018
was USD
759.9
million, compared to net income of USD
592.2
million in the
first half
2017
. The USD
167.7
million increase in the year-over-year comparison was mainly due to higher operating income, partially offset by higher net financial expenses mostly as a result of the effect of foreign exchange rate fluctuations, as explained above.
Application of IAS 29 in financial reporting of Argentine subsidiaries and associates
IAS 29 requires that the financial statements of entities whose functional currency is that of a hyperinflationary economy be adjusted for the effects of changes in a suitable general price index and be expressed in terms of the current unit of measurement at the closing date of the reporting period. Ternium considers that there is sufficient evidence to conclude that Argentina is a hyperinflationary economy under the terms of IAS 29 as from July 1, 2018, and, accordingly, it will apply IAS 29 as from that date in the financial reporting of its subsidiaries and associates located in Argentina.
Outlook
Following an exceptional performance during the first half of 2018, Ternium expects to continue showing strong EBITDA levels in the third quarter of the year, with healthy margins, despite lower shipments in Mexico and Argentina. The company anticipates sequentially lower volumes in Mexico as a result of continued weakness in the construction market, together with a slight seasonal decrease in the automotive, home appliances and HVAC industries. In Argentina, shipments are expected to decrease in the third quarter as a result of softening steel demand triggered by a significant depreciation of the Argentine peso beginning in May 2018 that led to a strong increase in interest rates in the country.
The introduction in the US of trade measures against imports of steel under section 232 produced a high level of trade friction in world steel markets, disrupting trade flows and causing an unusually wide gap between prices in the US and those in the rest of the world. There is significant uncertainty over the sustainability of current steel price levels in the US market, as trade conditions could continue changing over the following quarters and the current steel price gap could narrow if trade flows regain strength.
Analysis of
Second
Quarter
2018
Results
Net gain
attributable to Ternium’s equity owners
in the
second
quarter
2018
was USD
326.6
million, compared to net gain attributable to Ternium’s equity owners of USD
249.7
million in the
second
quarter
2017
. Including non-controlling interest, net gain for the
second
quarter
2018
was USD
337.8
million, compared to net gain of USD
281.8
million in the
second
quarter
2017
. Earnings per ADS in the
second
quarter
2018
were USD
1.66
, compared to earnings per ADS of USD
1.27
in the
second
quarter
2017
.
Net sales
in the
second
quarter
2018
were USD
3.1
billion, or
35%
higher than net sales in the
second
quarter
2017
. The following table outlines Ternium’s consolidated net sales for the
second
quarter
2018
and the
second
quarter
2017
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales (million USD)
|
|
|
|
|
|
2Q 2018
|
2Q 2017
|
Dif.
|
|
|
Mexico
|
|
1,657.4
|
1,424.2
|
16
|
%
|
|
|
Southern Region
|
|
589.3
|
563.5
|
5
|
%
|
|
|
Other Markets
|
|
778.8
|
270.9
|
188
|
%
|
|
|
Total steel products net sales
|
|
3,025.4
|
2,258.6
|
34
|
%
|
|
|
Other products
1
|
|
108.0
|
64.1
|
68
|
%
|
|
|
Steel segment net sales
|
|
3,133.4
|
2,322.7
|
35
|
%
|
|
|
|
|
|
|
|
|
|
Mining segment net sales
|
|
73.7
|
55.6
|
33
|
%
|
|
|
Intersegment eliminations
|
|
(73.1)
|
(55.6)
|
|
|
|
Net sales
|
|
3,134.0
|
2,322.7
|
35
|
%
|
|
|
1
The item "Other products" primarily includes Ternium Brasil’s and Ternium México’s electricity sales.
|
Cost of sales
was USD
2.2
billion in the
second
quarter
2018
, an increase of USD
504.8
million compared to the
second
quarter
2017
. This was principally due to a USD397.7 million, or 30%, increase in raw material and consumables used, mainly reflecting a
26%
increase in steel shipment volumes and higher purchased slabs, scrap and zinc costs; and to a USD107.1 million increase in other costs, mainly including a USD44.6 million increase in maintenance expenses, a USD27.3 million increase in labor costs, a USD24.9 million increase in services and fees and a USD15.4 million increase in depreciation of property, plant and equipment. The consolidation of Ternium Brasil in the second quarter 2018 affected all of the above-mentioned components of the cost of sales, as well as the selling, general and administrative expenses.
Selling, General & Administrative (SG&A) expenses
in the
second
quarter
2018
were USD
245.0
million, or
7.8%
of net sales, an increase of USD
56.0
million compared to SG&A expenses in the
second
quarter
2017
, mainly due to the consolidation of Ternium Brasil and related transactions in 2018 (which started in September 2017).
Operating income
in the
second
quarter
2018
was USD
650.3
million, or
20.8%
of net sales, compared to operating income of USD
392.8
million, or
16.9%
of net sales in the
second
quarter
2017
. The following table outlines Ternium’s operating income by segment for the
second
quarter
2018
and
second
quarter
2017
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel segment
|
|
Mining segment
|
Intersegment
eliminations
|
|
Total
|
|
USD million
|
|
2Q 2018
|
2Q 2017
|
|
2Q 2018
|
2Q 2017
|
|
2Q 2018
|
2Q 2017
|
|
2Q 2018
|
2Q 2017
|
|
Net Sales
|
|
3,133.4
|
|
2,322.7
|
|
73.7
|
|
55.6
|
|
(73.1)
|
|
(55.6)
|
|
|
3,134.0
|
2,322.7
|
|
Cost of sales
|
|
(2,254.6)
|
|
(1,725.3)
|
|
(55.3)
|
|
(53.7)
|
|
76.8
|
|
50.8
|
|
|
(2,233.0)
|
(1,728.2)
|
|
SG&A expenses
|
|
(241.5)
|
|
(186.1)
|
|
(3.5)
|
|
(2.9)
|
|
—
|
|
—
|
|
|
(245.0)
|
(189.0)
|
|
Other operating (expense) income, net
|
|
(6.0
|
)
|
(12.7)
|
|
0.4
|
|
0.1
|
|
—
|
|
—
|
|
|
(5.6)
|
(12.6)
|
|
Operating income
|
|
631.3
|
|
398.5
|
|
15.3
|
|
(0.9)
|
|
3.7
|
|
(4.7)
|
|
|
650.3
|
392.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
754.8
|
|
491.7
|
|
29.1
|
|
10.9
|
|
3.7
|
|
(4.7)
|
|
|
787.6
|
497.9
|
Steel reporting segment
The steel segment’s operating income was USD
631.3
million in the
second
quarter
2018
, an increase of USD
232.8
million compared to the
second
quarter
2017
, reflecting higher net sales, partially offset by higher operating costs.
Net sales of steel products in the
second
quarter
2018
increased
34%
compared to the
second
quarter
2017
, reflecting a 681,000-ton increase in shipments and higher revenue per ton. Shipments increased 26% year-over-year due to higher volumes in all of Ternium’s steel markets, especially in Other Markets due to the consolidation of Ternium Brasil. Revenue per ton increased
6%
, mainly as a result of higher realized steel prices in all of Ternium's main steel markets, partially offset by a higher participation of slabs in the sales mix (which is included in Other Markets).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
(million USD)
|
|
Shipments
(thousand tons)
|
|
Revenue/ton
(USD/ton)
|
|
|
|
2Q 2018
|
2Q 2017
|
Dif.
|
|
2Q 2018
|
2Q 2017
|
Dif.
|
|
2Q 2018
|
2Q 2017
|
Dif.
|
|
Mexico
|
|
1,657.4
|
|
1,424.2
|
|
16
|
%
|
|
1,721.7
|
|
1,720.4
|
|
0
|
%
|
|
963
|
|
828
|
|
16
|
%
|
|
Southern Region
|
|
589.3
|
|
563.5
|
|
5
|
%
|
|
604.2
|
|
599.4
|
|
1
|
%
|
|
975
|
|
940
|
|
4
|
%
|
|
Other Markets
|
|
778.8
|
|
270.9
|
|
188
|
%
|
|
995.8
|
|
321.0
|
|
210
|
%
|
|
782
|
|
844
|
|
-7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total steel products
|
|
3,025.4
|
|
2,258.6
|
|
34
|
%
|
|
3,321.6
|
|
2,640.8
|
|
26
|
%
|
|
911
|
|
855
|
|
6
|
%
|
|
Other products
1
|
|
108.0
|
|
64.1
|
|
68
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel segment
|
|
3,133.4
|
|
2,322.7
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
The item "Other products" primarily includes Ternium Brasil’s and Ternium México’s electricity sales.
|
Operating cost increased 31% in the
second
quarter
2018
, due to the above mentioned
26%
increase in shipments and a 4% increase in cost per ton. The increase in cost per ton year-over-year was mainly the result of higher raw material and purchased slab costs.
Mining reporting segment
The mining segment’s operating income was a gain of USD
15.3
million in the
second
quarter
2018
, compared to a loss of USD
0.9
million in the
second
quarter
2017
, mainly reflecting higher iron ore sales .
Mining products net sales in the
second
quarter
2018
increased USD
18.2
million, mainly as a result of a 27% increase in revenue per ton and higher shipments. Revenue per ton was USD
81
, USD
17
higher than in the
second
quarter
2017
. Shipments were
916,000
tons,
5%
higher than in the
second
quarter
2017
.
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining segment
|
|
|
|
|
2Q 2018
|
2Q 2017
|
Dif.
|
|
|
Net Sales (million USD)
|
|
73.7
|
55.6
|
33
|
%
|
|
|
Shipments (thousand tons)
|
|
915.6
|
874.5
|
5
|
%
|
|
|
Revenue per ton (USD/ton)
|
|
81
|
64
|
27
|
%
|
|
Operating cost increased 4% year-over-year, mainly due to the above-mentioned
5%
increase in shipment volumes, partially offset by a reduction of 1% in operating cost per ton.
EBITDA
in the
second
quarter
2018
was USD
787.6
million, or
25.1%
of net sales, compared to USD
497.9
million, or
21.4%
of net sales, in the
second
quarter
2017
.
Net financial results
were a USD
149.2
million loss in the
second
quarter
2018
, compared to a USD
67.1
million loss in the
second
quarter
2017
. During the
second
quarter
2018
, Ternium’s net financial interest results totaled a loss of USD27.8 million, compared to a loss of USD19.6 million in the
second
quarter
2017
, mainly reflecting higher net indebtedness.
Net foreign exchange results were a loss of USD68.5 million in the
second
quarter
2018
compared to a loss of USD37.5 million in the
second
quarter
2017
. The net loss in the
second
quarter
2018
was mainly due to the negative non-cash impact of the Argentine peso’s 30% depreciation against the U.S. dollar on Ternium Argentina’s US dollar financial position (which uses the Argentine peso as its functional currency), partially offset by a positive impact of the Mexican peso’s 8% depreciation against the U.S. dollar on a net short local currency position in Ternium’s Mexican subsidiaries.
Change in fair value of financial instruments included in net financial results was a USD59.4 million loss in the
second
quarter
2018
compared to a USD9.8 million loss in the
second
quarter
2017
. The losses in these periods were mainly related to certain derivative instruments entered into to compensate for the interest rate charges derived from Ternium’s Argentine subsidiary's local currency denominated financial debt.
Equity in results of non-consolidated companies
was a gain of USD
12.4
million in the
second
quarter
2018
, compared to a gain of USD
15.2
million in the
second
quarter
2017
.
Income tax expense
in the
second
quarter
2018
was USD
175.7
million, or
34%
of income before income tax expense, compared to an income tax expense of USD
59.1
million in the
second
quarter
2017
, or
17%
of income before income tax expense. The effective tax rate in the
second
quarter
2018
included a non-cash charge on deferred taxes due to the 8% depreciation of the Mexican peso against the U.S. dollar, which reduces, in U.S. dollar terms, the tax base used to calculate deferred tax at our Mexican subsidiaries (which have the U.S dollar as their functional currency). The unusually low effective tax rate in the
second
quarter
2017
was mainly the result of the non-cash gain on deferred taxes due to the 5% appreciation of the Mexican peso against the US dollar.
Net gain attributable to non-controlling interest
in the
second
quarter
2018
was USD
11.2
million, compared to net gain of USD
32.1
million in the same period in
2017
.
Analysis of
First Half
2018
Results
Net income
attributable to Ternium’s equity owners
in the
first half
2018
was USD
693.3
million, compared to USD
511.0
million in the
first half
2017
. Including non-controlling interest, net income for the
first half
2018
was USD
759.9
million, compared to net income of USD
592.2
million in the
first half
2017
. Earnings per ADS in the
first half
2018
were USD
3.53
, compared to earnings of USD
2.60
in in the
first half
2017
.
Net sales
in the
first half
2018
were USD
6.1
billion,
39%
higher than net sales in the
first half
2017
. The following table outlines Ternium’s consolidated net sales for the
first half
2018
and the first half
2017
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales (million USD)
|
|
|
|
|
|
|
|
|
1H 2018
|
1H 2017
|
Dif.
|
|
|
|
|
|
|
Mexico
|
|
3,172.8
|
|
2,724.0
|
|
16
|
%
|
|
|
|
|
|
|
Southern Region
|
|
1,226.3
|
|
1,074.9
|
|
14
|
%
|
|
|
|
|
|
|
Other Markets
|
|
1,504.0
|
|
494.7
|
|
204
|
%
|
|
|
|
|
|
|
Total steel products net sales
|
|
5,903.1
|
|
4,293.6
|
|
37
|
%
|
|
|
|
|
|
|
Other products
1
|
|
191.4
|
|
104.2
|
|
84
|
%
|
|
|
|
|
|
|
Steel segment net sales
|
|
6,094.5
|
|
4,397.8
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining segment net sales
|
|
143.5
|
|
118.2
|
|
21
|
%
|
|
|
|
|
|
|
Intersegment eliminations
|
|
(142.7
|
)
|
(118.2
|
)
|
|
|
|
|
|
|
|
Net sales
|
|
6,095.3
|
|
4,397.8
|
|
39
|
%
|
|
|
|
|
|
|
1
The item “Other products” primarily includes includes Ternium Brasil’s and Ternium México’s electricity sales.
|
Cost of sales
was USD
4.4
billion in the
first half
2018
, an increase of USD
1.2
billion compared to the
first half
2017
. This was principally due to a USD955.1 million, or 38%, increase in raw material and consumables used, mainly reflecting a 34% increase in steel shipments volume and higher purchased slab, scrap and zinc costs; and to a USD221.8 million increase in other costs, mainly including a USD79.3 million increase in labor cost, a USD75.5 million increase in maintenance expenses, a USD41.0 million increase in services and fees and a USD35.2 million increase in depreciation of property, plant and equipment.
Selling, General & Administrative (SG&A) expenses
in the
first half
2018
were USD
485.5
million, or
8.0%
of net sales, an increase of USD
124.2
million compared to SG&A expenses in the
first half
2017
mainly due to the consolidation of Ternium Brasil and related transactions in 2018 (which started in September 2017) and to higher freight and transport expenses, partially offset by lower services and fees expenses.
Other net operating income
in the
first half
2018
was a USD
0.2
million gain, compared to a USD
19.8
million loss in the
first half
2017
mainly related to a donation for the construction of the Roberto Rocca technical school in Pesquería, Nuevo León, Mexico in the second quarter 2017.
Operating income
in the
first half
2018
was USD
1.2
billion, or
19.3%
of net sales, compared to operating income of USD
757.0
million, or
17.2%
of net sales, in the
first half
2017
. The following table outlines Ternium’s operating income by segment for the
first half
2018
and the
first half
2017
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel segment
|
|
Mining segment
|
Intersegment
eliminations
|
|
Total
|
|
USD million
|
|
1H 2018
|
1H 2017
|
|
1H 2018
|
1H 2017
|
|
1H 2018
|
1H 2017
|
|
1H 2018
|
1H 2017
|
|
Net Sales
|
|
6,094.5
|
|
4,397.8
|
|
|
143.5
|
|
118.2
|
|
|
(142.7)
|
|
(118.2)
|
|
|
6,095.3
|
|
4,397.8
|
|
|
Cost of sales
|
|
(4,477.8)
|
|
(3,274.5)
|
|
|
(107.7)
|
|
(102.3)
|
|
|
149.0
|
|
117.2
|
|
|
(4,436.5)
|
|
(3,259.6)
|
|
|
SG&A expenses
|
|
(476.8)
|
|
(356.1)
|
|
|
(8.7)
|
|
(5.2)
|
|
|
—
|
|
—
|
|
|
(485.5)
|
|
(361.3)
|
|
|
Other operating (expense) income, net
|
|
(0.4
|
)
|
(20.1)
|
|
|
0.6
|
|
0.3
|
|
|
—
|
|
—
|
|
|
0.2
|
|
(19.8)
|
|
|
Operating income (expense)
|
|
1,139.5
|
|
747.0
|
|
|
27.7
|
|
10.9
|
|
|
6.3
|
|
(0.9)
|
|
|
1,173.4
|
|
757.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
1,391.5
|
|
929.4
|
|
|
55.0
|
|
34.2
|
|
|
6.3
|
|
(0.9)
|
|
|
1,452.7
|
|
962.6
|
|
Steel reporting segment
The steel segment’s operating income was USD
1.1
billion in the
first half
2018
, an increase of USD
392.5
million compared to the operating income in the
first half
2017
, reflecting higher net sales, partially offset by higher operating cost.
Net sales of steel products in the
first half
2018
increased
37%
compared to the
first half
2017
, reflecting a
1.7
million-ton increase in shipments and a USD
23
increase in steel revenue per ton. Shipments increased
34%
year-over-year due to higher shipments in all the markets, especially in Other Markets mainly due to the consolidation of Ternium Brasil in 2018 (which started in September 2017). Revenue per ton increased
3%
, reflecting higher steel prices in Ternium Mexico and in the Southern Region, partially offset by lower revenue per ton in Other Markets in the
first half
2018
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
(million USD)
|
|
Shipments
(thousand tons)
|
|
Revenue/ton
(USD/ton)
|
|
|
|
1H 2018
|
1H 2017
|
Dif.
|
|
1H 2018
|
1H 2017
|
Dif.
|
|
1H 2018
|
1H 2017
|
Dif.
|
|
Mexico
|
|
3,172.8
|
|
2,724.0
|
|
16
|
%
|
|
3,496.2
|
|
3,383.4
|
|
3
|
%
|
|
907
|
|
805
|
|
13
|
%
|
|
Southern Region
|
|
1,226.3
|
|
1,074.9
|
|
14
|
%
|
|
1,249.5
|
|
1,144.5
|
|
9
|
%
|
|
981
|
|
939
|
|
4
|
%
|
|
Other Markets
|
|
1,504.0
|
|
494.7
|
|
204
|
%
|
|
2,098.7
|
|
587.7
|
|
257
|
%
|
|
717
|
|
842
|
|
-15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total steel products
|
|
5,903.1
|
|
4,293.6
|
|
37
|
%
|
|
6,844.5
|
|
5,115.6
|
|
34
|
%
|
|
862
|
|
839
|
|
3
|
%
|
|
Other products1
|
|
191.4
|
|
104.2
|
|
84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel segment
|
|
6,094.5
|
|
4,397.8
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
1
The item “Other products” primarily includes includes Ternium Brasil’s and Ternium México’s electricity sales.
|
Operating cost increased 36% due to the above-mentioned
34%
increase in shipment volumes and a 2% increase in operating cost per ton. The increase in operating cost per ton was mainly due to higher raw material and purchased slabs cost.
Mining reporting segment
The mining segment’s operating income was a gain of USD
27.7
million in the
first half
2018
, compared to a gain of USD
10.9
million in the
first half
2017
, reflecting higher iron ore sales.
Net sales of mining products in the
first half
2018
were
21%
higher than those in the
first half
2017
, reflecting
14%
higher revenue per ton and
6%
higher shipments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining segment
|
|
|
|
|
1H 2018
|
1H 2017
|
Dif.
|
|
|
Net Sales (million USD)
|
|
143.5
|
|
118.2
|
|
21
|
%
|
|
|
Shipments (thousand tons)
|
|
1,844.9
|
|
1,737.9
|
|
6
|
%
|
|
|
Revenue per ton (USD/ton)
|
|
78
|
|
68
|
|
14
|
%
|
|
Operating cost increased 8% year-over-year mainly due to the above mentioned
6%
increase in shipment volumes and a relatively stable operating cost per ton.
EBITDA
in the
first half
2018
was USD
1.5
billion, or
23.8%
of net sales, compared with USD
962.6
million, or
21.9%
of net sales, in the
first half
2017
.
Net financial results
were USD
228.9
million loss in the
first half
2018
, compared to USD
107.0
million loss in the
first half
2017
. During the
first half
2018
, Ternium’s net financial interest results totaled a loss of
USD
56.5
million, compared with a loss of USD
36.4
million in the
first half
2017
, reflecting higher average indebtedness.
Net foreign exchange results included a USD31.7 million negative year-over-year difference mainly related to the effect of the fluctuations of the Argentine and Mexican peso against the US dollar. In the
first half
2018
, the Argentine peso depreciated 35% against the US dollar compared to 4% in the
first half
2017
, resulting in a non-cash negative impact in Ternium Argentina’s US dollar financial position (which uses the Argentine peso as its functional currency). This was partially offset by a positive impact of the Mexican peso’s 1% depreciation against the US dollar on a net short local currency position in Ternium’s Mexican subsidiaries compared to a 15% appreciation in the
first half
2017
.
Change in fair value of financial instruments included in net financial results was a USD73.6 million loss in the
first half
2018
compared to a USD9.5 million gain in the
first half
2017
. The loss in the
first half
2018
was mainly related to certain derivative instruments entered into to compensate for the interest rate charges derived from Ternium’s Argentine subsidiary's local currency denominated financial debt.
Equity in results of non-consolidated companies
was a gain of USD
32.3
million in the
first half
2018
, compared to a gain of USD
36.6
million in the
first half
2017
.
Income tax expense
in the
first half
2018
was USD
217.0
million, or
22%
of income before income tax, compared to an income tax expense of USD
94.4
million, or
14%
of income before income tax in the
first half
2017
. The difference is mainly due to the non-cash impact on deferred taxes due to the fluctuation of the Mexican peso against the U.S. dollar (1% depreciation in the
first half
2018
compared to a 15% appreciation in the
first half
2017
).
Net gain attributable to non-controlling interest
in the
first half
2018
was USD
66.6
million, compared to a net gain of USD
81.1
million in the
first half
2017
.
Cash Flow and Liquidity
Net cash provided by operating activities in the
first half
2018
was USD
742.2
million. Working capital increased by USD
350.8
million in the
first half
2018
as a result of an aggregate USD263.2 million net increase in trade and other receivables and a USD225.8 million increase in inventories, partially offset by an aggregate USD138.2 million net increase in accounts payable and other liabilities. The net increase in trade and other receivables in the first half 2018 mainly reflected higher steel prices and volumes. The inventory value increase in the
first half
2018
was mainly due to net USD143.0 million higher costs of slabs, goods in process and finished goods principally as a result of the pass-through of higher purchased slab, scrap, coal and iron ore prices; and USD157.7 million higher volume and price of raw materials, supplies and other; partially offset by USD74.8 million lower steel volume.
Capital expenditures in the
first half
2018
were USD
237.9
million, USD
55.4
million higher than in the
first half
2017
mainly due to the consolidation of Ternium Brasil. The main investments carried out during the
first half
2018
included those made for new hot-rolling, hot-dipped galvanizing and pre-painting production capacity in the company’s Pesquería industrial center, improvement of environmental and safety conditions at certain facilities, the upgrade and expansion of two hot strip mills, the expansion of connectivity and equipment automation, and those made in Peña Colorada’s iron ore operations.
In the
first half
2018
, Ternium's free cash flow
6
was USD
504.3
million. Net repayment of borrowings in the
first half
2018
reached USD
359.3
million. Net dividends paid to shareholders were USD
215.9
million and net dividends paid by subsidiaries to non-controlling interest were USD
29.0
million. As of
June 30, 2018
, Ternium’s net debt position
7
was USD
2.4
billion.
Net cash provided by operating activities in the
second
quarter
2018
was USD
550.1
million. Working capital increased by USD
84.7
million in the
second
quarter
2018
as a result of a USD67.6 million increase in inventories and an aggregate USD35.1 million net decrease in accounts payable and other liabilities, partially offset by an aggregate USD18.0 million net decrease in trade and other receivables. The inventory value increase in the
second
quarter
2018
was mainly due to a net USD43.5 million higher costs of slabs, goods in process and finished goods principally as a result of the pass-through of higher purchased slab, scrap, coal and iron ore prices, partially offset by a lower participation of purchased steel in the inventory mix; and USD53.7 million higher volume and price of raw materials and supplies; partially offset by net USD29.4 million lower steel volume. In the
second
quarter
2018
, Ternium's free cash flow
8
was USD
414.6
million.
Conference Call and Webcast
Ternium will host a conference call on August 1, 2018, at 8:30 a.m. ET in which management will discuss
second
quarter
2018
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 Latin America’s leading flat steel producer, with operating facilities in Mexico, Brazil, Argentina, Colombia, the southern United States and Central America. The company offers a broad range of high value-added steel products for customers active in the automotive, home appliances, construction, capital goods, container, food and energy industries through its manufacturing and service center network and advanced customer integration systems. More information about Ternium is available at www.ternium.com.
Notes
|
|
|
|
1
|
EBITDA in the
second
quarter
2018
equals operating income of USD
650.3
million adjusted to exclude depreciation and amortization of USD
137.3
million.
|
|
|
|
|
2
|
Consolidated EBITDA divided by steel shipments.
|
|
|
|
|
3
|
American Depositary Share (ADS). Each 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
.
|
|
|
|
|
4
|
Operating cost per ton is equal to cost of sales plus SG&A, divided by shipments.
|
|
|
|
|
5
|
EBITDA in the
first half
2018 equals operating income of USD
1,173.4
million adjusted to exclude depreciation and amortization of USD
279.3
million.
|
|
|
|
|
6
|
Free cash flow in the
first half
2018 equals net cash provided by operating activities of USD
742.2
million less capital expenditures of USD
237.9
million.
|
|
|
|
|
7
|
Net debt position at
June 30, 2018
equals borrowings of USD2.8 billion less cash and equivalents plus other investments of USD0.4 billion.
|
|
|
|
|
8
|
Free cash flow in the
second
quarter
2018
equals net cash provided by operating activities of USD
550.1
million less capital expenditures of USD
135.5
million.
|
Consolidated Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD million
|
|
2Q 2018
|
|
2Q 2017
|
|
1H 2018
|
|
1H 2017
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Net sales
|
|
3,134.0
|
|
|
2,322.7
|
|
|
6,095.3
|
|
|
4,397.8
|
|
|
Cost of sales
|
|
(2,233.0
|
)
|
|
(1,728.2
|
)
|
|
(4,436.5
|
)
|
|
(3,259.6
|
)
|
|
Gross profit
|
|
900.9
|
|
|
594.5
|
|
|
1,658.8
|
|
|
1,138.1
|
|
|
Selling, general and administrative expenses
|
|
(245.0
|
)
|
|
(189.0
|
)
|
|
(485.5
|
)
|
|
(361.3
|
)
|
|
Other operating (expenses) income, net
|
|
(5.6
|
)
|
|
(12.6
|
)
|
|
0.2
|
|
|
(19.8
|
)
|
|
Operating income
|
|
650.3
|
|
|
392.8
|
|
|
1,173.4
|
|
|
757.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance expense
|
|
(33.3
|
)
|
|
(24.1
|
)
|
|
(67.1
|
)
|
|
(45.5
|
)
|
|
Finance income
|
|
5.5
|
|
|
4.5
|
|
|
10.6
|
|
|
9.1
|
|
|
Other financial expenses, net
|
|
(121.4
|
)
|
|
(47.5
|
)
|
|
(172.5
|
)
|
|
(70.6
|
)
|
|
Equity in earnings of non-consolidated companies
|
|
12.4
|
|
|
15.2
|
|
|
32.3
|
|
|
36.6
|
|
|
Profit before income tax expense
|
|
513.5
|
|
|
340.9
|
|
|
976.8
|
|
|
686.5
|
|
|
Income tax expense
|
|
(175.7
|
)
|
|
(59.1
|
)
|
|
(217.0
|
)
|
|
(94.4
|
)
|
|
Profit for the period
|
|
337.8
|
|
|
281.8
|
|
|
759.9
|
|
|
592.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
326.6
|
|
|
249.7
|
|
|
693.3
|
|
|
511.0
|
|
|
Non-controlling interest
|
|
11.2
|
|
|
32.1
|
|
|
66.6
|
|
|
81.1
|
|
|
Profit for the period
|
|
337.8
|
|
|
281.8
|
|
|
759.9
|
|
|
592.2
|
|
Consolidated Statement of Financial Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD million
|
|
|
June 30,
2018
|
|
|
|
December 31,
2017
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
5,138.8
|
|
|
|
|
5,349.8
|
|
|
|
Intangible assets, net
|
|
|
1,027.4
|
|
|
|
|
1,092.6
|
|
|
|
Investments in non-consolidated companies
|
|
|
438.3
|
|
|
|
|
478.3
|
|
|
|
Deferred tax assets
|
|
|
129.1
|
|
|
|
|
121.1
|
|
|
|
Receivables, net
|
|
|
636.0
|
|
|
|
|
677.3
|
|
|
|
Trade receivables, net
|
|
|
5.6
|
|
|
|
|
4.8
|
|
|
|
Other investments
|
|
|
31.1
|
|
|
|
|
3.4
|
|
|
|
Total non-current assets
|
|
|
7,406.3
|
|
|
|
|
7,727.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables, net
|
|
|
262.7
|
|
|
|
|
362.2
|
|
|
|
Derivative financial instruments
|
|
|
1.7
|
|
|
|
|
2.3
|
|
|
|
Inventories, net
|
|
|
2,589.4
|
|
|
|
|
2,550.9
|
|
|
|
Trade receivables, net
|
|
|
1,273.7
|
|
|
|
|
1,006.6
|
|
|
|
Other investments
|
|
|
97.9
|
|
|
|
|
132.7
|
|
|
|
Cash and cash equivalents
|
|
|
229.8
|
|
|
|
|
337.8
|
|
|
|
Total current assets
|
|
|
4,455.3
|
|
|
|
|
4,392.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets classified as held for sale
|
|
|
2.2
|
|
|
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
11,863.8
|
|
|
|
|
12,122.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and reserves attributable to the owners of the parent
|
|
|
5,257.6
|
|
|
|
|
5,010.4
|
|
|
|
Non-controlling interest
|
|
|
772.2
|
|
|
|
|
842.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity
|
|
|
6,029.7
|
|
|
|
|
5,852.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provisions
|
|
|
657.1
|
|
|
|
|
768.5
|
|
|
|
Deferred tax liabilities
|
|
|
453.1
|
|
|
|
|
513.4
|
|
|
|
Other liabilities
|
|
|
365.8
|
|
|
|
|
373.0
|
|
|
|
Trade payables
|
|
|
1.1
|
|
|
|
|
2.3
|
|
|
|
Financial Lease liabilities
|
|
|
67.4
|
|
|
|
|
69.0
|
|
|
|
Borrowings
|
|
|
1,512.2
|
|
|
|
|
1,716.3
|
|
|
|
Total non-current liabilities
|
|
|
3,056.6
|
|
|
|
|
3,442.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current income tax liabilities
|
|
|
72.2
|
|
|
|
|
52.9
|
|
|
|
Other liabilities
|
|
|
347.7
|
|
|
|
|
357.0
|
|
|
|
Trade payables
|
|
|
1,027.3
|
|
|
|
|
897.7
|
|
|
|
Derivative financial instruments
|
|
|
49.1
|
|
|
|
|
6.0
|
|
|
|
Financial Lease liabilities
|
|
|
8.0
|
|
|
|
|
8.0
|
|
|
|
Borrowings
|
|
|
1,273.1
|
|
|
|
|
1,505.6
|
|
|
|
Total current liabilities
|
|
|
2,777.5
|
|
|
|
|
2,827.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
5,834.0
|
|
|
|
|
6,269.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity and liabilities
|
|
|
11,863.8
|
|
|
|
|
12,122.6
|
|
|
Consolidated Statement of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD million
|
|
2Q 2018
|
|
2Q 2017
|
|
1H 2018
|
|
1H 2017
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
337.8
|
|
|
281.8
|
|
|
759.9
|
|
|
592.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
137.3
|
|
|
105.0
|
|
|
279.3
|
|
|
205.6
|
|
|
Equity in earnings of non-consolidated companies
|
|
(12.4
|
)
|
|
(15.2
|
)
|
|
(32.3
|
)
|
|
(36.6
|
)
|
|
Changes in provisions
|
|
(0.1
|
)
|
|
0.7
|
|
|
1.0
|
|
|
1.3
|
|
|
Net foreign exchange results and others
|
|
115.7
|
|
|
64.0
|
|
|
140.6
|
|
|
110.0
|
|
|
Interest accruals less payments
|
|
5.5
|
|
|
3.0
|
|
|
(7.1
|
)
|
|
2.0
|
|
|
Income tax accruals less payments
|
|
51.1
|
|
|
(278.0
|
)
|
|
(48.5
|
)
|
|
(309.6
|
)
|
|
Changes in working capital
|
|
(84.7
|
)
|
|
(140.7
|
)
|
|
(350.8
|
)
|
|
(458.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
550.1
|
|
|
20.7
|
|
|
742.2
|
|
|
106.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(135.5
|
)
|
|
(98.6
|
)
|
|
(237.9
|
)
|
|
(182.5
|
)
|
|
Proceeds from the sale of property, plant & equipment
|
|
0.2
|
|
|
0.3
|
|
|
0.4
|
|
|
0.4
|
|
|
Dividends received from non-consolidated companies
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
Loans to non-consolidated companies
|
|
4.8
|
|
|
—
|
|
|
—
|
|
|
(23.9
|
)
|
|
Increase in Other Investments
|
|
13.7
|
|
|
(2.7
|
)
|
|
6.3
|
|
|
(8.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
(116.8
|
)
|
|
(101.0
|
)
|
|
(231.2
|
)
|
|
(214.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid in cash to company's shareholders
|
|
(215.9
|
)
|
|
(196.3
|
)
|
|
(215.9
|
)
|
|
(196.3
|
)
|
|
Dividends paid in cash to non-controlling interest
|
|
(29.0
|
)
|
|
(30.6
|
)
|
|
(29.0
|
)
|
|
(30.6
|
)
|
|
Financial Lease Payments
|
|
(2.5
|
)
|
|
—
|
|
|
(3.8
|
)
|
|
(1.1
|
)
|
|
Proceeds from borrowings
|
|
298.9
|
|
|
519.4
|
|
|
526.0
|
|
|
858.4
|
|
|
Repayments of borrowings
|
|
(477.7
|
)
|
|
(318.9
|
)
|
|
(885.4
|
)
|
|
(527.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by financing activities
|
|
(426.2
|
)
|
|
(26.4
|
)
|
|
(608.1
|
)
|
|
103.2
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease) increase in cash and cash equivalents
|
|
7.1
|
|
|
(106.6
|
)
|
|
(97.1
|
)
|
|
(4.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments
|
|
|
|
|
|
|
Thousand tons
|
|
2Q 2018
|
2Q 2017
|
1Q 2018
|
|
1H 2018
|
1H 2017
|
|
|
|
|
|
|
|
|
|
|
Mexico
|
|
1,721.7
|
|
1,720.4
|
|
1,774.5
|
|
|
3,496.2
|
|
3,383.4
|
|
|
Southern Region
|
|
604.2
|
|
599.4
|
|
645.3
|
|
|
1,249.5
|
|
1,144.5
|
|
|
Other Markets
|
|
995.8
|
|
321.0
|
|
1,103.0
|
|
|
2,098.7
|
|
587.7
|
|
|
Total steel segment
|
|
3,321.6
|
|
2,640.8
|
|
3,522.8
|
|
|
6,844.5
|
|
5,115.6
|
|
|
|
|
|
|
|
|
|
|
|
Total mining segment
|
|
915.6
|
|
874.5
|
|
929.3
|
|
|
1,844.9
|
|
1,737.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue / ton
|
|
|
|
|
|
|
USD/ton
|
|
2Q 2018
|
2Q 2017
|
1Q 2018
|
|
1H 2018
|
1H 2017
|
|
|
|
|
|
|
|
|
|
|
Mexico
|
|
963
|
|
828
|
|
854
|
|
|
907
|
|
805
|
|
|
Southern Region
|
|
975
|
|
940
|
|
987
|
|
|
981
|
|
939
|
|
|
Other Markets
|
|
782
|
|
844
|
|
658
|
|
|
717
|
|
842
|
|
|
Total steel segment
|
|
911
|
|
855
|
|
817
|
|
|
862
|
|
839
|
|
|
|
|
|
|
|
|
|
|
|
Total mining segment
|
|
81
|
|
64
|
|
75
|
|
|
78
|
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
|
|
|
|
USD million
|
|
2Q 2018
|
2Q 2017
|
1Q 2018
|
|
1H 2018
|
1H 2017
|
|
|
|
|
|
|
|
|
|
|
Mexico
|
|
1,657.4
|
|
1,424.2
|
|
1,515.4
|
|
|
3,172.8
|
|
2,724.0
|
|
|
Southern Region
|
|
589.3
|
|
563.5
|
|
637.0
|
|
|
1,226.3
|
|
1,074.9
|
|
|
Other Markets
|
|
778.8
|
|
270.9
|
|
725.3
|
|
|
1,504.0
|
|
494.7
|
|
|
Total steel products
|
|
3,025.4
|
|
2,258.6
|
|
2,877.7
|
|
|
5,903.1
|
|
4,293.6
|
|
|
Other products
1
|
|
108.0
|
|
64.1
|
|
83.5
|
|
|
191.4
|
|
104.2
|
|
|
Total steel segment
|
|
3,133.4
|
|
2,322.7
|
|
2,961.2
|
|
|
6,094.5
|
|
4,397.8
|
|
|
|
|
|
|
|
|
|
|
|
Total mining segment
|
|
73.7
|
|
55.6
|
|
69.7
|
|
|
143.5
|
|
118.2
|
|
|
|
|
|
|
|
|
|
|
|
Total steel and mining segments
|
|
3,207.1
|
|
2,378.2
|
|
3,030.9
|
|
|
6,238.0
|
|
4,515.9
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment eliminations
|
|
(73.1)
|
|
(55.6)
|
|
(69.6)
|
|
|
(142.7)
|
|
(118.2)
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales
|
|
3,134.0
|
|
2,322.7
|
|
2,961.3
|
|
|
6,095.3
|
|
4,397.8
|
|
1
The item “Other products” primarily includes Ternium Brasil’s and Ternium México’s electricity sales.