Global steelmaker Ternium reported lower earnings in Q3 Wednesday in part due to the impact of the Mexican peso's 13.4 percent depreciation during the quarter. In Q2, the peso had appreciated 1.1 percent. Net income was US$23.4 million in Q3, compared to income of US$246.9 million in Q2, and US$200.8 million in Q3 2010. Despite significantly lower earnings, shipments were up 7 percent from Q2 and 16 percent from Q3 2010 while sales were up 5 percent from Q2 and 31 percent from Q3 2010.
Sales of flat-rolled steel products increased 29 percent year-on-year in Q3, and long steel product sales jumped 58 percent. But looking to Q4, Ternium said that it expects a lower operating income compared to Q3 mainly as a result of a seasonal decrease in shipments and lower average steel prices. Ternium also said in a press release that it "anticipates the global economic uncertainty to bring increased volatility to the steel industry's main business drivers in the following quarters.