Latin American steelmaker Ternium has reported a net loss of $275 million in the fourth quarter of 2012, compared to a net profit of $136.4 million in the corresponding quarter of the previous year. In the full year 2012, Ternium's net profit amounted to $187.2 million, down from $649.9 million in 2011, mainly due to a $363.9 million loss related to the investment in Usiminas.
Sales revenue fell six percent year on year to $2.07 billion in the fourth quarter, mainly as a result of seasonally lower steel shipments in Mexico, while shipments of flat and long products were 2.16 million tons, up one percent year on year.
In 2012, Ternium's sales revenue decreased by six percent year on year to $8.6 billion, while shipments of flat and long products amounted to 8.76 million tons, down one percent compared to 2011.
During 2013, Ternium expects apparent steel use in Latin America to increase its growth pace, with higher construction and industrial activity driving the increased demand for steel products. Ternium expects a higher operating income in the first quarter of 2013 compared to the fourth quarter of 2012, mainly as a result of higher sales driven by an increase in steel shipments, and a reduction in steel cost per ton due to lower raw material and purchased slab costs and the restart of blast furnace No. 2 in Argentina.