Luxembourg-based Ternium reported Wednesday that net income of $246.9 million in Q2 was up 2 percent from the previous quarter and rose 7 percent from net income of $230.7 million in Q2 2010. For the first half of 2011, net income was up 3 percent year-on-year to $490.1 million.
Meanwhile, steel shipments in Q2 remained unchanged from the previous quarter at 2.17 million net tons (nt), but were up 7 percent on a year-on-year basis. Net sales were $2.35 billion in Q2, a 9 percent increase from Q1, and a 22 percent jump from Q2 of last year. Net sales for the first half of 2011 were also up 26 percent about $4.5 billion.
Flat-rolled steel product sales in Q2 were $2 billion, 20 percent higher than Q2 2010, as shipments rose 4 percent to 1.8 million nt in the quarter. Sales of long products saw an even more dramatic increase in Q2, totaling $325.6 billion, a 52 percent surge year-on-year due to 25 percent increase in shipments and higher revenue per ton.
Moving forward, Ternium said that shipments in the latter half of 2011 to be in line with the first six months of 2011, but the company anticipates lower quarterly operating income through year-end compared to its operating income in Q2 2011 as a result of price weakness in steel finished products in the North America Region and an increase in the cost of sales line derived from higher costs of purchased slabs and raw materials acquired during the first half of the year.