Latin America-focused steelmaker Ternium saw net revenues for its Mexican segment in Q3 decline 12 percent, year-on-year, to $1.33 billion, the company said this week while releasing its quarterly results.
Revenues for the company’s Southern Region reporting segment in Q3 totaled $406 million, 20 percent down, year-on-year. Revenues for the Other Markets region in Q3 dropped 31 percent, year-on-year, to $594.7 million.
Mexican steel sales volumes in Q3 reached 1.62 million mt, 7 percent up, year-on-year. Apart from Mexico, all the two other reporting segments saw steel sales volumes decrease in Q3, on a year-on-year basis. Steel sales volumes for the Southern Region in Q3 was 503,800 mt, 8 percent down, year-on-year. Steel sales volumes for the Other Markets segment in Q3 was 14 percent down, year-on-year, to 924,300 mt.
Overall, Ternium saw its net profit in Q3 decline to $110.6 million, from $560.8 million in the same quarter of the year prior.
Ternium said the company’s outlook for Argentina isn’t positive. “In Argentina, shifting expectations caused by the election process brought significant volatility to the main macroeconomic variables of the country. As a result, the company anticipates shipments in this market to remain at low levels in the Q4 2019,” Ternium said in a press release.
Ternium said EBITDA in Q4 should decline to an undisclosed amount, quarter-on-quarter, due to “reduced shipments” and “lower steel margins.” EBITDA in Q3 was $381.7 million, 55 percent down, year-on-year. EBITDA margin in Q3 fell to 15.8 percent, from 28.6 percent in Q3 2018.