Latin American steel producer Ternium announced an explosive increase of 839 percent in its net profits for the fourth quarter of 2023, going from $59 million in Q4 2022 to $554 million in the last three months of 2023, according to the financial statements sent by the company to the stock markets and reviewed by SteelOrbis.
The improvement in the company 's results was influenced by the start-up of a new hot rolling mill in its Mexican unit in Pesquería, Nuevo León.
The volume of steel shipments increased 33.6 percent compared to Q4 2022, totaling 4.03 million metric tons (mt). Sales increased 39.1 percent to $4.93 billion.
With the start-up of the new rolling mill, the company's operating income multiplied by more than 13 times, going from $43 million in Q4 2022 to $582 million in 4Q23. This represented an increase of 1,253 percent.
Adjusted EBITDA increased 114.9 percent to $651 million. Thus, the EBITDA margin went from 8.5 percent in Q4 2022 to 13.2 percent in Q4 2023.
With these numbers, the net profit per ADS went from $0.2 to $2.11, a figure that represented an increase of 955 percent.
In perspective, Ternium expects to begin implementing its downstream project in Pesquería, Nuevo León during the second half of 2024, starting with 550 thousand tons per year from the new pickling oven and the first lines of its new service center. This would support an increase in volume in this market during the second half of this year.