Latin American-focused steelmaker Ternium said revenues for its Mexican market segment rose 16 percent in Q2, year-on-year, to $1.6 billion. Following the same uptrend, the Southern Region market segment, which includes Argentina, Bolivia, Chile, Paraguay and Uruguay, reported a revenue growth of 5 percent in Q2, year-on-year, to $589.3 million.
The Other Markets reporting segment, which covers the steelmaker’s businesses in Brazil, Colombia, Central America and the United States, reported a $778.8 million revenue in Q2, 188 percent up, year-on-year.
Steel sales volumes in Q2 at its Mexican segment was 1.7 million mt, stable from Q2 2017. As for the Southern Region market segment, steel sales volumes in Q2 slightly improved 1 percent, year-on-year, reaching 604,200 mt. The Other Markets reporting segments saw a 210 percent year-on-year growth in steel sales volumes, which reached 995,800 mt in Q2 this year.
Ternium said total net profit in Q2 was $337.8 million, up from $281.8 million in Q2 2017, while EBITDA was $787.6 million, 58.1 percent up, year-on-year.
“Following an exceptional performance during the first half of 2018, Ternium expects to continue showing strong EBITDA levels in the third quarter of the year, with healthy margins, despite lower shipments in Mexico and Argentina,” the company said.
Ternium’s net profit in H1 was $759.9 million, up from $592.2 million in the same period of the year prior.
“The company anticipates sequentially lower volumes in Mexico as a result of continued weakness in the construction market, together with a slight seasonal decrease in the automotive, home appliances and HVAC industries,” the company said.
“In Argentina, shipments are expected to decrease in the third quarter as a result of softening steel demand triggered by a significant depreciation of the Argentine peso beginning in May 2018 that led to a strong increase in interest rates in the country,” the company noted.