Latin American-focused steelmaker Ternium saw revenues for Mexico and the Southern Region segment rise in the first quarter of the year, the company said this week while releasing its quarterly results.
Ternium said revenues for Mexico in Q1 rose 17 percent, year-on-year, to $1.5 billion.
The Southern Region market segment, which includes mills Argentina, Bolivia, Chile, Paraguay and Uruguay, saw revenues grow 25 percent in Q1, year-on-year, to $637 million, the steelmaker said.
The Other Markets reporting segment, which covers business in Brazil, Colombia, Central America and the United States, reported a $725 million revenue in Q1, 224 percent up, year-on-year.
Ternium said net profit in Q1 was $422.1 million, up from a $310.4 million net profit reported in the same quarter of the year prior. Revenues for all Ternium segments and markets was $2.9 billion, 43 percent up, year-on-year.
“Ternium expects operating income to increase in the second quarter 2018 compared to the first quarter 2018, mainly due to higher operating margin, since increasing realized prices in Mexico will be only partially offset by higher cost per ton,” the company said.
“Uncertainty in the markets regarding US trade action against imports of steel under section 232 lingers on, as many countries that were initially exempted from the 25 percent general tariff are negotiating specific conditions under which to maintain such exemptions, in some cases by way of import quotas,” the company noted.
In Mexico, the company said steel shipments are expected to remain at “healthy levels” after a record first quarter this year. As for Argentina, it anticipates 2018 to mark “the first time since 2011 that the country will have two consecutive years of economic growth.”
“The company expects steel shipments and revenue per ton to slightly increase in the Argentine market in the second quarter 2018 compared to the first quarter of the year,” Ternium noted.