Ternium S.A. (TX:NYSE)

Ternium S.A. announced consolidated earnings results for the third quarter and nine-month period ended September 30, 2009. EBITDA of $254.3 million in the third quarter 2009, up $210.9 million quarter-over-quarter, mainly as a result of a $113 decrease in operating cost per ton and a 11% increase in shipments compared to the second quarter 2009, as revenue per ton remained relatively stable. Net financial debt of $485.7 million at the close of the third quarter 2009, a decrease of $520.9 million compared to the company's net financial debt at the close of the second quarter 2009. Operating income in the third quarter 2009 was $365.3 million lower than in the third quarter 2008, mainly due to a 161,000 tons decrease in shipments and a $530 decrease in revenue per ton, partially offset by a $356 decrease in operating cost per ton. Net income was $104.7 million in the third quarter 2009, compared to net income of $584.7 million in the second quarter 2009. Net income before discontinued operations and net foreign exchange results was $214.7 million higher in the third quarter 2009 than in the second quarter 2009, mainly as a result of higher operating income. Earnings per ADS in the third quarter 2009 were $0.44, compared to $1.06 in the third quarter 2008. Net sales in the third quarter 2009 were $1.3 billion, against $1.1 million, 48% lower than net sales in the third quarter 2008. Net cash provided by operating activities in the third quarter 2009 was $283.3 million, compared to the $11.9 million net cash used in operating activities in the third quarter 2008. Capital expenditures in the third quarter 2009 were $35.1 million, compared to $168.3 million in the third quarter 2008. EBITDA of $392.6 million in the first nine months of 2009, down 78% compared to $1,808.4 million the first nine months of 2008, mainly due to lower shipments and revenue per ton, partially offset by lower operating cost per ton. Earnings per American Depositary Share (ADS) of $2.78 in the first nine months of 2009, against $5.23 per share, which includes a discontinued operations gain of $2.31 per ADS as a result of the transfer of the Sidor shares to Venezuela. Ternium's operating result in the first nine months of 2009 was a gain of $80.3 million, compared to a gain of $1.5 billion in the first nine months of 2008. Net income was $572.3 million in the first nine months of 2009, compared to $1.2 billion in the first nine months of 2008. The year-over-year decrease was mainly due to a $1.4 billion reduction in operating income, partially offset by a $331.8 million change in income tax results, a $270.9 million increase in discontinued operations gain and a $95.4 million higher interest income in connection with the Sidor financial asset. Net sales in the first nine months of 2009 were $3.6 billion, against $6.7 million, 47% lower than net sales in the first nine months of 2008. Net cash provided by operating activities in the first nine months of 2009 was $1.1 billion, compared to net cash used in operating activities of $58.6 million in the first nine months of 2008. Capital expenditures in the first nine months of 2009 were $145.8 million, compared to $415.3 million in the first nine months of 2008. Capital expenditures during the first nine months of 2009 were mainly related to the relining of a blast furnace and the revamping of two coking batteries in Argentina, and to iron ore mining and processing activities in Mexico. The company expects a slight increase in operating income in the fourth quarter 2009 compared to the operating income it achieved in the third quarter 2009 as a result of higher revenue per ton, relatively stable cost per ton and slightly lower shipments mainly due to the year-end seasonal effect.

Ternium S.A., Q3 2009 Earnings Call, Nov-05 2009

Ternium S.A. reported consolidated earnings results for second quarter and six months ended June 30, 2009. For the quarter, the company reported net income of $584.7 million on net sales of $1,140.3 million compared to net income of $495.7 million on net sales of $2,364.2 million for the same period a year ago. Income before income tax was $202 million compared to income before income tax of $703.8 million for the same period a year ago. Net income from continuing operations was $156.7 million compared to net income from continuing operations of $495.7 million for the same period a year ago. Net cash provided by operating activities was $396.6 million compared to net cash used in operating activities of $48.5 million for the same period a year ago. Capital expenditures were $42.4 million compared to capital expenditures of $146.5 million for the same period a year ago. EBITDA of $43.4 million in the second quarter 2009, down $51.6 million quarter-over-quarter, mainly as a result of a $34 decrease in revenue per ton compared to the first quarter 2009, as shipments and operating cost per ton remained relatively stable. The year-over-year increase in net income was mainly due to a $658.3 million lower operating result, offset by a $482.3 million gain in connection with the transfer of the Sidor shares to Venezuela, a $162.8 million reduction in income tax expense and a $119.4 million higher net foreign exchange result. Net income attributable to the company's equity holders was $562.8 million, compared to $415.6 million in the second quarter 2008. For six months period the company reported net income of $467.7 million on net sales of $2,314.9 million compared to net income of $976.4 million on net sales of $4,306.9 million for the same period a year ago. Loss before income tax was $11.5 million compared to income before income tax of $1,034.5 million for the same period a year ago. Net income from continuing operations was $39.6 million compared to net income from continuing operations of $816.4 million for the same period a year ago. Net cash provided by operating activities was $805.9 million compared to net cash used in operating activities of $46.7 million for the same period a year ago. Capital expenditures were $110.7 million compared to capital expenditures of $247 million for the same period a year ago. EBITDA was $138.3 million against $1,172.5 million a year ago. Net debt position was $1.0 billion as of June 30, 2009 decreased by $1.1 billion compared to its net debt position as of December 31, 2008. The company anticipates positive operating results during the third quarter 2009, as a result of lower operating cost per ton, higher shipments and relatively stable revenue per ton, and an average capacity utilization of approximately 70%.