terniu6k.htm
FORM
6 - K
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Report
of Foreign Private Issuer
Pursuant
to Rule 13a - 16 or 15d - 16 of
the
Securities Exchange Act of 1934
As
of 11/4/2009
Ternium
S.A.
(Translation
of Registrant's name into English)
Ternium
S.A.
46a,
Avenue John F. Kennedy – 2nd floor
L-1855
Luxembourg
(352)
4661-11-3815
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover Form 20-F or 40-F.
Form
20-F ü Form
40-F___
Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12G3-2(b) under the Securities Exchange Act of 1934.
Yes
No ü
If “Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
Not
applicable
The
attached material is being furnished to the Securities and Exchange Commission
pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange Act of 1934,
as amended.
This
report contains Ternium S.A.’s press release announcing third quarter 2009
results.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
TERNIUM
S.A.
By: /s/ Roberto
Philipps |
By: /s/ Daniel
Novegil |
Name: Roberto
Philipps |
Name: Daniel
Novegil |
Title: Chief
Financial Officer |
Title: Chief
Executive Officer |
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|
|
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Dated:
November 4, 2009
Ternium
Announces Third Quarter and First Nine Months of 2009 Results
LUXEMBOURG--(Marketwire
- November 04, 2009) - Ternium S.A. (NYSE: TX) today announced
its results for the third quarter and nine-month period ended September 30,
2009.
The
financial and operational information contained in this press release is based
on Ternium S.A.'s consolidated financial statements prepared in accordance with
International Financial Reporting Standards (IFRS) and presented in U.S. dollars
and metric tons.
Summary
of Third Quarter 2009 Results
|
|
|
3Q
2009 |
|
|
|
2Q
2009 |
|
|
|
|
|
|
3Q
2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments
(tons)
|
|
|
1,683,000 |
|
|
|
1,519,000 |
|
|
|
11 |
% |
|
|
1,844,000 |
|
|
|
-9 |
% |
Net
Sales (US$ million)
|
|
|
1,278.8 |
|
|
|
1,140.3 |
|
|
|
12 |
% |
|
|
2,436.9 |
|
|
|
-48 |
% |
Operating
Income (Loss) (US$ million)
|
|
|
158.9 |
|
|
|
(52.1 |
) |
|
|
|
|
|
|
524.2 |
|
|
|
-70 |
% |
EBITDA
(US$ million)
|
|
|
254.3 |
|
|
|
43.4 |
|
|
|
486 |
% |
|
|
636.0 |
|
|
|
-60 |
% |
EBITDA
Margin (% of net sales)
|
|
|
20 |
% |
|
|
4 |
% |
|
|
|
|
|
|
26 |
% |
|
|
|
|
EBITDA
per Ton, Flat & Long Steel (US$)
|
|
|
147 |
|
|
|
18 |
|
|
|
717 |
% |
|
|
327 |
|
|
|
-55 |
% |
Net
Foreign Exchange Result (US$ million)
|
|
|
(47.6 |
) |
|
|
219.1 |
|
|
|
|
|
|
|
(150.1 |
) |
|
|
|
|
Discontinued
Operations Result (US$ million)
|
|
|
- |
|
|
|
428.0 |
|
|
|
|
|
|
|
(2.8 |
) |
|
|
|
|
Net
Income (US$ million)
|
|
|
104.7 |
|
|
|
584.7 |
|
|
|
-82 |
% |
|
|
247.3 |
|
|
|
-58 |
% |
Equity
Holders' Net Income (US$ million)
|
|
|
88.5 |
|
|
|
562.8 |
|
|
|
-84 |
% |
|
|
211.7 |
|
|
|
-58 |
% |
Earnings
per ADS (US$)
|
|
|
0.44 |
|
|
|
2.81 |
|
|
|
-84 |
% |
|
|
1.06 |
|
|
|
-58 |
% |
-- EBITDA(1)
of US$254.3 million in the third quarter 2009, up US$210.9 million
quarter-over-quarter, mainly as a result of a US$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.
-- Earnings
per American Depositary Share (ADS)(2) of US$0.44 in the third
quarter 2009, which includes a US$0.17 gain as a result of the
transfer
of the Sidor shares to Venezuela compared to a US$2.31 gain in the second
quarter 2009. Additionally, the third quarter 2009 includes
a
US$0.18
non-cash foreign exchange loss per ADS on Ternium's Mexican subsidiary's
US dollar denominated debt, compared to a US$0.76 gain in the
second
quarter 2009.
-- Positive
free cash flow(3) of US$248.2 million in the third quarter 2009. In
addition, Ternium collected a first installment of US$266.5
million
in connection with the transfer of the Sidor shares to Venezuela.
-- Net
financial debt(4) of US$485.7 million at the close of the third quarter
2009, a decrease of US$520.9 million compared to the company's net
financial
debt at the close of the second quarter 2009.
Ternium's
operating result in the third quarter 2009 was a gain of US$158.9 million,
compared to a loss of US$52.1 million in the second quarter 2009, mainly due to
higher shipments and lower operating cost per ton. Ternium's cost of sales in
the third quarter 2009 was impacted less than it was in the second quarter 2009
by higher cost inventories manufactured with raw-materials and semi-finished
products purchased before input prices declined as a result of the financial
crisis. Operating income in the third quarter 2009 was US$365.3 million lower
than in the third quarter 2008, mainly due to a 161,000 tons decrease in
shipments and a US$530 decrease in revenue per ton, partially offset by a US$356
decrease in operating cost per ton.
Net
income was US$104.7 million in the third quarter 2009, compared to net income of
US$584.7 million in the second quarter 2009. Net income before discontinued
operations and net foreign exchange results was US$214.7 million higher in the
third quarter 2009 than in the second quarter 2009, mainly as a result of higher
operating income. Additionally, there was a US$428.0 million discontinued
operations gain in the second quarter 2009 related to the transfer of the Sidor
shares to Venezuela. There also was a US$266.7 million non-cash sequential
decrease in net foreign exchange results in the third quarter 2009 from the
second quarter 2009 that was offset by changes in Ternium's net equity position
in the currency translation adjustments line.
Net
income in the third quarter 2009 was US$142.6 million lower than in the third
quarter 2008. The year-over-year decrease was mainly due to a US$365.3 million
decline in operating income, partially offset by a net foreign exchange loss
that was US$102.5 million lower, a reduction of US$62.5 million in income tax
expense and interest income in connection with the Sidor financial asset that
was US$38.3 million higher.
Summary
of First Nine Months of 2009 Results
|
|
|
9M
2009 |
|
|
|
9M
2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments
(tons)
|
|
|
4,706,000 |
|
|
|
5,996,000 |
|
|
|
-22 |
% |
Net
Sales (US$ million)
|
|
|
3,593.8 |
|
|
|
6,743.8 |
|
|
|
-47 |
% |
Operating
Income (US$ million)
|
|
|
80.3 |
|
|
|
1,489.8 |
|
|
|
-95 |
% |
EBITDA
(US$ million)
|
|
|
392.6 |
|
|
|
1,808.4 |
|
|
|
-78 |
% |
EBITDA
Margin (% of net sales)
|
|
|
11 |
% |
|
|
27 |
% |
|
|
|
|
EBITDA
per Ton, Flat & Long Steel (US$)
|
|
|
76 |
|
|
|
289 |
|
|
|
-74 |
% |
Net
Foreign Exchange Result (US$ million)
|
|
|
10.9 |
|
|
|
(10.2 |
) |
|
|
|
|
Discontinued
Operations Result (US$ million)
|
|
|
428.0 |
|
|
|
157.1 |
|
|
|
|
|
Net
Income (US$ million)
|
|
|
572.3 |
|
|
|
1,223.6 |
|
|
|
-53 |
% |
Equity
Holders' Net Income (US$ million)
|
|
|
558.1 |
|
|
|
1,049.4 |
|
|
|
-47 |
% |
Earnings
per ADS (US$)
|
|
|
2.78 |
|
|
|
5.23 |
|
|
|
-47 |
% |
-- EBITDA(5)
of US$392.6 million in the first nine months of 2009, down 78%
compared to 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 US$2.78 in the first nine
months of 2009, which includes a discontinued operations gain of
US$2.31
per ADS as a result of the transfer of the Sidor shares to Venezuela.
-- Positive
free cash flow(6) of US$943.4 million in the first nine months of
2009. Ternium reduced its steel inventories by 550,000 tons
and
its
capital expenditures by 65% compared to the first nine months of 2008.
In
addition, Ternium collected US$666.5 million in connection with the
transfer
of the Sidor shares to Venezuela.
Ternium's
operating result in the first nine months of 2009 was a gain of US$80.3 million,
compared to a gain of US$1.5 billion in the first nine months of 2008, as
shipments decreased by 1.3 million tons and revenue per ton decreased US$348
year-over-year, while operating cost per ton decreased US$123.
Net
income was US$572.3 million in the first nine months of 2009, compared to US$1.2
billion in the first nine months of 2008. The year-over-year decrease was mainly
due to a US$1.4 billion reduction in operating income, partially offset by a
US$331.8 million change in income tax results, a US$270.9 million increase in
discontinued operations gain and a US$95.4 million higher interest income in
connection with the Sidor financial asset.
Outlook
The
economic recovery underway in all regions of the world, driven by the government
led stimulus packages and the strong performance of the Asian economies, is also
benefiting the Latin-American economies. Mexico is still affected by the more
gradual recovery in the US, while Argentina is recovering faster, partly as a
result of the high price of commodities.
Ternium
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.
Analysis
of Third Quarter 2009 Results
Net
income attributable to the Company's equity holders in the third quarter 2009
was US$88.5 million, compared to US$211.7 million in the third quarter 2008.
Including minority interest, net income in the third quarter 2009 was US$104.7
million, compared to US$247.3 million in the third quarter 2008. Earnings per
ADS in the third quarter 2009 were US$0.44, compared to US$1.06 in the third
quarter 2008.
Net sales
in the third quarter 2009 were US$1.3 billion, 48% lower than net sales in the
third quarter 2008. Shipments of flat and long products were 1.7 million tons
during the third quarter 2009, a decrease of 9% compared to shipment levels in
the third quarter 2008, mainly due to a decrease in demand in Ternium's main
steel markets. Revenue per ton shipped was US$747 in the third quarter 2009, a
decrease of 42% compared to the same quarter in 2008, mainly as a result of
lower prices.
|
|
Net
Sales (million US$)
|
|
Shipments
(thousand tons)
|
|
Revenue
/ ton (US$/ton)
|
|
|
3Q
2009
|
3Q
2008
|
Dif.
|
|
3Q
2009
|
3Q
2008
|
Dif.
|
|
3Q
2009
|
3Q
2008
|
Dif.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
443.3
|
784.4
|
-43%
|
|
513.8
|
680.4
|
-24%
|
|
863
|
1,153
|
-25%
|
North
America
|
|
652.1
|
1,273.4
|
-49%
|
|
872.8
|
901.8
|
-3%
|
|
747
|
1,412
|
-47%
|
Europe
& other
|
|
15.6
|
2.6
|
|
|
25.3
|
2.8
|
|
|
616
|
933
|
|
Total
flat products
|
|
1,111.0
|
2,060.4
|
-46%
|
|
1,411.9
|
1,585.1
|
-11%
|
|
787
|
1,300
|
-39%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
12.6
|
104.2
|
-88%
|
|
26.3
|
86.0
|
-69%
|
|
478
|
1,212
|
-61%
|
North
America
|
|
134.0
|
192.0
|
-30%
|
|
244.6
|
173.3
|
41%
|
|
548
|
1,108
|
-51%
|
Europe
& other
|
|
-
|
-
|
|
|
-
|
-
|
|
|
-
|
-
|
|
Total
long products
|
|
146.6
|
296.2
|
-50%
|
|
271.0
|
259.2
|
5%
|
|
541
|
1,142
|
-53%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
flat and long products
|
|
1,257.6
|
2,356.6
|
-47%
|
|
1,682.8
|
1,844.3
|
-9%
|
|
747
|
1,278
|
-42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
products (1)
|
|
21.2
|
80.3
|
-74%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Net Sales
|
|
1,278.8
|
2,436.9
|
-48%
|
|
|
|
|
|
|
|
|
(1)
Primarily includes iron ore, pig iron and pre-engineered metal buildings.
Sales of
flat products during the third quarter 2009 totaled US$1.1 billion, a decrease
of 46% compared with the same quarter in 2008. Net sales decreased as a result
of lower shipments and revenue per ton. Shipments of flat products totaled 1.4
million tons in the third quarter 2009, a decrease of 11% compared with the same
period in 2008, mainly due to less demand in the South & Central American
region. Revenue per ton shipped of flat products decreased 39% to US$787 in the
third quarter 2009 compared with the same period in 2008, mainly due to lower
steel prices.
Sales of
long products were US$146.6 million in the third quarter 2009, a decrease of 50%
compared to the same period in 2008 mainly due to lower prices, partially offset
by higher volumes. Shipments of long products totaled 271,000 tons in the third
quarter 2009, a 5% increase versus the same quarter in 2008, due to higher
shipments in North America partially offset by lower shipments in South &
Central America. Revenue per ton shipped was US$541 in the third quarter 2009, a
decrease of 53% compared to the third quarter 2008, mainly due to lower steel
prices.
Sales of
other products totaled US$21.2 million during the third quarter 2009, compared
with US$80.3 million during the third quarter 2008. The decrease was mainly
driven by lower iron ore shipments and prices and lower sales of pig iron and
pre-engineered metal building systems.
Sales of
flat and long products in the North America Region were US$786.2 million in the
third quarter 2009, a decrease of 46% versus the same period in 2008, due to
lower prices partially offset by higher shipments. Shipments in the region
totaled 1,117,000 tons during the third quarter 2009, or 4% higher than in the
same period in 2008. Revenue per ton shipped in the region decreased 48% to
US$704 in the third quarter 2009 over the same quarter in 2008, mainly due to
lower prices.
Flat and
long product sales in the South & Central America Region were US$455.9
million during the third quarter 2009, a decrease of 49% versus the same period
in 2008, due to lower shipments and prices. Shipments in the region totaled
540,000 tons during the third quarter 2009, or 30% lower than in the third
quarter 2008, due to a lower overall steel demand in the region. Revenue per ton
shipped was US$844 in the third quarter 2009, a decrease of 27% compared to the
same quarter in 2008, mainly due to lower prices.
Cost of
sales totaled US$1.0 billion in the third quarter 2009, compared to US$1.7
billion in the third quarter 2008. Cost of sales decreased mainly as a result of
lower shipments and lower cost per ton. Cost per ton in the third quarter 2009
decreased year-over-year due to lower cost of raw materials and semi-finished
products, the effect of write-down charges in the third quarter 2008, the impact
on costs of the Mexican Peso's and Argentine Peso's year-over-year devaluation
versus the US dollar and lower energy costs, partially offset by the impact on
fixed costs per ton resulting from lower production volumes in the third quarter
2009.
Selling,
General and Administrative (SG&A) expenses in the third quarter 2009 were
US$114.6 million, or 9% of net sales, compared with US$184.8 million, or 8% of
net sales, in the third quarter 2008. The decrease in SG&A was mainly due to
the initiatives that Ternium launched to mitigate the downturn, the impact on
costs of the Mexican Peso's and Argentine Peso's devaluation versus the US
Dollar, lower tax charges and lower freight volumes and prices as a result of
lower activity levels.
Operating
results in the third quarter 2009 were a gain of US$158.9 million, or 12% of net
sales, compared with a gain of US$524.2 million, or 22% of net sales, in the
third quarter 2008.
EBITDA(7)
in the third quarter 2009 was US$254.3 million, or 20% of net sales, compared
with US$636.0 million, or 26% of net sales, in the third quarter
2008.
Net
financial results were a loss of US$26.5 million in the third quarter 2009,
compared with a loss of US$183.4 million in the third quarter 2008. During the
third quarter 2009, Ternium's net interest expenses totaled US$19.8 million, a
decrease of US$7.0 million compared to the third quarter 2008 due to lower net
indebtedness.
Net
foreign exchange result was a loss of US$47.6 million in the third quarter 2009
compared to a loss of US$150.1 million in the same period in 2008. The results
were primarily due to the impact of the Mexican Peso's 2% devaluation during the
third quarter 2009 and 5% devaluation during the third quarter 2008 on Ternium's
Mexican subsidiary's US dollar denominated debt. These results are non-cash when
measured in US dollars and are offset by changes in Ternium's net equity
position in the currency translation adjustments line, as the value of Ternium
Mexico's US dollar denominated debt is not altered by the Mexican Peso's
fluctuation when stated in US dollars in Ternium's consolidated financial
statements. In accordance with IFRS, Ternium Mexico prepares its financial
statements in Mexican Pesos and registers foreign exchange results on its net
non-Mexican Pesos positions when the Mexican Peso revaluates or devaluates
relative to other currencies.
Interest
income on the Sidor financial asset was US$38.3 million in the third quarter
2009. This result is attributable to the Sidor financial asset in connection
with the transfer of the Sidor shares to Venezuela on May 7, 2009.
Fair
value result of derivative instruments was a gain of US$5.4 million in the third
quarter 2009 compared to a loss of US$2.4 million in the third quarter 2008. The
result was related to certain derivative instruments entered into mainly to
mitigate the impact of interest rate and currency fluctuations.
Income
tax expense for the third quarter 2009 was US$28.0 million, or 21% of income
before income tax, discontinued operations and minority interest, compared with
US$90.5 million in the third quarter 2008, or 27% of income before income tax,
discontinued operations and minority interest.
Income
attributable to minority interest for the third quarter 2009 was US$16.2
million, compared with US$35.6 million in the third quarter 2008, mainly due to
a lower result attributable to minority interest in Siderar.
Analysis
of First Nine Months of 2009 Results
Net
income attributable to the Company's equity holders for the first nine months of
2009 was US$558.1 million, compared with US$1.0 billion for the first nine
months of 2008. Including minority interest, net income for the first nine
months of 2009 was US$572.3 million, compared with US$1.2 billion for the first
nine months of 2008. Earnings per ADS(8) were US$2.78 in the first nine months
of 2009, compared with US$5.23 in the first nine months of 2008.
Net sales
in the first nine months of 2009 were US$3.6 billion, 47% lower than net sales
in the first nine months of 2008. Shipments of flat and long products were 4.7
million tons during the first nine months of 2009, a decrease of 22% compared to
shipments in the first nine months of 2008, mainly due to less demand in
Ternium's main steel markets. Revenue per ton shipped was US$745 in the first
nine months of 2009, a decrease of 32% compared to the same period in 2008,
mainly as a result of lower prices.
|
|
Net
Sales (million US$)
|
|
Shipments
(thousand tons)
|
|
Revenue
/ ton (US$/ton)
|
|
|
9M
2009
|
9M
2008
|
Dif.
|
|
9M
2009
|
9M
2008
|
Dif.
|
|
9M
2009
|
9M
2008
|
Dif.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
1,170.2
|
2,140.2
|
-45%
|
|
1,301.7
|
2,044.3
|
-36%
|
|
899
|
1,047
|
-14%
|
North
America
|
|
1,755.5
|
3,559.0
|
-51%
|
|
2,342.3
|
3,024.0
|
-23%
|
|
749
|
1,177
|
-36%
|
Europe
& other
|
|
154.5
|
17.4
|
|
|
273.6
|
19.1
|
|
|
565
|
910
|
|
Total
flat products
|
|
3,080.2
|
5,716.6
|
-46%
|
|
3,917.5
|
5,087.5
|
-23%
|
|
786
|
1,124
|
-30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
37.4
|
202.7
|
-82%
|
|
81.0
|
210.6
|
-62%
|
|
461
|
963
|
-52%
|
North
America
|
|
387.4
|
632.1
|
-39%
|
|
704.7
|
688.1
|
2%
|
|
550
|
919
|
-40%
|
Europe
& other
|
|
2.0
|
5.8
|
|
|
3.0
|
9.8
|
|
|
667
|
591
|
|
Total
long products
|
|
426.8
|
840.6
|
-49%
|
|
788.6
|
908.5
|
-13%
|
|
541
|
925
|
-42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
flat and long products
|
|
3,507.0
|
6,557.1
|
-47%
|
|
4,706.2
|
5,995.9
|
-22%
|
|
745
|
1,094
|
-32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
products (1)
|
|
86.8
|
186.6
|
-54%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Net Sales
|
|
3,593.8
|
6,743.8
|
-47%
|
|
|
|
|
|
|
|
|
(1)
Primarily includes iron ore, pig iron and pre-engineered metal buildings.
Sales of
flat products during the first nine months of 2009 totaled US$3.1 billion, a
decrease of 46% compared with the first nine months of 2008. Net sales decreased
as a result of lower shipments and revenue per ton. Shipments of flat products
totaled 3.9 million tons in the first nine months of 2009, a decrease of 23%
compared with the same period in 2008, mainly due to less demand in Ternium's
main steel markets. Revenue per ton shipped decreased 30% to US$786 in the first
nine months of 2009 compared with the same period in 2008, mainly due to lower
steel prices.
Sales of
long products were US$426.8 million in the first nine months of 2009, a decrease
of 49% compared to the same period in 2008, mainly due to lower volumes and
prices. Shipments of long products totaled 789,000 tons in the first nine months
of 2009, a 13% decrease versus the first nine months of 2008, mainly due to
lower billet shipments. Revenue per ton shipped was US$541 in the first nine
months of 2009, a decrease of 42% compared to the first nine months of 2008,
mainly due to lower steel prices.
Sales of
other products totaled US$86.8 million during the first nine months of 2009,
compared to US$186.6 million during the first nine months of 2008. The decrease
was mainly driven by lower iron ore shipments and prices and lower sales of pig
iron and pre-engineered metal building systems.
Sales of
flat and long products in the North America Region were US$2.1 billion in the
first nine months of 2009, a decrease of 49% versus the same period in 2008, due
to lower shipments and prices. Shipments in the region totaled 3.0 million tons
during the first nine months of 2009, or 18% lower than in the same period in
2008, as a result of lower demand in the region's main markets. Revenue per ton
shipped in the region decreased 38% to US$703 in the first nine months of 2009
over the same period in 2008, mainly due to lower prices.
Flat and
long product sales in the South & Central America Region were US$1.2 billion
during the first nine months of 2009, a decrease of 48% versus the same period
in 2008, due to lower shipments and prices. Shipments in the region totaled 1.4
million tons during the first nine months of 2009, or 39% lower than in the
first nine months of 2008, due to the lower overall steel demand in the region.
Revenue per ton shipped was US$873 in the first nine months of 2009, a decrease
of 16% compared to the same period in 2008, mainly due to lower prices,
partially offset by a more favorable product mix.
Cost of
sales was US$3.1 billion in the first nine months of 2009 compared to US$4.8
billion in the first nine months of 2008. Cost of sales decreased mainly as a
result of lower shipments and lower cost per ton. Cost per ton in the first nine
months of 2009 decreased year-over-year due to lower raw materials and
semi-finished product costs, lower energy costs, the effect in the first nine
months of 2009 of inventory write-downs performed in the second half of 2008 and
the impact on costs of the Mexican Peso's and Argentine Peso's year-over-year
devaluation versus the US dollar, partially offset by the impact on fixed costs
per ton from lower production volumes and higher personnel reduction charges in
the first nine months of 2009.
Selling,
General and Administrative (SG&A) expenses in the first nine months of 2009
were US$393.7 million, or 11% of net sales, compared with US$509.9 million, or
8% of net sales, in the first nine months of 2008. The decrease in SG&A was
mainly due to the initiatives that Ternium launched to mitigate the downturn,
the impact on costs of the Mexican Peso's and Argentine Peso's devaluation
versus the US Dollar, lower tax charges and lower freight volumes and prices as
a result of lower activity levels, partially offset by higher personnel
reduction charges.
Operating
results in the first nine months of 2009 were a gain of US$80.3 million, or 2%
of net sales, compared with a gain of US$1.5 billion, or 22% of net sales, in
the first nine months of 2008.
EBITDA(9)
in the first nine months of 2009 was US$392.6 million, or 11% of net sales,
compared to US$1.8 billion, or 27% of net sales, in the first nine months of
2008.
Net
financial results were a gain of US$39.9 million in the first nine months of
2009, compared with a loss of US$115.4 million in the first nine months of 2008.
During the first nine months of 2009, Ternium's net interest expenses totaled
US$69.3 million, lower than they were during the first nine months of 2008.
Lower net indebtedness was partially offset by lower interest rates on Ternium's
cash position.
Net
foreign exchange result was a gain of US$10.9 million in the first nine months
of 2009 compared to a loss of US$10.2 million in the same period in
2008.
Interest
income on the Sidor financial asset was US$95.4 million in the first nine months
of 2009. This result is attributable to the Sidor financial asset in connection
with the transfer of the Sidor shares to Venezuela on May 7, 2009.
Fair
value result of derivatives was a gain of US$11.6 million in the first nine
months of 2009 compared to a loss of US$3.5 million in the first nine months of
2008. The results were related to certain derivative instruments entered into
mainly to mitigate the impact of interest rate and currency
fluctuations.
Income
tax benefit for the first nine months of 2009 was US$23.2 million, compared with
an income tax expense of US$308.6 million, or 22% of income before income tax,
discontinued operations and minority interest in the first nine months of 2008.
The first nine months of 2009 result included a non-recurring gain of US$35.4
million due to a favorable resolution on a tax-related dispute in Mexico, while
the first nine months of 2008 result included a non-recurring gain of US$96.3
million on account of a reversal of deferred statutory profit
sharing.
Net
result of discontinued operations for the first nine months of 2009 was a gain
of US$428.0 million related to the transfer of the Sidor shares to Venezuela on
May 7, 2009. Net result of discontinued operations for the first nine months of
2008 was a gain of US$157.1 million, including results from non-core US assets
that were sold during the first quarter 2008 and from Ternium's participation in
Sidor until March 31, 2008.
Income
attributable to minority interest for the first nine months of 2009 was US$14.2
million, compared with a gain attributable to minority interest of US$174.2
million in the first nine months of 2008, mainly due to a lower result
attributable to minority interest in Siderar and Ternium Mexico.
Cash Flow
and Liquidity
Net cash
provided by operating activities in the first nine months of 2009 was US$1.1
billion, compared to net cash used in operating activities of US$58.6 million in
the first nine months of 2008. The difference was mainly due to a working
capital decrease of US$847.4 million in the first nine months of 2009, compared
to a working capital increase of US$1.5 billion in the first nine months of
2008, partially offset by lower operating results. The decrease in working
capital in the first nine months of 2009 resulted mainly from a US$660.5 million
inventory reduction, a US$151.0 million decrease in trade receivables and a
US$101.3 million decrease in other receivables, mainly tax credits, partially
offset by a US$37.0 million decrease in other liabilities, mainly labor
liabilities, and a US$28.4 million decrease in tax liabilities. Inventories
decreased principally as a result of a lower volume of finished goods, goods in
process and raw materials, as Ternium implemented a de-stocking process during
the first half of 2009 in response to lower demand for steel products, and lower
costs. Trade receivables decreased due to lower volumes and sale prices and a
lower days' sales ratio during the first nine months of 2009. In the first nine
months of 2008, working capital increased by US$1.5 billion mainly as a result
of the higher inventory value of goods in process and raw materials and higher
trade receivables, partially offset by higher accounts payable, reflecting an
increase in inventory volumes, steel prices and costs.
Capital
expenditures in the first nine months of 2009 were US$145.8 million, compared to
US$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.
In the
first nine months of 2009, Ternium had free cash flow(10) of US$943.4 million,
compared to negative free cash flow(10) of US$474.0 million in the first nine
months of 2008. In the period, the payments by Corporación Venezolana de Guayana
to Ternium for the transfer of the Sidor shares to Venezuela were US$666.5
million. Ternium's net repayment of borrowings in the first nine months of 2009
was US$811.5 million, mostly related to the scheduled repayments of Ternium
Mexico's outstanding debt.
Net cash
provided by operating activities in the third quarter 2009 was US$283.3 million,
compared to the US$11.9 million net cash used in operating activities in the
third quarter 2008. Working capital decreased US$67.9 million in the third
quarter 2009, compared to a working capital increase of US$550.7 million in the
third quarter 2008. The decrease in working capital in the third quarter 2009
was mainly due to a US$38.9 million decrease in inventories, a US$38.5 million
decrease in other receivables, mainly tax credits, and a US$25.8 million
increase in accounts payable, partially offset by a US$29.9 million decrease in
other liabilities, mainly labor liabilities.
Capital
expenditures in the third quarter 2009 were US$35.1 million, compared to
US$168.3 million in the third quarter 2008. In the third quarter 2009, Ternium's
free cash flow(11) was US$248.2 million, compared to negative free cash flow(11)
of US$180.2 million in the third quarter 2008. In addition, Ternium collected a
first installment of US$266.5 million in connection with the transfer of the
Sidor shares to Venezuela.
As of
September 30, 2009, Ternium's financial debt was US$2.4 billion, while its cash
and cash equivalents and other investments totaled US$2.0 billion. Financial
debt is mainly comprised of a syndicated loan with scheduled capital repayments
of approximately US$500 million in 2010 and 2011, and US$1.3 billion in 2012.
Ternium's net debt position(12) of US$485.7 million as of September 30, 2009
decreased by US$1.6 billion compared to its net debt position as of December 31,
2008. The Company maintains sufficient cash and marketable securities and credit
facilities to finance normal operations. Although Ternium believes it has access
to the credit markets, it has not negotiated additional credit
facilities.
Forward
Looking Statements
Some of
the statements contained in this press release are "forward-looking statements."
Forward-looking statements are based on management's current views and
assumptions and involve known and unknown risks that could cause actual results,
performance or events to differ materially from those expressed or implied by
those statements. These risks include but are not limited to risks arising from
uncertainties as to gross domestic product, related market demand, global
production capacity, tariffs, cyclicality in the industries that purchase steel
products and other factors beyond Ternium's control.
About
Ternium
Ternium
is a leading steel company in Latin America, manufacturing and processing a wide
range of flat and long steel products for customers active in the construction,
home appliances, capital goods, container, food, energy and automotive
industries. With its principal operations in Mexico and Argentina, Ternium
serves markets in the Americas through its integrated manufacturing system and
extensive distribution network. The Company has an annual production capacity of
approximately nine million tons of finished steel products. More information
about Ternium is available at www.ternium.com.
(1)
EBITDA in the third quarter 2009 equals operating income of US$158.9 million
plus depreciation and amortization of US$95.4 million.
(2) Each
American Depositary Share (ADS) represents 10 shares of Ternium's common stock.
Results are based on a weighted average number of shares of common stock
outstanding of 2,004,743,442.
(3) Free
cash flow for the third quarter 2009 equals net cash provided by operations of
US$283.3 million less capital expenditures of US$35.1 million.
(4) Net
financial debt in the third quarter 2009 equals borrowings of US$2.4 billion
less cash and cash equivalents of US$1.9 billion and other investments of
US$69.5 million.
(5)
EBITDA in the first nine months of 2009 equals operating income of US$80.3
million plus depreciation and amortization of US$285.3 million and impairment
charges related to intangible assets of US$27.0 million.
(6) Free
cash flow for the first nine months of 2009 equals net cash provided by
operations of US$1.1 billion less capital expenditures of US$145.8
million.
(7)
EBITDA in the third quarter 2009 equals operating income of US$158.9 million
plus depreciation and amortization of US$95.4 million.
(8) Each
American Depositary Share (ADS) represents 10 shares of Ternium's common stock.
Results are based on a weighted average number of shares of common stock
outstanding of 2,004,743,442.
(9)
EBITDA in the first nine months of 2009 equals operating income of US$80.3
million plus depreciation and amortization of US$285.3 million and impairment
charges related to intangible assets of US$27.0 million.
(10) Free
cash flow for the first nine months of 2009 equals net cash provided by
operating activities of US$1.1 billion less capital expenditures of US$145.8
million, while negative free cash flow for the first nine months of 2008 equals
net cash used in operating activities of US$58.6 million less capital
expenditures of US$415.3 million.
(11) Free
cash flow for the third quarter 2009 equals net cash provided by operating
activities of US$283.3 million less capital expenditures of US$35.1 million,
while negative free cash flow for the third quarter 2008 equals net cash used in
operating activities of US$11.9 million less capital expenditures of US$168.3
million.
(12) Net
debt position as of September 30, 2009 equals borrowings of US$ 2.4 billion less
cash and cash equivalents of US$1.9 billion and other investments of US$69.5
million.
Consolidated
income statement
US$
million
|
|
|
3Q
2009 |
|
|
|
3Q
2008 |
|
|
Dif.
|
|
|
|
9M
2009 |
|
|
|
9M
2008 |
|
|
Dif.
|
|
Net
sales
|
|
|
1,278.8 |
|
|
|
2,436.9 |
|
|
|
(1,158.1 |
) |
|
|
3,593.8 |
|
|
|
6,743.8 |
|
|
|
(3,150.0 |
) |
Cost
of sales
|
|
|
(1,005.4 |
) |
|
|
(1,724.1 |
) |
|
|
718.7 |
|
|
|
(3,098.6 |
) |
|
|
(4,751.3 |
) |
|
|
1,652.7 |
|
Gross
profit
|
|
|
273.5 |
|
|
|
712.8 |
|
|
|
(439.3 |
) |
|
|
495.2 |
|
|
|
1,992.5 |
|
|
|
(1,497.3 |
) |
Selling,
general and administrative expenses
|
|
|
(114.6 |
) |
|
|
(184.8 |
) |
|
|
70.2 |
|
|
|
(393.7 |
) |
|
|
(509.9 |
) |
|
|
116.2 |
|
Other
operating (expenses) income, net
|
|
|
(0.0 |
) |
|
|
(3.8 |
) |
|
|
3.8 |
|
|
|
(21.1 |
) |
|
|
7.2 |
|
|
|
(28.3 |
) |
Operating
income
|
|
|
158.9 |
|
|
|
524.2 |
|
|
|
(365.3 |
) |
|
|
80.3 |
|
|
|
1,489.8 |
|
|
|
(1,409.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(25.6 |
) |
|
|
(29.1 |
) |
|
|
3.5 |
|
|
|
(85.4 |
) |
|
|
(103.4 |
) |
|
|
18.0 |
|
Interest
income
|
|
|
5.8 |
|
|
|
2.2 |
|
|
|
3.6 |
|
|
|
16.1 |
|
|
|
26.3 |
|
|
|
(10.2 |
) |
Interest
income - Sidor financial asset
|
|
|
38.3 |
|
|
|
- |
|
|
|
38.3 |
|
|
|
95.4 |
|
|
|
- |
|
|
|
95.4 |
|
Other
financial (expenses) income, net
|
|
|
(44.9 |
) |
|
|
(156.5 |
) |
|
|
111.6 |
|
|
|
13.8 |
|
|
|
(38.3 |
) |
|
|
52.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
in earnings of associated companies
|
|
|
0.3 |
|
|
|
(0.1 |
) |
|
|
0.4 |
|
|
|
0.9 |
|
|
|
0.8 |
|
|
|
0.2 |
|
Income
before income tax expense
|
|
|
132.7 |
|
|
|
340.6 |
|
|
|
(208.0 |
) |
|
|
121.2 |
|
|
|
1,375.1 |
|
|
|
(1,254.0 |
) |
Income
tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
and deferred income tax (expense) benefit
|
|
|
(28.0 |
) |
|
|
(90.5 |
) |
|
|
62.5 |
|
|
|
23.2 |
|
|
|
(404.9 |
) |
|
|
428.0 |
|
Reversal
of deferred statutory profit sharing
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
96.3 |
|
|
|
(96.3 |
) |
Discontinued
operations
|
|
|
- |
|
|
|
(2.8 |
) |
|
|
2.8 |
|
|
|
428.0 |
|
|
|
157.1 |
|
|
|
270.9 |
|
Net
income for the period
|
|
|
104.7 |
|
|
|
247.3 |
|
|
|
(142.6 |
) |
|
|
572.3 |
|
|
|
1,223.6 |
|
|
|
(651.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
holders of the Company
|
|
|
88.5 |
|
|
|
211.7 |
|
|
|
(123.2 |
) |
|
|
558.1 |
|
|
|
1,049.4 |
|
|
|
(491.3 |
) |
Minority
interest
|
|
|
16.2 |
|
|
|
35.6 |
|
|
|
(19.4 |
) |
|
|
14.2 |
|
|
|
174.2 |
|
|
|
(160.0 |
) |
|
|
|
104.7 |
|
|
|
247.3 |
|
|
|
(142.6 |
) |
|
|
572.3 |
|
|
|
1,223.6 |
|
|
|
(651.3 |
) |
Consolidated
balance sheet
US$
million
|
|
September
30, 2009
|
December
31, 2008
|
|
|
|
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
|
3,967.0
|
|
|
|
4,212.3
|
|
Intangible
assets, net
|
|
|
1,063.6
|
|
|
|
1,136.4
|
|
Investment
in associated companies
|
|
|
6.4
|
|
|
|
5.6
|
|
Sidor
financial asset
|
|
|
258.2
|
|
|
|
-
|
|
Other
investments, net
|
|
|
18.5
|
|
|
|
16.9
|
|
Receivables,
net
|
|
|
167.1
|
|
|
|
120.2
|
|
Total
non-current assets
|
|
|
5,480.8
|
|
|
|
5,491.4
|
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
125.2
|
|
|
|
249.0
|
|
Derivative
financial instruments
|
|
|
3.9
|
|
|
|
1.5
|
|
Inventories,
net
|
|
|
1,093.0
|
|
|
|
1,826.5
|
|
Trade
receivables, net
|
|
|
467.1
|
|
|
|
623.0
|
|
Sidor
financial asset
|
|
|
952.7
|
|
|
|
-
|
|
Available
for sale assets-discontinued operations
|
|
|
-
|
|
|
|
1,318.9
|
|
Other
investments
|
|
|
69.5
|
|
|
|
90.0
|
|
Cash
and cash equivalents
|
|
|
1,884.4
|
|
|
|
1,065.6
|
|
Total
current assets
|
|
|
4,595.7
|
|
|
|
5,174.5
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets classified as held for sale
|
|
|
10.3
|
|
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
10,086.9
|
|
|
|
10,671.2
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
5,073.6
|
|
|
|
4,597.4
|
|
Minority
interest in subsidiaries
|
|
|
916.8
|
|
|
|
964.1
|
|
|
|
|
|
|
|
|
|
|
Minority
interest & shareholders' equity
|
|
|
5,990.4
|
|
|
|
5,561.5
|
|
|
|
|
|
|
|
|
|
|
Provisions
|
|
|
20.7
|
|
|
|
24.4
|
|
Deferred
income tax
|
|
|
826.8
|
|
|
|
810.2
|
|
Other
liabilities
|
|
|
154.9
|
|
|
|
148.7
|
|
Derivative
financial instruments
|
|
|
35.2
|
|
|
|
65.8
|
|
Borrowings
|
|
|
1,806.5
|
|
|
|
2,325.9
|
|
Total
non-current liabilities
|
|
|
2,844.1
|
|
|
|
3,375.0
|
|
|
|
|
|
|
|
|
|
|
Current
tax liabilities
|
|
|
79.3
|
|
|
|
194.1
|
|
Other
liabilities
|
|
|
62.6
|
|
|
|
103.4
|
|
Trade
payables
|
|
|
435.5
|
|
|
|
438.7
|
|
Derivative
financial instruments
|
|
|
41.8
|
|
|
|
57.2
|
|
Borrowings
|
|
|
633.1
|
|
|
|
941.5
|
|
Total
current liabilities
|
|
|
1,252.3
|
|
|
|
1,734.8
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
4,096.5
|
|
|
|
5,109.8
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities, minority interest & shareholders' equity
|
|
|
10,086.9
|
|
|
|
10,671.2
|
|
Consolidated
cash flow statement
US$
million
|
|
|
3Q
2009 |
|
|
|
3Q
2008 |
|
|
Dif.
|
|
|
|
9M
2009 |
|
|
|
9M
2008 |
|
|
Dif.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income from continuing operations
|
|
|
104.7 |
|
|
|
250.1 |
|
|
|
(145.4 |
) |
|
|
144.3 |
|
|
|
1,066.5 |
|
|
|
(922.2 |
) |
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
95.4 |
|
|
|
111.8 |
|
|
|
(16.4 |
) |
|
|
285.3 |
|
|
|
318.7 |
|
|
|
(33.4 |
) |
Equity
in earnings of associated companies
|
|
|
(0.3 |
) |
|
|
0.1 |
|
|
|
(0.4 |
) |
|
|
(0.9 |
) |
|
|
(0.8 |
) |
|
|
(0.2 |
) |
Changes
in provisions
|
|
|
0.2 |
|
|
|
2.8 |
|
|
|
(2.7 |
) |
|
|
2.6 |
|
|
|
4.7 |
|
|
|
(2.1 |
) |
Net
foreign exchange results and others
|
|
|
31.7 |
|
|
|
137.3 |
|
|
|
(105.6 |
) |
|
|
3.2 |
|
|
|
(20.3 |
) |
|
|
23.4 |
|
Interest
accruals less payments
|
|
|
(3.4 |
) |
|
|
(1.1 |
) |
|
|
(2.4 |
) |
|
|
(3.8 |
) |
|
|
(85.7 |
) |
|
|
81.9 |
|
Interest
income - Sidor financial asset
|
|
|
(38.3 |
) |
|
|
- |
|
|
|
(38.3 |
) |
|
|
(95.4 |
) |
|
|
- |
|
|
|
(95.4 |
) |
Income
tax accruals less payments
|
|
|
25.5 |
|
|
|
37.7 |
|
|
|
(12.2 |
) |
|
|
(120.5 |
) |
|
|
110.0 |
|
|
|
(230.5 |
) |
Impairment
charge
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
27.0 |
|
|
|
- |
|
|
|
27.0 |
|
Changes
in working capital
|
|
|
67.9 |
|
|
|
(550.7 |
) |
|
|
618.6 |
|
|
|
847.4 |
|
|
|
(1,451.9 |
) |
|
|
2,299.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by (used in) operating activities
|
|
|
283.3 |
|
|
|
(11.9 |
) |
|
|
295.2 |
|
|
|
1,089.2 |
|
|
|
(58.6 |
) |
|
|
1,147.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(35.1 |
) |
|
|
(168.3 |
) |
|
|
133.2 |
|
|
|
(145.8 |
) |
|
|
(415.3 |
) |
|
|
269.5 |
|
Proceeds
from sale of property, plant & equipment
|
|
|
1.6 |
|
|
|
0.4 |
|
|
|
1.2 |
|
|
|
2.3 |
|
|
|
1.4 |
|
|
|
0.8 |
|
Acquisition
of business
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.2 |
) |
|
|
- |
|
|
|
(0.2 |
) |
(Increase)
Decrease in Other Investments
|
|
|
(69.5 |
) |
|
|
(89.1 |
) |
|
|
19.6 |
|
|
|
20.5 |
|
|
|
(23.8 |
) |
|
|
44.2 |
|
Proceeds
from Sidor financial assets
|
|
|
266.5 |
|
|
|
- |
|
|
|
266.5 |
|
|
|
666.5 |
|
|
|
- |
|
|
|
666.5 |
|
Proceeds
from sale of discontinued operations
|
|
|
- |
|
|
|
(3.9 |
) |
|
|
3.9 |
|
|
|
- |
|
|
|
718.6 |
|
|
|
(718.6 |
) |
Discontinued
operations
|
|
|
- |
|
|
|
152.6 |
|
|
|
(152.6 |
) |
|
|
- |
|
|
|
242.4 |
|
|
|
(242.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by (used in) investing activities
|
|
|
163.6 |
|
|
|
(108.3 |
) |
|
|
271.9 |
|
|
|
543.4 |
|
|
|
523.4 |
|
|
|
20.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid in cash and other distributions
to
company's equity shareholders
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(100.2 |
) |
|
|
100.2 |
|
Dividends
paid in cash and other distributions
to
minority shareholders
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(19.6 |
) |
|
|
19.6 |
|
Proceeds
from borrowings
|
|
|
43.9 |
|
|
|
190.7 |
|
|
|
(146.8 |
) |
|
|
205.9 |
|
|
|
372.0 |
|
|
|
(166.1 |
) |
Repayment
of borrowings
|
|
|
(421.0 |
) |
|
|
(142.5 |
) |
|
|
(278.5 |
) |
|
|
(1,017.4 |
) |
|
|
(1,074.0 |
) |
|
|
56.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash (used in) provided by financing activities
|
|
|
(377.1 |
) |
|
|
48.1 |
|
|
|
(425.3 |
) |
|
|
(811.5 |
) |
|
|
(821.8 |
) |
|
|
10.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(Decrease) in cash and cash equivalents
|
|
|
69.7 |
|
|
|
(72.1 |
) |
|
|
141.8 |
|
|
|
821.0 |
|
|
|
(357.1 |
) |
|
|
1,178.1 |
|
Shipments
|
|
Thousand
tons
|
|
|
3Q
2009 |
|
|
|
3Q
2008 |
|
|
|
2Q
2009 |
|
|
|
9M
2009 |
|
|
|
9M
2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
513.8 |
|
|
|
680.4 |
|
|
|
424.2 |
|
|
|
1,301.7 |
|
|
|
2,044.3 |
|
North
America
|
|
|
872.8 |
|
|
|
901.8 |
|
|
|
765.5 |
|
|
|
2,342.3 |
|
|
|
3,024.0 |
|
Europe
& other
|
|
|
25.3 |
|
|
|
2.8 |
|
|
|
77.5 |
|
|
|
273.6 |
|
|
|
19.1 |
|
Total
flat products
|
|
|
1,411.9 |
|
|
|
1,585.1 |
|
|
|
1,267.1 |
|
|
|
3,917.5 |
|
|
|
5,087.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
26.3 |
|
|
|
86.0 |
|
|
|
31.5 |
|
|
|
81.0 |
|
|
|
210.6 |
|
North
America
|
|
|
244.6 |
|
|
|
173.3 |
|
|
|
220.6 |
|
|
|
704.7 |
|
|
|
688.1 |
|
Europe
& other
|
|
|
- |
|
|
|
- |
|
|
|
0.0 |
|
|
|
3.0 |
|
|
|
9.8 |
|
Total
long products
|
|
|
271.0 |
|
|
|
259.2 |
|
|
|
252.2 |
|
|
|
788.6 |
|
|
|
908.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
flat and long products
|
|
|
1,682.8 |
|
|
|
1,844.3 |
|
|
|
1,519.3 |
|
|
|
4,706.2 |
|
|
|
5,995.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
/ ton
|
|
US$/ton
|
|
|
3Q
2009 |
|
|
|
3Q
2008 |
|
|
|
2Q
2009 |
|
|
|
9M
2009 |
|
|
|
9M
2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
863 |
|
|
|
1,153 |
|
|
|
870 |
|
|
|
899 |
|
|
|
1,047 |
|
North
America
|
|
|
747 |
|
|
|
1,412 |
|
|
|
729 |
|
|
|
749 |
|
|
|
1,177 |
|
Europe
& other
|
|
|
616 |
|
|
|
933 |
|
|
|
590 |
|
|
|
565 |
|
|
|
910 |
|
Total
flat products
|
|
|
787 |
|
|
|
1,300 |
|
|
|
767 |
|
|
|
786 |
|
|
|
1,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
478 |
|
|
|
1,212 |
|
|
|
425 |
|
|
|
461 |
|
|
|
963 |
|
North
America
|
|
|
548 |
|
|
|
1,108 |
|
|
|
538 |
|
|
|
550 |
|
|
|
919 |
|
Europe
& other
|
|
|
- |
|
|
|
- |
|
|
|
717 |
|
|
|
667 |
|
|
|
591 |
|
Total
long products
|
|
|
541 |
|
|
|
1,142 |
|
|
|
524 |
|
|
|
541 |
|
|
|
925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
flat and long products
|
|
|
747 |
|
|
|
1,278 |
|
|
|
727 |
|
|
|
745 |
|
|
|
1,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
US$
million
|
|
|
3Q
2009 |
|
|
|
3Q
2008 |
|
|
|
2Q
2009 |
|
|
|
9M
2009 |
|
|
|
9M
2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
443.3 |
|
|
|
784.4 |
|
|
|
368.9 |
|
|
|
1,170.2 |
|
|
|
2,140.2 |
|
North
America
|
|
|
652.1 |
|
|
|
1,273.4 |
|
|
|
557.8 |
|
|
|
1,755.5 |
|
|
|
3,559.0 |
|
Europe
& other
|
|
|
15.6 |
|
|
|
2.6 |
|
|
|
45.7 |
|
|
|
154.5 |
|
|
|
17.4 |
|
Total
flat products
|
|
|
1,111.0 |
|
|
|
2,060.4 |
|
|
|
972.4 |
|
|
|
3,080.2 |
|
|
|
5,716.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
12.6 |
|
|
|
104.2 |
|
|
|
13.4 |
|
|
|
37.4 |
|
|
|
202.7 |
|
North
America
|
|
|
134.0 |
|
|
|
192.0 |
|
|
|
118.6 |
|
|
|
387.4 |
|
|
|
632.1 |
|
Europe
& other
|
|
|
- |
|
|
|
- |
|
|
|
0.0 |
|
|
|
2.0 |
|
|
|
5.8 |
|
Total
long products
|
|
|
146.6 |
|
|
|
296.2 |
|
|
|
132.0 |
|
|
|
426.8 |
|
|
|
840.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
flat and long products
|
|
|
1,257.6 |
|
|
|
2,356.6 |
|
|
|
1,104.4 |
|
|
|
3,507.0 |
|
|
|
6,557.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
products
(1)
|
|
|
21.2 |
|
|
|
80.3 |
|
|
|
35.9 |
|
|
|
86.8 |
|
|
|
186.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
net sales
|
|
|
1,278.8 |
|
|
|
2,436.9 |
|
|
|
1,140.3 |
|
|
|
3,593.8 |
|
|
|
6,743.8 |
|
|
|
|
|
|
|
(1) Primarily includes iron ore, pig iron and pre-engineered metal
buildings.
Sebastián
Martí
Ternium -
Investor Relations
+1 (866)
890 0443
+54 (11)
4018 2389
www.ternium.com