form6_k.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 8/5/2008
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 o
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 o
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 second quarter 2008
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
|
Dated:
August 5, 2008
Sebastián
Martí
Ternium
- Investor Relations
+1 (866)
890 0443
+52 (81)
8865 2111
+54 (11)
4018 2389
www.ternium.com
Ternium
Announces Second Quarter and First Half 2008 Results
Luxembourg,
August 5, 2008 – Ternium S.A. (NYSE: TX) today announced its results for the
second quarter and first half ended June 30, 2008.
The
financial and operational information contained in this press release is based
on consolidated financial statements prepared in accordance with International
Financial Reporting Standards (IFRS) and presented in U.S. dollars and metric
tons.
Ternium
has modified the accounting treatment for its investment in Sidor. For more
information, please see Note 12 to Ternium’s Consolidated Condensed Interim
Financial Statements as of June 30, 2008 and “Sidor Nationalization
Process – Deconsolidation from Ternium Financial Statements” in this press
release.
Summary of Second Quarter 2008
Results1
|
|
|
2Q 2008
|
|
|
|
1Q 2008 |
|
|
2Q 2007
|
Shipments
(tons)
|
|
|
2,063,000 |
|
|
|
2,088,000 |
|
|
|
-1 |
% |
|
|
1,604,000 |
|
|
|
29 |
% |
Net
Sales (US$ million)
|
|
|
2,374.8 |
|
|
|
1,952.7 |
|
|
|
22 |
% |
|
|
1,255.9 |
|
|
|
89 |
% |
Operating
Income (US$ million)
|
|
|
610.4 |
|
|
|
363.3 |
|
|
|
68 |
% |
|
|
203.0 |
|
|
|
201 |
% |
EBITDA
(US$ million)
|
|
|
714.1 |
|
|
|
470.1 |
|
|
|
52 |
% |
|
|
281.9 |
|
|
|
153 |
% |
EBITDA
Margin (% of net sales)
|
|
|
30 |
% |
|
|
24 |
% |
|
|
|
|
|
|
22 |
% |
|
|
|
|
EBITDA
per Ton, Flat & Long Steel (US$/ton)
|
|
|
337 |
|
|
|
213 |
|
|
|
58 |
% |
|
|
162 |
|
|
|
108 |
% |
Discontinued
Operations1
(US$ million)
|
|
|
- |
|
|
|
159.9 |
|
|
|
|
|
|
|
199.0 |
|
|
|
|
|
Net
Income (US$ million)
|
|
|
498.9 |
|
|
|
483.6 |
|
|
|
3 |
% |
|
|
315.0 |
|
|
|
58 |
% |
Equity
Holders' Net Income (US$ million)
|
|
|
415.6 |
|
|
|
422.1 |
|
|
|
-2 |
% |
|
|
236.9 |
|
|
|
75 |
% |
Earnings
per ADS (US$)
|
|
|
2.07 |
|
|
|
2.11 |
|
|
|
-2 |
% |
|
|
1.18 |
|
|
|
75 |
% |
Operating
income was US$610.4 million in the second quarter 2008, an increase of 68%
when compared to the first quarter 2008 mainly as a result of a 24% increase in
revenue per ton, partially offset by a 12% increase in operating cost per ton
due to higher raw material, energy and labor costs. Higher purchased
slab and raw material costs are gradually reflected in the Company’s cost of
sales, as Ternium consumes slabs and raw materials from its inventories over
time. Average prices increased across all products and regions during
the second quarter 2008 compared to the first quarter 2008 and second quarter
2007. Operating income in the second quarter 2008 increased 201% when
compared to the second quarter 2007. Excluding the effect of the
consolidation of Grupo Imsa, operating income increased year-over-year mainly
due to higher prices, partially offset by higher raw material, energy and labor
costs. Ternium’s shipments were relatively stable during the second
quarter 2008 compared to the first quarter 2008 and increased 29% when compared
to the second quarter 2007 mainly as a result of the consolidation of Grupo
Imsa.
____________________
1
|
Sidor’s
results of operations have been deconsolidated from Ternium’s Financial
Statements and are shown as Discontinued
Operations. Discontinued operations include results from the
non-core US assets that were sold during the first quarter 2008 and from
Ternium’s participation in Sidor until March 31, 2008. No
results from discontinued operations related to Sidor have been accounted
for in the second quarter
2008.
|
No
results from discontinued operations related to Sidor have been accounted for in
the second quarter 2008. In the first quarter 2008, results from
discontinued operations included an after-tax gain of US$101.4 million
related to the sale of non-core US assets and an after-tax gain of
US$58.5 million related to Sidor, while in the second quarter 2007 results
from discontinued operations comprised an after-tax gain of US$199.0 million
related to Sidor.
Net
income during the second quarter 2008 was US$498.9 million, an increase of
3% when compared to the first quarter 2008 mainly due to higher operating
income, a higher foreign exchange gain of US$60.2 million mainly related to
Ternium Mexico’s financial debt and an improved result of US$40.7 million
related to changes in the fair value of derivative instruments, partially offset
by higher income tax expenses. In addition, the first quarter 2008
net income included a discontinued operations gain of US$159.9 million and an
income tax gain of US$96.3 million related to Hylsa’s reversal of deferred
statutory profit sharing.
Net
income during the second quarter 2008 increased 58% when compared to the second
quarter 2007. This year-over-year increase was due to the
consolidation of Grupo Imsa and higher operating income, as well as more
favorable foreign exchange and changes in fair value of derivatives
results. In addition, the second quarter 2007 net income included
results of US$199.0 million from discontinued operations.
Summary of First Half 2008
Results2
|
|
|
1H 2008
|
|
|
|
1H 2007 |
Shipments
(tons)
|
|
|
4,152,000 |
|
|
|
3,148,000 |
|
|
|
32 |
% |
Net
Sales (US$ million)
|
|
|
4,327.5 |
|
|
|
2,430.7 |
|
|
|
78 |
% |
Operating
Income (US$ million)
|
|
|
973.6 |
|
|
|
413.1 |
|
|
|
136 |
% |
EBITDA
(US$ million)
|
|
|
1,184.3 |
|
|
|
557.8 |
|
|
|
112 |
% |
EBITDA
Margin (% of net sales)
|
|
|
27 |
% |
|
|
23 |
% |
|
|
|
|
EBITDA
per Ton, Flat & Long Steel (US$/ton)
|
|
|
275 |
|
|
|
165 |
|
|
|
67 |
% |
Discontinued
Operations2
(US$ million)
|
|
|
159.9 |
|
|
|
318.7 |
|
|
|
-50 |
% |
Net
Income (US$ million)
|
|
|
982.4 |
|
|
|
566.6 |
|
|
|
73 |
% |
Equity
Holders' Net Income (US$ million)
|
|
|
837.8 |
|
|
|
459.1 |
|
|
|
82 |
% |
Earnings
per ADS (US$)
|
|
|
4.18 |
|
|
|
2.29 |
|
|
|
82 |
% |
____________________
2
|
Sidor’s
results of operations have been deconsolidated from Ternium’s Financial
Statements and are shown as Discontinued
Operations. Discontinued operations include results from the
non-core US assets that were sold during the first quarter 2008 and from
Ternium’s participation in Sidor until March 31, 2008. No
results from discontinued operations related to Sidor have been accounted
for in the second quarter
2008.
|
Operating
income was US$973.6 million in the first half 2008, an increase
of 136% when compared to the first half 2007 mainly as a result of higher
steel prices and the consolidation of Grupo Imsa, partially offset by higher raw
material, energy and labor costs. Higher purchased slab and raw
material costs are gradually reflected in the Company’s cost of sales, as
Ternium consumes slabs and raw materials from its inventories over
time. Ternium’s net sales were US$4.3 billion during the first half
2008, an increase of 78% when compared to the first half 2007, reflecting higher
steel prices and the consolidation of Grupo Imsa.
During
the first half 2008, results from discontinued operations were an after-tax gain
of US$101.4 million related to the sale of non-core US assets and an
after-tax gain of US$58.5 million related to Sidor. During the
first half 2007, results from discontinued operations were an after-tax gain of
US$318.7 million related to Sidor.
Net
income during the first half 2008 was US$982.4 million, an increase of 73%
when compared to the first half 2007. This increase in net income was
mainly due to the consolidation of Grupo Imsa, a higher operating income and a
US$139.6 million higher foreign exchange net gain mainly related to Ternium
Mexico’s financial debt, partially offset by higher net interest and income tax
expenses, and lower gains from discontinued operations.
Sidor
Nationalization Process – Deconsolidation from Ternium Financial
Statements
Based on
the facts and circumstances described in Note 12 to Ternium’s Consolidated
Condensed Interim Financial Statements as of June 30, 2008, Ternium ceased
consolidating Sidor’s results of operations and cash flows as from April 1,
2008. The carrying amount of the Company’s investment in Sidor at
March 31, 2008 is its book value at that date. Thus, the carrying
amount of this available-for-sale asset at June 30, 2008 does not represent its
fair value at that date.
Outlook
Demand
for steel products in the North America Region remains relatively
stable. Although there are no indications of overstocking, prices in
the North America Region may soften in the second half 2008 as a result of
continued weakness in the region’s construction, home appliances and automobile
industries. Demand and prices in the South & Central America
Region are expected to remain at healthy levels.
Ternium
expects a slightly lower operating margin in the third quarter 2008 compared to
the operating margin it achieved in the second quarter 2008. Higher
purchased slab and raw material costs were not entirely reflected in Ternium’s
cost of sales during the second quarter 2008 and are expected to flow into the
cost of sales in subsequent quarters as Ternium consumes purchased slabs and raw
materials from its inventories over time.
Analysis
of Second Quarter 2008 Results
Net income attributable to the Company’s equity holders in the second
quarter 2008 was US$415.6 million, compared with US$236.9 million in the second
quarter 2007. Including minority interest, net income for the second
quarter 2008 was US$498.9 million, compared with US$315.0 million in the second
quarter 2007. Earnings per ADS3 for the second quarter
2008 were US$2.07, compared with US$1.18 in the second quarter
2007.
Net sales for the second
quarter 2008 increased 89% to US$2.4 billion compared with the same period in
2007. Net sales increased mainly due to the effect of the
consolidation of Grupo Imsa and higher steel prices. Shipments of
flat and long products were 2.1 million tons during the second quarter 2008, an
increase of 29% compared to shipment levels in the second quarter 2007 mainly
due to the consolidation of Grupo Imsa. Revenue per ton shipped
increased 48% to US$1,120 in the second quarter 2008 versus the same quarter in
2007, mainly as a result of higher steel prices and the consolidation of Grupo
Imsa’s higher value added product mix.
|
|
Net
Sales (million US$)
|
|
|
Shipments
(thousand tons)
|
|
|
Revenue
/ ton (US$/ton)
|
|
|
|
|
2Q 2008
|
|
|
|
2Q 2007
|
|
|
Dif.
|
|
|
|
2Q 2008
|
|
|
|
2Q 2007
|
|
|
Dif.
|
|
|
|
2Q 2008
|
|
|
|
2Q 2007
|
|
|
Dif.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
719.9 |
|
|
|
466.6 |
|
|
|
54 |
% |
|
|
690.9 |
|
|
|
598.9 |
|
|
|
15 |
% |
|
|
1,042 |
|
|
|
779 |
|
|
|
34 |
% |
North
America
|
|
|
1,264.6 |
|
|
|
483.6 |
|
|
|
162 |
% |
|
|
1,042.2 |
|
|
|
592.1 |
|
|
|
76 |
% |
|
|
1,213 |
|
|
|
817 |
|
|
|
49 |
% |
Europe
& other
|
|
|
10.0 |
|
|
|
69.1 |
|
|
|
-86 |
% |
|
|
11.6 |
|
|
|
101.2 |
|
|
|
-89 |
% |
|
|
864 |
|
|
|
682 |
|
|
|
27 |
% |
Total
flat products
|
|
|
1,994.5 |
|
|
|
1,019.2 |
|
|
|
96 |
% |
|
|
1,744.7 |
|
|
|
1,292.1 |
|
|
|
35 |
% |
|
|
1,143 |
|
|
|
789 |
|
|
|
45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
62.1 |
|
|
|
14.3 |
|
|
|
334 |
% |
|
|
67.9 |
|
|
|
25.3 |
|
|
|
168 |
% |
|
|
913 |
|
|
|
565 |
|
|
|
62 |
% |
North
America
|
|
|
253.8 |
|
|
|
182.6 |
|
|
|
39 |
% |
|
|
249.6 |
|
|
|
286.4 |
|
|
|
-13 |
% |
|
|
1,017 |
|
|
|
638 |
|
|
|
59 |
% |
Europe
& other
|
|
|
0.6 |
|
|
|
- |
|
|
|
|
|
|
|
1.0 |
|
|
|
- |
|
|
|
|
|
|
|
630 |
|
|
|
- |
|
|
|
|
|
Total
long products
|
|
|
316.4 |
|
|
|
196.9 |
|
|
|
61 |
% |
|
|
318.5 |
|
|
|
311.7 |
|
|
|
2 |
% |
|
|
993 |
|
|
|
632 |
|
|
|
57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
flat and long products
|
|
|
2,311.0 |
|
|
|
1,216.2 |
|
|
|
90 |
% |
|
|
2,063.2 |
|
|
|
1,603.9 |
|
|
|
29 |
% |
|
|
1,120 |
|
|
|
758 |
|
|
|
48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
products
|
|
|
63.8 |
|
|
|
39.7 |
|
|
|
61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Net Sales
|
|
|
2,374.8 |
|
|
|
1,255.9 |
|
|
|
89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Primarily includes iron ore, pig iron and pre-engineered metal
buildings.
Net sales
of flat products during the second quarter 2008 totaled US$2.0 billion, an
increase of 96% compared with the same quarter in 2007. Net sales of
flat products increased as a result of the effect of the consolidation of Grupo
Imsa and higher steel prices. Shipments of flat products totaled 1.7
million tons in the second quarter 2008, an increase of 35% compared with the
same period in 2007, mainly due to the consolidation of Grupo
Imsa. Revenue per ton shipped increased 45% to US$1,143 in the second
quarter 2008 compared with the same period in 2007, mainly due to higher steel
prices and the consolidation of Grupo Imsa’s higher value added product
mix.
____________________
3
|
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.
|
Net sales
of long products were US$316.4 million during the second quarter 2008, an
increase of 61% compared with the same period in 2007 due to higher steel prices
and slightly higher shipment levels. Shipments of long products
totaled 319,000 tons in the second quarter 2008, representing a 2% increase
versus the same quarter in 2007. Revenue per ton shipped increased
57% to US$993 in the second quarter 2008 over the second quarter
2007.
Net sales
of other products totaled US$63.8 million during the second quarter 2008,
compared to US$39.7 million during the second quarter 2007. This
increase resulted mainly from higher iron ore shipments and prices and the
consolidation of Grupo Imsa’s pre-engineered metal buildings business in
Mexico.
Net sales
of flat and long products in the North America Region were US$1.5 billion in the
second quarter 2008, an increase of 128% versus the same period in
2007. Shipments in the region totaled 1.3 million tons during the
second quarter 2008, or 47% higher than in the same period in 2007, mainly due
to the consolidation of Grupo Imsa. Revenue per ton shipped in the
region increased 55% to US$1,175 in the second quarter 2008 over the same
quarter in 2007 mainly as a result of higher prices and the consolidation of
Grupo Imsa’s higher value added product mix.
Net sales
of flat and long products in the South & Central America Region were
US$782.0 million during the second quarter 2008, an increase of 63% versus the
same period in 2007. This increase was due to higher shipments and
revenue per ton. Shipments in the region totaled 759,000 tons during
the second quarter 2008, or 22% higher than in the second quarter
2007. Revenue per ton shipped in the region increased 34% to US$1,030
in the second quarter 2008 over the same quarter in 2007, mainly due to higher
prices.
Cost of sales totaled US$1.6
billion in the second quarter 2008 compared to US$931.1 million in the second
quarter 2007. Cost of sales increased as a result, in part, of the
consolidation of Grupo Imsa, which increased Ternium’s production volume and
cost per ton due to Grupo Imsa’s higher production cost structure and higher
value added product sales mix. Excluding this effect, the higher
year-over-year cost of sales was related to higher costs for raw materials and
other supplies, as well as for freight, services and labor.
The
consolidation of Grupo Imsa resulted in an increased volume of purchased slabs
with a cost per ton significantly higher than Ternium’s average cost of slab
production. This higher cost per ton for purchased slabs is gradually
reflected in the cost of sales, as Ternium consumes slabs and other raw
materials from its inventories over time. In the second quarter 2008,
scrap and energy prices increased in Mexico, while the price of zinc was lower
when compared to the prior year period. Iron ore costs were higher
during the second quarter 2008 than they were in the same period in 2007, mainly
as a result of higher annual contract prices for third party iron ore supplies
and higher production costs at Ternium’s iron ore mines.
Selling, General and Administrative
(SG&A) expenses in the second quarter 2008 were US$181.8 million, or
8% of net sales, compared with US$118.2 million, or 9% of net sales, in the
second quarter 2007. The increase in SG&A was due mainly to the
consolidation of Grupo Imsa.
Operating income in the second
quarter 2008 was US$610.4 million, or 26% of net sales, compared with US$203.0
million, or 16% of net sales, in the second quarter 2007.
EBITDA4 in the second quarter
2008 was US$714.1 million, or 30% of net sales, compared with US$281.9 million,
or 22% of net sales, in the second quarter 2007. Equity holders’
EBITDA in the second quarter 2008 was 82% of EBITDA.
Net financial result totaled a
gain of US$97.4 million in the second quarter 2008, compared with expenses of
US$13.5 million in the same period in 2007. A higher net gain of
US$98.9 million related to foreign exchange valuations and a US$24.2 million
improved result related to changes in the fair value of some derivative
instruments entered into by Ternium mainly to mitigate the effects of interest
rate fluctuations were partially offset by a US$19.7 million year-over-year
increase in net interest expenses primarily associated with an increase in net
debt. The foreign exchange results in the second quarter 2008 (an
effect that is offset to a large extent by changes in Ternium’s net equity
position) resulted primarily from the impact of the Mexican Peso fluctuation on
the Company’s Mexican subsidiaries’ US dollar denominated debt (Ternium’s
subsidiaries prepare their financial statements in currencies other than the US
dollar in accordance with IFRS).
Income tax expense for the
second quarter 2008 was US$209.3 million, or 30% of income before income tax,
discontinued operations and minority interest, compared with US$73.2 million in
the second quarter 2007, or 39% of income before income tax, discontinued
operations and minority interest.
Income attributable to minority
interest for the second quarter 2008 was US$83.2 million, compared with
US$78.0 million in the second quarter 2007. The year-over-year
increase was due mainly to higher income attributable to minority interest in
Siderar. In addition, there was no income attributable to minority
interest in Sidor in the second quarter 2008, compared with US$39.0 million in
the second quarter 2007.
Analysis
of First Half 2008 Results
Net income attributable to the Company’s equity holders for the first
half ended June 30, 2008 was US$837.8 million, compared with US$459.1 million
for the first half ended June 30, 2007. Including minority interest,
net income for the first half 2008 was US$982.4 million, compared with US$566.6
million for the first half 2007. Earnings per ADS5 were US$4.18 in
the first half 2008, compared with US$2.29 in the first half
2007.
Net sales for the first half
2008 increased 78% to US$4.3 billion, compared with the same period in
2007. Net sales increased due to the effect of the consolidation of
Grupo Imsa and higher steel prices. Shipments of flat and long
products reached 4.2 million tons during the first half 2008, an increase of 32%
compared to shipment levels in the first half 2007. Revenue per ton
shipped increased 35% to US$1,012 in the first half 2008 versus the same period
in 2007, mainly as a result of higher prices and the consolidation of Grupo
Imsa’s higher value added product mix.
____________________
4
|
EBITDA
in the second quarter 2008 equals operating income of US$610.4 million
plus depreciation and amortization of US$103.8
million.
|
5
|
Each
American Depositary Share (ADS) represents 10 shares of Ternium’s common
stock. Results are based on a weighted average number of shares
of common stock outstanding of
2,004,743,442.
|
|
|
Net
Sales (million US$)
|
|
|
Shipments
(thousand tons)
|
|
|
Revenue
/ ton (US$/ton)
|
|
|
|
|
1H 2008 |
|
|
|
1H 2007 |
|
|
Dif.
|
|
|
|
1H 2008 |
|
|
|
1H 2007 |
|
|
Dif.
|
|
|
|
1H 2008 |
|
|
|
1H 2007 |
|
|
Dif.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
1,355.8 |
|
|
|
900.1 |
|
|
|
51 |
% |
|
|
1,363.9 |
|
|
|
1,162.3 |
|
|
|
17 |
% |
|
|
994 |
|
|
|
774 |
|
|
|
28 |
% |
North
America
|
|
|
2,285.6 |
|
|
|
963.7 |
|
|
|
137 |
% |
|
|
2,122.2 |
|
|
|
1,206.6 |
|
|
|
76 |
% |
|
|
1,077 |
|
|
|
799 |
|
|
|
35 |
% |
Europe
& other
|
|
|
14.8 |
|
|
|
103.6 |
|
|
|
-86 |
% |
|
|
16.3 |
|
|
|
154.1 |
|
|
|
-89 |
% |
|
|
906 |
|
|
|
673 |
|
|
|
35 |
% |
Total
flat products
|
|
|
3,656.1 |
|
|
|
1,967.4 |
|
|
|
86 |
% |
|
|
3,502.4 |
|
|
|
2,523.0 |
|
|
|
39 |
% |
|
|
1,044 |
|
|
|
780 |
|
|
|
34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
98.5 |
|
|
|
14.3 |
|
|
|
589 |
% |
|
|
124.6 |
|
|
|
25.3 |
|
|
|
392 |
% |
|
|
791 |
|
|
|
565 |
|
|
|
40 |
% |
North
America
|
|
|
440.1 |
|
|
|
375.5 |
|
|
|
17 |
% |
|
|
514.9 |
|
|
|
599.7 |
|
|
|
-14 |
% |
|
|
855 |
|
|
|
626 |
|
|
|
37 |
% |
Europe
& other
|
|
|
5.8 |
|
|
|
- |
|
|
|
|
|
|
|
9.8 |
|
|
|
- |
|
|
|
|
|
|
|
591 |
|
|
|
- |
|
|
|
|
|
Total
long products
|
|
|
544.4 |
|
|
|
389.8 |
|
|
|
40 |
% |
|
|
649.2 |
|
|
|
625.0 |
|
|
|
4 |
% |
|
|
839 |
|
|
|
624 |
|
|
|
34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
flat and long products
|
|
|
4,200.6 |
|
|
|
2,357.3 |
|
|
|
78 |
% |
|
|
4,151.6 |
|
|
|
3,148.0 |
|
|
|
32 |
% |
|
|
1,012 |
|
|
|
749 |
|
|
|
35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
products (1)
|
|
|
126.9 |
|
|
|
73.4 |
|
|
|
73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Net Sales
|
|
|
4,327.5 |
|
|
|
2,430.7 |
|
|
|
78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Primarily includes iron ore, pig iron and pre-engineered metal
buildings.
Net sales
of flat products during the first half 2008 totaled US$3.7 billion, an increase
of 86% compared with the same period in 2007. Net sales increased
mainly as a result the effect of the consolidation of Grupo Imsa and higher
steel prices. Shipments totaled 3.5 million tons in the first half
2008, an increase of 39% compared with the same period in
2007. Revenue per ton shipped increased 34% to US$1,044 in the first
half 2008 compared with the same period in 2007, mainly as a result of higher
prices and the consolidation of Grupo Imsa’s higher value added product
mix.
Net sales
of long products were US$544.4 million during the first half 2008, an increase
of 40% compared with the same period in 2007. This was due to higher
prices and slightly higher shipments. Shipments totaled 649,000 tons
in the first half 2008, representing a 4% increase versus the same period in
2007. Revenue per ton shipped increased 34% to US$839 in the first
half 2008 over the first half 2007.
Net sales
of other products totaled US$126.9 million during the first half 2008 compared
to US$73.4 million during the same period in 2007. This increase
resulted mainly from higher iron ore shipments and prices and the consolidation
of Grupo Imsa’s pre-engineered metal buildings business in Mexico.
Net sales
of flat and long products in the North America Region totaled US$2.7 billion in
the first half 2008, an increase of 104% versus the same period in 2007, mainly
due to the effect of the Grupo Imsa consolidation and higher steel
prices. Shipments in the region totaled 2.6 million tons during the
first half 2008, or 46% higher than during the same period in
2007. Revenue per ton shipped in the region increased 39% to US$1,034
in the first half 2008 over the same period in 2007, mainly as a result of
higher prices and the consolidation of Grupo Imsa’s higher value added product
mix.
Net sales
of flat and long product in the South & Central America Region were US$1.5
billion during the first half 2008, an increase of 59% versus the same period in
2007. This increase was due to higher volumes and
prices. Shipments in the region totaled 1.5 million tons during the
first half 2008, or 25% higher than in the first half 2007, due to an increase
in demand. Revenue per ton shipped in the region increased 27% to
US$977 in the first half 2008 over the same period in 2007, mainly due to higher
prices.
Cost of sales was US$3.0
billion in the first half 2008 compared to US$1.8 billion in the first half
2007. Cost of sales increased as a result, in part, of the
consolidation of Grupo Imsa, which increased Ternium’s production volume and
cost per ton due to Grupo Imsa’s higher production cost structure and higher
value added product sales mix. Excluding this effect, the
year-over-year cost of sales increase was related to higher costs for raw
materials and other supplies, as well as for freight, services and
labor.
The
consolidation of Grupo Imsa resulted in an increased volume of purchased slabs
with a cost per ton significantly higher than Ternium’s average cost of slab
production. This higher cost per ton for purchased slabs is gradually
reflected in the cost of sales, as Ternium consumes slabs and other raw
materials from its inventories over time. Scrap and energy prices
increased in Mexico while the price of zinc was lower in the first half 2008
compared to the prior year period. Iron ore costs were higher during
the first half 2008 than they were in the same period in 2007, mainly as a
result of higher annual contract prices of third party iron ore supplies and
higher production costs at Ternium’s iron ore mines.
Selling, General and Administrative
(SG&A) expenses in the first half 2008 were US$328.4 million, or 8%
of net sales, compared with US$211.0 million, or 9% of net sales, in the first
half 2007. The increase in SG&A was due mainly to the
consolidation of Grupo Imsa.
Operating income in the first
half 2008 was US$973.6 billion, or 23% of net sales, compared with US$413.1
million, or 17% of net sales, in the first half 2007.
EBITDA6 in the first half 2008
was US$1.2 billion, or 27% of net sales, compared to US$557.8 million, or 23% of
net sales, in the first half 2007. Equity holders’ EBITDA in the
first half 2008 was 81% of EBITDA.
Net financial result totaled a
gain of US$68.1 million in the first half 2008, compared with an expense of
US$3.4 million in the same period in 2007. A US$139.6 million
increase in net foreign exchange gains was partially offset by a US$47.8 million
increase in net interest expenses and other debt related expenses primarily
associated with Ternium’s higher average net debt and a US$16.7 million increase
in the fair value of some derivative instruments entered into by Ternium mainly
to mitigate the effects of interest rates fluctuations. The increase
in net foreign exchange gains (an effect that is offset to a large extent by
changes in Ternium’s net equity position) resulted primarily from the impact of
the Mexican Peso appreciation on Ternium’s Mexican subsidiaries’ US dollar
denominated debt (Ternium’s subsidiaries prepare their financial statements in
currencies other than the US dollar in accordance with IFRS).
Income tax expense for the
first half 2008 was US$316.4 million, or 30% of income before income tax,
discontinued operations and minority interest, compared with US$161.0 million,
or 39% of income before income tax, discontinued operations and minority
interest, in the first half 2007. In addition, the first half 2008
result included a non-recurring gain of US$96.3 million on account of Hylsa’s
reversal of deferred statutory profit sharing.
____________________
6
|
EBITDA
in the first half 2008 equals operating income of US$973.7 million plus
depreciation and amortization of US$210.5
million.
|
Income attributable to minority
interest for the first half 2008 was US$144.7 million, compared with
US$107.5 million in the first half 2007. The year-over-year increase
was due mainly to higher income attributable to minority interest in
Siderar.
Cash
Flow and Liquidity
Net cash
used in operating activities in the first half 2008 was US$42.9 million,
compared to net cash provided by operating activities of US$520.7 million in the
first half 2007. Working capital increased US$940.8 million in the
first half 2008, compared to a working capital decrease of US$144.7 million in
the first half 2007, mainly due to higher costs for new inventory and a higher
volume of raw materials and goods in process, as well as to an increase of trade
receivables as a result of higher prices.
Capital
expenditures in the first half 2008 were US$250.8 million, compared to US$162.8
million in the first half 2007. Capital expenditures during the first
half 2008 were carried out in Mexico principally for the expansion of the flat
steel shop in Monterrey, the upgrading of one hot strip mill and the upgrading
of one cold rolled mill. Ternium continued to execute its expansion
plan in Argentina, with capital expenditures during the first half 2008 carried
out mainly for the relining of one blast furnace and the revamping and expansion
of the coking facilities. The Company expects to reach in Argentina
an annual crude steel production capacity of four million tons by mid
2010.
In the
first half 2008, Ternium had a negative free cash flow7 of US$293.8 million
compared to free cash flow7 of
US$358.0 million in the first half 2007. Proceeds from the sale of
non-core US assets were US$722.5 million in the first half 2008. Net
cash provided by discontinued operations related to Sidor was US$89.8 million in
the first half 2008, compared to US$269.2 million in the first half
2007.
Ternium’s
net repayment of borrowings in the first half 2008 was US$750.1 million, mostly
related to the pre-payment of some of the Company’s Mexican subsidiaries’
outstanding debt. Ternium’s dividend payment in the first half 2008
was US$100.2 million, similar to that of the first half 2007. As of
June 30, 2008, Ternium’s net debt position (borrowings less cash and cash
equivalents and other current investments) was US$2.5 billion, while total
financial debt was US$3.2 billion.
Net cash
used in operating activities in the second quarter 2008 was US$45.7 million,
compared to net cash provided by operating activities of US$191.3 million in the
second quarter 2007. Working capital increased US$682.9 million in
the second quarter 2008, compared to a working capital decrease of US$53.5
million in the second quarter 2007, mainly as a result of higher costs for new
inventory and a higher volume of raw materials and goods in process, as well as
to an increase of trade receivables as a result of higher prices.
Capital
expenditures in the second quarter 2008 were US$149.3 million, compared to
US$75.3 million in the second quarter 2007. In the second quarter
2008, Ternium had a negative free cash flow8 of US$195.0 million,
compared to free cash flow8 of
US$116.0 million in the second quarter 2007.
Forward
Looking Statements
____________________
7
|
Free
cash flow for the first half 2008 equals net cash used in operating
activities of US$42.9 million less capital expenditures of US$250.8
million, while free cash flow for the first half 2007 equals net cash
provided by operating activities of US$520.7 million less capital
expenditures of US$162.8
million.
|
8
|
Free
cash flow for the second quarter 2008 equals net cash used in operating
activities of US$45.7 million less capital expenditures of US$149.3
million, while free cash flow for the second quarter 2007 equals net cash
provided by operating activities of US$191.3 million less capital
expenditures of US$75.3
million.
|
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 one of the leading steel
companies 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 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 annual
sales of approximately US$10 billion and ships approximately 8 million tons of
steel products each year. More information about Ternium
is available at www.ternium.com.
Consolidated
income statement
US$
million
|
|
|
2Q 2008
|
|
|
|
2Q 2007
|
|
|
Dif.
|
|
|
|
1H 2008
|
|
|
|
1H 2007
|
|
|
Dif.
|
|
Net
sales
|
|
|
2,374.8 |
|
|
|
1,255.9 |
|
|
|
1,118.9 |
|
|
|
4,327.5 |
|
|
|
2,430.7 |
|
|
|
1,896.8 |
|
Cost
of sales
|
|
|
(1,584.1 |
) |
|
|
(931.1 |
) |
|
|
(653.0 |
) |
|
|
(3,036.9 |
) |
|
|
(1,809.7 |
) |
|
|
(1,227.2 |
) |
Gross
profit
|
|
|
790.7 |
|
|
|
324.8 |
|
|
|
465.9 |
|
|
|
1,290.6 |
|
|
|
621.0 |
|
|
|
669.6 |
|
Selling,
general and administrative expenses
|
|
|
(181.8 |
) |
|
|
(118.2 |
) |
|
|
(63.6 |
) |
|
|
(328.4 |
) |
|
|
(211.0 |
) |
|
|
(117.3 |
) |
Other
operating income, net
|
|
|
1.5 |
|
|
|
(3.5 |
) |
|
|
5.0 |
|
|
|
11.4 |
|
|
|
3.1 |
|
|
|
8.3 |
|
Operating
income
|
|
|
610.4 |
|
|
|
203.0 |
|
|
|
407.4 |
|
|
|
973.6 |
|
|
|
413.1 |
|
|
|
560.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(30.1 |
) |
|
|
(10.4 |
) |
|
|
(19.7 |
) |
|
|
(74.4 |
) |
|
|
(24.5 |
) |
|
|
(49.9 |
) |
Interest
income
|
|
|
12.0 |
|
|
|
7.7 |
|
|
|
4.3 |
|
|
|
24.1 |
|
|
|
14.9 |
|
|
|
9.2 |
|
Other
financial income (expenses), net
|
|
|
115.5 |
|
|
|
(10.8 |
) |
|
|
126.3 |
|
|
|
118.4 |
|
|
|
6.2 |
|
|
|
112.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
in earnings (losses) of associated companies
|
|
|
0.4 |
|
|
|
(0.4 |
) |
|
|
0.8 |
|
|
|
0.9 |
|
|
|
(0.8 |
) |
|
|
1.7 |
|
Income
before income tax expense
|
|
|
708.2 |
|
|
|
189.2 |
|
|
|
519.0 |
|
|
|
1,042.7 |
|
|
|
408.8 |
|
|
|
633.8 |
|
Income
tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
and deferred income tax expense
|
|
|
(209.3 |
) |
|
|
(73.2 |
) |
|
|
136.2 |
) |
|
|
(316.4 |
) |
|
|
(161.0 |
) |
|
|
(155.4 |
) |
Reversal
of deferred statutory profit sharing
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
96.3 |
|
|
|
- |
|
|
|
96.3 |
|
Discontinued
operations
|
|
|
- |
|
|
|
199.0 |
|
|
|
199.0 |
) |
|
|
159.9 |
|
|
|
318.7 |
|
|
|
(158.8 |
) |
Net
income for the period
|
|
|
498.9 |
|
|
|
315.0 |
|
|
|
183.9 |
|
|
|
982.4 |
|
|
|
566.6 |
|
|
|
415.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
holders of the Company
|
|
|
415.6 |
|
|
|
236.9 |
|
|
|
178.7 |
|
|
|
837.8 |
|
|
|
459.1 |
|
|
|
378.7 |
|
Minority
interest
|
|
|
83.2 |
|
|
|
78.0 |
|
|
|
5.2 |
|
|
|
144.7 |
|
|
|
107.5 |
|
|
|
37.2 |
|
|
|
|
498.9 |
|
|
|
315.0 |
|
|
|
183.9 |
|
|
|
982.4 |
|
|
|
566.6 |
|
|
|
415.9 |
|
Consolidated
balance sheet
US$
million
|
|
June 30, 2008
|
|
|
December 31, 2007
(1)
|
Property,
plant and equipment, net
|
|
|
5,188.0
|
|
|
|
6,858.8
|
|
Intangible
assets, net
|
|
|
1,501.0
|
|
|
|
1,452.2
|
|
Investment
in associated companies
|
|
|
4.7
|
|
|
|
44.0
|
|
Other
investments, net
|
|
|
15.4
|
|
|
|
14.8
|
|
Deferred
tax assets
|
|
|
2.2
|
|
|
|
31.8
|
|
Receivables,
net
|
|
|
58.0
|
|
|
|
217.6
|
|
Total
non-current assets
|
|
|
6,769.4
|
|
|
|
8,619.3
|
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
260.7
|
|
|
|
426.0
|
|
Derivative
financial instruments
|
|
|
0.5
|
|
|
|
0.6
|
|
Inventories,
net
|
|
|
2,338.0
|
|
|
|
1,913.1
|
|
Trade
receivables, net
|
|
|
1,051.2
|
|
|
|
847.8
|
|
Available
for sale assets
|
|
|
1,318.9
|
|
|
|
-
|
|
Other
investments
|
|
|
-
|
|
|
|
65.3
|
|
Cash
and cash equivalents
|
|
|
688.8
|
|
|
|
1,126.0
|
|
Total
current assets
|
|
|
5,658.0
|
|
|
|
4,378.9
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets classified as held for sale
|
|
|
6.7
|
|
|
|
769.1
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
12,434.1
|
|
|
|
13,767.3
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
5,353.2
|
|
|
|
4,452.7
|
|
Minority
interest in subsidiaries
|
|
|
1,195.6
|
|
|
|
1,914.2
|
|
|
|
|
|
|
|
|
|
|
Minority
interest & shareholders' equity
|
|
|
6,548.8
|
|
|
|
6,366.9
|
|
|
|
|
|
|
|
|
|
|
Provisions
|
|
|
29.3
|
|
|
|
57.3
|
|
Deferred
income tax
|
|
|
1,233.4
|
|
|
|
1,337.0
|
|
Other
liabilities
|
|
|
176.6
|
|
|
|
336.5
|
|
Trade
payables
|
|
|
-
|
|
|
|
6.7
|
|
Borrowings
|
|
|
2,569.1
|
|
|
|
3,677.5
|
|
Total
non-current liabilities
|
|
|
4,008.3
|
|
|
|
5,415.1
|
|
|
|
|
|
|
|
|
|
|
Current
tax liabilities
|
|
|
199.2
|
|
|
|
184.8
|
|
Other
liabilities
|
|
|
137.8
|
|
|
|
182.2
|
|
Trade
payables
|
|
|
927.9
|
|
|
|
983.9
|
|
Derivative
financial instruments
|
|
|
15.4
|
|
|
|
13.3
|
|
Borrowings
|
|
|
596.7
|
|
|
|
407.4
|
|
Total
current liabilities
|
|
|
1,877.0
|
|
|
|
1,771.6
|
|
|
|
|
|
|
|
|
|
|
Liabilities
related to non-current assets classified as held for sale
|
|
-
|
|
|
|
213.8
|
|
Total
liabilities
|
|
|
5,885.3
|
|
|
|
7,400.4
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities, minority interest & shareholders' equity
|
|
|
12,434.1
|
|
|
|
13,767.3
|
|
|
|
|
|
|
|
|
|
|
(1)
According to IFRS 5, balances related to Sidor have been consolidated on a
line-by-line basis as of December 31,
2007.
|
Consolidated
cash flow statement
US$
million
|
|
|
2Q 2008
|
|
|
|
2Q
2007
|
|
|
Dif.
|
|
|
|
1H
2008
|
|
|
|
1H
2007
|
|
|
Dif.
|
|
Income
from continuing operations
|
|
|
498.9 |
|
|
|
116.0 |
|
|
|
382.9 |
|
|
|
822.5 |
|
|
|
247.8 |
|
|
|
574.7 |
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
103.8 |
|
|
|
78.9 |
|
|
|
24.8 |
|
|
|
210.6 |
|
|
|
144.7 |
|
|
|
65.9 |
|
Income
tax accruals less payments
|
|
|
140.9 |
|
|
|
(66.8 |
) |
|
|
207.6 |
|
|
|
74.5 |
|
|
|
(1.5 |
) |
|
|
75.9 |
|
Equity
in (earnings) losses of associated companies
|
|
|
(0.4 |
) |
|
|
0.4 |
|
|
|
(0.8 |
) |
|
|
(0.9 |
) |
|
|
0.8 |
|
|
|
(1.7 |
) |
Interest
accruals less payments
|
|
|
3.0 |
|
|
|
2.4 |
|
|
|
0.6 |
|
|
|
(84.6 |
) |
|
|
(2.7 |
) |
|
|
(81.9 |
) |
Changes
in provisions
|
|
|
(0.3 |
) |
|
|
(3.2 |
) |
|
|
2.8 |
|
|
|
2.0 |
|
|
|
(9.8 |
) |
|
|
11.8 |
|
Changes
in working capital
|
|
|
(682.9 |
) |
|
|
53.5 |
|
|
|
(736.4 |
) |
|
|
(940.8 |
) |
|
|
144.7 |
|
|
|
(1,085.5 |
) |
Others
|
|
|
(108.6 |
) |
|
|
10.0 |
|
|
|
(118.6 |
) |
|
|
(126.2 |
) |
|
|
(3.4 |
) |
|
|
(122.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash (used in) provided by operating activities
|
|
|
(45.7 |
) |
|
|
191.3 |
|
|
|
(237.0 |
) |
|
|
(42.9 |
) |
|
|
520.7 |
|
|
|
(563.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(149.3 |
) |
|
|
(75.3 |
) |
|
|
(74.0 |
) |
|
|
(250.8 |
) |
|
|
(162.8 |
) |
|
|
(88.1 |
) |
Proceeds
from sale of property, plant & equipment
|
|
|
0.3 |
|
|
|
1.1 |
|
|
|
(0.7 |
) |
|
|
1.0 |
|
|
|
6.2 |
|
|
|
(5.2 |
) |
Acquisition
of business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
consideration
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
Decrease
in Other Investments
|
|
|
66.1 |
|
|
|
- |
|
|
|
66.1 |
|
|
|
65.3 |
|
|
|
- |
|
|
|
65.3 |
|
Proceeds
from sale of discontinued operations
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
722.5 |
|
|
|
- |
|
|
|
722.5 |
|
Discontinued
operations
|
|
|
57.7 |
|
|
|
59.9 |
|
|
|
(2.2 |
) |
|
|
89.8 |
|
|
|
269.2 |
|
|
|
(179.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash (used in) provided by investing activities
|
|
|
(25.2 |
) |
|
|
(14.5 |
) |
|
|
(10.6 |
) |
|
|
627.8 |
|
|
|
112.5 |
|
|
|
515.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid in cash and other distributions to
company's equity shareholders
|
|
|
(100.2 |
) |
|
|
(100.2 |
) |
|
|
- |
|
|
|
(100.2 |
) |
|
|
(100.2 |
) |
|
|
- |
|
Dividends
paid in cash and other distributions to
minority shareholders
|
|
|
(19.6 |
) |
|
|
(19.9 |
) |
|
|
0.3 |
|
|
|
(19.6 |
) |
|
|
(19.9 |
) |
|
|
0.3 |
|
Proceeds
from borrowings
|
|
|
76.3 |
|
|
|
72.1 |
|
|
|
4.2 |
|
|
|
181.3 |
|
|
|
112.3 |
|
|
|
69.0 |
|
Repayment
of borrowings
|
|
|
(40.3 |
) |
|
|
(371.6 |
) |
|
|
331.4 |
|
|
|
(931.4 |
) |
|
|
(527.6 |
) |
|
|
(403.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash (used in) provided by financing activities
|
|
|
(83.8 |
) |
|
|
(419.6 |
) |
|
|
335.8 |
|
|
|
(870.0 |
) |
|
|
(535.4 |
) |
|
|
(334.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
increase in cash and cash equivalents
|
|
|
(154.7 |
) |
|
|
(242.9 |
) |
|
|
88.2 |
|
|
|
(285.1 |
) |
|
|
97.8 |
|
|
|
(382.9 |
) |
Shipments
|
|
Thousand
tons
|
|
|
2Q
2008
|
|
|
|
1Q
2008
|
|
|
|
2Q
2007
|
|
|
|
1H
2008
|
|
|
|
1H
2007
|
|
South
& Central America
|
|
|
690.9 |
|
|
|
673.0 |
|
|
|
598.9 |
|
|
|
1,363.9 |
|
|
|
1,162.3 |
|
North
America
|
|
|
1,042.2 |
|
|
|
1,080.0 |
|
|
|
592.1 |
|
|
|
2,122.2 |
|
|
|
1,206.6 |
|
Europe
& other
|
|
|
11.6 |
|
|
|
4.8 |
|
|
|
101.2 |
|
|
|
16.3 |
|
|
|
154.1 |
|
Total
flat products
|
|
|
1,744.7 |
|
|
|
1,757.7 |
|
|
|
1,292.1 |
|
|
|
3,502.4 |
|
|
|
2,523.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
67.9 |
|
|
|
56.7 |
|
|
|
25.3 |
|
|
|
124.6 |
|
|
|
25.3 |
|
North
America
|
|
|
249.6 |
|
|
|
265.3 |
|
|
|
286.4 |
|
|
|
514.9 |
|
|
|
599.7 |
|
Europe
& other
|
|
|
1.0 |
|
|
|
8.8 |
|
|
|
- |
|
|
|
9.8 |
|
|
|
- |
|
Total
long products
|
|
|
318.5 |
|
|
|
330.7 |
|
|
|
311.7 |
|
|
|
649.2 |
|
|
|
625.0 |
|
Total
flat and long products
|
|
|
2,063.2 |
|
|
|
2,088.5 |
|
|
|
1,603.9 |
|
|
|
4,151.6 |
|
|
|
3,148.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
/ ton
|
|
US$/ton
|
|
|
2Q
2008
|
|
|
|
1Q
2008
|
|
|
|
2Q
2007
|
|
|
|
1H
2008
|
|
|
|
1H
2007
|
|
South
& Central America
|
|
|
1,042 |
|
|
|
945 |
|
|
|
779 |
|
|
|
994 |
|
|
|
774 |
|
North
America
|
|
|
1,213 |
|
|
|
945 |
|
|
|
817 |
|
|
|
1,077 |
|
|
|
799 |
|
Europe
& other
|
|
|
864 |
|
|
|
1,008 |
|
|
|
682 |
|
|
|
906 |
|
|
|
673 |
|
Total
flat products
|
|
|
1,143 |
|
|
|
945 |
|
|
|
789 |
|
|
|
1,044 |
|
|
|
780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
913 |
|
|
|
643 |
|
|
|
565 |
|
|
|
791 |
|
|
|
565 |
|
North
America
|
|
|
1,017 |
|
|
|
703 |
|
|
|
638 |
|
|
|
855 |
|
|
|
626 |
|
Europe
& other
|
|
|
630 |
|
|
|
587 |
|
|
|
- |
|
|
|
591 |
|
|
|
- |
|
Total
long products
|
|
|
993 |
|
|
|
689 |
|
|
|
632 |
|
|
|
839 |
|
|
|
624 |
|
Total
flat and long products
|
|
|
1,120 |
|
|
|
905 |
|
|
|
758 |
|
|
|
1,012 |
|
|
|
749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
US$
million
|
|
|
2Q
2008
|
|
|
|
1Q
2008
|
|
|
|
2Q
2007
|
|
|
|
1H
2008
|
|
|
|
1H
2007
|
|
South
& Central America
|
|
|
719.9 |
|
|
|
635.8 |
|
|
|
466.6 |
|
|
|
1,355.8 |
|
|
|
900.1 |
|
North
America
|
|
|
1,264.6 |
|
|
|
1,021.0 |
|
|
|
483.6 |
|
|
|
2,285.6 |
|
|
|
963.7 |
|
Europe
& other
|
|
|
10.0 |
|
|
|
4.8 |
|
|
|
69.1 |
|
|
|
14.8 |
|
|
|
103.6 |
|
Total
flat products
|
|
|
1,994.5 |
|
|
|
1,661.6 |
|
|
|
1,019.2 |
|
|
|
3,656.1 |
|
|
|
1,967.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
62.1 |
|
|
|
36.4 |
|
|
|
14.3 |
|
|
|
98.5 |
|
|
|
14.3 |
|
North
America
|
|
|
253.8 |
|
|
|
186.4 |
|
|
|
182.6 |
|
|
|
440.1 |
|
|
|
375.5 |
|
Europe
& other
|
|
|
0.6 |
|
|
|
5.2 |
|
|
|
- |
|
|
|
5.8 |
|
|
|
- |
|
Total
long products
|
|
|
316.4 |
|
|
|
228.0 |
|
|
|
196.9 |
|
|
|
544.4 |
|
|
|
389.8 |
|
Total
flat and long products
|
|
|
2,311.0 |
|
|
|
1,889.6 |
|
|
|
1,216.2 |
|
|
|
4,200.6 |
|
|
|
2,357.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
products
(1)
|
|
|
63.8 |
|
|
|
63.1 |
|
|
|
39.7 |
|
|
|
126.9 |
|
|
|
73.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
net sales
|
|
|
2,374.8 |
|
|
|
1,952.7 |
|
|
|
1,255.9 |
|
|
|
4,327.5 |
|
|
|
2,430.7 |
|
(1) Includes iron ore,
pig iron and metal buildings.
|
|
|
|
|
|
|
|
|
Consolidated
income statement (historical series including Sidor as discontinued
operations)
US$
million
|
|
|
2Q 2008 |
|
|
|
1Q 2008 |
|
|
Year 2007
|
|
|
|
4Q 2007 |
|
|
|
3Q 2007 |
|
|
|
2Q 2007 |
|
|
|
1Q 2007 |
|
Net
sales
|
|
|
2,374.8 |
|
|
|
1,952.7 |
|
|
|
5,669.7 |
|
|
|
1,733.0 |
|
|
|
1,506.1 |
|
|
|
1,255.9 |
|
|
|
1,174.8 |
|
Cost
of sales
|
|
|
(1,584.1 |
) |
|
|
(1,452.8 |
) |
|
|
(4,309.8 |
) |
|
|
(1,358.8 |
) |
|
|
(1,141.4 |
) |
|
|
(931.1 |
) |
|
|
(878.6 |
) |
Gross
profit
|
|
|
790.7 |
|
|
|
499.9 |
|
|
|
1,359.9 |
|
|
|
374.2 |
|
|
|
364.7 |
|
|
|
324.8 |
|
|
|
296.2 |
|
Selling,
general and administrative expenses
|
|
|
(181.8 |
) |
|
|
(146.6 |
) |
|
|
(520.7 |
) |
|
|
(165.9 |
) |
|
|
(143.8 |
) |
|
|
(118.2 |
) |
|
|
(92.8 |
) |
Other
operating expense, net
|
|
|
1.5 |
|
|
|
9.9 |
|
|
|
9.9 |
|
|
|
5.2 |
|
|
|
1.5 |
|
|
|
(3.5 |
) |
|
|
6.7 |
|
Operating
income
|
|
|
610.4 |
|
|
|
363.3 |
|
|
|
849.0 |
|
|
|
213.5 |
|
|
|
222.5 |
|
|
|
203.0 |
|
|
|
210.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(30.1 |
) |
|
|
(44.3 |
) |
|
|
(133.1 |
) |
|
|
(61.4 |
) |
|
|
(47.1 |
) |
|
|
(10.4 |
) |
|
|
(14.1 |
) |
Interest
income
|
|
|
12.0 |
|
|
|
12.1 |
|
|
|
41.6 |
|
|
|
13.7 |
|
|
|
12.9 |
|
|
|
7.7 |
|
|
|
7.2 |
|
Other
financial income (expenses), net
|
|
|
115.5 |
|
|
|
2.9 |
|
|
|
(38.9 |
) |
|
|
8.7 |
|
|
|
(53.7 |
) |
|
|
(10.8 |
) |
|
|
16.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
in earnings (losses) of associated companies
|
|
|
0.4 |
|
|
|
0.4 |
|
|
|
0.4 |
|
|
|
1.6 |
|
|
|
(0.3 |
) |
|
|
(0.4 |
) |
|
|
(0.5 |
) |
Income
before income tax expense
|
|
|
708.2 |
|
|
|
334.4 |
|
|
|
719.1 |
|
|
|
176.0 |
|
|
|
134.2 |
|
|
|
189.2 |
|
|
|
219.7 |
|
Income
tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
and deferred income tax expense
|
|
|
(209.3 |
) |
|
|
(107.1 |
) |
|
|
(297.8 |
) |
|
|
(73.1 |
) |
|
|
(63.7 |
) |
|
|
(73.2 |
) |
|
|
(87.8 |
) |
Reversal
of deferred statutory profit sharing
|
|
|
- |
|
|
|
96.3 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Discontinued
operations
|
|
|
- |
|
|
|
159.9 |
|
|
|
579.9 |
|
|
|
117.7 |
|
|
|
143.5 |
|
|
|
199.0 |
|
|
|
119.8 |
|
Net
income for the year / period
|
|
|
498.9 |
|
|
|
483.6 |
|
|
|
1,001.2 |
|
|
|
220.6 |
|
|
|
214.0 |
|
|
|
315.0 |
|
|
|
251.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
holders of the Company
|
|
|
415.6 |
|
|
|
422.1 |
|
|
|
784.5 |
|
|
|
165.6 |
|
|
|
159.8 |
|
|
|
236.9 |
|
|
|
222.1 |
|
Minority
interest
|
|
|
83.2 |
|
|
|
61.4 |
|
|
|
216.7 |
|
|
|
55.0 |
|
|
|
54.2 |
|
|
|
78.0 |
|
|
|
29.5 |
|
|
|
|
498.9 |
|
|
|
483.6 |
|
|
|
1,001.2 |
|
|
|
220.6 |
|
|
|
214.0 |
|
|
|
315.0 |
|
|
|
251.6 |
|
Consolidated
cash flow statement (historical series including Sidor as discontinued
operations)
US$
million
|
|
|
2Q 2008
|
|
|
|
1Q 2008
|
|
|
Year 2007
|
|
|
|
4Q 2007
|
|
|
|
3Q 2007
|
|
|
|
2Q 2007
|
|
|
|
1Q 2007
|
|
Income
from continuing operations
|
|
|
498.9 |
|
|
|
323.6 |
|
|
|
421.2 |
|
|
|
102.9 |
|
|
|
70.5 |
|
|
|
116.0 |
|
|
|
131.8 |
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
103.8 |
|
|
|
106.9 |
|
|
|
361.5 |
|
|
|
120.7 |
|
|
|
96.0 |
|
|
|
78.9 |
|
|
|
65.8 |
|
Income
tax accruals less payments
|
|
|
140.9 |
|
|
|
(66.4 |
) |
|
|
(45.0 |
) |
|
|
(28.0 |
) |
|
|
(15.5 |
) |
|
|
(66.8 |
) |
|
|
65.3 |
|
Equity
in (earnings) losses of associated companies
|
|
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
(1.6 |
) |
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.5 |
|
Interest
accruals less payments
|
|
|
3.0 |
|
|
|
(87.7 |
) |
|
|
87.6 |
|
|
|
54.9 |
|
|
|
35.4 |
|
|
|
2.4 |
|
|
|
(5.1 |
) |
Changes
in provisions
|
|
|
(0.3 |
) |
|
|
2.4 |
|
|
|
(0.9 |
) |
|
|
5.7 |
|
|
|
3.1 |
|
|
|
(3.2 |
) |
|
|
(6.6 |
) |
Changes
in working capital
|
|
|
(682.9 |
) |
|
|
(257.9 |
) |
|
|
87.1 |
|
|
|
(58.0 |
) |
|
|
0.4 |
|
|
|
53.5 |
|
|
|
91.2 |
|
Others
|
|
|
(108.6 |
) |
|
|
(17.6 |
) |
|
|
28.9 |
|
|
|
(13.4 |
) |
|
|
45.6 |
|
|
|
10.0 |
|
|
|
(13.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash (used in) provided by operating activities
|
|
|
(45.7 |
) |
|
|
2.8 |
|
|
|
939.9 |
|
|
|
183.3 |
|
|
|
235.9 |
|
|
|
191.3 |
|
|
|
329.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(149.3 |
) |
|
|
(101.5 |
) |
|
|
(347.6 |
) |
|
|
(100.3 |
) |
|
|
(84.6 |
) |
|
|
(75.3 |
) |
|
|
(87.4 |
) |
Proceeds
from sale of property, plant & equipment
|
|
|
0.3 |
|
|
|
0.7 |
|
|
|
24.5 |
|
|
|
17.8 |
|
|
|
0.5 |
|
|
|
1.1 |
|
|
|
5.1 |
|
Acquisition
of business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
consideration
|
|
|
- |
|
|
|
- |
|
|
|
(1,728.9 |
) |
|
|
(0.1 |
) |
|
|
(1,728.7 |
) |
|
|
(0.1 |
) |
|
|
- |
|
Cash
acquired
|
|
|
- |
|
|
|
- |
|
|
|
190.1 |
|
|
|
- |
|
|
|
190.1 |
|
|
|
- |
|
|
|
- |
|
Income
tax credit paid on business acquisition
|
|
|
- |
|
|
|
- |
|
|
|
(297.7 |
) |
|
|
- |
|
|
|
(297.7 |
) |
|
|
- |
|
|
|
- |
|
Decrease
(Increase) in Other Investments
|
|
|
66.1 |
|
|
|
(0.8 |
) |
|
|
(65.3 |
) |
|
|
(0.8 |
) |
|
|
(64.5 |
) |
|
|
- |
|
|
|
- |
|
Proceeds
from sale of discontinued operations
|
|
|
- |
|
|
|
722.5 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Discontinued
operations
|
|
|
57.7 |
|
|
|
32.2 |
|
|
|
419.3 |
|
|
|
34.1 |
|
|
|
116.0 |
|
|
|
59.9 |
|
|
|
209.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash (used in) provided by investing activities
|
|
|
(25.2 |
) |
|
|
653.0 |
|
|
|
1,805.6 |
) |
|
|
(49.2 |
) |
|
|
1,868.9 |
) |
|
|
(14.5 |
) |
|
|
127.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid in cash and other distributions to company's
equity shareholders
|
|
|
(100.2 |
) |
|
|
- |
|
|
|
(100.2 |
) |
|
|
- |
|
|
|
- |
|
|
|
(100.2 |
) |
|
|
- |
|
Dividends
paid in cash and other distributions to minority
shareholders
|
|
|
(19.6 |
) |
|
|
- |
|
|
|
(20.0 |
) |
|
|
- |
|
|
|
(0.1 |
) |
|
|
(19.9 |
) |
|
|
- |
|
Net
proceeds from Initial Public Offering
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Contributions
from shareholders
|
|
|
- |
|
|
|
- |
|
|
|
1.2 |
|
|
|
0.1 |
|
|
|
1.1 |
|
|
|
- |
|
|
|
- |
|
Proceeds
from borrowings
|
|
|
76.3 |
|
|
|
105.0 |
|
|
|
4,052.7 |
|
|
|
70.8 |
|
|
|
3,869.7 |
|
|
|
72.1 |
|
|
|
40.1 |
|
Repayment
of borrowings
|
|
|
(40.3 |
) |
|
|
(891.2 |
) |
|
|
(2,574.6 |
) |
|
|
(157.5 |
) |
|
|
(1,889.6 |
) |
|
|
(371.6 |
) |
|
|
(155.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash (used in) provided by financing activities
|
|
|
(83.8 |
) |
|
|
(786.2 |
) |
|
|
1,359.1 |
|
|
|
(86.6 |
) |
|
|
1,981.1 |
|
|
|
(419.6 |
) |
|
|
(115.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
Increase in cash and cash equivalents
|
|
|
(154.7 |
) |
|
|
(130.4 |
) |
|
|
493.3 |
|
|
|
47.4 |
|
|
|
348.1 |
|
|
|
(242.9 |
) |
|
|
340.7 |
|
Shipments
(historical series ex-Sidor)
|
|
Thousand
tons
|
|
|
2Q 2008
|
|
|
|
1Q 2008
|
|
|
Year 2007
|
|
|
|
4Q 2007
|
|
|
|
3Q 2007
|
|
|
|
2Q 2007
|
|
|
|
1Q 2007
|
|
South
& Central America
|
|
|
690.9 |
|
|
|
673.0 |
|
|
|
2,499.1 |
|
|
|
699.0 |
|
|
|
637.8 |
|
|
|
598.9 |
|
|
|
563.5 |
|
North
America
|
|
|
1,042.2 |
|
|
|
1,080.0 |
|
|
|
3,034.9 |
|
|
|
993.6 |
|
|
|
834.7 |
|
|
|
592.1 |
|
|
|
614.5 |
|
Europe
& other
|
|
|
11.6 |
|
|
|
4.8 |
|
|
|
184.9 |
|
|
|
12.3 |
|
|
|
18.5 |
|
|
|
101.2 |
|
|
|
52.8 |
|
Total
flat products
|
|
|
1,744.7 |
|
|
|
1,757.7 |
|
|
|
5,718.9 |
|
|
|
1,704.9 |
|
|
|
1,491.0 |
|
|
|
1,292.1 |
|
|
|
1,230.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
67.9 |
|
|
|
56.7 |
|
|
|
132.8 |
|
|
|
55.2 |
|
|
|
52.3 |
|
|
|
25.3 |
|
|
|
- |
|
North
America
|
|
|
249.6 |
|
|
|
265.3 |
|
|
|
1,113.4 |
|
|
|
268.9 |
|
|
|
244.8 |
|
|
|
286.4 |
|
|
|
313.3 |
|
Europe
& other
|
|
|
1.0 |
|
|
|
8.8 |
|
|
|
15.0 |
|
|
|
15.0 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total
long products
|
|
|
318.5 |
|
|
|
330.7 |
|
|
|
1,261.2 |
|
|
|
339.1 |
|
|
|
297.1 |
|
|
|
311.7 |
|
|
|
313.3 |
|
Total
flat and long products
|
|
|
2,063.2 |
|
|
|
2,088.5 |
|
|
|
6,980.1 |
|
|
|
2,044.0 |
|
|
|
1,788.1 |
|
|
|
1,603.9 |
|
|
|
1,544.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
/ ton (historical series ex-Sidor)
|
|
US$/ton
|
|
|
2Q
2008
|
|
|
|
1Q
2008
|
|
|
Year
2007
|
|
|
|
4Q
2007
|
|
|
|
3Q
2007
|
|
|
|
2Q
2007
|
|
|
|
1Q
2007
|
|
South
& Central America
|
|
|
1,042 |
|
|
|
945 |
|
|
|
815 |
|
|
|
870 |
|
|
|
829 |
|
|
|
779 |
|
|
|
769 |
|
North
America
|
|
|
1,213 |
|
|
|
945 |
|
|
|
847 |
|
|
|
882 |
|
|
|
877 |
|
|
|
817 |
|
|
|
781 |
|
Europe
& other
|
|
|
864 |
|
|
|
1,008 |
|
|
|
665 |
|
|
|
641 |
|
|
|
619 |
|
|
|
682 |
|
|
|
654 |
|
Total
flat products
|
|
|
1,143 |
|
|
|
945 |
|
|
|
827 |
|
|
|
875 |
|
|
|
853 |
|
|
|
789 |
|
|
|
770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
913 |
|
|
|
643 |
|
|
|
527 |
|
|
|
489 |
|
|
|
550 |
|
|
|
565 |
|
|
|
- |
|
North
America
|
|
|
1,017 |
|
|
|
703 |
|
|
|
625 |
|
|
|
611 |
|
|
|
637 |
|
|
|
638 |
|
|
|
616 |
|
Europe
& other
|
|
|
630 |
|
|
|
587 |
|
|
|
457 |
|
|
|
457 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total
long products
|
|
|
993 |
|
|
|
689 |
|
|
|
613 |
|
|
|
585 |
|
|
|
622 |
|
|
|
632 |
|
|
|
616 |
|
Total
flat and long products
|
|
|
1,120 |
|
|
|
905 |
|
|
|
789 |
|
|
|
827 |
|
|
|
815 |
|
|
|
758 |
|
|
|
739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales (historical series ex-Sidor)
|
|
US$
million
|
|
|
2Q
2008
|
|
|
|
1Q
2008
|
|
|
Year
2007
|
|
|
|
4Q
2007
|
|
|
|
3Q
2007
|
|
|
|
2Q
2007
|
|
|
|
1Q
2007
|
|
South
& Central America
|
|
|
719.9 |
|
|
|
635.8 |
|
|
|
2,037.0 |
|
|
|
607.9 |
|
|
|
528.9 |
|
|
|
466.6 |
|
|
|
433.5 |
|
North
America
|
|
|
1,264.6 |
|
|
|
1,021.0 |
|
|
|
2,571.8 |
|
|
|
876.3 |
|
|
|
731.8 |
|
|
|
483.6 |
|
|
|
480.1 |
|
Europe
& other
|
|
|
10.0 |
|
|
|
4.8 |
|
|
|
123.0 |
|
|
|
7.9 |
|
|
|
11.5 |
|
|
|
69.1 |
|
|
|
34.5 |
|
Total
flat products
|
|
|
1,994.5 |
|
|
|
1,661.6 |
|
|
|
4,731.7 |
|
|
|
1,492.0 |
|
|
|
1,272.2 |
|
|
|
1,019.2 |
|
|
|
948.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
& Central America
|
|
|
62.1 |
|
|
|
36.4 |
|
|
|
70.0 |
|
|
|
27.0 |
|
|
|
28.7 |
|
|
|
14.3 |
|
|
|
- |
|
North
America
|
|
|
253.8 |
|
|
|
186.4 |
|
|
|
696.0 |
|
|
|
164.4 |
|
|
|
156.0 |
|
|
|
182.6 |
|
|
|
192.9 |
|
Europe
& other
|
|
|
0.6 |
|
|
|
5.2 |
|
|
|
6.9 |
|
|
|
6.9 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total
long products
|
|
|
316.4 |
|
|
|
228.0 |
|
|
|
772.8 |
|
|
|
198.2 |
|
|
|
184.8 |
|
|
|
196.9 |
|
|
|
192.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
flat and long products
|
|
|
2,311.0 |
|
|
|
1,889.6 |
|
|
|
5,504.5 |
|
|
|
1,690.3 |
|
|
|
1,457.0 |
|
|
|
1,216.2 |
|
|
|
1,141.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
products
(1)
|
|
|
63.8 |
|
|
|
63.1 |
|
|
|
165.1 |
|
|
|
42.7 |
|
|
|
49.1 |
|
|
|
39.7 |
|
|
|
33.7 |
|
Total
net sales
|
|
|
2,374.8 |
|
|
|
1,952.7 |
|
|
|
5,669.7 |
|
|
|
1,733.0 |
|
|
|
1,506.1 |
|
|
|
1,255.9 |
|
|
|
1,174.8 |
|
(1) Includes
iron ore, pig iron and metal buildings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|