Ternium SA (TX), the second-largest steelmaker in Latin America, said profit rose 71 percent as demand recovered from the worst recession in seven decades.
Ternium’s (TX) third-quarter sales increased 47 percent to $1.9 billion. Shipments rose 19 percent and revenue per ton gained 24 percent.
Ternium (TX) fell 0.4 percent to $35.26 in New York Stock Exchange composite trading. The earnings report was released after the closing of regular trading on North American markets. The stock has gained 41 percent in the past year.
The year-over-year change in net income was mainly driven by the US$108.7 million increase in operating income and a US$79.7 million increase in non-cash foreign exchange results mainly related to Ternium's (TX) Mexican subsidiary's US dollar denominated net debt, partially offset by a US$72.3 million increase in income tax expense.
Ternium (TX) anticipates that steel demand in Latin America, driven by solid economic growth, will continue to recover. However, as a result of normal seasonal patterns, the company's shipments in the coming quarters are expected to remain relatively stable compared to shipment levels in Q3 2010.
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Disclosure: "No Positions"