Steel Mills
Ternium Reports Strong First Quarter Performance
Written by David Schollaert
April 26, 2022
Ternium reported net earnings of $877.5 million in the first quarter of 2022, down from $1.14 billion in the prior quarter but up 24.2% from $706.7 million in the first quarter of 2021.
The Latin American flat-rolled steelmaker posted first quarter net sales of $4.30 billion, a 32% compared to the first quarter of last year but down 1% compared to the fourth.
Shipments during the first quarter totaled 2.95 million tons, up 4% sequentially, but down 5% compared to the same year-ago period when shipments reached 3.10 million tons. Revenue gains resulted from higher steel prices, the company said.
Lower shipments versus year-ago totals were because of lower slab volumes shipped to third parties. Ternium’s slab facility in Brazil shipped more slab to the company’s downstream facilities because the steelmaker is prioritizing integration.
Higher earnings are expected in the second quarter thanks to increased steel prices and higher shipments, the company said in its outlook commentary released with earnings data on Tuesday, April 26.
Despite the anticipated improvement in Q2, Ternium cautioned that business conditions and global steel supply chains remained volatile because of “recent wave of international sanctions against Russia.”
“An upsurge in steel prices compared to their prior declines … together with the beginning of a monetary tightening cycle in the largest western economies, should result in an increased level of market volatility over the near term in 2022,” the company said.
Ternium has operations in Mexico, Brazil, Argentina, Colombia, the southern United States and Central America. It offers a broad range of value-added steel products for automotive, appliance, HVAC, construction and other manufacturing sectors.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Mills
CRU: Tata Steel looks to shed 1,600 jobs in the Netherlands
The company said, “The challenging demand conditions in Europe driven by geopolitical developments, trade and supply chain disruptions and escalating energy costs have affected the operating costs and financial performance."
Reports: Federal funding for Cliffs’ project could be slashed
Elon Musk's DOGE is determining which Department of Energy grants to advance and which ones to terminate, according to several media outlets
Trump still against selling USS to Japanese firm: Report
Despite ordering a new review of Nippon Steel’s bid for U.S. Steel, President Trump said he is still against selling USS to a Japanese company, according to media reports.
Algoma looks to sell more steel in Canada in wake of Trump’s tariffs
The Canadian steelmaker said its absorbing higher tariffs as it moves forward.
Ancora abandons plan to take over leadership of USS
Investment firm Ancora Holdings Group has halted its play for U.S. Steel's board, citing Nippon Steel’s proposed bid for USS “gaining momentum.”