Ternium Q3 Profit Rises - Quick Facts

(RTTNews) - Steel maker Ternium S.A. (TX) said second-quarter equity holders' net income increased to $160.2 million from $136.0 million in the previous year. Earnings per ADS improved to $0.57 from last year's $0.50.

On average, four analysts polled by Thomson Reuters expected earnings of $0.71 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 3 percent to $2.22 billion from $2.14 billion in the same quarter last year, mainly as a result of higher steel products net sales in Mexico, partially offset by lower steel product net sales in the Southern region. Analysts estimated revenues of $2.24 billion.

Steel shipments increased 1 percent to 2.34 million tons from the prior year, and iron ore shipments grew 8 percent to 1.01 million tons from the prior year.

Looking ahead to the fourth quarter, Ternium said it expects to maintain the strong shipment levels and operating margin performance it has achieved over the first nine months of 2014. The company anticipates slightly higher shipments sequentially as a result of the ramp-up of its new facilities in Mexico in a seasonally weaker quarter for this country.

Ternium also expects relatively stable adjusted operating income in the quarter, reflecting slightly lower steel prices and costs in the context of lower raw material and purchased slab prices.