In This Article:
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Shipments: 16 million tons for 2024.
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Adjusted EBITDA: $2 billion with a 12% margin.
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Cash Generation: $2 billion in cash generated in 2024.
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Net Cash Position: $1.6 billion at the end of December 2024.
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Capital Expenditures (CapEx): Close to $2 billion in 2024.
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Dividends Paid: More than $600 million in 2024.
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Net Income (Q4 2024): $333 million.
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Provision Reversal: $404 million related to Usiminas acquisition litigation.
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Net Sales (Steel Segment): Declined by 14% sequentially in Q4 2024.
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Mining Segment Shipments: Stable in Q4 2024, but down 9% year-over-year.
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Cash Flow from Operations (Q4 2024): Supported by a decrease in working capital.
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Proposed Dividend: $0.027 per ADS, with a dividend yield of approximately 9%.
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ternium SA (NYSE:TX) reported shipments of 16 million tons for 2024 with an adjusted EBITDA of $2 billion, maintaining a 12% margin despite a challenging year for the steel industry.
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The company's net cash position remains strong at $1.6 billion by the end of December, even after significant capital expenditures and dividend payments.
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Significant progress was made on the downstream expansion project in Mexico, with new facilities starting operations and further expansions planned.
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The wind farm in Argentina began generating electricity, contributing to economic benefits and supporting the company's decarbonization goals.
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Ternium SA (NYSE:TX) is well-equipped to navigate potential trade scenarios due to its adaptable structure and ongoing efforts to enhance operational efficiency.
Negative Points
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Shipments in Mexico decreased due to a weaker than expected commercial market and uncertainties surrounding trade actions.
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The US announced it will revoke all country exceptions to the 25% tariff on steel imports, creating uncertainty in the global market.
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Imports from China have significantly disrupted the Brazilian market, accounting for approximately 80% of flat steel imports.
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Argentina experienced a real decline of approximately 20% in steel demand due to macroeconomic measures, impacting sales volumes.
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Adjusted EBITDA decreased in the fourth quarter due to lower prices in main markets and a reduction in shipments.
Q & A Highlights
Q: Can you provide more details on the outlook for the first quarter of 2025 and the ramp-up of the Pesqueria project? A: Maximo Vedoya, CEO, explained that the finishing lines at Pesqueria are ahead of schedule and expected to reach full capacity in the next two to three months. The cold rolling mill and hot-dip galvanized line are on track to start in December 2025, with a ramp-up period of nine to twelve months. CFO Pablo Brizzio added that they anticipate a slight improvement in EBITDA for Q1 2025 due to stable shipment levels, a decline in costs, and a marginal decrease in prices.