By:
/s/ Roberto
Philipps
|
By:
/s/ Daniel
Novegil
|
Name:
Roberto Philipps
|
Name:
Daniel Novegil
|
Title:
Chief Financial Officer
|
Title:
Chief Executive Officer
|
3Q 2008 | 2Q 2008 | 3Q 2007 | ||||||||||||||||||
Shipments
(tons)
|
1,844,000 | 2,063,000 | -11 | % | 1,788,000 | 3 | % | |||||||||||||
Net
Sales (US$ million)
|
2,447.7 | 2,374.8 | 3 | % | 1,506.1 | 63 | % | |||||||||||||
Operating
Income (US$ million)
|
524.9 | 610.4 | -14 | % | 222.5 | 136 | % | |||||||||||||
EBITDA
(US$ million)
|
638.6 | 714.1 | -11 | % | 318.5 | 101 | % | |||||||||||||
EBITDA
Margin (% of net sales)
|
26 | % | 30 | % | 21 | % | ||||||||||||||
EBITDA
per Ton, Flat & Long Steel (US$/ton)
|
327 | 337 | -3 | % | 169 | 93 | % | |||||||||||||
Discontinued
Operations (US$ million)
|
(2.8 | ) | - | 143.5 | ||||||||||||||||
Net
Income (US$ million)
|
247.1 | 498.9 | -50 | % | 214.0 | 15 | % | |||||||||||||
Equity
Holders' Net Income (US$ million)
|
211.7 | 415.6 | -49 | % | 159.8 | 32 | % | |||||||||||||
Earnings
per ADS (US$)
|
1.06 | 2.07 | -49 | % | 0.80 | 32 | % |
1
|
Sidor’s results of operations
have been deconsolidated from Ternium’s Financial Statements and are shown
as Discontinued Operations. Discontinued Operations also
include results from the non-core US assets that were sold during the
first quarter 2008.
|
9M 2008 | 9M 2007 | |||||||||||
Shipments
(tons)
|
5,996,000 | 4,936,000 | 21 | % | ||||||||
Net
Sales (US$ million)
|
6,775.1 | 3,936.7 | 72 | % | ||||||||
Operating
Income (US$ million)
|
1,498.5 | 635.6 | 136 | % | ||||||||
EBITDA
(US$ million)
|
1,822.9 | 876.3 | 108 | % | ||||||||
EBITDA
Margin (% of net sales)
|
27 | % | 22 | % | ||||||||
EBITDA
per Ton, Flat & Long Steel (US$/ton)
|
291 | 166 | 75 | % | ||||||||
Discontinued
Operations (US$ million)
|
157.1 | 462.3 | ||||||||||
Net
Income (US$ million)
|
1,229.6 | 780.6 | 58 | % | ||||||||
Equity
Holders' Net Income (US$ million)
|
1,049.4 | 618.9 | 70 | % | ||||||||
Earnings
per ADS (US$)
|
5.23 | 3.09 | 70 | % |
2
|
Sidor’s
results of operations have been deconsolidated from Ternium’s Financial
Statements and are shown as Discontinued
Operations. Discontinued Operations also include results from
the non-core US assets that were sold during the first quarter
2008.
|
3
|
Each
American Depositary Share (ADS) represents 10 shares of Ternium’s common
stock. Results are based on a weighted average number of shares
of common stock outstanding of
2,004,743,442.
|
Net
Sales (million US$)
|
Shipments
(thousand tons)
|
Revenue
/ ton (US$/ton)
|
||||||||||||||||||||||||||||||||||
3Q 2008 | 3Q 2007 |
Dif.
|
3Q 2008 | 3Q 2007 |
Dif.
|
3Q 2008 | 3Q 2007 |
Dif.
|
||||||||||||||||||||||||||||
South
& Central America
|
784.4 | 528.9 | 48 | % | 680.4 | 637.8 | 7 | % | 1,153 | 829 | 39 | % | ||||||||||||||||||||||||
North
America
|
1,273.4 | 731.8 | 74 | % | 901.8 | 834.7 | 8 | % | 1,412 | 877 | 61 | % | ||||||||||||||||||||||||
Europe
& other
|
2.6 | 11.5 | -77 | % | 2.8 | 18.5 | -85 | % | 933 | 619 | 51 | % | ||||||||||||||||||||||||
Total
flat products
|
2,060.4 | 1,272.2 | 62 | % | 1,585.1 | 1,491.0 | 6 | % | 1,300 | 853 | 52 | % | ||||||||||||||||||||||||
South
& Central America
|
104.2 | 28.7 | 262 | % | 86.0 | 52.3 | 64 | % | 1,212 | 550 | 120 | % | ||||||||||||||||||||||||
North
America
|
192.0 | 156.0 | 23 | % | 173.3 | 244.8 | -29 | % | 1,108 | 637 | 74 | % | ||||||||||||||||||||||||
Europe
& other
|
- | - | - | - | - | - | ||||||||||||||||||||||||||||||
Total
long products
|
296.2 | 184.8 | 60 | % | 259.2 | 297.1 | -13 | % | 1,142 | 622 | 84 | % | ||||||||||||||||||||||||
Total
flat and long products
|
2,356.6 | 1,457.0 | 62 | % | 1,844.3 | 1,788.1 | 3 | % | 1,278 | 815 | 57 | % | ||||||||||||||||||||||||
Other
products
|
91.1 | 49.1 | 86 | % | ||||||||||||||||||||||||||||||||
Total
Net Sales
|
2,447.7 | 1,506.1 | 63 | % |
4
|
EBITDA
in the third quarter 2008 equals operating income of US$524.9 million plus
depreciation and amortization of US$113.7
million.
|
5
|
Each
American Depositary Share (ADS) represents 10 shares of Ternium’s common
stock. Results are based on a weighted average number of shares
of common stock outstanding of
2,004,743,442.
|
Net
Sales (million US$)
|
Shipments
(thousand tons)
|
Revenue
/ ton (US$/ton)
|
||||||||||||||||||||||||||||||||||
9M 2008 | 9M 2007 |
Dif.
|
9M 2008 | 9M 2007 |
Dif.
|
9M 2008 | 9M 2007 |
Dif.
|
||||||||||||||||||||||||||||
South
& Central America
|
2,140.2 | 1,429.1 | 50 | % | 2,044.3 | 1,800.1 | 14 | % | 1,047 | 794 | 32 | % | ||||||||||||||||||||||||
North
America
|
3,559.0 | 1,695.5 | 110 | % | 3,024.0 | 2,041.3 | 48 | % | 1,177 | 831 | 42 | % | ||||||||||||||||||||||||
Europe
& other
|
17.4 | 115.1 | -85 | % | 19.1 | 172.6 | -89 | % | 910 | 667 | 36 | % | ||||||||||||||||||||||||
Total
flat products
|
5,716.6 | 3,239.7 | 76 | % | 5,087.5 | 4,014.0 | 27 | % | 1,124 | 807 | 39 | % | ||||||||||||||||||||||||
South
& Central America
|
202.7 | 43.1 | 371 | % | 210.6 | 77.6 | 171 | % | 963 | 555 | 73 | % | ||||||||||||||||||||||||
North
America
|
632.1 | 531.6 | 19 | % | 688.1 | 844.5 | -19 | % | 919 | 629 | 46 | % | ||||||||||||||||||||||||
Europe
& other
|
5.8 | - | 9.8 | - | 591 | - | ||||||||||||||||||||||||||||||
Total
long products
|
840.6 | 574.6 | 46 | % | 908.5 | 922.1 | -1 | % | 925 | 623 | 48 | % | ||||||||||||||||||||||||
Total
flat and long products
|
6,557.1 | 3,814.3 | 72 | % | 5,995.9 | 4,936.0 | 21 | % | 1,094 | 773 | 42 | % | ||||||||||||||||||||||||
Other
products (1)
|
218.0 | 122.5 | 78 | % | ||||||||||||||||||||||||||||||||
Total
Net Sales
|
6,775.1 | 3,936.7 | 72 | % |
6
|
EBITDA
in the first nine months of 2008 equals operating income of US$1.5 billion
plus depreciation and amortization of US$324.4
million.
|
7
|
Free
cash flow for the first nine months of 2008 equals net cash used in
operating activities of US$53.3 million less capital expenditures of
US$420.2 million, while free cash flow for the first nine months of 2007
equals net cash provided by operating activities of US$756.4 million less
capital expenditures of US$247.1
million.
|
8
|
Free
cash flow for the third quarter 2008 equals net cash used in operating
activities of US$10.4 million less capital expenditures of US$169.4
million, while free cash flow for the third quarter 2007 equals net cash
provided by operating activities of US$235.6 million less capital
expenditures of US$84.3 million.
|
US$
million
|
3Q 2008 | 3Q 2007 |
Dif.
|
9M 2008 | 9M 2007 |
Dif.
|
||||||||||||||||||
Net
sales
|
2,447.7 | 1,506.1 | 941.6 | 6,775.1 | 3,936.7 | 2,838.4 | ||||||||||||||||||
Cost
of sales
|
(1,732.8 | ) | (1,141.4 | ) | (591.4 | ) | (4,769.7 | ) | (2,951.0 | ) | (1,818.7 | ) | ||||||||||||
Gross
profit
|
714.9 | 364.7 | 350.2 | 2,005.5 | 985.7 | 1,019.8 | ||||||||||||||||||
Selling,
general and administrative expenses
|
(186.2 | ) | (143.8 | ) | (42.4 | ) | (514.6 | ) | (354.8 | ) | (159.8 | ) | ||||||||||||
Other
operating (expenses) income, net
|
(3.8 | ) | 1.5 | (5.3 | ) | 7.6 | 4.7 | 3.0 | ||||||||||||||||
Operating
income
|
524.9 | 222.5 | 302.4 | 1,498.5 | 635.6 | 862.9 | ||||||||||||||||||
Interest
expense
|
(29.1 | ) | (47.1 | ) | 18.1 | (103.4 | ) | (71.7 | ) | (31.8 | ) | |||||||||||||
Interest
income
|
2.2 | 12.9 | (10.8 | ) | 26.3 | 27.9 | (1.6 | ) | ||||||||||||||||
Other
financial (expenses) income, net
|
(156.8 | ) | (53.7 | ) | (103.0 | ) | (38.4 | ) | (47.6 | ) | 9.2 | |||||||||||||
Equity
in (losses) earnings of associated companies
|
(0.1 | ) | (0.3 | ) | 0.2 | 0.8 | (1.2 | ) | 1.9 | |||||||||||||||
Income
before income tax expense
|
341.1 | 134.2 | 206.9 | 1,383.8 | 543.0 | 840.7 | ||||||||||||||||||
Income
tax (expense) benefit
|
||||||||||||||||||||||||
Current
and deferred income tax expense
|
(91.1 | ) | (63.7 | ) | (27.4 | ) | (407.6 | ) | (224.7 | ) | (182.8 | ) | ||||||||||||
Reversal
of deferred statutory profit sharing
|
- | - | - | 96.3 | - | 96.3 | ||||||||||||||||||
Discontinued
operations
|
(2.8 | ) | 143.5 | (146.4 | ) | 157.1 | 462.3 | (305.2 | ) | |||||||||||||||
Net
income for the period
|
247.1 | 214.0 | 33.1 | 1,229.6 | 780.6 | 449.0 | ||||||||||||||||||
Attributable
to:
|
||||||||||||||||||||||||
Equity
holders of the Company
|
211.7 | 159.8 | 51.8 | 1,049.4 | 618.9 | 430.5 | ||||||||||||||||||
Minority
interest
|
35.5 | 54.2 | (18.7 | ) | 180.2 | 161.7 | 18.5 | |||||||||||||||||
247.1 | 214.0 | 33.1 | 1,229.6 | 780.6 | 449.0 |
US$
million
|
September
30, 2008
|
December
31, 2007 (1)
|
||||||
Property,
plant and equipment, net
|
5,029.5
|
6,858.8
|
||||||
Intangible
assets, net
|
1,422.0
|
1,452.2
|
||||||
Investment
in associated companies
|
4.6
|
44.0
|
||||||
Other
investments, net
|
17.0
|
14.8
|
||||||
Deferred
tax assets
|
5.4
|
31.8
|
||||||
Receivables,
net
|
57.3
|
217.6
|
||||||
Total
non-current assets
|
6,535.6
|
8,619.3
|
||||||
Receivables
|
152.4
|
426.0
|
||||||
Derivative
financial instruments
|
0.1
|
0.6
|
||||||
Inventories,
net
|
2,761.1
|
1,913.1
|
||||||
Trade
receivables, net
|
952.3
|
847.8
|
||||||
Available
for sale assets
|
1,318.9
|
-
|
||||||
Other
investments
|
89.1
|
65.3
|
||||||
Cash
and cash equivalents
|
612.5
|
1,126.0
|
||||||
Total
current assets
|
5,886.5
|
4,378.9
|
||||||
Non-current
assets classified as held for sale
|
6.3
|
769.1
|
||||||
Total
assets
|
12,428.4
|
13,767.3
|
||||||
Shareholders'
equity
|
5,516.9
|
4,452.7
|
||||||
Minority
interest in subsidiaries
|
1,215.1
|
1,914.2
|
||||||
Minority
interest & shareholders' equity
|
6,732.0
|
6,366.9
|
||||||
Provisions
|
30.7
|
57.3
|
||||||
Deferred
income tax
|
1,059.2
|
1,337.0
|
||||||
Other
liabilities
|
174.8
|
336.5
|
||||||
Trade
payables
|
-
|
6.7
|
||||||
Borrowings
|
2,322.8
|
3,677.5
|
||||||
Total
non-current liabilities
|
3,587.5
|
5,415.1
|
||||||
Current
tax liabilities
|
250.4
|
184.8
|
||||||
Other
liabilities
|
134.3
|
182.2
|
||||||
Trade
payables
|
810.0
|
983.9
|
||||||
Derivative
financial instruments
|
29.9
|
13.3
|
||||||
Borrowings
|
884.3
|
407.4
|
||||||
Total
current liabilities
|
2,108.9
|
1,771.6
|
||||||
Liabilities
related to non-current assets classified as held for sale
|
-
|
213.8
|
||||||
Total
liabilities
|
5,696.4
|
7,400.4
|
||||||
Total
liabilities, minority interest & shareholders' equity
|
12,428.4
|
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.
|
US$
million
|
3Q 2008 | 3Q 2007 |
Dif.
|
9M 2008 | 9M 2007 |
Dif.
|
||||||||||||||||||
Net
income for the period
|
250.0 | 70.5 | 179.5 | 1,072.5 | 318.3 | 754.2 | ||||||||||||||||||
Adjustments
for:
|
||||||||||||||||||||||||
Depreciation
and amortization
|
113.7 | 96.0 | 17.7 | 324.4 | 240.8 | 83.6 | ||||||||||||||||||
Income
tax accruals less payments
|
38.3 | (15.5 | ) | 53.7 | 112.7 | (16.9 | ) | 129.6 | ||||||||||||||||
Equity
in losses (earnings) of associated companies
|
0.1 | 0.3 | (0.2 | ) | (0.8 | ) | 1.2 | (1.9 | ) | |||||||||||||||
Interest
accruals less payments
|
(1.1 | ) | 35.4 | (36.4 | ) | (85.7 | ) | 32.7 | (118.4 | ) | ||||||||||||||
Changes
in provisions
|
160.0 | 3.1 | 156.8 | 162.0 | (6.6 | ) | 168.6 | |||||||||||||||||
Changes
in working capital
|
(733.4 | ) | 0.4 | (733.9 | ) | (1,674.3 | ) | 145.1 | (1,819.4 | ) | ||||||||||||||
Others
|
162.0 | 45.3 | 116.7 | 35.8 | 41.9 | (6.1 | ) | |||||||||||||||||
Net
cash (used in) provided by operating activities
|
(10.4 | ) | 235.6 | (246.0 | ) | (53.3 | ) | 756.3 | (809.7 | ) | ||||||||||||||
Capital
expenditures
|
(169.4 | ) | (84.3 | ) | (85.1 | ) | (420.2 | ) | (247.1 | ) | (173.2 | ) | ||||||||||||
Proceeds
from sale of property, plant & equipment
|
0.4 | 0.5 | (0.1 | ) | 1.4 | 6.7 | (5.3 | ) | ||||||||||||||||
Acquisition
of business
|
||||||||||||||||||||||||
Purchase
consideration
|
- | (1,728.7 | ) | 1,728.7 | - | (1,728.8 | ) | 1,728.8 | ||||||||||||||||
Cash
acquired
|
- | 190.1 | (190.1 | ) | - | 190.1 | (190.1 | ) | ||||||||||||||||
Income
tax credit paid on business acquisition
|
- | (297.7 | ) | 297.7 | - | (297.7 | ) | 297.7 | ||||||||||||||||
(Increase)
in Other Investments
|
(89.1 | ) | (64.5 | ) | (24.6 | ) | (23.8 | ) | (64.5 | ) | 40.8 | |||||||||||||
Proceeds
from sale of discontinued operations
|
(3.9 | ) | - | (3.9 | ) | 718.6 | - | 718.6 | ||||||||||||||||
Discontinued
operations
|
152.6 | 116.0 | 36.6 | 242.4 | 385.2 | (142.8 | ) | |||||||||||||||||
Net
cash (used in) provided by investing activities
|
(109.4 | ) | (1,868.6 | ) | 1,759.3 | 518.5 | (1,756.1 | ) | 2,274.6 | |||||||||||||||
Dividends
paid in cash and other distributions to company's equity
shareholders
|
- | - | - | (100.2 | ) | (100.2 | ) | - | ||||||||||||||||
Dividends
paid in cash and other distributions to minority
shareholders
|
- | (0.1 | ) | 0.1 | (19.6 | ) | (20.0 | ) | 0.4 | |||||||||||||||
Contributions
from shareholders
|
- | 1.1 | (1.1 | ) | - | 1.1 | (1.1 | ) | ||||||||||||||||
Proceeds
from borrowings
|
190.7 | 3,869.7 | (3,679.0 | ) | 372.0 | 3,982.0 | (3,610.0 | ) | ||||||||||||||||
Repayment
of borrowings
|
(142.5 | ) | (1,889.6 | ) | 1,747.0 | (1,074.0 | ) | (2,417.1 | ) | 1,343.2 | ||||||||||||||
Net
cash provided by (used in) financing activities
|
48.1 | 1,981.1 | (1,933.0 | ) | (821.8 | ) | 1,445.7 | (2,267.5 | ) | |||||||||||||||
(Decrease)
increase in cash and cash equivalents
|
(71.6 | ) | 348.1 | (419.7 | ) | (356.7 | ) | 445.9 | (802.6 | ) |
Shipments
|
||||||||||||||||||||||||
Thousand
tons
|
3Q 2008 | 2Q 2008 | 1Q 2008 | 3Q 2007 | 9M 2008 | 9M 2007 | ||||||||||||||||||
South
& Central America
|
680.4 | 690.9 | 673.0 | 637.8 | 2,044.3 | 1,800.1 | ||||||||||||||||||
North
America
|
901.8 | 1,042.2 | 1,080.0 | 834.7 | 3,024.0 | 2,041.3 | ||||||||||||||||||
Europe
& other
|
2.8 | 11.6 | 4.8 | 18.5 | 19.1 | 172.6 | ||||||||||||||||||
Total
flat products
|
1,585.1 | 1,744.7 | 1,757.7 | 1,491.0 | 5,087.5 | 4,014.0 | ||||||||||||||||||
South
& Central America
|
86.0 | 67.9 | 56.7 | 52.3 | 210.6 | 77.6 | ||||||||||||||||||
North
America
|
173.3 | 249.6 | 265.3 | 244.8 | 688.1 | 844.5 | ||||||||||||||||||
Europe
& other
|
- | 1.0 | 8.8 | - | 9.8 | - | ||||||||||||||||||
Total
long products
|
259.2 | 318.5 | 330.7 | 297.1 | 908.5 | 922.1 | ||||||||||||||||||
Total
flat and long products
|
1,844.3 | 2,063.2 | 2,088.5 | 1,788.1 | 5,995.9 | 4,936.0 |
Revenue
/ ton
|
||||||||||||||||||||||||
US$/ton
|
3Q 2008 | 2Q 2008 | 1Q 2008 | 3Q 2007 | 9M 2008 | 9M 2007 | ||||||||||||||||||
South
& Central America
|
1,153 | 1,042 | 945 | 829 | 1,047 | 794 | ||||||||||||||||||
North
America
|
1,412 | 1,213 | 945 | 877 | 1,177 | 831 | ||||||||||||||||||
Europe
& other
|
933 | 864 | 1,008 | 619 | 910 | 667 | ||||||||||||||||||
Total
flat products
|
1,300 | 1,143 | 945 | 853 | 1,124 | 807 | ||||||||||||||||||
South
& Central America
|
1,212 | 913 | 643 | 550 | 963 | 555 | ||||||||||||||||||
North
America
|
1,108 | 1,017 | 703 | 637 | 919 | 629 | ||||||||||||||||||
Europe
& other
|
630 | 587 | - | 591 | - | |||||||||||||||||||
Total
long products
|
1,142 | 993 | 689 | 622 | 925 | 623 | ||||||||||||||||||
Total
flat and long products
|
1,278 | 1,120 | 905 | 815 | 1,094 | 773 |
Net
Sales
|
||||||||||||||||||||||||
US$
million
|
3Q 2008 | 2Q 2008 | 1Q 2008 | 3Q 2007 | 9M 2008 | 9M 2007 | ||||||||||||||||||
South
& Central America
|
784.4 | 719.9 | 635.8 | 528.9 | 2,140.2 | 1,429.1 | ||||||||||||||||||
North
America
|
1,273.4 | 1,264.6 | 1,021.0 | 731.8 | 3,559.0 | 1,695.5 | ||||||||||||||||||
Europe
& other
|
2.6 | 10.0 | 4.8 | 11.5 | 17.4 | 115.1 | ||||||||||||||||||
Total
flat products
|
2,060.4 | 1,994.5 | 1,661.6 | 1,272.2 | 5,716.6 | 3,239.7 |