6 - K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
As of 11/06/2006
Ternium S.A.
(Translation of Registrant's name into English)
Ternium S.A.
46a, Avenue John F. Kennedy - 2nd floor
L-1855 Luxembourg
(352) 4661-11-3815
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or 40-F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12G3-2(b) under the Securities Exchange Act of
1934.
Yes No X
-------- -----
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):
Not applicable
Ternium Announces Third Quarter 2006 Results
LUXEMBOURG--(BUSINESS WIRE)--Nov. 6, 2006--Ternium S.A. (NYSE:TX)
announced today its results for the third quarter ended September 30,
2006.
The financial and operational information contained in this press
release is based on consolidated financial statements prepared in
accordance with International Financial Reporting Standards (IFRS) and
presented in U.S. dollars.
Summary of Third Quarter 2006 Results
-- Net sales of US$1.7 billion.
-- Shipments of flat and long products totaling 2.2 million tons.
-- Operating income of US$508.2 million, or 29% of net sales.
-- EBITDA(a) of US$614.9 million, or 35% of net sales.
-- Equity holders net income of US$257.4 million.
-- Earnings per American Depositary Share (ADS) of US$1.28 (each
ADS represents 10 shares of Ternium's common stock).
Market Background and Outlook
Ternium's main steel markets in the South & Central America Region
continued to perform well during the third quarter 2006, while
shipments in the North America Region were lower compared to the
second quarter, affected by slower economic growth, increased imports
and a de-stocking process in the distribution sectors in the U.S. and
Mexico. Steel prices increased during the third quarter in all of
Ternium's markets.
In the immediate future, Ternium expects demand and prices for its
products to remain stable in the South & Central America Region and to
soften in the North America Region due to the de-stocking process and
the potential for slower economic growth in the U.S. Ternium does not
foresee any sizeable impact related to fluctuations in raw material
and energy costs.
Production
Ternium's production in the third quarter 2006 reached 2.5 million
tons of crude steel, while 1.9 million tons of hot rolled coils (HRC)
and 0.5 million tons of long products were manufactured from
semi-finished products. During the third quarter 2006 there was a
lower output of flat and long steel products at Ternium's Venezuelan
and Mexican operations, partially offset by higher production levels
at its Argentine facility.
On September 11, 2006 a union-led work slowdown began at Sidor
arising from a dispute over employee benefits. This slowdown affected
the production levels of some of Sidor's finished product lines, while
slab and billet production levels were not affected. Some of Sidor's
unionized employees also conducted work stoppages related to their
dispute that lasted for two days in October and six days in November.
These actions have reduced Sidor's output, as of November 6, 2006, by
an estimated 170 thousand tons of crude steel, while production of
flat and long hot rolled steel also decreased by an estimated 340
thousand tons. The production decrease had a minimal impact on Sidor's
sales during the third quarter due to existing inventories. Ternium
continues to negotiate to reach a resolution on this matter with the
union representing Sidor's employees.
At the end of October, Siderar's blast furnace #2 was taken out of
operation for a planned 110-day relining after more than ten
consecutive years of successful operation. Siderar expects that the
resulting supply gap to its hot rolled mill will be compensated by
semi-finished steel inventories built for this purpose. Therefore
finished steel production and shipments from Ternium's Argentine
operation should continue at ordinary levels. Upon completion of the
relining, the daily production capacity of Siderar's blast furnace #2
is expected to rise by almost 11% from 6.5 thousand tons to 7.2
thousand tons.
Analysis of Third Quarter 2006 Results versus Second Quarter 2006
Results
As a result of the consolidation of Amazonia's and Hylsamex's
results and other financial data since February 15, 2005, and August
22, 2005, respectively, Ternium's results and other financial data for
the year 2006 or any quarters in 2006 are likely to vary significantly
from the results and other financial data for the year 2005 or the
corresponding quarters in 2005. Accordingly, Ternium currently intends
to make quarterly comparisons on a sequential basis through the third
quarter of 2006. From the fourth quarter of 2006 onwards, comparisons
are intended to be made on a quarterly year-over-year basis.
Third quarter of 2006 and second quarter of 2006 figures
consolidate the results of Hylsamex, Siderar and Sidor together with
all other consolidating subsidiaries.
Net income for the third quarter was US$354.0 million, compared to
US$289.2 million in the second quarter. Net income attributable to the
Company's equity holders was US$257.4 million in the third quarter
compared to US$232.6 million in the second quarter. Earnings per ADS
were US$1.28 in the third quarter compared to US$1.16 in the second
quarter, based on 2,004,743,442 shares outstanding and a conversion
rate of 10 shares of common stock per ADS.
Net sales for the third quarter increased 2% to US$1.7 billion
compared to the previous quarter due to higher prices partially offset
by lower volumes. Shipments of flat and long products reached 2.2
million tons, a decrease of 8% compared to the second quarter, while
revenue per ton shipped increased 9% to US$741 in the third quarter.
Sales of flat products during the third quarter totaled US$1.3
billion, an increase of 1% compared to the second quarter. This was
the result of higher prices offset by lower volumes. Shipments were
1.7 million tons in the third quarter, a decrease of 8% compared to
the previous quarter as a result of lower demand in the North America
Region, and lower sales of slabs in the South & Central America Region
in preparation for the relining of blast furnace #2 in Argentina.
Revenue per ton shipped increased 9% to US$774 in the third quarter
from the prior quarter.
Sales of long products were US$339.2 million during the third
quarter, a decrease of 1% compared to the previous quarter. This
decrease was mainly due to lower volumes partially offset by higher
prices. Shipments were 532.8 thousand tons in the third quarter,
representing an 8% decrease versus the second quarter, as the
previously tight supply/demand balance for long products in the North
America Region returned to more normal levels during the third
quarter. Revenue per ton shipped increased 8% quarter-over-quarter to
US$637.
Net Sales Shipments Revenue / ton
(million US$) (thousand tons) (US$/ton)
----------------------------------------------------------
3Q 2Q Dif. 3Q 2Q Dif. 3Q 2Q Dif.
2006 2006 2006 2006 2006 2006
----------------------------------------------------------
South &
Central
America 819.9 772.1 6% 1,123.6 1,161.9 -3% 730 665 10%
North
America 483.1 520.1 -7% 554.9 656.2 -15% 871 792 10%
Europe &
other 9.2 7.8 18% 17.2 15.9 8% 535 493 9%
-------------------- -------------------- ----------------
Total flat
products 1,312.2 1,300.0 1% 1,695.6 1,834.1 -8% 774 709 9%
South &
Central
America 146.1 130.8 12% 244.8 237.3 3% 597 551 8%
North
America 193.1 211.9 -9% 288.0 341.5 -16% 670 620 8%
-------------------- -------------------- ----------------
Total long
products 339.2 342.7 -1% 532.8 578.8 -8% 637 592 8%
----------------------------------------------------------------------
Total flat
and long
products 1,651.4 1,642.7 1% 2,228.4 2,412.9 -8% 741 681 9%
----------------------------------------------------------------------
Other
products
(1) 92.1 66.4 39%
--------------------
--------------------------------
Total Net
Sales 1,743.5 1,709.1 2%
--------------------------------
(1) Includes pig iron and pellets.
Sales of other products were US$92.1 million during the third
quarter, an increase of 39% compared to the previous quarter, mainly
due to higher shipments of iron ore pellets in Mexico and Venezuela.
Flat and long products sales in the South & Central America Region
were US$966.0 million during the third quarter, an increase of 7%
versus the previous quarter. This increase was mainly due to higher
prices, partially offset by lower volumes. Shipments were 1.4 million
tons during the third quarter, or 2% lower than the previous quarter,
mainly due to decreased shipments of slabs from Argentina carried out
in the third quarter. Revenue per ton shipped increased 9%
quarter-over-quarter to US$706, mainly due to price increases
implemented in both product categories.
Sales of flat and long products in the North America Region were
US$676.2 million in the third quarter, a decrease of 8% compared to
the previous quarter, due to lower volumes partially offset by higher
prices. Shipments totaled 0.8 million tons during the third quarter,
or 16% lower than the previous quarter. This decrease was mainly
attributable to lower sales of flat products -- due to softer demand
as a result of the de-stocking process in Mexico and the U.S. -- and
long products -- due to the normalization of a previously tight
supply/demand balance in the region. Revenue per ton shipped increased
9% quarter-over-quarter to US$802 in the third quarter.
Cost of sales totaled US$1.1 billion in the third quarter, or 62%
of net sales, compared to US$1.1 billion, or 63% of net sales, in the
previous quarter. Total cost of sales remained relatively stable as
the decrease in shipments offset an increase in the average cost of
the metallic charge mix used in Venezuela and Mexico and in other
costs. The increase in the average cost of the metallic charge mix
used in Venezuela was mainly due to a higher consumption of hot
briquetted iron (HBI) as a result of a decrease in direct reduction
iron (DRI) availability when one of Sidor's DRI production units
underwent a planned 50-day revamping. The unit has already been
re-commissioned with an expected 20% increase in productivity, which
should result in an increase in the production of DRI in the future.
Natural gas and electricity costs remained relatively stable in
the third quarter compared to those of the previous quarter. Labor
costs increased in Argentina mainly as a result of raises to unionized
workers. Labor costs in Venezuela and Mexico were relatively stable
quarter-over-quarter.
Selling, general and administrative (SG&A) expenses in the third
quarter were US$152.7 million, or 9% of net sales, compared to
US$155.4 million, or 9% of net sales, in the previous quarter. The
decrease in the SG&A figure versus the previous quarter was mainly due
to lower freight costs for Ternium's finished products caused by the
decrease in shipments during the third quarter.
Operating income in the third quarter was US$508.2 million, or 29%
of net sales, compared to US$476.7 million, or 28% of net sales, in
the previous quarter. EBITDA(b) in the third quarter was US$614.9
million, or 35% of net sales, compared to US$582.2 million, or 34% of
net sales, in the previous quarter.
Net financial expenses were US$87.2 million in the third quarter,
compared to US$108.2 million in the previous quarter. This reduction
was primarily due to a decrease of US$16.1 million in the excess cash
distribution related to Sidor's participation accounts and a US$4.5
million decrease in net interest expense that was mainly associated
with a reduction in net debt.
Sidor's excess cash distribution related to the participation
account was US$144.4 million in the third quarter compared to US$184.4
million in the previous quarter. Ternium's subsidiaries received
US$86.3 million in the third quarter compared to US$110.2 million in
the second quarter, while payments to minority shareholders of Sidor
resulted in expenses of US$58.2 million in the third quarter, compared
to expenses of US$74.2 million in the previous quarter.
Income tax expense for the third quarter was US$71.7 million, or
17% of income before income tax and minority interest. This expense
included a gain of US$31.3 million as a result of Sidor's lower
deferred tax liability mainly due to the inflation effect in the value
of fixed assets for tax purposes in accordance with Venezuelan tax
laws.
Income attributable to minority interest for the third quarter was
US$96.7 million, compared to US$56.6 million in the previous quarter.
Cash Flow and Liquidity
Net cash provided by operating activities in the third quarter was
US$286.4 million. This included an increase in working capital of
US$190.1 million mainly due to higher inventories and trade
receivables. Inventories of goods in process and finished goods
increased in Mexico mainly as a result of lower shipments, while
inventories of raw materials and goods in process increased in
Argentina mainly due to the planed stoppages for the relining of blast
furnace #2 and for a hot rolled mill investment program.
Net cash used in investing activities during the third quarter was
US$94.1 million, mainly related to capital expenditures of US$94.5
million. The main investments made during the quarter were: the
relining of blast furnace #2, the new coking facilities and the new
slab reheating furnace in Argentina; the upgrading of hot rolled mill
#1 in Mexico; and the revamping of one Midrex module for the
production of DRI and investments in an oxygen plant in Venezuela.
Net cash used in financing activities during the third quarter was
US$283.3 million. Financial debt decreased by US$287.2 million
quarter-over-quarter to US$1.3 billion, mainly due to the US$100.0
million pre-payment and US$45.4 million scheduled amortization of the
Ternium S.A. Syndicated Loan and US$75.0 million pre-payment in full
of certain syndicated loans at Hylsamex. Ternium's net debt as of
September 30, 2006 was US$472.9 million.
Forward-Looking Statements
Some of the statements contained in this press release are
"forward-looking statements." Forward-looking statements are based on
management's current views and assumptions and involve known and
unknown risks that could cause actual results, performance or events
to differ materially from those expressed or implied by those
statements. These risks include but are not limited to risks arising
from uncertainties as to gross domestic product, related market
demand, global production capacity, tariffs, cyclicality in the
industries that purchase steel products and other factors beyond
Ternium's control.
About Ternium
Ternium is one of the leading steel companies in the Americas,
offering a wide range of flat and long steel products. Ternium has
operating locations in Mexico, Argentina and Venezuela that provide it
with a strong position from which to serve its core markets. In
addition, Ternium reaches the global markets through its own
distribution network. More information about Ternium is available at
www.ternium.com.
Consolidated income statement
----------------------------------------------------------------------
US$ million 3Q 2Q 9M 3Q 2Q 9M
2006 2006 2006 2005 (1) 2005 (1) 2005 (1)
----------------------------------------------------------------------
Net sales 1,743.5 1,709.1 4,981.4 1,152.0 1,060.3 2,979.8
Cost of
sales (1,082.4) (1,078.1) (3,147.6) (670.3) (493.4) (1,581.8)
--------- --------- --------- -------- -------- ---------
Gross profit 661.1 631.0 1,833.8 481.7 566.9 1,398.0
Selling,
gen. and
admin.
expenses (152.7) (155.4) (459.1) (148.6) (114.6) (328.2)
Other
operating
income
(expense),
net (0.2) 1.1 2.7 (36.9) (6.8) (44.7)
--------- --------- --------- -------- -------- ---------
Operating
income 508.2 476.7 1,377.4 296.2 445.5 1,025.1
Financial
expenses,
net (87.2) (108.2) (318.9) (77.3) (63.8) (180.0)
Excess of
fair value
of net
assets
acquired
over cost -- -- -- -- -- 188.4
Equity in
earnings
(losses)
of
associated
companies 4.8 0.9 3.8 2.2 (0.2) 21.3
--------- --------- --------- -------- -------- ---------
Income
before
income tax
expense 425.8 369.4 1,062.3 221.1 381.5 1,054.8
Income tax
expense (71.7) (80.2) (224.6) (44.9) (57.1) (150.7)
----------------------------------------------------------------------
Net income
for the
period 354.0 289.2 837.7 176.2 324.4 904.1
----------------------------------------------------------------------
Attributable
to:
----------------------------------------------------------------------
Equity
holders of
the
Company 257.4 232.6 655.0 89.2 140.0 566.9
----------------------------------------------------------------------
Minority
interest 96.7 56.6 182.7 86.9 184.4 337.3
--------- --------- --------- -------- -------- ---------
354.0 289.2 837.7 176.2 324.4 904.1
(1) Combined consolidated financial information on the basis of common
control.
Consolidated balance sheet
----------------------------------------------------------------------
US$ million September 30, December 31,
2006 2005
----------------------------------------------------------------------
Property, plant and equipment, net &
other assets 5,374.9 5,464.8
Intangible assets, net 541.8 552.9
Investment in associated companies, net 13.3 9.1
Other investments, net 13.3 12.6
Deferred tax assets 37.6 29.1
Trade & other receivables, net 61.0 47.9
------------- ------------
Total non-current assets 6,041.9 6,116.4
Receivables 220.2 291.3
Other assets -- 3.2
Derivative financial instruments 6.8 5.4
Inventories, net 1,267.1 1,000.1
Trade receivables, net 609.4 472.8
Other investments -- 5.2
Cash and cash equivalents 825.7 765.6
------------- ------------
Total current assets 2,929.1 2,543.6
Non-current assets classified as held for
sale 9.5 --
------------- ------------
----------------------------------------------------------------------
Total assets 8,980.5 8,660.0
----------------------------------------------------------------------
Shareholders' equity 3,592.6 1,842.5
Minority interest in subsidiaries 1,800.0 1,733.5
----------------------------------------------------------------------
Minority interest & shareholders' equity 5,392.7 3,575.9
----------------------------------------------------------------------
Provisions 59.4 53.5
Deferred income tax liabilities 952.7 1,048.2
Other liabilities 217.7 187.9
Trade payables -- 1.2
Borrowings 799.4 2,399.9
------------- ------------
Total non-current liabilities 2,029.2 3,690.6
Provisions -- 0.7
Current tax liabilities 216.3 127.0
Other liabilities 172.4 194.1
Trade payables 653.2 555.3
Derivative financial instruments 17.5 --
Borrowings 499.2 516.4
------------- ------------
Total current liabilities 1,558.7 1,393.4
------------- ------------
Total liabilities 3,587.8 5,084.1
----------------------------------------------------------------------
Liabilities, minority interest &
shareholders' equity 8,980.5 8,660.0
----------------------------------------------------------------------
Consolidated cash flow statement
----------------------------------------------------------------------
US$ million 3Q 2006 2Q 2006 9M 2006 9M 2005 (1)
----------------------------------------------------------------------
Net income 354.0 289.2 837.7 904.1
Adjustments for:
Depreciation and
amortization 106.7 105.5 318.5 205.5
Income tax accruals less
payments 0.8 (7.4) 4.3 (25.1)
Excess of fair value of net
assets acquired over cost -- -- (188.4)
Equity in (earnings) losses
of associated companies (4.8) (0.9) (3.8) (21.3)
Derecognition of property,
plant & equipment -- 0.1 1.7 42.5
Interest accruals less
payments (12.6) 17.8 (10.7) 11.2
Changes in provisions 6.7 13.6 31.7 (3.5)
Changes in working capital (190.1) (71.4) (274.1) (4.1)
Currency translation
adjustment and others 25.7 10.6 33.4 (2.2)
------- ------- --------- -----------
----------------------------------------------------------------------
Net cash provided by operating
activities 286.4 357.0 938.6 918.9
----------------------------------------------------------------------
Capital expenditures (94.5) (97.7) (280.1) (124.7)
Change in trust funds -- 5.2 5.2 88.8
Acquisition of business (2) -- (47.9) (103.1) (2,186.9)
Proceeds from sale of
property, plant & equipment 0.4 0.2 1.0 2.4
------- ------- --------- -----------
----------------------------------------------------------------------
Net cash (used in) provided by
investing activities (94.1) (140.1) (377.0) (2,220.5)
----------------------------------------------------------------------
Dividends paid in cash and
other distributions to
company's equity shareholders -- -- (238.7)
Dividends paid in cash and
other distributions to
minority shareholders -- (27.2) (27.2) (126.0)
Net proceeds from Initial
Public Offering -- -- 525.0 --
Contributions from
shareholders -- -- 3.1 54.8
Proceeds from borrowings 86.7 25.2 123.2 2,051.0
Repayment of borrowings (369.9) (201.4) (1,124.8) (593.8)
------- ------- --------- -----------
----------------------------------------------------------------------
Net cash used in financing
activities (283.3) (203.4) (500.7) 1,147.4
----------------------------------------------------------------------
----------------------------------------------------------------------
Increase (decrease) in cash and
cash equivalents (90.9) 13.4 60.9 (154.3)
----------------------------------------------------------------------
(1) Combined consolidated financial information on the basis of common
control.
(2) Corresponds to the purchase of Impeco and other assets from
Acindar in 1Q 2006 and to the purchase of Worthington Industries' 50%
equity interest in Acerex in 2Q 2006.
Shipments
----------------------------------------------------------------------
Thousand tons 3Q 2006 2Q 2006 9M 2006 3Q 2Q 9M
2005 (1) 2005 (1) 2005 (1)
----------------------------------------------------------------------
----------------------------------------------------------------------
South & Central
America 1,123.6 1,161.9 3,330.2 1,045.5 926.9 2,565.9
----------------------------------------------------------------------
North America 554.9 656.2 1,854.3 231.5 260.3 737.4
----------------------------------------------------------------------
Europe & other 17.2 15.9 59.7 120.6 145.4 437.5
----------------------------------------------------------------------
Total flat
products 1,695.6 1,834.1 5,244.2 1,397.6 1,332.6 3,740.8
----------------------------------------------------------------------
----------------------------------------------------------------------
South & Central
America 244.8 237.3 719.0 235.2 168.4 492.6
----------------------------------------------------------------------
North America 288.0 341.5 926.0 152.7 30.2 220.7
----------------------------------------------------------------------
Total long
products 532.8 578.8 1,645.0 387.8 198.6 713.2
----------------------------------------------------------------------
----------------------------------------------------------------------
Total flat and
long products 2,228.4 2,412.9 6,889.2 1,785.4 1,531.2 4,454.0
----------------------------------------------------------------------
(1) Combined consolidated financial information on the basis of common
control.
Revenue / ton
----------------------------------------------------------------------
US$/ton 3Q 2006 2Q 2006 9M 2006 3Q 2Q 9M
2005 (1) 2005 (1) 2005 (1)
----------------------------------------------------------------------
----------------------------------------------------------------------
South & Central
America 730 665 686 658 725 693
----------------------------------------------------------------------
North America 871 792 806 755 549 623
----------------------------------------------------------------------
Europe & other 535 493 525 561 607 635
----------------------------------------------------------------------
Total flat
products 774 709 726 666 677 672
----------------------------------------------------------------------
----------------------------------------------------------------------
South & Central
America 597 551 554 543 498 529
----------------------------------------------------------------------
North America 670 620 612 446 526 476
----------------------------------------------------------------------
Total long
products 637 592 586 505 503 512
----------------------------------------------------------------------
----------------------------------------------------------------------
Total flat and
long products 741 681 693 631 655 647
----------------------------------------------------------------------
(1) Combined consolidated financial information on the basis of common
control.
Net Sales
----------------------------------------------------------------------
US$ million 3Q 2006 2Q 2006 9M 2006 3Q 2Q 9M
2005 (1) 2005 (1) 2005 (1)
----------------------------------------------------------------------
----------------------------------------------------------------------
South & Central
America 819.9 772.1 2,283.2 688.3 671.7 1,777.9
----------------------------------------------------------------------
North America 483.1 520.1 1,495.0 174.8 142.9 459.3
----------------------------------------------------------------------
Europe & other 9.2 7.8 31.3 67.7 88.2 278.0
----------------------------------------------------------------------
Total flat
products 1,312.2 1,300.0 3,809.6 930.8 902.8 2,515.2
----------------------------------------------------------------------
----------------------------------------------------------------------
South & Central
America 146.1 130.8 398.3 127.8 83.9 260.6
----------------------------------------------------------------------
North America 193.1 211.9 566.4 68.0 15.9 104.9
----------------------------------------------------------------------
Total long
products 339.2 342.7 964.7 195.8 99.8 365.5
----------------------------------------------------------------------
----------------------------------------------------------------------
Total flat and
long products 1,651.4 1,642.7 4,774.3 1,126.6 1,002.6 2,880.7
----------------------------------------------------------------------
----------------------------------------------------------------------
Other products (2) 92.1 66.4 207.2 25.4 57.7 99.2
----------------------------------------------------------------------
----------------------------------------------------------------------
Total net sales 1,743.5 1,709.1 4,981.4 1,151.9 1,060.3 2,979.8
----------------------------------------------------------------------
(1) Combined consolidated financial information on the basis of common
control.
(2) Includes pig iron and pellets.
(a) EBITDA equals operating income plus depreciation and
amortization.
(b) EBITDA equals operating income of US$508.2 million plus
depreciation and amortization of US$106.7 million.
CONTACT: Ternium S.A.
Investor Relations:
Sebastian Marti
USA: +1-866-890-0443
Mexico: +52-81-8865-2111
Argentina: +54-11-4018-2389
www.ternium.com
The attached material is being furnished to the Securities and Exchange
Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange
Act of 1934, as amended.
This report contains Ternium S.A.'s press release announcing its results for the
third quarter of the year 2006.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TERNIUM S.A.
By:/s/ Roberto Philipps By:/s/ Daniel Novegil
-------------------- ------------------
Name: Roberto Philipps Name: Daniel Novegil
Title: Chief Financial Officer Title: Chief Executive Officer
Dated: November 6, 2006