Financial Data and Key Metrics Changes - Ternium reported an adjusted EBITDA of 545millionforQ22024,maintaininga12656 million, maintaining a solid net cash position of 1.9billionevenafterrecorddividenddistributions[4][22]−Netincomewasnegativelyimpactedbya783 million provision related to ongoing litigation concerning Usiminas, with adjusted net income decreasing to 40million[5][18]BusinessLineDataandKeyMetricsChanges−ShipmentsinMexicoexperiencedaslightdeclineinQ2,affectedbyadownturninsteelpricesandatropicalstorm[19]−InBrazil,shipmentsincreasedby6700 per metric ton, with indications of a potential rebound [26] - The decision on the MUSA project is expected by the end of next year, with ongoing engineering and project scope work [29] Question: Status of U.S. import tariffs and Usiminas lawsuit - Management confirmed that the 25% import tariff exemption for Brazilian steel is considered official, although implementation details are still being finalized [31] - The ongoing judicial process regarding the CSN lawsuit is complex, and management prefers not to comment further at this time [32] Question: Demand recovery and potential risks from U.S. elections - Management indicated a pickup in demand in Mexico, with clients returning to purchase as prices stabilize [42] - Concerns about the USMCA's future were addressed, with management expressing confidence in the agreement's benefits for all parties involved [44] Question: Siderar's operating loss and future profitability - Management acknowledged that Siderar faced challenges in Q2 due to low volumes and increased costs, but expects a recovery in the coming quarters [46][47] Question: Dividend policy and slab pricing - Management sees no reason to change the current dividend policy, citing strong free cash flow and a solid financial position [51] - Ternium is a net buyer of slabs, and the Brazilian operations can operate efficiently even at lower slab prices [53]
Ternium(TX)2024-07-31 18:20