Steelmaker Ternium sees net profit jump in first quarter on higher prices

The brand of the steelmaker Ternium, who turned a gymnasium right into a centre to obtain sufferers affected by the coronavirus illness (COVID-19), is pictured exterior its plant, in Monterrey, Mexico April 11, 2020. REUTERS/Daniel Becerril

MEXICO CITY, April 26 (Reuters) – Metal producer Ternium’s (TX.N) web earnings rose 24% to $877.5 million within the first quarter from the year-ago interval, the corporate stated on Tuesday, citing increased metal costs partially offset by excessive prices of uncooked supplies.

The corporate, which operates in Mexico, Brazil, Argentina, Colombia, the USA and Central America, posted a 32% improve in income to $4.30 billion through the January to March interval versus the identical quarter a yr earlier.

Income per ton was just below the document ranges reached final quarter, the corporate stated.

Ternium stated the Russian invasion of Ukraine in February had drastically altered the worldwide metal market, and that it “ought to end in an elevated degree of market volatility over the close to time period.”

An analyst word by monetary companies agency BTG Pactual known as the outcomes “strong,” saying it anticipated “a powerful response to the reported numbers and outlook.”

Earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) for the three months climbed to $1.21 billion, beating the Refinitiv estimate of $1.1 billion.

The corporate stated it anticipated EBITDA to rise within the second quarter on account of increased metal costs and “additional development in shipments.”

Ternium stated on the finish of February it plans to spend round $1 billion to develop its plant in northern Mexico, which serves the automotive, equipment and development sectors. learn extra

Reporting by Noe Torres and Kylie Madry; Writing by Valentine Hilaire; Modifying by Christian Plumb and Sandra Maler

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