Business

Steelmaker Ternium expects Q3 revenue to drop with steel price

Steelmaker Ternium (TX.N) expects revenue per ton to decrease in the third quarter of 2022 due to lower benchmark steel prices, the company said in a presentation following second-quarter results Wednesday.

Costs per ton should increase, which would likely lead to a lower adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the third quarter compared to the second quarter, the company said.

Ternium, which operates in Mexico, Brazil, Argentina, Colombia, the United States and Central America, posted a 13% increase in quarterly revenue on Tuesday, though net profit sank 19% on increased costs of sales and expenses.

In Argentina, which has been undergoing economic turmoil amid skyrocketing inflation, massive debt and a sinking peso, Ternium said it expected future results to be impacted, and possibly also demand.

“We are not yet sure when the macroeconomic situation in Argentina could affect demand,” said Chief Executive Maximo Vedoya in a call with analysts, adding that at the moment, demand remained stable.