Q4 2024 Ternium SA Earnings Call Transcript
Key Points
- Ternium SA (TX) reported shipments of 16 million tons for 2024 with an adjusted EBITDA of $2 billion, maintaining a 12% margin despite a challenging year for the steel industry.
- The company's net cash position remains strong at $1.6 billion by the end of December, even after significant capital expenditures and dividend payments.
- Significant progress was made on the downstream expansion project in Mexico, with new facilities starting operations and further expansions planned.
- The wind farm in Argentina began generating electricity, contributing to economic benefits and supporting the company's decarbonization goals.
- Ternium SA (TX) is well-equipped to navigate potential trade scenarios due to its adaptable structure and ongoing efforts to enhance operational efficiency.
- Shipments in Mexico decreased due to a weaker than expected commercial market and uncertainties surrounding trade actions.
- The US announced it will revoke all country exceptions to the 25% tariff on steel imports, creating uncertainty in the global market.
- Imports from China have significantly disrupted the Brazilian market, accounting for approximately 80% of flat steel imports.
- Argentina experienced a real decline of approximately 20% in steel demand due to macroeconomic measures, impacting sales volumes.
- Adjusted EBITDA decreased in the fourth quarter due to lower prices in main markets and a reduction in shipments.
Thank you for standing by and welcome to the Ternium Fourth Quarter 2024 Results Conference Call. All lines have been placed on mute to prevent any background noise.
(Operator Instructions)
Thank you.
At this time, I will turn the call over to Mr. Marti. Please proceed.
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Good morning and thank you for joining us.
My name is Sebastian Marti and I am Terni's Global IR compliance and Senior Director.
Yesterday, Ternium released its financial results for the Fourth quarter and full year 2024.
This call is meant to provide additional context to that presentation. I'm joined today by Maximo Bedoya, Ternium's Chief Executive Officer, and Paolo Rocca, current Chief Financial Officer. We'll discuss the company's business environment and performance.
After our prepared remarks, we will open up the floor to any questions. Before we begin, I would like to remind you that this conference call contains forward
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