FORM
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 2/24/2009
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 Ö 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 Ö
If “Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
Not
applicable
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 full year and fourth
quarter 2008 results.
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:
February 24, 2009
Ternium
Announces Full Year and Fourth Quarter 2008 Results
LUXEMBOURG
-- (MARKET WIRE) -- 02/24/09 -- Ternium S.A. (NYSE: TX) today
announced its results for the full year and fourth quarter ended
December 31, 2008.
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 and metric tons.
Summary
of Full Year 2008 Results(1)
| 12M 2008 | 12M 2007 | |||||||||||
|
Shipments
(tons)
|
7,543,000 | 6,980,000 | 8 | % | ||||||||
|
Net
Sales (US$ million)
|
8,464.9 | 5,633.4 | 50 | % | ||||||||
|
Operating
Income (US$ million)
|
1,676.0 | 836.8 | 100 | % | ||||||||
|
EBITDA
(US$ million)
|
2,089.6 | 1,192.1 | 75 | % | ||||||||
|
EBITDA
Margin (% of net sales)
|
25 | % | 21 | % | ||||||||
|
EBITDA
per Ton, Flat & Long Steel (US$/ton)
|
263 | 163 | 61 | % | ||||||||
|
Net
Foreign Exchange Result (US$ million)
|
(632.7 | ) | (18.4 | ) | ||||||||
|
Discontinued
Operations Result (US$ million)
|
157.1 | 579.9 | ||||||||||
|
Net
Income (US$ million)
|
875.2 | 995.8 | -12 | % | ||||||||
|
Equity
Holders' Net Income (US$ million)
|
715.4 | 784.5 | -9 | % | ||||||||
|
Earnings
per ADS (US$)
|
3.57 | 3.91 | -9 | % | ||||||||
Ternium's
operating income was US$1.7 billion in 2008, an increase of 100%
when compared to operating income in 2007. This resulted mainly
from the consolidation of Grupo Imsa and an increase in margins
during the first nine months of 2008, partially offset by a US$200.0
million write-down of Ternium's inventory during the second half of
2008.
1
Net
income during 2008 was US$875.2 million, a decrease of 12% when compared
to the year 2007. This decrease was mainly due to the US$632.7
million net foreign exchange loss and a decline of US$422.8 million
in discontinued operations results, partially offset by an increase
of US$839.3 million in operating income and a reduction of US$128.6
million in income tax expense. The net foreign exchange loss in
2008 was primarily due to the Mexican Peso's 25% devaluation on
Ternium's Mexican subsidiary's US dollar denominated debt. This
result is
non-cash when measured in US dollars and is offset by changes
in Ternium's net equity position in the currency translation adjustments
line. Ternium does not have a significant position in foreign
exchange derivatives and only uses these instruments for hedging
purposes.
During
2008, Ternium's results from discontinued operations of US$157.1
million were comprised of after-tax gains of US$97.5 million related
to the sale of non-core US assets and US$59.6 million related to
Sidor. During 2007, results from discontinued operations totaled
an
after-tax gain of US$579.9 million and were mainly related to Sidor.
Summary
of Fourth Quarter 2008 Results(2)
| 4Q 2008 | 3Q 2008 | 4Q 2007 | ||||||||||||||||||
|
Shipments
(tons)
|
1,547,000 | 1,844,000 | -16 | % | 2,044,000 | -24 | % | |||||||||||||
|
Net
Sales (US$ million)
|
1,721.1 | 2,436.9 | -29 | % | 1,723.1 | 0 | % | |||||||||||||
|
Operating
Income
|
||||||||||||||||||||
|
(US$
million)
|
186.3 | 524.2 | -64 | % | 211.1 | -12 | % | |||||||||||||
|
EBITDA
(US$ million)
|
281.1 | 636.0 | -56 | % | 330.1 | -15 | % | |||||||||||||
|
EBITDA
Margin
|
||||||||||||||||||||
|
(%
of net sales)
|
16 | % | 26 | % | 19 | % | ||||||||||||||
|
EBITDA
per Ton, Flat &
|
||||||||||||||||||||
|
Long
Steel (US$/ton)
|
158 | 326 | -52 | % | 160 | -1 | % | |||||||||||||
|
Net
Foreign Exchange
|
||||||||||||||||||||
|
Result
(US$ million)
|
(622.5 | ) | (150.1 | ) | 25.6 | |||||||||||||||
|
Discontinued
Operations
|
||||||||||||||||||||
|
Result
(US$ million)
|
- | (2.8 | ) | 117.7 | ||||||||||||||||
|
Net
Income (Loss)
|
||||||||||||||||||||
|
(US$
million)
|
(348.5 | ) | 247.3 | 221.4 | ||||||||||||||||
|
Equity
Holders' Net Income
|
||||||||||||||||||||
|
(Loss)
(US$ million)
|
(334.0 | ) | 211.7 | 165.6 | ||||||||||||||||
|
Earnings
(Loss) per
|
||||||||||||||||||||
|
ADS
(US$)
|
(1.67 | ) | 1.06 | 0.83 | ||||||||||||||||
-- Ebitda
of US$281.1 million in the fourth quarter 2008, as shipments and
revenue per ton decreased 16% and 17%, respectively, compared to the
third
quarter 2008.
-- Loss
per ADS of US$1.67 in the fourth quarter 2008, mainly related to the above
mentioned non-cash foreign exchange loss on Ternium's Mexican subsidiary's
US dollar denominated debt.
-- Positive
free cash flow(3) of US$403.6 million in the fourth quarter 2008.
-- Net
financial debt(4) of US$2.1 billion at the close of the fourth quarter
2008, a decrease of US$392.8 million compared to the close of the third
quarter 2008.
2
During
the fourth quarter 2008, Ternium's shipments decreased 16% compared
to the third quarter 2008 as a result of a sharp decline in steel
demand from the main steel consuming sectors -- construction, home
appliances and automotive -- in its core markets. Operating
income
was US$186.3 million, a decrease of 64% when compared to the third
quarter 2008. Net sales decreased 29% during the fourth quarter
2008, as shipments and revenue per ton decreased 16% and 17%, respectively,
while operating cost per ton decreased 4%. Operating income in
the fourth quarter 2008 included a US$68.3 million loss related
to the write-down of Ternium's inventory referenced above, compared
to a US$131.7 million inventory related write-down in the third
quarter 2008. Operating income in the fourth quarter 2008
decreased
12% when compared to the fourth quarter 2007, mainly as a result of
a 24% decrease in shipments and a 33% increase in operating cost per
ton during the fourth quarter 2008, partially offset by a 28%
increase in revenue per ton. There was no write-down of inventories
recorded in the fourth quarter 2007.
Net loss
during the fourth quarter 2008 was US$348.5 million, compared
to net income of US$247.3 million in the third quarter 2008. The
fourth quarter 2008 net result was lower than that of the precedent
quarter, mainly due to an increase of US$472.4 million in net
foreign exchange loss and a US$337.9 million reduction in operating
income, partially offset by a US$236.4 million reduction in income
tax expense. The fourth quarter 2008 net result was US$569.8
million
lower than that of the fourth quarter 2007, mainly due to a decline
of US$643.3 million in net foreign exchange result and US$117.7
million less in discontinued operations results, partially offset by
a reduction of US$216.0 million in income tax expense.
Net
foreign exchange result during the fourth quarter 2008 was a loss of
US$622.5 million, compared to a loss of US$150.1 million in the third
quarter 2008 and a gain of US$25.6 million in the fourth quarter 2007. The
net foreign exchange losses in the third and fourth quarters
of 2008 were primarily due to the Mexican Peso's 5% and 25% devaluation,
respectively, on Ternium's Mexican subsidiary's US dollar
denominated debt. These results are non-cash when measured in
US
dollars and are offset by changes in Ternium's net equity position in the
currency translation adjustments line, as the value of Ternium Mexico's
US dollar denominated debt is not altered by the Mexican Peso
fluctuation when stated in US dollars in Ternium's consolidated financial
statements.
Ternium's
financial debt at the end of the fourth quarter 2008 was US$3.3
billion, of which US$941.5 million will mature during 2009, while the
company's cash, cash equivalents and other investments totaled
US$1.2 billion as of December 31, 2008. The company's net
financial
debt(5) of US$2.1 billion at the close of the fourth quarter
2008 decreased US$392.8 million compared to its net financial debt as
of September 30, 2008.
3
Outlook
Steel
product demand and prices in the North America Region are expected
to remain at their current levels throughout the first quarter
2009 following the decline experienced during the second half of 2008
as a result of the significant slowdown in the world economy. Demand
and prices in the South & Central America Region are expected to
decrease in the first quarter 2009 due to a delayed effect on the region's
economies of the global markets disruption.
Ternium
expects a lower EBITDA(6) in the first quarter 2009 compared to EBITDA
in the fourth quarter 2008, mainly as a result of lower overall
volume and lower average prices in its regions.
The
company anticipates a lower net debt position at the close of the first
quarter 2009, mainly as a result of a decline in working capital and a
re-assessment and re-scheduling of its capital expenditure projects.
Inventory volumes are expected to continue declining due to a scaling
down of production and a reduction of the volume of Ternium's
semi-finished product and raw-material purchases.
Ternium
expects that its average capacity utilization during the first
half of 2009 would be approximately 65%. Capital expenditures
for 2009
are expected to total approximately US$250 million, while capital
expenditures during 2008 were US$587.9 million.
Analysis
of Full Year 2008 Results
Net
income attributable to the Company's equity holders for 2008 was US$715.4
million, compared with US$784.5 million for 2007. Including
minority
interest, net income for 2008 was US$875.2 million, compared with
US$995.8 million for 2007. Earnings per ADS(7) were US$3.57 in
2008,
compared with US$3.91 in 2007.
Net sales
for 2008 increased 50% to US$8.5 billion, compared with 2007.
Excluding the effect of the consolidation of Grupo Imsa, net sales
increased due to higher revenue per ton. Shipments of flat and
long
products were 7.5 million tons during 2008, an increase of 8% compared
to shipment levels in 2007, mainly due to the consolidation of Grupo
Imsa and higher shipment levels in the South & Central America
Region. Revenue per ton shipped was US$1,087 in 2008, an increase
of 38% when compared to 2007, mainly as a result of higher prices
and the consolidation of Grupo Imsa's higher value added product
mix.
| Net Sales | Shipments | Revenue / ton | ||||||||||||||||||||||||||||||||||
| (million US$) | (thousand tons) | (US$/ton) | ||||||||||||||||||||||||||||||||||
|
FY
|
FY
|
|
FY
|
FY
|
|
|||||||||||||||||||||||||||||||
|
2008
|
2007
|
Dif.
|
2008
|
2007
|
Dif.
|
2008
|
2007
|
Dif.
|
||||||||||||||||||||||||||||
|
South
& Central America
|
2,782.5 | 2,037.0 | 37 | % | 2,604.2 | 2,499.1 | 4 | % | 1,068 | 815 | 31 | % | ||||||||||||||||||||||||
|
North
America
|
4,294.7 | 2,571.8 | 67 | % | 3,666.1 | 3,034.9 | 21 | % | 1,171 | 847 | 38 | % | ||||||||||||||||||||||||
|
Europe
& other
|
47.5 | 123.0 | -61 | % | 55.2 | 184.9 | -70 | % | 860 | 665 | 29 | % | ||||||||||||||||||||||||
| ------- | ------- | --- | ------- | ------- | --- | ----- | --- | --- | ||||||||||||||||||||||||||||
|
Total
flat products
|
7,124.7 | 4,731.7 | 51 | % | 6,325.5 | 5,718.9 | 11 | % | 1,126 | 827 | 36 | % | ||||||||||||||||||||||||
|
South
& Central America
|
274.4 | 70.0 | 292 | % | 302.5 | 132.8 | 128 | % | 907 | 527 | 72 | % | ||||||||||||||||||||||||
|
North
America
|
791.8 | 696.0 | 14 | % | 901.3 | 1,113.4 | -19 | % | 878 | 625 | 41 | % | ||||||||||||||||||||||||
|
Europe
& other
|
8.9 | 6.9 | 30 | % | 13.3 | 15.0 | -11 | % | 669 | 457 | 46 | % | ||||||||||||||||||||||||
| ------- | ------- | --- | ------- | ------- | --- | ----- | --- | --- | ||||||||||||||||||||||||||||
|
Total
long products
|
1,075.1 | 772.8 | 39 | % | 1,217.2 | 1,261.2 | -3 | % | 883 | 613 | 44 | % | ||||||||||||||||||||||||
|
Total
flat and long products
|
8,199.8 | 5,504.5 | 49 | % | 7,542.7 | 6,980.1 | 8 | % | 1,087 | 789 | 38 | % | ||||||||||||||||||||||||
|
Other
products
|
||||||||||||||||||||||||||||||||||||
|
(1)
|
265.1 | 128.8 | 106 | % | ||||||||||||||||||||||||||||||||
| ------- | ------- | --- | ||||||||||||||||||||||||||||||||||
|
Total
Net Sales
|
8,464.9 | 5,633.4 | 50 | % | ||||||||||||||||||||||||||||||||
(1)
Primarily includes iron ore, pig iron and pre-engineered metal buildings.
4
Sales of
flat products during 2008 totaled US$7.1 billion, an increase
of 51% compared to 2007. Excluding the effect of the consolidation
of Grupo Imsa, net sales increased mainly as a result of higher
revenue per ton. Shipments of flat products totaled 6.3 million
tons in 2008, an increase of 11% compared with 2007, mainly due to
the consolidation of Grupo Imsa and higher shipments in the South
& Central America Region, partially offset by lower shipments in the
"Europe and other" Region. Revenue per ton shipped increased
36% to
US$1,126 in 2008 compared to 2007, mainly as a result of higher
steel prices and the consolidation of Grupo Imsa's higher value
added product mix.
Sales of
long products were US$1.1 billion during 2008, an increase of 39%
compared to 2007 mainly due to higher prices. Shipments of
long
products totaled 1.2 million tons in 2008, representing a 3% decrease
versus 2007 as lower shipments in the North America Region were
offset by higher shipments in the South & Central America Region. Revenue
per ton shipped was US$883 in 2008, an increase of 44%
compared to 2007.
Sales of
other products totaled US$265.1 million during 2008 compared to
US$128.8 million during 2007. The increase was driven by higher
iron ore
shipments and prices, as well as by higher pre-engineered metal
building sales coming from the Grupo Imsa acquisition.
Sales of
flat and long products in the North America Region totaled US$5.1
billion in 2008, an increase of 56% versus 2007, mainly due to the
effect of the consolidation of Grupo Imsa and higher prices. Shipments
in the region totaled 4.6 million tons during 2008, or 10% higher
than during 2007. Revenue per ton shipped was US$1,114 in
2008, an
increase of 41% compared to 2007, as a result of higher steel
prices and the consolidation of Grupo Imsa's higher value added product
mix.
Flat and
long product sales in the South & Central America Region were
US$3.1 billion during 2008, an increase of 45% versus 2007. This
increase
was due to higher volumes and revenue per ton. Shipments in
the
region totaled 2.9 million tons during 2008, or 10% higher than in
2007. Revenue per ton shipped in the South & Central America
Region
was US$1,052 in 2008, an increase of 31% compared to 2007, mainly
due to higher prices.
Cost of
sales was US$6.1 billion in 2008 compared to US$4.3 billion in
2007. Cost of sales increased as a result, in part, of the
consolidation
of Grupo Imsa, which increased Ternium's production volume
and cost per ton due to Grupo Imsa's higher production cost structure
and higher value added product sales mix. The year-over-year
cost of sales increase also was related to higher costs for
third party steel, raw materials, energy, freight, labor and
services and the US$200.0 million write-down of Ternium's inventory
that was primarily related to purchased slabs, partially offset by
a reduction in the US dollar value of inventories at the beginning
of the year and purchased during the period, mainly as a result of
the Mexican Peso's 25% devaluation to the US dollar.
5
The
consolidation of Grupo Imsa, which began on July 26, 2007, resulted
in an increased volume of purchased slabs with a cost per ton
significantly higher than Ternium's average cost of slab production. Scrap
and energy prices increased in Mexico while the price of
zinc was lower in 2008 compared to the prior year. Iron ore
and coal
costs were higher during 2008 than they were in 2007, mainly as a
result of higher annual contract prices of third party iron ore supplies
and higher production costs at Ternium's iron ore mines.
Selling,
general and administrative (SG&A) expenses in 2008 were US$669.5
million, or 8% of net sales, compared with US$517.4 million, or 9% of
net sales, in 2007. The increase in SG&A was due mainly to
the
consolidation of Grupo Imsa.
Operating
income in 2008 was US$1.7 billion, or 20% of net sales, compared
with US$836.8 million, or 15% of net sales, in 2007.
EBITDA(8)
in 2008 was US$2.1 billion, or 25% of net sales, compared to US$1.2
billion, or 21% of net sales, in 2007. Equity holders' EBITDA in
2008 was 79% of EBITDA.
Net
financial expenses were US$797.1 million in 2008, compared with US$130.0
million in 2007. During 2008, Ternium's net interest expenses
were US$103.9 million, an increase of US$12.4 million compared
to 2007 due to higher indebtedness as a result of the Grupo Imsa
acquisition in July 2007, partially compensated by lower interest
rates.
Net
foreign exchange result was a loss of US$632.7 million in 2008, compared
to a loss of US$18.4 million in 2007. The result in 2008 was
primarily due to the impact of the Mexican Peso's 25% devaluation on
Ternium's Mexican subsidiary's US dollar denominated debt. This
result is
non-cash when measured in US dollars and is offset by changes
in Ternium's net equity position in the currency translation adjustments
line, as the value of Ternium Mexico's US dollar denominated
debt is not altered by the Mexican Peso fluctuation when stated in
US dollars in Ternium's consolidated financial statements. In
accordance with IFRS, Ternium Mexico prepares its financial statements
in Mexican Pesos and registers foreign exchange results on its net
non-Mexican Pesos positions when the Mexican Peso revaluates or
devaluates to other currencies.
Fair
value of derivatives result was a loss of US$32.5 million in 2008,
compared to a gain of US$2.5 million in 2007, related to some derivative
instruments entered into by Ternium mainly to mitigate the effect of
interest rates and foreign exchange fluctuations.
6
Income
tax expense in 2008 was US$259.0 million, or 29% of income before
income tax, discontinued operations and minority interest, compared
with US$291.3 million, or 41% of income before income tax, discontinued
operations and minority interest, in 2007. The income tax
expense in 2008 included a non-recurring gain of US$96.3 million on
account of Hylsa's reversal of deferred statutory profit sharing that
reduced the effective tax rate for the year.
Net
result of discontinued operations in 2008 was a gain of US$157.1 million,
comprised an after-tax gain of US$59.6 million related to Sidor and
an after-tax gain of US$97.5 million from the sale of non-core
US assets during the first quarter 2008. In 2007, net result of
discontinued operations was a gain of US$579.9 million, mainly
related to Sidor.
Income
attributable to minority interest in 2008 was US$159.7 million,
compared to US$211.3 million in 2007, mainly as a result of a lower
income attributable to minority interest in Sidor.
Analysis
of Fourth Quarter 2008 Results
Net loss
attributable to the Company's equity holders in the fourth quarter
2008 was US$334.0 million, compared with net income attributable
to the Company's equity holders of US$165.6 million in the
fourth quarter 2007. Including minority interest, net loss for the
fourth quarter 2008 was US$348.5 million, compared with net income of
US$221.4 million in the fourth quarter 2007. Loss per ADS(9)
for the fourth quarter 2008 was US$1.67, compared with earnings
per ADS of US$0.83 in the fourth quarter 2007.
Net sales
in the fourth quarter 2008 were US$1.7 billion, a similar result to
the net sales total in the fourth quarter 2007. Lower shipments
were offset by higher revenue per ton during the fourth quarter
2008. Shipments of flat and long products were 1.5 million
tons
during the fourth quarter 2008, a decrease of 24% compared to shipment
levels in the fourth quarter 2007, mainly due to a decrease in demand
in Ternium's main steel markets. Revenue per ton shipped was
US$1,062 in the fourth quarter 2008, an increase of 28% compared to the
same quarter in 2007, mainly as a result of higher steel
prices.
7
|
Net
Sales
|
Shipments
|
Revenue
/ ton
|
||||||||||||||||||||||||||||||||||
|
(million
US$)
|
(thousand
tons)
|
(US$/ton) | ||||||||||||||||||||||||||||||||||
| 4Q 2008 | 4Q 2007 |
Diff.
|
4Q 2008 | 4Q 2007 |
Diff.
|
4Q
2008
|
4Q
2007
|
Diff.
|
||||||||||||||||||||||||||||
|
South
& Central America
|
642.4 | 607.9 | 6 | % | 559.9 | 699.0 | -20 | % | 1,147 | 870 | 32 | % | ||||||||||||||||||||||||
|
North
America
|
735.7 | 876.3 | -16 | % | 642.2 | 993.6 | -35 | % | 1,146 | 882 | 30 | % | ||||||||||||||||||||||||
|
Europe
& other
|
30.0 | 7.9 | 281 | % | 36.0 | 12.3 | 193 | % | 834 | 641 | 30 | % | ||||||||||||||||||||||||
| ------- | ------- | --- | ------- | ------- | --- | ----- | --- | --- | ||||||||||||||||||||||||||||
|
Total
flat products
|
1,408.1 | 1,492.0 | -6 | % | 1,238.1 | 1,704.9 | -27 | % | 1,137 | 875 | 30 | % | ||||||||||||||||||||||||
|
South & Central America
|
71.7 | 27.0 | 166 | % | 91.9 | 55.2 | 67 | % | 780 | 489 | 60 | % | ||||||||||||||||||||||||
|
North
America
|
159.7 | 164.4 | -3 | % | 213.2 | 268.9 | -21 | % | 749 | 611 | 22 | % | ||||||||||||||||||||||||
|
Europe & other
|
3.1 | 6.9 | -54 | % | 3.6 | 15.0 | -76 | % | 884 | 457 | 94 | % | ||||||||||||||||||||||||
| ------- | ------- | --- | ------- | ------- | --- | ----- | --- | --- | ||||||||||||||||||||||||||||
|
Total
long products
|
234.5 | 198.2 | 18 | % | 308.7 | 339.1 | -9 | % | 760 | 585 | 30 | % | ||||||||||||||||||||||||
|
Total
flat and long products
|
1,642.6 | 1,690.3 | -3 | % | 1,546.8 | 2,044.0 | -24 | % | 1,062 | 827 | 28 | % | ||||||||||||||||||||||||
| Other products (1) | 78.5 | 32.8 | 139 | % | ||||||||||||||||||||||||||||||||
| ------- | ------- | --- | ||||||||||||||||||||||||||||||||||
|
Total
Net Sales
|
1,721.1 | 1,723.1 | 0 | % | ||||||||||||||||||||||||||||||||
(1)
Primarily includes iron ore, pig iron and pre-engineered metal buildings.
Sales of
flat products during the fourth quarter 2008 totaled US$1.4 billion,
a decrease of 6% compared with the same quarter in 2007. Net sales
decreased as a result of lower shipments, partially offset by higher
revenue per ton. Shipments of flat products totaled 1.2 million
tons in the fourth quarter 2008, a decrease of 27% compared with the
same period in 2007, mainly due to a decrease in demand in our main
steel markets. Revenue per ton shipped increased 30% to US$1,137
in the fourth quarter 2008 compared with the same period in 2007,
mainly due to higher steel prices.
Sales of
long products were US$234.5 million in the fourth quarter 2008, an
increase of 18% compared to the same period in 2007 mainly due to
higher prices, partially offset by lower volumes. Shipments
of long
products totaled 309,000 tons in the fourth quarter 2008, a 9%
decrease versus the same quarter in 2007, due to lower shipments in the
North America Region partially offset by higher shipments in the South
& Central America Region. Revenue per ton shipped was US$760 in
the fourth quarter 2008, an increase of 30% compared to the fourth
quarter 2007, mainly due to higher prices.
Sales of
other products totaled US$78.5 million during the fourth quarter
2008, compared to US$32.8 million during the fourth quarter 2007. The
increase was mainly driven by higher iron ore shipments and
prices.
Sales of
flat and long products in the North America Region were US$895.4
million in the fourth quarter 2008, a decrease of 14% versus the same
period in 2007, due to lower shipments partially offset by higher
revenue per ton. Shipments in the region totaled 855,000 tons
during
the fourth quarter 2008, or 32% lower than in the same period in 2007
as a result of lower demand from the region's main markets. Revenue
per ton shipped in the region increased 27% to US$1,047 in the
fourth quarter 2008 over the same quarter in 2007, mainly due to higher
prices.
Flat and
long product sales in the South & Central America Region were
US$714.1 million during the fourth quarter 2008, an increase of 12%
versus the same period in 2007. This increase was due to higher
revenue
per ton partially offset by lower shipments. Shipments in
the
region totaled 652,000 tons during the fourth quarter 2008, or 14% lower
than in the fourth quarter 2007, due to the lower overall steel
demand in the region, partially offset by an increase in the volume of
long product sales. Revenue per ton shipped was US$1,096 in the
fourth quarter 2008, an increase of 30% compared to the same quarter
in 2007, mainly due to higher prices.
8
Cost of
sales totaled US$1.4 billion in the fourth quarter 2008 compared
to US$1.4 billion in the fourth quarter 2007. Cost of sales
was
stable in spite of lower shipments mainly as a result of higher costs for
third party steel, raw materials and a US$68.3 million write-down
of Ternium's inventory during the fourth quarter 2008, as well as
an offsetting effect from the reduction in the US dollar value of
inventories at the beginning of the year and purchased during
the period, mainly as a result of the Mexican Peso's 25% devaluation
to the US dollar.
In the
fourth quarter 2008 the average price of scrap in Mexico was lower
than in the fourth quarter 2007, while energy prices were relatively
the same. The price of zinc was lower in the fourth quarter
2008 compared to the prior year period. Iron ore and coal
costs
were higher during the fourth quarter 2008 than they were in the same
period in 2007, mainly as a result of higher annual contract prices
for third party iron ore supplies.
SG&A
expenses in the fourth quarter 2008 were US$159.6 million, or 9% of net
sales, compared with US$166.5 million, or 10% of net sales, in the
fourth quarter 2007.
Operating
income in the fourth quarter 2008 was US$186.3 million, or 11% of
net sales, compared with US$211.1 million, or 12% of net sales, in
the fourth quarter 2007.
EBITDA(10)
in the fourth quarter 2008 was US$281.1 million, or 16% of net
sales, compared with US$330.1 million, or 19% of net sales, in the fourth
quarter 2007. Equity holders' EBITDA in the fourth quarter
2008 was
71% of EBITDA.
Net
financial expenses were US$681.7 million in the fourth quarter 2008,
compared with US$38.9 million in the fourth quarter 2007. During
the fourth quarter 2008, Ternium's net interest expenses were US$26.8
million, a decrease of US$20.9 million compared to the fourth quarter
2007 due to lower indebtedness and lower interest rates.
Net
foreign exchange result was a loss of US$622.5 million in the fourth
quarter 2008 compared to a gain of $25.6 million in the same period in
2007. This was primarily due to the impact of the Mexican
Peso's
25% devaluation on Ternium's Mexican subsidiary's US dollar denominated
debt. In accordance with IFRS, Ternium Mexico prepares its
financial statements in Mexican Pesos and registers foreign exchange
results on its net non-Mexican Pesos positions when the Mexican
Peso revaluates or devaluates to other currencies. These results
are non-cash when measured in US dollars and are offset by changes
in Ternium's net equity position in the currency translation adjustments
line, as the value of Ternium Mexico's US dollar denominated
debt is not altered by the Mexican Peso fluctuation when stated in
US dollars in Ternium's consolidated financial statements.
9
Fair
value of derivatives result was a loss of US$29.0 million in the fourth
quarter 2008 compared to a loss of US$8.3 million in the fourth
quarter 2007, related to some derivative instruments entered into by
Ternium mainly to mitigate the effects of interest rates and foreign
exchange fluctuations.
Income
tax benefit for the fourth quarter 2008 was US$145.9 million, or 30% of
loss before income tax, compared with an income tax expense of
US$70.1 million, or 40% of income before income tax, discontinued operations
and minority interest, in the same period in 2007.
Net
result of discontinued operations was not registered for the fourth
quarter 2008. Net result of discontinued operations in the
fourth
quarter 2007 was a gain of US$117.7 million, mainly related to
Sidor.
Loss
attributable to minority interest for the fourth quarter 2008 was
US$14.5 million, compared to income attributable to minority interest
of US$55.8 million in the fourth quarter 2007, mainly due to a lower
result attributable to minority interest in Siderar.
Cash
Flow and
Liquidity
Net cash
provided by continuing operations was US$517.5 million in 2008,
lower than the US$936.4 million reported in 2007, mainly due to a working
capital increase of US$1.1 billion, partially offset by increased
operating income in 2008. Working capital was higher in 2008 than
in 2007 mainly as a result of a US$821.7 million increase in
inventories and a US$212.6 million decrease in accounts payable mainly
due to a reduction in the volume of slab and raw material purchases
during the second half of 2008. Inventories increased during
the first nine months of 2008 as a result of higher costs due to higher
input prices as well as higher volume of finished goods, goods in
process and raw materials. This upward trend in volume reversed
during the fourth quarter 2008 with a substantial reduction in
inventories of finished goods, goods in process and raw materials as a
result of declining demand.
Capital
expenditures in 2008 were US$587.9 million, compared to US$344.3
million in 2007. Capital expenditures during 2008 were carried
out in Mexico principally for the expansion of the flat steel shop in
Monterrey, the upgrading of one hot strip mill and the upgrading
of one cold rolled mill. Ternium's capital expenditures in
Argentina
during 2008 were mainly related to the relining of one blast
furnace and the revamping and expansion of the coking facilities.
In 2008,
Ternium had negative free cash flow(11) of US$70.4 million compared
to positive free cash flow(11) of US$592.1 million in 2007. Proceeds
from the first quarter 2008 sale of non-core US assets totaled
US$718.6 million in 2008. Net cash provided by discontinued
operations
related to Sidor and the results of the non-core US assets that were
sold was US$242.4 million in 2008, compared to US$419.3 million
in 2007, which was mainly related to Sidor.
10
Ternium's
net repayment of borrowings in 2008 was US$633.1 million, mostly
related to the pre-payment of some of the Company's Mexican subsidiaries'
outstanding debt. Ternium's dividend payment in 2008 was
US$100.2 million, similar to that of 2007.
Net cash
provided by continuing operations in the fourth quarter 2008 was
US$576.2 million, higher than the US$11.9 million in net cash used in
continuing operations in the third quarter 2008 mainly as a result of a
working capital decrease of US$380.4 million in the fourth quarter
2008 compared to a working capital increase of US$550.7 million
in the third quarter 2008. The decrease in working capital
in the
fourth quarter 2008 was mainly due to a US$518.9 million decrease
of inventories and a US$256.4 million decrease in trade receivables,
partially offset by a US$296.6 million decrease in accounts
payable. Inventories decreased principally as a result of
lower
volume of finished goods, goods in process and raw materials, as
Ternium implemented a de-stocking process in response to lower demand
for steel products, partially offset by higher costs mainly due to
higher input prices in Argentina. Trade receivables decreased
due to
lower volumes and sale prices during the fourth quarter 2008, while
accounts payable decreased as a result of a reduction in the volume of
slab and raw materials purchases.
Capital
expenditures in the fourth quarter 2008 were US$172.6 million,
compared to US$168.3 million in the third quarter 2008. In
the
fourth quarter 2008, Ternium had positive free cash flow(12) of US$403.6
million, compared to negative free cash flow(12) of US$180.2 million
in the third quarter 2008.
As of
December 31, 2008, Ternium's financial debt was US$3.3 billion, of which
US$941.5 million will mature during 2009, while the company's cash,
cash equivalents and other investments totaled US$1.2 billion. Ternium's
net financial debt(13) of US$2.1 billion at the close of the fourth
quarter 2008 decreased US$392.8 million compared to net financial
debt as of September 30, 2008. The company believes that available
cash and marketable securities and funds from operations will be
sufficient to fund its operations. The company has not negotiated
additional credit facilities.
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.
11
About
Ternium
Ternium
is one of the leading steel companies in Latin America, manufacturing
and processing a wide range of flat and long steel products
for customers active in the construction, home appliances, capital
goods, container, food and automotive industries. With its
principal
operations in Mexico and Argentina, Ternium serves markets in the
Americas through its integrated manufacturing system and extensive
distribution network. The Company has annual production capacity
of approximately 9 million tons of finished steel products. More
information about Ternium is available at www.ternium.com.
(1)
Sidor's results of operations have been deconsolidated from Ternium's
Financial Statements and are shown as Discontinued Operations.
Discontinued Operations also include results from the non-core
US assets that were sold during the first quarter 2008. In
addition,
accounting for Ternium's investments in Consorcio Minero Benito
Juarez Pena Colorada S.A. de C.V. and Pena Colorada Servicios S.A. de
C.V. has been remade under the proportionate consolidation method,
with no material effect from such modification.
(2)
Sidor's results of operations have been deconsolidated from Ternium's
Financial Statements and are shown as Discontinued Operations.
Discontinued Operations also include results from the non-core
US assets that were sold during the first quarter 2008. In
addition,
accounting for Ternium's investments in Consorcio Minero Benito
Juarez Pena Colorada S.A. de C.V. and Pena Colorada Servicios S.A. de
C.V. has been made under the proportionate consolidation method,
with no material effect from such modification.
(3) Free
cash flow for the fourth quarter 2008 equals net cash provided
by continuing operations of US$576.2 million less capital expenditures
of US$172.6 million.
(4) Net
financial debt in the fourth quarter 2008 equals borrowings of US$
3.3 billion less cash and cash equivalents of US$1.1 billion and other
investments of US$90.0 million.
(5) Net
financial debt in the fourth quarter 2008 equals borrowings of US$
3.3 billion less cash and cash equivalents of US$1.1 billion and other
investments of US$90.0 million.
(6)
EBITDA is operating income plus depreciation and amortization.
(7) Each
American Depositary Share (ADS) represents 10 shares of Ternium's
common stock. Results are based on a weighted average number of
shares of common stock outstanding of 2,004,743,442.
(8)
EBITDA in 2008 equals operating income of US$1.7 billion plus depreciation
and amortization of US$413.5 million.
(9) Each
American Depositary Share (ADS) represents 10 shares of Ternium's
common stock. Results are based on a weighted average number of
shares of common stock outstanding of 2,004,743,442.
(10)
EBITDA in the fourth quarter 2008 equals operating income of US$186.3
million plus depreciation and amortization of US$94.9 million.
(11) Free
cash flow for 2008 equals net cash provided by continuing operations
of US$517.5 million less capital expenditures of US$587.9 million,
while free cash flow for 2007 equals net cash provided by continuing
operations of US$936.4 million less capital expenditures of
US$344.3 million.
(12) Free
cash flow for the fourth quarter 2008 equals net cash provided
by continuing operations of US$576.2 million less capital expenditures
of US$172.6 million, while free cash flow for the third quarter
2008 equals net cash used in continuing operations of US$11.9 million
less capital expenditures of US$168.3 million.
(13) Net
financial debt in the fourth quarter 2008 equals borrowings of US$
3.3 billion less cash and cash equivalents of US$1.1 billion and other
investments of US$90.0 million.
12
Consolidated income statement
| US$ million |
4Q
2008
|
4Q 2007 | Dif. | Year 2008 | Year 2007 | Dif. | ||||||||||||||||||
|
Net
sales
|
1,721.1 | 1,723.1 | (2.0 | ) | 8,464.9 | 5,633.4 | 2,831.5 | |||||||||||||||||
|
Cost
of sales
|
(1,376.7 | ) | (1,350.8 | ) | (25.9 | ) | (6,128.0 | ) | (4,287.7 | ) | (1,840.4 | ) | ||||||||||||
| -------- | -------- | -------- | -------- | -------- | -------- | |||||||||||||||||||
|
Gross
profit
|
344.4 | 372.3 | (27.9 | ) | 2,336.9 | 1,345.7 | 991.2 | |||||||||||||||||
|
Selling,
general and administrative expenses
|
(159.6 | ) | (166.5 | ) | 6.9 | (669.5 | ) | (517.4 | ) | (152.0 | ) | |||||||||||||
|
Other
operating income (expenses), net
|
1.4 | 5.3 | (3.9 | ) | 8.7 | 8.5 | 0.1 | |||||||||||||||||
| -------- | -------- | -------- | -------- | -------- | -------- | |||||||||||||||||||
|
Operating
income
|
186.3 | 211.1 | (24.8 | ) | 1,676.0 | 836.8 | 839.3 | |||||||||||||||||
|
Interest
expense
|
(32.7 | ) | (61.4 | ) | 28.8 | (136.1 | ) | (133.1 | ) | (3.0 | ) | |||||||||||||
|
Interest
income
|
5.9 | 13.7 | (7.9 | ) | 32.2 | 41.6 | (9.4 | ) | ||||||||||||||||
|
Other
financial(expenses)income, net
|
(654.9 | ) | 8.8 | (663.7 | ) | (693.2 | ) | (38.5 | ) | (654.7 | ) | |||||||||||||
|
Equity
in earnings of associated companies
|
1.1 | 1.6 | (0.5 | ) | 1.9 | 0.4 | 1.4 | |||||||||||||||||
| -------- | -------- | -------- | -------- | -------- | -------- | |||||||||||||||||||
|
Income
before income tax expense
|
(494.4 | ) | 173.8 | (668.1 | ) | 880.8 | 707.2 | 173.6 | ||||||||||||||||
|
Income
tax (expense) benefit
|
||||||||||||||||||||||||
|
Current
and deferred income tax expense
|
145.9 | (70.1 | ) | 216.0 | (259.0 | ) | (291.3 | ) | 32.3 | |||||||||||||||
|
Reversal
of deferred statutory profit sharing
|
- | - | - | 96.3 | - | 96.3 | ||||||||||||||||||
|
Discontinued
operations
|
- | 117.7 | (117.7 | ) | 157.1 | 579.9 | (422.8 | ) | ||||||||||||||||
|
Net
(loss) income for the period
|
(348.5 | ) | 221.4 | (569.8 | ) | 875.2 | 995.8 | (120.6 | ) | |||||||||||||||
|
Attributable
to:
|
||||||||||||||||||||||||
|
Equity
holders of the Company
|
(334.0 | ) | 165.6 | (499.6 | ) | 715.4 | 784.5 | (69.1 | ) | |||||||||||||||
|
Minority
interest
|
(14.5 | ) | 55.8 | (70.2 | ) | 159.7 | 211.3 | (51.6 | ) | |||||||||||||||
| -------- | -------- | -------- | -------- | -------- | -------- | |||||||||||||||||||
| (348.5 | ) | 221.4 | (569.8 | ) | 875.2 | 995.8 | (120.6 | ) | ||||||||||||||||
13
Consolidated balance sheet
|
US$
million
|
December
31, 2008
|
December
31, 2007(1)
|
||||||
|
Property,
plant and equipment, net
|
4,212.3 | 6,776.6 | ||||||
|
Intangible
assets, net
|
1,136.4 | 1,449.3 | ||||||
|
Investment
in associated companies
|
5.6 | 44.0 | ||||||
|
Other
investments, net
|
16.9 | 14.8 | ||||||
|
Deferred
tax assets
|
- | 31.8 | ||||||
|
Receivables,
net
|
120.2 | 236.5 | ||||||
| -------------------- | -------------------- | |||||||
|
Total
non-current assets
|
5,491.4 | 8,553.1 | ||||||
|
Receivables
|
249.0 | 405.0 | ||||||
|
Derivative
financial instruments
|
1.5 | 0.6 | ||||||
|
Inventories,
net
|
1,826.5 | 1,904.5 | ||||||
|
Trade
receivables, net
|
623.0 | 825.6 | ||||||
|
Available
for sale assets
|
1,318.9 | - | ||||||
|
Other
investments
|
90.0 | 65.3 | ||||||
|
Cash
and cash equivalents
|
1,065.6 | 1,125.8 | ||||||
| -------------------- | -------------------- | |||||||
|
Total
current assets
|
5,174.5 | 4,326.8 | ||||||
|
Non-current
assets classified
|
||||||||
|
as
held for sale
|
5.3 | 769.1 | ||||||
| -------------------- | -------------------- | |||||||
|
Total
assets
|
10,671.2 | 13,649.1 | ||||||
|
Shareholders'
equity
|
4,597.4 | 4,452.7 | ||||||
|
Minority
interest in subsidiaries
|
964.1 | 1,805.2 | ||||||
|
Minority
interest & shareholders' equity
|
5,561.5 | 6,257.9 | ||||||
|
Provisions
|
24.4 | 57.3 | ||||||
|
Deferred
income tax
|
810.2 | 1,327.8 | ||||||
|
Other
liabilities
|
148.7 | 333.7 | ||||||
|
Trade
payables
|
- | 6.7 | ||||||
|
Derivative
financial instruments
|
65.8 | - | ||||||
|
Borrowings
|
2,325.9 | 3,676.1 | ||||||
| -------------------- | -------------------- | |||||||
|
Total
non-current liabilities
|
3,375.0 | 5,401.5 | ||||||
|
Current
tax liabilities
|
194.1 | 179.7 | ||||||
|
Other
liabilities
|
103.4 | 181.0 | ||||||
|
Trade
payables
|
438.7 | 995.7 | ||||||
|
Derivative
financial
|
||||||||
|
instruments
|
57.2 | 13.3 | ||||||
|
Borrowings
|
941.5 | 406.2 | ||||||
| -------------------- | -------------------- | |||||||
|
Total
current liabilities
|
1,734.8 | 1,775.8 | ||||||
|
Liabilities
related to non-current assets classified as held for sale
|
- | 213.8 | ||||||
| -------------------- | -------------------- | |||||||
|
Total
liabilities
|
5,109.8 | 7,391.2 | ||||||
|
Total
liabilities, minority interest & shareholders' equity
|
10,671.2 | 13,649.1 | ||||||
(1)
According to IFRS 5, balances related to Sidor have been
consolidated on
a line-by-line basis as of December 31, 2007.
14
Consolidated cash flow statement
|
US$
million
|
4Q
2008
|
3Q
2008
|
Dif.
|
Year
2008
|
Year
2007
|
Dif. | ||||||||||||||||||
|
Net
income from continuing operations
|
(348.5 | ) | 250.1 | (598.6 | ) | 718.1 | 415.9 | 302.2 | ||||||||||||||||
|
Adjustments
for:
|
||||||||||||||||||||||||
|
Depreciation
and amortization
|
94.9 | 111.8 | (16.9 | ) | 413.5 | 355.3 | 58.3 | |||||||||||||||||
|
Equity
in earnings of associated companies
|
(1.1 | ) | 0.1 | (1.2 | ) | (1.9 | ) | (0.4 | ) | (1.4 | ) | |||||||||||||
|
Changes
in provisions
|
(2.3 | ) | 2.8 | (5.2 | ) | 2.4 | 3.0 | (0.6 | ) | |||||||||||||||
|
Net
foreign exchange and others
|
649.8 | 137.3 | 512.5 | 629.5 | 28.9 | 600.7 | ||||||||||||||||||
|
Interest
accruals less payments
|
1.6 | (1.1 | ) | 2.6 | (84.2 | ) | 87.6 | (171.7 | ) | |||||||||||||||
|
Income
tax accruals less payments
|
(198.5 | ) | 37.7 | (236.2 | ) | (88.5 | ) | (51.5 | ) | (37.0 | ) | |||||||||||||
|
Changes
in working capital
|
380.4 | (550.7 | ) | 931.0 | (1,071.5 | ) | 97.7 | (1,169.2 | ) | |||||||||||||||
| -------- | -------- | -------- | -------- | -------- | -------- | |||||||||||||||||||
|
Net
cash provided by (used in) operating activities
|
576.2 | (11.9 | ) | 588.1 | 517.5 | 936.4 | (418.9 | ) | ||||||||||||||||
|
Capital
expenditures
|
(172.6 | ) | (168.3 | ) | (4.3 | ) | (587.9 | ) | (344.3 | ) | (243.6 | ) | ||||||||||||
|
Proceeds
from sale of property, plant & equipment
|
0.7 | 0.4 | 0.2 | 2.1 | 24.5 | (22.4 | ) | |||||||||||||||||
|
Change
in trust funds
|
- | - | - | - | - | - | ||||||||||||||||||
|
Acquisition
of business
|
- | |||||||||||||||||||||||
|
Purchase
consideration
|
- | - | - | - | (1,728.9 | ) | 1,728.9 | |||||||||||||||||
|
Cash
acquired
|
- | - | - | - | 190.1 | (190.1 | ) | |||||||||||||||||
|
Income
tax credit paid on business acquisition
|
- | - | - | - | (297.7 | ) | 297.7 | |||||||||||||||||
|
Investments
in associated companies
|
- | - | - | - | - | - | ||||||||||||||||||
|
Increase
in Other Investments
|
(0.9 | ) | (89.1 | ) | 88.2 | (24.7 | ) | (65.3 | ) | 40.7 | ||||||||||||||
|
Proceeds
from sale of discontinued operations
|
- | (3.9 | ) | 3.9 | 718.6 | - | 718.6 | |||||||||||||||||
|
Discontinued
operations
|
- | 152.6 | (152.6 | ) | 242.4 | 419.3 | (176.9 | ) | ||||||||||||||||
| -------- | -------- | -------- | -------- | -------- | -------- | |||||||||||||||||||
|
Net
cash (used in) provided by investing activities
|
(172.8 | ) | (108.3 | ) | (64.5 | ) | 350.5 | (1,802.3 | ) | 2,152.8 | ||||||||||||||
|
Dividends
paid in cash and other distributions to company's equity
shareholders
|
- | - | - | (100.2 | ) | (100.2 | ) | - | ||||||||||||||||
|
Dividends
paid in cash and other distributions to minority
shareholders
|
- | - | - | (19.6 | ) | (20.0 | ) | 0.4 | ||||||||||||||||
|
Net
proceeds from Initial Public Offering
|
- | - | - | - | - | - | ||||||||||||||||||
|
Contributions
from shareholders
|
- | - | - | - | - | - | ||||||||||||||||||
|
Contributions
from minority shareholders in consolidated subsidiaries
|
- | - | - | - | 1.2 | (1.2 | ) | |||||||||||||||||
|
Proceeds
from borrowings
|
147.8 | 190.7 | (42.8 | ) | 519.8 | 4,052.7 | (3,532.9 | ) | ||||||||||||||||
|
Repayment
of borrowings
|
(78.9 | ) | (142.5 | ) | 63.6 | (1,152.9 | ) | (2,574.6 | ) | 1,421.7 | ||||||||||||||
| -------- | -------- | -------- | -------- | -------- | -------- | |||||||||||||||||||
|
Net
cash provided by (used in) financing activities
|
68.9 | 48.1 | 20.8 | (752.9 | ) | 1,359.0 | (2,112.0 | ) | ||||||||||||||||
|
Increase
(decrease) in cash and cash equivalents
|
472.2 | (72.1 | ) | 544.3 | 115.1 | 493.1 | (378.0 | ) | ||||||||||||||||
15
|
Shipments
|
||||||||||||||||||||
|
Thousand
tons
|
4Q 2008 | 3Q 2008 | 4Q 2007 |
FY
2008
|
FY
2007
|
|||||||||||||||
|
South
& Central America
|
559.9 | 680.4 | 699.0 | 2,604.2 | 2,499.1 | |||||||||||||||
|
North
America
|
642.2 | 901.8 | 993.6 | 3,666.1 | 3,034.9 | |||||||||||||||
|
Europe
& other
|
36.0 | 2.8 | 12.3 | 55.2 | 184.9 | |||||||||||||||
| ------- | ------- | ------- | ------- | ------- | ||||||||||||||||
|
Total
flat products
|
1,238.1 | 1,585.1 | 1,704.9 | 6,325.5 | 5,718.9 | |||||||||||||||
|
South
& Central America
|
91.9 | 86.0 | 55.2 | 302.5 | 132.8 | |||||||||||||||
|
North
America
|
213.2 | 173.3 | 268.9 | 901.3 | 1,113.4 | |||||||||||||||
|
Europe & other
|
3.6 | - | 15.0 | 13.3 | 15.0 | |||||||||||||||
| ------- | ------- | ------- | ------- | ------- | ||||||||||||||||
|
Total
long products
|
308.7 | 259.2 | 339.1 | 1,217.2 | 1,261.2 | |||||||||||||||
|
Total
flat and long products
|
1,546.8 | 1,844.3 | 2,044.0 | 7,542.7 | 6,980.1 | |||||||||||||||
|
Revenue
/ ton
|
||||||||||||||||||||
|
US$/ton
|
4Q
2008
|
3Q
2008
|
4Q
2007
|
FY
2008
|
FY
2007
|
|||||||||||||||
|
South
& Central America
|
1,147 | 1,153 | 870 | 1,068 | 815 | |||||||||||||||
|
North
America
|
1,146 | 1,412 | 882 | 1,171 | 847 | |||||||||||||||
|
Europe
& other
|
834 | 933 | 641 | 860 | 665 | |||||||||||||||
| ------- | ------- | ------- | ------- | ------- | ||||||||||||||||
|
Total
flat products
|
1,137 | 1,300 | 875 | 1,126 | 827 | |||||||||||||||
|
South
& Central America
|
780 | 1,212 | 489 | 907 | 527 | |||||||||||||||
|
North
America
|
749 | 1,108 | 611 | 878 | 625 | |||||||||||||||
|
Europe
& other
|
884 | - | 457 | 669 | 457 | |||||||||||||||
| ------- | ------- | ------- | ------- | ------- | ||||||||||||||||
|
Total
long products
|
760 | 1,142 | 585 | 883 | 613 | |||||||||||||||
|
Total
flat and long products
|
1,062 | 1,278 | 827 | 1,087 | 789 | |||||||||||||||
|
Net
Sales
|
||||||||||||||||||||
|
US$
million
|
4Q
2008
|
3Q
2008
|
4Q
2007
|
FY
2008
|
FY
2007
|
|||||||||||||||
|
South
& Central America
|
642.4 | 784.4 | 607.9 | 2,782.5 | 2,037.0 | |||||||||||||||
|
North
America
|
735.7 | 1,273.4 | 876.3 | 4,294.7 | 2,571.8 | |||||||||||||||
|
Europe
& other
|
30.0 | 2.6 | 7.9 | 47.5 | 123.0 | |||||||||||||||
| ------- | ------- | ------- | ------- | ------- | ||||||||||||||||
|
Total
flat products
|
1,408.1 | 2,060.4 | 1,492.0 | 7,124.7 | 4,731.7 | |||||||||||||||
|
South
& Central America
|
71.7 | 104.2 | 27.0 | 274.4 | 70.0 | |||||||||||||||
|
North
America
|
159.7 | 192.0 | 164.4 | 791.8 | 696.0 | |||||||||||||||
|
Europe
& other
|
3.1 | - | 6.9 | 8.9 | 6.9 | |||||||||||||||
| ------- | ------- | ------- | ------- | ------- | ||||||||||||||||
|
Total
long products
|
234.5 | 296.2 | 198.2 | 1,075.1 | 772.8 | |||||||||||||||
| ------- | ------- | ------- | ------- | ------- | ||||||||||||||||
|
Total
flat and long products
|
1,642.6 | 2,356.6 | 1,690.3 | 8,199.8 | 5,504.5 | |||||||||||||||
|
Other
products (1)
|
78.5 | 80.3 | 32.8 | 265.1 | 128.8 | |||||||||||||||
| ------- | ------- | ------- | ------- | ------- | ||||||||||||||||
|
Total
net sales
|
1,721.1 | 2,436.9 | 1,723.1 | 8,464.9 | 5,633.4 | |||||||||||||||
(1) Includes iron ore, pig iron and metal buildings.
16
Consolidated
income statement (historical series including Consorcio Minero Benito
Juarez Pena Colorada S.A. de C.V. and Pena Colorada Servicios S.A. de C.V.
under the proportionate consolidation method)
|
US$
million
|
Year
2008
|
4Q 2008 | 3Q 2008 | 2Q 2008 | 1Q 2008 | |||||||||||||||
|
Net
sales
|
8,464.9 | 1,721.1 | 2,436.9 | 2,364.2 | 1,942.6 | |||||||||||||||
|
Cost
of sales
|
(6,128.0 | ) | (1,376.7 | ) | (1,724.1 | ) | (1,579.5 | ) | (1,447.7 | ) | ||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Gross
profit
|
2,336.9 | 344.4 | 712.8 | 784.8 | 494.9 | |||||||||||||||
|
Selling,
general and administrative expenses
|
(669.5 | ) | (159.6 | ) | (184.8 | ) | (179.6 | ) | (145.5 | ) | ||||||||||
|
Other
operating income (expenses), net
|
8.7 | 1.4 | (3.8 | ) | 1.1 | 10.0 | ||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Operating
income
|
1,676.0 | 186.3 | 524.2 | 606.2 | 359.4 | |||||||||||||||
|
Interest
expense
|
(136.1 | ) | (32.7 | ) | (29.1 | ) | (30.1 | ) | (44.3 | ) | ||||||||||
|
Interest
income
|
32.2 | 5.9 | 2.2 | 12.0 | 12.1 | |||||||||||||||
|
Other
financial(expenses)income, net
|
(693.2 | ) | (654.9 | ) | (156.5 | ) | 115.3 | 3.0 | ||||||||||||
|
Equity
in earnings (losses) of associated companies
|
1.9 | 1.1 | (0.1 | ) | 0.4 | 0.4 | ||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Income
(Loss) before income tax expense
|
880.8 | (494.4 | ) | 340.6 | 703.8 | 330.6 | ||||||||||||||
|
Income
tax (expense) benefit
|
||||||||||||||||||||
|
Current
and deferred income tax expense
|
(259.0 | ) | 145.9 | (90.5 | ) | (208.2 | ) | (106.2 | ) | |||||||||||
|
Reversal
of deferred statutory profit sharing
|
96.3 | - | - | - | 96.3 | |||||||||||||||
|
Discontinued
operations
|
157.1 | - | (2.8 | ) | 0.0 | 159.9 | ||||||||||||||
|
Net
income (loss) for the year / period
|
875.2 | (348.5 | ) | 247.3 | 495.7 | 480.7 | ||||||||||||||
|
Attributable
to:
|
||||||||||||||||||||
|
Equity
holders of the Company
|
715.4 | (334.0 | ) | 211.7 | 415.6 | 422.1 | ||||||||||||||
|
Minority
interest
|
159.7 | (14.5 | ) | 35.6 | 80.0 | 58.6 | ||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
| 875.2 | (348.5 | ) | 247.3 | 495.7 | 480.7 | |||||||||||||||
|
US$
million
|
Year
2007
|
4Q 2007 | 3Q 2007 | 2Q 2007 | 1Q 2007 | |||||||||||||||
|
Net
sales
|
5,633.4 | 1,723.1 | 1,496.9 | 1,246.9 | 1,166.5 | |||||||||||||||
|
Cost
of sales
|
(4,287.7 | ) | (1,350.8 | ) | (1,135.6 | ) | (927.0 | ) | (874.3 | ) | ||||||||||
| ---------- | ---------- | ---------- | ---------- | --------- | ||||||||||||||||
|
Gross
profit
|
1,345.7 | 372.3 | 361.3 | 319.9 | 292.2 | |||||||||||||||
|
Selling,
general and administrative expenses
|
(517.4 | ) | (166.5 | ) | (143.0 | ) | (116.5 | ) | (91.5 | ) | ||||||||||
|
Other
operating income (expenses), net
|
8.5 | 5.3 | 0.4 | (3.7 | ) | 6.5 | ||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Operating
income
|
836.8 | 211.1 | 218.7 | 199.8 | 207.2 | |||||||||||||||
|
Interest
expense
|
(133.1 | ) | (61.4 | ) | (47.1 | ) | (10.4 | ) | (14.1 | ) | ||||||||||
|
Interest
income
|
41.6 | 13.7 | 12.9 | 7.7 | 7.2 | |||||||||||||||
|
Other
financial (expenses) income, net
|
(38.5 | ) | 8.8 | (53.7 | ) | (10.8 | ) | 17.2 | ||||||||||||
|
Equity
in earnings (losses) of associated companies
|
0.4 | 1.6 | (0.3 | ) | (0.4 | ) | (0.5 | ) | ||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Income
before income tax expense
|
707.2 | 173.8 | 130.4 | 186.0 | 217.0 | |||||||||||||||
|
Income
tax (expense) benefit
|
||||||||||||||||||||
|
Current
and deferred income tax expense
|
(291.3 | ) | (70.1 | ) | (63.0 | ) | (71.9 | ) | (86.3 | ) | ||||||||||
|
Reversal
of deferred statutory profit sharing
|
- | - | - | - | - | |||||||||||||||
|
Discontinued
operations
|
579.9 | 117.7 | 143.5 | 199.0 | 119.8 | |||||||||||||||
|
Net
income for the year / period
|
995.8 | 221.4 | 210.9 | 313.0 | 250.5 | |||||||||||||||
|
Attributable
to:
|
||||||||||||||||||||
|
Equity
holders of the Company
|
784.5 | 165.6 | 159.8 | 236.9 | 222.1 | |||||||||||||||
|
Minority
interest
|
211.3 | 55.8 | 51.1 | 76.1 | 28.3 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
| 995.8 | 221.4 | 210.9 | 313.0 | 250.5 | ||||||||||||||||
17
Consolidated
balance sheet (historical series including Consorcio Minero Benito
Juarez Pena Colorada S.A. de C.V. and Pena Colorada Servicios S.A. de C.V.
under the proportionate consolidation method)
|
US$
million
|
December
31, 2008
|
September
30, 2008
|
June
30, 2008
|
March
31, 2008
|
December
31, 2007
|
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Property,
plant and equipment, net
|
4,212.3 | 4,948.2 | 5,101.5 | 6,830.4 | 6,776.6 | |||||||||||||||
|
Intangible
assets, net
|
1,136.4 | 1,418.4 | 1,497.5 | 1,460.7 | 1,449.3 | |||||||||||||||
|
Investment
in associated companies
|
5.6 | 4.6 | 4.7 | 44.7 | 44.0 | |||||||||||||||
|
Other
investments, net
|
16.9 | 17.0 | 15.4 | 15.3 | 14.8 | |||||||||||||||
|
Deferred
tax assets
|
- | 5.4 | 2.2 | 24.1 | 31.8 | |||||||||||||||
|
Receivables,
net
|
120.2 | 106.4 | 96.9 | 77.5 | 236.5 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
non-current
|
||||||||||||||||||||
|
assets
|
5,491.4 | 6,499.9 | 6,718.3 | 8,452.7 | 8,553.1 | |||||||||||||||
|
Receivables
|
249.0 | 100.4 | 219.1 | 558.6 | 405.0 | |||||||||||||||
|
Derivative
financial instruments
|
1.5 | 0.1 | 0.5 | - | 0.6 | |||||||||||||||
|
Inventories,
net
|
1,826.5 | 2,752.2 | 2,328.7 | 2,119.7 | 1,904.5 | |||||||||||||||
|
Trade
receivables, net
|
623.0 | 927.1 | 1,023.1 | 898.2 | 825.6 | |||||||||||||||
|
Available
for sale assets
|
1,318.9 | 1,318.9 | 1,318.9 | - | - | |||||||||||||||
|
Other
investments
|
90.0 | 89.1 | - | 66.1 | 65.3 | |||||||||||||||
|
Cash
and cash equivalents
|
1,065.6 | 611.9 | 688.6 | 996.4 | 1,125.8 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
current
|
||||||||||||||||||||
|
assets
|
5,174.5 | 5,799.7 | 5,578.8 | 4,639.0 | 4,326.8 | |||||||||||||||
|
Current
assets classified as held for sale
|
5.3 | 6.3 | 6.7 | 7.1 | 769.1 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
assets
|
10,671.2 | 12,305.9 | 12,303.8 | 13,098.8 | 13,649.1 | |||||||||||||||
|
Shareholders'
equity
|
4,597.4 | 5,516.9 | 5,353.2 | 4,902.7 | 4,452.7 | |||||||||||||||
|
Minority
interest in subsidiaries
|
964.1 | 1,099.5 | 1,074.2 | 1,864.7 | 1,805.2 | |||||||||||||||
|
Minority
interest & shareholders' equity
|
5,561.5 | 6,616.4 | 6,427.4 | 6,767.4 | 6,257.9 | |||||||||||||||
|
Provisions
|
24.4 | 30.7 | 29.3 | 59.6 | 57.3 | |||||||||||||||
|
Deferred
income tax liabilities
|
810.2 | 977.9 | 1,221.5 | 1,147.4 | 1,327.8 | |||||||||||||||
|
Tax
liabilities
|
- | 69.5 | - | 1.5 | - | |||||||||||||||
|
Other
liabilities
|
148.7 | 171.8 | 173.4 | 361.5 | 333.7 | |||||||||||||||
|
Trade
payables
|
- | - | - | 6.6 | 6.7 | |||||||||||||||
|
Derivative
financial instruments
|
65.8 | - | - | - | - | |||||||||||||||
|
Borrowings
|
2,325.9 | 2,322.0 | 2,568.1 | 2,630.5 | 3,676.1 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
non-current
|
||||||||||||||||||||
|
liabilities
|
3,375.0 | 3,571.8 | 3,992.2 | 4,207.1 | 5,401.5 | |||||||||||||||
|
Current
tax liabilities
|
194.1 | 249.0 | 196.5 | 275.6 | 179.7 | |||||||||||||||
|
Other
liabilities
|
103.4 | 132.9 | 136.4 | 178.5 | 181.0 | |||||||||||||||
|
Trade
payables
|
438.7 | 822.3 | 940.1 | 1,098.0 | 995.7 | |||||||||||||||
|
Derivative
financial instruments
|
57.2 | 29.9 | 15.4 | 29.5 | 13.3 | |||||||||||||||
|
Borrowings
|
941.5 | 883.6 | 595.8 | 542.7 | 406.2 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
current
|
||||||||||||||||||||
|
liabilities
|
1,734.8 | 2,117.6 | 1,884.1 | 2,124.4 | 1,775.8 | |||||||||||||||
|
Liabilities
related to non-current assets classified as held for sale
|
- | - | - | - | 213.8 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
liabilities
|
5,109.8 | 5,689.4 | 5,876.3 | 6,331.4 | 7,391.2 | |||||||||||||||
|
Total
liabilities, minority interest & shareholders' equity
|
10,671.2 | 12,305.9 | 12,303.8 | 13,098.8 | 13,649.1 | |||||||||||||||
18
Consolidated
cash flow statement (historical series including Consorcio Minero Benito Juarez
Pena Colorada S.A. de C.V. and Pena Colorada Servicios S.A. de C.V. under the
proportionate consolidation method)
|
US$
million
|
Year
2008
|
4Q
2008
|
3Q
2008
|
2Q
2008
|
1Q 2008 | |||||||||||||||
|
Net
income for the period/year
|
718.1 | (348.5 | ) | 250.1 | 495.7 | 320.8 | ||||||||||||||
|
Adjustments
for:
|
||||||||||||||||||||
|
Depreciation
and amortization
|
413.5 | 94.9 | 111.8 | 101.9 | 105.0 | |||||||||||||||
|
Equity
in (earnings) losses of associated companies
|
(1.9 | ) | (1.1 | ) | 0.1 | (0.4 | ) | (0.4 | ) | |||||||||||
|
Changes
in provisions
|
2.4 | (2.3 | ) | 2.8 | 0.7 | 1.2 | ||||||||||||||
|
Net
foreign exchange and others
|
629.5 | 649.8 | 137.3 | (117.9 | ) | (39.7 | ) | |||||||||||||
|
Interest
accruals less payments
|
(84.2 | ) | 1.6 | (1.1 | ) | 3.0 | (87.7 | ) | ||||||||||||
|
Income
tax accruals less payments
|
(88.5 | ) | (198.5 | ) | 37.7 | 139.7 | (67.3 | ) | ||||||||||||
|
Changes
in working capital
|
(1,071.5 | ) | 380.4 | (550.7 | ) | (671.1 | ) | (230.1 | ) | |||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Net
cash provided by (used in) operating activities
|
517.5 | 576.2 | (11.9 | ) | (48.5 | ) | 1.7 | |||||||||||||
|
Capital
expenditures
|
(587.9 | ) | (172.6 | ) | (168.3 | ) | (146.5 | ) | (100.5 | ) | ||||||||||
|
Proceeds
from sale of property, plant & equipment
|
2.1 | 0.7 | 0.4 | 0.3 | 0.7 | |||||||||||||||
|
Acquisition
of business
|
||||||||||||||||||||
|
Purchase
consideration
|
- | - | - | - | - | |||||||||||||||
|
Cash
acquired
|
- | - | - | - | - | |||||||||||||||
|
Income
tax credit paid on business acquisition
|
- | - | - | - | - | |||||||||||||||
|
(Increase)
Decrease in Other Investments
|
(24.7 | ) | (0.9 | ) | (89.1 | ) | 66.1 | (0.8 | ) | |||||||||||
|
Proceeds
from sale of discontinued operations
|
718.6 | - | (3.9 | ) | - | 722.5 | ||||||||||||||
|
Discontinued
operations
|
242.4 | - | 152.6 | 57.7 | 32.2 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Net
cash provided by
|
||||||||||||||||||||
|
(used
in) investing
|
||||||||||||||||||||
|
activities
|
350.5 | (172.8 | ) | (108.3 | ) | (22.4 | ) | 654.0 | ||||||||||||
|
Dividends
paid in cash and other distributions to company's equity
shareholders
|
(100.2 | ) | - | - | (100.2 | ) | - | |||||||||||||
|
Dividends
paid in cash and other distributions to minority
shareholders
|
(19.6 | ) | - | - | (19.6 | ) | - | |||||||||||||
|
Contributions
from minority shareholders in consolidated subsidiaries
|
- | - | - | - | - | |||||||||||||||
|
Proceeds
from borrowings
|
519.8 | 147.8 | 190.7 | 76.3 | 105.0 | |||||||||||||||
|
Repayment
of borrowings
|
(1,152.9 | ) | (78.9 | ) | (142.5 | ) | (40.3 | ) | (891.2 | ) | ||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Net
cash (used in) provided by financing activities
|
(752.9 | ) | 68.9 | 48.1 | (83.8 | ) | (786.2 | ) | ||||||||||||
|
Increase
(Decrease) in cash and cash equivalents
|
115.1 | 472.2 | (72.1 | ) | (154.6 | ) | (130.4 | ) | ||||||||||||
19
Consolidated
cash flow statement (historical series including Consorcio Minero
Benito Juarez Pena Colorada S.A. de C.V. and Pena Colorada Servicios
S.A. de
C.V. under the proportionate consolidation method)
|
US$
million
|
Year
2007
|
4Q 2007 | 3Q 2007 | 2Q 2007 | 1Q 2007 | |||||||||||||||
|
Net
income for the period/year
|
415.9 | 103.7 | 67.4 | 114.1 | 130.7 | |||||||||||||||
|
Adjustments
for:
|
||||||||||||||||||||
|
Depreciation
and amortization
|
355.3 | 118.9 | 94.2 | 77.6 | 64.6 | |||||||||||||||
|
Equity
in (earnings) losses of associated companies
|
(0.4 | ) | (1.6 | ) | 0.3 | 0.4 | 0.5 | |||||||||||||
|
Changes
in provisions
|
3.0 | 2.1 | 0.6 | 0.5 | (0.3 | ) | ||||||||||||||
|
Net
foreign exchange and others
|
28.9 | (13.1 | ) | 45.3 | 10.0 | (13.4 | ) | |||||||||||||
|
Interest
accruals less payments
|
87.6 | 54.9 | 35.4 | 2.4 | (5.1 | ) | ||||||||||||||
|
Income
tax accruals less payments
|
(51.5 | ) | (31.1 | ) | (16.2 | ) | (68.0 | ) | 63.8 | |||||||||||
|
Changes
in working capital
|
97.7 | (49.3 | ) | 4.1 | 54.9 | 88.1 | ||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Net
cash provided by (used in) operating activities
|
936.4 | 184.7 | 231.1 | 191.8 | 328.8 | |||||||||||||||
|
Capital
expenditures
|
(344.3 | ) | (100.1 | ) | (81.5 | ) | (76.0 | ) | (86.7 | ) | ||||||||||
|
Proceeds
from sale of property, plant & equipment
|
24.5 | 17.8 | 0.5 | 1.1 | 5.1 | |||||||||||||||
|
Acquisition
of business
|
||||||||||||||||||||
|
Purchase
consideration
|
(1,728.9 | ) | (0.1 | ) | (1,728.7 | ) | (0.1 | ) | - | |||||||||||
|
Cash
acquired
|
190.1 | - | 190.1 | - | - | |||||||||||||||
|
Income
tax credit paid on business acquisition
|
(297.7 | ) | - | (297.7 | ) | - | - | |||||||||||||
|
Investments
in associated companies
|
- | |||||||||||||||||||
|
(Increase)
Decrease in Other
|
||||||||||||||||||||
|
Investments
|
(65.3 | ) | (0.8 | ) | (64.5 | ) | - | - | ||||||||||||
|
Discontinued
operations
|
419.3 | 34.1 | 116.0 | 59.9 | 209.4 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Net
cash (used in) provided by investing activities
|
(1,802.3 | ) | (49.1 | ) | (1,865.8 | ) | (15.2 | ) | 127.8 | |||||||||||
|
Dividends
paid in cash and other distributions to company's equity
shareholders
|
(100.2 | ) | - | - | (100.2 | ) | - | |||||||||||||
|
Dividends
paid in cash and other distributions to minority
shareholders
|
(20.0 | ) | - | (0.1 | ) | (19.9 | ) | - | ||||||||||||
|
Contributions
from minority shareholders in consolidated subsidiaries
|
1.2 | 0.0 | 1.1 | - | - | |||||||||||||||
|
Proceeds
from borrowings
|
4,052.7 | 70.8 | 3,869.7 | 72.1 | 40.1 | |||||||||||||||
|
Repayment
of borrowings
|
(2,574.6 | ) | (157.5 | ) | (1,889.6 | ) | (371.6 | ) | (156.0 | ) | ||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Net
cash provided by (used in)
financing activities
|
1,359.0 | (86.7 | ) | 1,981.1 | (419.6 | ) | (115.8 | ) | ||||||||||||
|
Increase
(Decrease) in cash and cash equivalents
|
493.1 | 48.9 | 346.4 | (243.0 | ) | 340.7 | ||||||||||||||
20
Net Sales
(historical series including Consorcio Minero Benito Juarez Pena Colorada S.A.
de C.V. and Pena Colorada Servicios S.A. de C.V. under the proportionate
consolidation method)
Shipments (historical series ex-Sidor)
|
Thousand
tons
|
Year
2008
|
4Q 2008 | 3Q 2008 | 2Q 2008 | 1Q 2008 | |||||||||||||||
|
South
& Central America
|
2,604.2 | 559.9 | 680.4 | 690.9 | 673.0 | |||||||||||||||
|
North
America
|
3,666.1 | 642.2 | 901.8 | 1,042.2 | 1,080.0 | |||||||||||||||
|
Europe
& other
|
55.2 | 36.0 | 2.8 | 11.6 | 4.8 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
flat products
|
6,325.5 | 1,238.1 | 1,585.1 | 1,744.7 | 1,757.7 | |||||||||||||||
|
South
& Central America
|
302.5 | 91.9 | 86.0 | 67.9 | 56.7 | |||||||||||||||
|
North
America
|
901.3 | 213.2 | 173.3 | 249.6 | 265.3 | |||||||||||||||
|
Europe
& other
|
13.3 | 3.6 | - | 1.0 | 8.8 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
long products
|
1,217.2 | 308.7 | 259.2 | 318.5 | 330.7 | |||||||||||||||
|
Total
flat and long products
|
7,542.7 | 1,546.8 | 1,844.3 | 2,063.2 | 2,088.5 | |||||||||||||||
|
Revenue
/ ton (historical series ex-Sidor)
|
||||||||||||||||||||
|
US$/ton
|
Year
2008
|
4Q
2008
|
3Q
2008
|
2Q
2008
|
1Q 2008 | |||||||||||||||
|
South
& Central America
|
1,068 | 1,147 | 1,153 | 1,042 | 945 | |||||||||||||||
|
North
America
|
1,171 | 1,146 | 1,412 | 1,213 | 945 | |||||||||||||||
|
Europe
& other
|
860 | 834 | 933 | 864 | 1,008 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
flat products
|
1,126 | 1,137 | 1,300 | 1,143 | 945 | |||||||||||||||
|
South
& Central America
|
907 | 780 | 1,212 | 913 | 643 | |||||||||||||||
|
North
America
|
878 | 749 | 1,108 | 1,017 | 703 | |||||||||||||||
|
Europe
& other
|
669 | 884 | - | 630 | 587 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
long products
|
883 | 760 | 1,142 | 993 | 689 | |||||||||||||||
|
Total
flat and long
|
||||||||||||||||||||
|
products
|
1,087 | 1,062 | 1,278 | 1,120 | 905 | |||||||||||||||
|
Net
Sales (historical series ex-Sidor)
|
||||||||||||||||||||
|
US$
million
|
Year
2008
|
4Q
2008
|
3Q
2008
|
2Q
2008
|
1Q
2008
|
|||||||||||||||
|
South
& Central
|
||||||||||||||||||||
|
America
|
2,782.5 | 642.4 | 784.4 | 719.9 | 635.8 | |||||||||||||||
|
North
America
|
4,294.7 | 735.7 | 1,273.4 | 1,264.6 | 1,021.0 | |||||||||||||||
|
Europe
& other
|
47.5 | 30.0 | 2.6 | 10.0 | 4.8 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
flat products
|
7,124.7 | 1,408.1 | 2,060.4 | 1,994.5 | 1,661.6 | |||||||||||||||
|
South
& Central
|
||||||||||||||||||||
|
America
|
274.4 | 71.7 | 104.2 | 62.1 | 36.4 | |||||||||||||||
|
North
America
|
791.8 | 159.7 | 192.0 | 253.8 | 186.4 | |||||||||||||||
|
Europe
& other
|
8.9 | 3.1 | - | 0.6 | 5.2 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
long products
|
1,075.1 | 234.5 | 296.2 | 316.4 | 228.0 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
flat and long products
|
8,199.8 | 1,642.6 | 2,356.6 | 2,311.0 | 1,889.6 | |||||||||||||||
|
Other
products (1)
|
265.1 | 78.5 | 80.3 | 53.2 | 53.0 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
net sales
|
8,464.9 | 1,721.1 | 2,436.9 | 2,364.2 | 1,942.6 | |||||||||||||||
|
Shipments
(historical series ex-Sidor)
|
||||||||||||||||||||
|
Thousand
tons
|
Year
2007
|
4Q
2007
|
3Q
2007
|
2Q
2007
|
1Q
2007
|
|||||||||||||||
|
South
& Central America
|
2,499.1 | 699.0 | 637.8 | 598.9 | 563.5 | |||||||||||||||
|
North
America
|
3,034.9 | 993.6 | 834.7 | 592.1 | 614.5 | |||||||||||||||
|
Europe
& other
|
184.9 | 12.3 | 18.5 | 101.2 | 52.8 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
flat products
|
5,718.9 | 1,704.9 | 1,491.0 | 1,292.1 | 1,230.8 | |||||||||||||||
|
South
& Central America
|
132.8 | 55.2 | 52.3 | 25.3 | - | |||||||||||||||
|
North
America
|
1,113.4 | 268.9 | 244.8 | 286.4 | 313.3 | |||||||||||||||
|
Europe
& other
|
15.0 | 15.0 | - | - | - | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
long products
|
1,261.2 | 339.1 | 297.1 | 311.7 | 313.3 | |||||||||||||||
|
Total
flat and long products
|
6,980.1 | 2,044.0 | 1,788.1 | 1,603.9 | 1,544.1 | |||||||||||||||
|
Revenue
/ ton (historical series ex-Sidor)
|
||||||||||||||||||||
|
US$/ton
|
Year
2007
|
4Q
2007
|
3Q
2007
|
2Q
2007
|
1Q
2007
|
|||||||||||||||
|
South
& Central America
|
815 | 870 | 829 | 779 | 769 | |||||||||||||||
|
North
America
|
847 | 882 | 877 | 817 | 781 | |||||||||||||||
|
Europe
& other
|
665 | 641 | 619 | 682 | 654 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
flat products
|
827 | 875 | 853 | 789 | 770 | |||||||||||||||
|
South
& Central America
|
527 | 489 | 550 | 565 | - | |||||||||||||||
|
North
America
|
625 | 611 | 637 | 638 | 616 | |||||||||||||||
|
Europe
& other
|
457 | 457 | - | - | - | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
long products
|
613 | 585 | 622 | 632 | 616 | |||||||||||||||
|
Total
flat and long products
|
789 | 827 | 815 | 758 | 739 | |||||||||||||||
|
Net
Sales (historical series ex-Sidor)
|
||||||||||||||||||||
|
US$
million
|
Year
2007
|
4Q
2007
|
3Q
2007
|
2Q
2007
|
1Q
2007
|
|||||||||||||||
|
South
& Central America
|
2,037.0 | 607.9 | 528.9 | 466.6 | 433.5 | |||||||||||||||
|
North
America
|
2,571.8 | 876.3 | 731.8 | 483.6 | 480.1 | |||||||||||||||
|
Europe
& other
|
123.0 | 7.9 | 11.5 | 69.1 | 34.5 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
flat products
|
4,731.7 | 1,492.0 | 1,272.2 | 1,019.2 | 948.2 | |||||||||||||||
|
South
& Central America
|
70.0 | 27.0 | 28.7 | 14.3 | - | |||||||||||||||
|
North
America
|
696.0 | 164.4 | 156.0 | 182.6 | 192.9 | |||||||||||||||
|
Europe
& other
|
6.9 | 6.9 | - | - | - | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
long products
|
772.8 | 198.2 | 184.8 | 196.9 | 192.9 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
flat and long products
|
5,504.5 | 1,690.3 | 1,457.0 | 1,216.2 | 1,141.1 | |||||||||||||||
|
Other
products (1)
|
128.8 | 32.8 | 39.8 | 30.7 | 25.4 | |||||||||||||||
| --------- | --------- | --------- | --------- | --------- | ||||||||||||||||
|
Total
net sales
|
5,633.4 | 1,723.1 | 1,496.9 | 1,246.9 | 1,166.5 | |||||||||||||||
(1)
Includes iron ore, pig iron and metal buildings.
Sebastian
Marti
Ternium -
Investor Relations
+1 (866)
890 0443
+52 (81)
8865 2111
+54 (11)
4018 2389
www.ternium.com
21