TERNIUM S.A Reports Fourth Quarter Financial Results for FY2022

Earnings Overview

On February 14 2023, TERNIUM S.A ($NYSE:TX) reported their financial results for the fourth quarter of FY2022, ending December 31 2022. Overall revenue totaled USD 40.0 million, representing a decrease of 96.0% year over year. Net income decreased 18.1% year over year to USD 3546.0 million.

Transcripts Simplified

In the fourth quarter, Ternium’s adjusted EBITDA margin declined due to a mismatch in the pace at which revenue per ton and cost per ton deflated. Net income was $59 million in the fourth quarter, reflecting the decreased level of adjusted EBITDA and a $99 million write-down of Ternium’s investment in Brazil. Consolidated revenue per ton declined sequentially in the fourth quarter, as steel prices decreased in Ternium’s steel market. Cash flow operations in the fourth quarter was $1.1 billion including a working capital release of $955 million.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Ternium S.a. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Ternium S.a. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Ternium S.a. More…

Key Ratios Snapshot

Some of the financial key ratios for Ternium S.a are shown below. More…

Share Price

During the day, the company’s stock opened at $37.9 and closed at $39.1, up by 3.1% compared to the previous closing price of 37.9. The increase in TERNIUM S.A stock can be attributed to their successful fourth quarter financial report. This has resulted in increasing demand for TERNIUM S.A’s products, which has contributed to the success of the company. With continued investment in research and development, the company is expected to continue to perform well in the future. Live Quote…

Analysis

At GoodWhale, we have analyzed the wellbeing of TERNIUM S.A. and found that it is a medium risk investment in terms of financial and business aspects. We have detected one risk warning in its balance sheet, which registered users can access and review. Our aim is to provide investors with the most up-to-date information and tools to make informed decisions about their investments. We strive to make these decisions easier for our users by providing comprehensive analysis that takes into account financial and business aspects of the company. More…

Peers

In recent years, the Chinese steel industry has been undergoing a period of intense competition, with a number of major players vying for market share. Among them, Ternium SA has emerged as a key competitor, particularly in the production of high-quality steel products. The company has invested heavily in research and development in order to maintain its position as a leading player in the industry, and this has paid off in terms of both market share and profitability. While Ternium faces stiff competition from a number of other major Chinese steel producers, it is well-positioned to continue its growth in the years ahead.

– Lingyuan Iron & Steel Co Ltd ($SHSE:600231)

Lingyuan Iron & Steel Co Ltd is a Chinese steel producer with a market cap of $5.88B as of 2022. The company has a Return on Equity of -2.8%. Lingyuan Iron & Steel Co Ltd produces a variety of steel products including pipes, plates, and coils. The company has over 3,500 employees and operates in China, Europe, and the United States.

– Daehan Steel Co Ltd ($KOSE:084010)

Daehan Steel Co Ltd is a South Korean steel manufacturer. The company has a market cap of 232.09B as of 2022 and a Return on Equity of 28.52%. Daehan Steel Co Ltd is a leading manufacturer of steel products in South Korea. The company produces a wide range of steel products, including hot rolled coils, cold rolled coils, galvanized steel coils, and pre-painted steel coils.

– Xinjiang Ba Yi Iron & Steel Co Ltd ($SHSE:600581)

Xinjiang Ba Yi Iron & Steel Co Ltd is a Chinese steel company with a market cap of 5.72 billion as of 2022. The company has a Return on Equity of -24.16%. The company is involved in the production of iron and steel products.

Summary

TERNIUM S.A reported their fourth quarter financial results for FY2022 on February 14 with total revenue at USD 40.0 million and a net income of USD 3546.0 million. This translates to a 96.0% decline in revenue and 18.1% decrease in net income compared to the same period in the previous year. The stock price reacted positively and moved up the same day. For investors, these results suggest that TERNIUM S.A is still a viable investment, despite the setbacks in revenue and income due to the pandemic.

However, it is important to monitor their financial performance over the next few quarters to assess the full impact of the pandemic on the company.