New Report Preview

Ternium S.A. (TX) reported 4Q EBITDA of $369.6m, beating the Street’s forecast of $346.3m and 4Q 2010 EBITDA of $237m but down 18% sequentially.

Guidance is for operating income to decrease sequentially in 1Q mainly because of higher costs owing to exchange rate changes and higher cost slabs flowing through inventory. Shipments are expected to be stable, with stronger shipments in Mexico in 1Q as North American demand improves offsetting a seasonally slower period in Argentina.

Management noted that it will have more details about the company’s Usiminas investment in March.

Our full report is available to subscribers only and provides further thoughts on Ternium’s 4Q earnings report and conference call as well as the implication for the stock and other equities.

For a free trial subscription, please contact us.