Ternium SA, the second-largest steelmaker in Latin America, said profit rose 71 percent as demand recovered from the worst recession in seven decades.
Net income climbed to $151.7 million, or 76 cents per American depositary share, from $88.5 million, or 44 cents, a year earlier, Ternium, based in Luxembourg, said today in a statement.
Profit and sales plunged last year as the U.S. and other countries struggled to recover from the global recession, the deepest in 70 years. North America is Ternium’s largest market.
“Last year you were in the middle of the crisis, so it’s obvious that year-on-year results will be better,” Christian Reos, a Buenos Aires-based analyst with Allaria Ledesma, said in a Nov. 1 telephone interview.
Ternium’s third-quarter sales increased 47 percent to $1.9 billion. Shipments rose 19 percent and revenue per ton gained 24 percent.
Ternium said it expects shipments to stay stable in coming quarters compared with the third quarter, even as demand in Latin America recovers. Increased prices for raw materials and slabs in the second and third quarter are forecast to be passed on in fourth-quarter costs, the company said.
Ternium fell 0.4 percent to $35.26 in New York Stock Exchange composite trading. The earnings report was released after the closing of regular trading on North American markets. The stock has gained 41 percent in the past year.
Latin America’s biggest steelmaker is Brazil’s Gerdau SA.
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