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 8/2/2007
Ternium S.A.
(Translation of Registrant's name into English)
Ternium S.A.
46a, Avenue John F. Kennedy - 2nd floor
L-1855 Luxembourg
(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 _X_ 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 _X_
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): Not applicable
Ternium Announces Second Quarter and First Half 2007 Results
LUXEMBOURG--(BUSINESS WIRE)--Aug. 2, 2007--Ternium S.A. (NYSE:TX) today
announced its results for the second quarter and six months ended June 30, 2007.
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 Second Quarter 2007 Results
2Q 2007 2Q 2006 1Q 2007
Shipments (million tons) 2.6 2.4 6% 2.5 3%
Net Sales (US$ million) 1,961.1 1,707.7 15% 1,798.3 9%
Operating Income (US$ million) 450.6 476.7 -5% 415.4 8%
EBITDA(a) (US$ million) 580.8 582.2 0% 530.7 9%
EBITDA Margin (% of net sales) 30% 34% 30%
Net Income (US$ million) 315.0 289.2 9% 251.6 25%
Equity Holders' Net Income (US$
million) 236.9 232.6 2% 222.1 7%
Earnings per ADS (US$) 1.18 1.16 2% 1.11 7%
(a) Second quarter 2007 EBITDA equals operating income of US$450.6
million plus depreciation and amortization of US$130.2 million.
Net sales increased 15% during the second quarter 2007 compared to net
sales in the second quarter 2006 as a result of a 9% increase in revenue per ton
and 6% increase in shipments. Prices were higher across most of Ternium's
markets and steel demand increased in the South & Central America Region while
it decreased in the North America Region.
During the second quarter 2007, operating income was 5% lower than it was
in the second quarter 2006. Higher shipments and steel prices were offset by
higher raw material, freight and labor costs, as well as higher amortizations
mainly as a result of new acquisitions and assessments of useful life. Net
income during the second quarter 2007 was 9% higher than that of the second
quarter 2006. The decrease in operating income was offset by lower financial and
income tax expenses. Equity holders' net income during the second quarter 2007
was 2% higher than that of the second quarter 2006.
Grupo Imsa
On July 26, 2007, Ternium obtained full ownership of Grupo Imsa S.A.B. de
C.V., a leading flat steel manufacturer with operations in Mexico, the United
States and Guatemala. The value of the transaction was US$3.1 billion, including
Grupo Imsa's net debt. Ternium will consolidate Grupo Imsa's balance sheet and
results of operations in its consolidated financial statements from July 26,
2007 onward.
Outlook
Sales volume will increase following the consolidation of Grupo Imsa.
Excluding this effect, Ternium expects sales volume to decrease slightly in the
near term from second quarter 2007 levels. This is due mainly to an expected
decrease in production levels resulting from maintenance work carried out in
July 2007 at one of Ternium's blast furnaces in the South & Central America
Region, as well as from the revamping of one of the Company's hot roll mills in
the North America Region that is expected to increase the mill's production
capacity.
The aforementioned maintenance work and revamping are expected to increase
maintenance costs and related expenses in the near term from second quarter 2007
levels. Labor costs at Sidor also could increase as a result of negotiations
currently underway for a new, two-year collective bargaining agreement.
Demand and prices in the North American market have been softening as a
result of a slowdown in the construction sector. However, inventory levels are
normalizing and Ternium does not expect major changes in the near future. Steel
prices in the South & Central America Region should remain relatively stable,
although steel prices in the Venezuelan local market could change as a result of
Ternium's ongoing negotiations with the Venezuelan Government.
Analysis of Second Quarter 2007 Results
Net income attributable to the Company's equity holders for the second
quarter 2007 was US$236.9 million, compared with US$232.6 million in the second
quarter 2006. Including minority interest, net income for the second quarter
2007 was US$315.0 million, compared with US$289.2 million in the second quarter
2006. Earnings per ADS for the second quarter 2007 were US$1.18, compared with
US$1.16 in the second quarter 2006.
Net sales for the second quarter 2007 increased 15% to US$2.0 billion
compared with the same period in 2006. This was due mainly to higher prices
across most markets and higher shipments in the South & Central America Region,
partially offset by lower shipments in the North America Region. Shipments of
flat and long products reached 2.6 million tons during the second quarter 2007,
an increase of 6% compared to shipment levels in the second quarter 2006.
Revenue per ton shipped increased 9% to US$741 in the second quarter 2007 versus
the same quarter in 2006.
Net Sales Shipments Revenue / ton
(million US$) (thousand tons) (US$/ton)
2Q 2007 2Q 2006 Dif. 2Q 2007 2Q 2006 Dif. 2Q 2Q Dif.
2007 2006
South &
Central
America 960.6 775.3 24% 1,251.5 1,161.9 8% 768 667 15%
North
America 486.7 520.4 -6% 598.0 656.2 -9% 814 793 3%
Europe &
other 74.5 8.0 835% 111.0 15.9 598% 671 501 34%
------- ------- ---- ------- ------- ---- ----- ----- ----
Total flat
products 1,521.8 1,303.6 17% 1,960.4 1,834.1 7% 776 711 9%
South &
Central
America 198.6 130.8 52% 320.1 237.3 35% 621 551 13%
North
America 182.6 211.9 -14% 286.4 341.5 -16% 638 620 3%
------- ------- ---- ------- ------- ---- ----- ----- ----
Total long
products 381.3 342.7 11% 606.5 578.8 5% 629 592 6%
Total flat
and long
products 1,903.1 1,646.3 16% 2,567.0 2,412.9 6% 741 682 9%
Other
products
(1) 57.9 61.4 -6%
------- ------- ----
Total Net
Sales 1,961.1 1,707.7 15%
(1) Includes iron ore and pig iron.
Sales of flat products during the second quarter 2007 totaled US$1.5
billion, an increase of 17% compared with the same quarter in 2006. This was the
result of higher prices across most markets and higher shipments in the South &
Central America Region, partially offset by lower shipments in the North America
Region. Shipments of flat products totaled 2.0 million tons in the second
quarter 2007, an increase of 7% compared with the same period in 2006. Revenue
per ton shipped increased 9% to US$776 in the second quarter 2007 compared with
the same period in 2006.
Sales of long products were US$381.3 million during the second quarter
2007, an increase of 11% compared to the same period in 2006, due to higher
prices across most markets and higher shipments in the South & Central America
Region, partially offset by lower shipments in the North America Region.
Shipments totaled 607,000 tons in the second quarter 2007, representing a 5%
increase versus the same quarter in 2006. Revenue per ton shipped increased 6%
to US$629 in the second quarter 2007 over the second quarter 2006, despite the
fact that revenue per ton was lower year-over-year in certain North American
markets that had experienced exceptionally tight supply/demand conditions during
the second quarter 2006.
Sales of other products totaled US$57.9 million during the second quarter
2007, compared to US$61.4 million in the same period in 2006.
Flat and long product sales in the South & Central America Region were
US$1.2 billion during the second quarter 2007, an increase of 28% versus the
same period in 2006. This increase was due to higher volumes and revenue per
ton. Shipments in the region totaled 1.6 million tons during the second quarter
2007, or 12% higher than in the second quarter 2006, due to an increase in the
demand. Revenue per ton shipped in the region increased 14% to US$738 in the
second quarter 2007 over the same quarter in 2006, mainly due to higher prices
and a higher value added mix of sales.
Sales of flat and long products in the North America Region were US$669.3
million in the second quarter 2007, a decrease of 9% versus the same period in
2006, mainly due to lower shipments, partially offset by slightly higher prices.
Shipments in the region totaled 884,000 tons during the second quarter 2007, or
11% lower than the same period in 2006. Revenue per ton shipped in the region
increased 3% to US$757 in the second quarter 2007 over the same quarter in 2006,
despite the fact that revenue per ton was lower year-over-year in certain long
product markets that had experienced exceptionally tight supply/demand
conditions during the second quarter 2006.
Cost of sales totaled US$1.3 billion in the second quarter 2007, or 67% of
net sales, compared to US$1.1 billion, or 63% of net sales, in the second
quarter 2006. The higher year-over-year cost of sales was due mainly to an
increase in shipments volume and a higher value added mix of sales, higher raw
material and labor costs and higher amortizations mainly as a result of new
acquisitions and assessments of useful life.
Prices for iron ore supplies to the Argentine and Venezuelan operations
were higher during the second quarter 2007 than they were in the same period in
2006. Second quarter scrap and zinc prices also increased year-over-year.
Natural gas and electricity costs were higher in Mexico and Venezuela
during the second quarter 2007 compared to the same period in 2006. Labor costs
in Mexico, Argentina and Venezuela increased year-over-year during the second
quarter 2007.
Selling, general and administrative (SG&A) expenses in the second quarter
2007 were US$198.3 million, or 10% of net sales, compared with US$155.1 million,
or 9% of net sales, in the second quarter 2006. The increase in SG&A was due
mainly to higher freight expenses related to a higher level of shipments and a
year-over-year increase in labor costs in Mexico, Argentina and Venezuela.
Operating income in the second quarter 2007 was US$450.6 million, or 23% of
net sales, compared with US$476.7 million, or 28% of net sales, in the second
quarter 2006.
EBITDA(1) in the second quarter 2007 was US$580.8 million, or 30% of net
sales, compared with US$582.2 million, or 34% of net sales, in the second
quarter 2006. Equity holders' EBITDA in the second quarter 2007 was 65% of
EBITDA.
Net financial expenses totaled US$86.9 million in the second quarter 2007,
compared with US$108.2 million in the same period in 2006. This reduction was
mainly due to a US$17.8 million decrease in net interest expense, which was
primarily associated with a reduction in net debt, and a US$4.6 million decrease
in the excess cash distribution related to Sidor's participation accounts.
Sidor's excess cash distribution related to the participation account was
US$173.0 million in the second quarter 2007 compared with US$184.4 million in
the second quarter 2006. The recognition of payments to minority shareholders of
Sidor resulted in expenses for Ternium of US$69.7 million in the second quarter
2007, compared with expenses of US$74.2 million in the same period in 2006.
Income tax expense for the second quarter 2007 was US$48.3 million, or 13%
of income before income tax and minority interest, compared with US$80.2
million, or 22% of income before income tax and minority interest, in the second
quarter 2006. The lower expense in the second quarter 2007 was mainly related to
a lower gain at the North America Region.
Income attributable to minority interest for the second quarter 2007 was
US$78.0 million, compared with US$56.6 million in the second quarter 2006. The
year-over-year increase was due mainly to higher income attributable to minority
interest in Sidor, partially offset by a reduction in minority interest in
Siderar on account of Ternium's acquisition of an additional 4.85% stake in
Siderar in December 2006.
Cash Flow and Liquidity
Net cash provided by operating activities in the second quarter 2007 was
US$366.8 million. Capital expenditures in the second quarter 2007 were US$94.6
million, compared to US$96.3 million in the second quarter 2006. Investments
during the second quarter 2007 were made mainly for the upgrading of the hot
strip mill in Mexico, the construction of new coking facilities in Argentina and
the construction of a new ladle furnace in Venezuela. Net cash used in financing
activities during the second quarter 2007 was US$516.2 million, of which
US$396.1 million were net reductions in borrowings, US$100.2 million was
Ternium's annual dividend payment and US$19.9 million was Siderar's annual
dividend payment to minority shareholders.
Ternium's net cash position (cash and cash equivalents and other current
investments less borrowings) increased by US$139.3 million during the second
quarter 2007 to US$163.5 million as of June 30, 2007, compared to net debt of
US$413.7 million as of December 31, 2006. Total financial debt was US$567.3
million as of June 30, 2007, compared to US$1.1 billion as of December 31, 2006.
To finance the Grupo Imsa transaction consummated on July 26, 2007,
partially refinance existing debt and pay associated taxes and expenses, Ternium
and certain of its Mexican subsidiaries (including Grupo Imsa) are or will
become parties to syndicated term loan facilities in the aggregate principal
amount of up to US$3.8 billion.
Analysis of First Half 2007 Results
Net income attributable to the Company's equity holders for the first half
ended June 30, 2007 was US$459.1 million, compared with US$397.6 million for the
first half ended June 30, 2006. Including minority interest, net income for the
first half 2007 was US$566.6 million, compared with US$483.7 million for the
first half 2006. Earnings per ADS were US$2.29 in the first half 2007.
Net sales for the first half 2007 increased 16% to US$3.8 billion, compared
with the same period in 2006, mainly due to higher demand and prices in the
South & Central America Region. Shipments of flat and long products reached 5.1
million tons during the first half 2007, an increase of 9% compared to shipment
levels in the first half 2006. Revenue per ton shipped increased 7% to US$721 in
the first half 2007 versus the same period in 2006.
Net Sales Shipments Revenue / ton
(million US$) (thousand tons) (US$/ton)
1H 2007 1H 2006 Dif. 1H 2007 1H 2006 Dif. 1H 1H Dif.
2007 2006
South &
Central
America 1,782.4 1,467.8 21% 2,363.3 2,207.2 7% 754 665 13%
North
America 1,009.2 1,011.4 0% 1,296.4 1,298.6 0% 779 779 0%
Europe &
other 123.1 22.5 447% 193.7 42.5 356% 636 530 20%
------- ------- ---- ------- ------- ---- ----- ----- ----
Total flat
products 2,914.8 2,501.8 17% 3,853.3 3,548.3 9% 756 705 7%
South &
Central
America 363.5 252.3 44% 612.9 474.7 29% 593 531 12%
North
America 375.5 373.3 1% 599.7 638.0 -6% 626 585 7%
------- ------- ---- ------- ------- ---- ----- ----- ----
Total long
products 739.0 625.6 18% 1,212.6 1,112.6 9% 609 562 8%
Total flat
and long
products 3,653.8 3,127.3 17% 5,065.9 4,660.9 9% 721 671 7%
Other
products
(1) 105.6 111.3 -5%
------- ------- ----
Total Net
Sales 3,759.4 3,238.7 16%
(1) Includes iron ore and pig iron.
Sales of flat products during the first half 2007 totaled US$2.9 billion,
an increase of 16% compared with the same period in 2006. This was the result
mainly of higher demand and prices in the South & Central America Region.
Shipments totaled 3.9 million tons in the first half 2007, an increase of 9%
compared with the same period in 2006. Revenue per ton shipped increased 7% to
US$756 in the first half 2007 compared with the same period in 2006.
Sales of long products were US$739.0 million during the first half 2007, an
increase of 18% compared to the same period in 2006. This was due to higher
prices across most markets and higher shipments in the South & Central America
Region, partially offset by lower shipments in the North America Region.
Shipments totaled 1.2 million tons in the first half 2007, representing a 9%
increase versus the same period in 2006. Revenue per ton shipped increased 8% to
US$609 in the first half 2007 over the first half 2006.
Sales of other products totaled US$105.6 million during the first half 2007
compared to US$111.3 million during the same period in 2006.
Flat and long product sales in the South & Central America Region were
US$2.1 billion during the first half 2007, an increase of 25% versus the same
period in 2006. This increase was due to higher volumes and revenue per ton.
Shipments in the region totaled 3.0 million tons during the first half 2007, or
11% higher than in the first half 2006, due to an increase in demand. Revenue
per ton shipped in the region increased 12% to US$721 in the first half 2007
over the same period in 2006, mainly due to higher prices and a higher value
added mix of sales.
Sales of flat and long products in the North America Region totaled US$1.4
billion in the first half 2007, a level similar to that achieved during the same
period in 2006. This was due mainly to lower volumes offset by higher prices.
Shipments in the region totaled 1.9 million tons during the first half 2007, or
2% lower than during the same period in 2006. Revenue per ton shipped in the
region increased 2% to US$730 in the first half 2007 over the same period in
2006.
Cost of sales totaled US$2.5 billion in the first half 2007, or 67% of net
sales, compared to US$2.1 billion, or 64% of net sales, in the first half 2006.
The higher year-over-year cost of sales was due mainly to an increase in
shipments volume and a higher value added mix of sales, higher raw material and
labor costs and higher amortizations mainly as a result of new acquisitions and
assessments of useful life.
Prices for iron ore supplies to the Argentine and Venezuelan operations
were higher during the first half 2007 than they were in the same period in
2006. Scrap and zinc prices also increased year-over-year.
Natural gas and electricity costs were stable in Mexico during the first
half 2007 compared to the same period in 2006, while they increased
year-over-year in Venezuela. Labor costs in Mexico, Argentina and Venezuela
increased during the first half 2007 versus the comparable period the prior
year.
SG&A expenses in the first half 2007 were US$362.8 million, or 10% of net
sales, compared with US$306.1 million, or 10% of net sales, in the first half
2006. The increase in the SG&A dollar figure was due mainly to higher freight
expenses related to the higher level of shipments and the year-over-year
increase in labor costs in Mexico, Argentina and Venezuela.
Operating income in the first half 2007 was US$866.0 million, or 23% of net
sales, compared with US$869.2 million, or 27% of net sales, in the first half
2006.
EBITDA(2) in the first half 2007 was US$1.1 billion, or 30% of net sales,
compared to US$1.1 billion, or 33% of net sales, in the first half 2006. Equity
holders' EBITDA in the first half 2007 was 66% of EBITDA.
Net financial expenses totaled US$169.2 million in the first half 2007,
compared with US$231.7 million in the same period in 2006. This reduction was
due mainly to a US$33.9 million decrease in net interest expense, which was
primarily associated with a reduction in net debt, and a gain of US$19.7 million
associated with changes in the fair value of some derivative instruments entered
into by Ternium related to energy prices and interest rates fluctuations.
Sidor's excess cash distribution related to the participation account was
US$398.2 million in the first half 2007, compared with US$391.2 million in the
first half 2006. The recognition of payments to minority shareholders of Sidor
resulted in expenses for Ternium of US$160.4 million in the first half 2007,
compared with expenses of US$157.5 million in the same period in 2006.
Income tax expense for the first half 2007 was US$128.9 million, or 19% of
income before income tax and minority interest, compared with US$152.8 million,
or 24% of income before income tax and minority interest, in the first half
2006.
Income attributable to minority interest for the first half 2007 was
US$107.5 million, compared with US$86.1 million in the first half 2006. The
year-over-year increase was due mainly to higher income attributable to minority
interest in Sidor, partially offset by a reduction in minority interest in
Siderar on account of Ternium's acquisition of an additional 4.85% stake in
Siderar in December 2006.
Forward-Looking Statements
Some of the statements contained in this press release are "forward-looking
statements". Forward-looking statements are based on management's current views
and assumptions and involve known and unknown risks that could cause actual
results, performance or events to differ materially from those expressed or
implied by those statements. These risks include but are not limited to risks
arising from uncertainties as to gross domestic product, related market demand,
global production capacity, tariffs, cyclicality in the industries that purchase
steel products and other factors beyond Ternium's control.
About Ternium
Ternium is one of the leading steel companies in the Americas, offering a
wide range of flat and long steel products. Ternium has operating locations in
Mexico, Argentina and Venezuela that provide it with a strong position from
which to serve its core markets. In addition, Ternium reaches the global markets
through its own distribution network. More information about Ternium is
available at www.ternium.com.
Consolidated income statement
US$ million 2Q 2007 2Q 2006 Dif. 1H 2007 1H 2006 Dif.
Net sales 1,961.1 1,707.7 253.4 3,759.4 3,238.7 520.7
Cost of sales (1,308.7)(1,075.7)(233.0) (2,532.6)(2,065.4)(467.3)
------------------------- -------------------------
Gross profit 652.3 632.0 20.4 1,226.7 1,173.3 53.4
Selling, general
and
administrative
expenses (198.3) (155.1) (43.2) (362.8) (306.1) (56.7)
Other operating
(expenses)/
income, net (3.4) (0.2) (3.2) 2.1 2.0 0.2
------------------------- -------------------------
Operating income 450.6 476.7 (26.1) 866.0 869.2 (3.2)
Interest expense (12.9) (29.7) 16.8 (29.9) (64.0) 34.2
Interest income 14.0 13.0 1.0 24.8 25.1 (0.3)
Other financial
expenses, net (88.1) (91.5) 3.5 (164.2) (192.9) 28.7
Equity in
(losses)/
earnings of
associated
companies (0.4) 0.9 (1.3) (1.4) (0.9) (0.5)
------------------------- -------------------------
Income before
income tax
expense 363.3 369.4 (6.1) 695.5 636.6 58.9
Income tax
expense (48.3) (80.2) 31.8 (128.9) (152.8) 24.0
Net income for the
period 315.0 289.2 25.8 566.6 483.7 82.9
Attributable to:
Equity holders
of the Company 236.9 232.6 4.3 459.1 397.6 61.4
Minority
interest 78.0 56.6 21.4 107.5 86.1 21.4
------------------------- -------------------------
315.0 289.2 25.8 566.6 483.7 82.9
Consolidated balance sheet
US$ million June 30,2007 December 31, 2006
Property, plant and equipment, net 5,361.9 5,420.7
Intangible assets, net 560.0 551.6
Investments in associated
companies 49.8 16.3
Other investments, net 13.6 13.4
Deferred tax assets 34.5 36.4
Receivables, net 66.5 78.9
-------------- ------------------
Total non-current assets 6,086.2 6,117.3
Receivables 152.2 175.8
Derivative financial instruments 1.4 7.9
Inventories, net 1,215.9 1,241.3
Trade receivables, net 729.3 577.9
Cash and cash equivalents 730.8 643.4
-------------- ------------------
Total current assets 2,829.6 2,646.2
Non-current assets classified as
held for sale 7.2 7.0
-------------- ------------------
Total assets 8,923.0 8,770.5
Shareholders' equity 4,123.6 3,757.6
Minority interest in subsidiaries 1,815.3 1,729.6
Minority interest & shareholders'
equity 5,938.9 5,487.1
Provisions 65.5 60.5
Deferred income tax 952.2 985.2
Other liabilities 308.2 274.6
Trade payables 7.1 7.2
Borrowings 199.5 548.4
-------------- ------------------
Total non-current liabilities 1,532.5 1,875.9
Current tax liabilities 122.7 103.2
Other liabilities 190.3 158.4
Trade payables 770.6 621.8
Derivative financial instruments 0.2 15.5
Borrowings 367.8 508.7
-------------- ------------------
Total current liabilities 1,451.6 1,407.5
-------------- ------------------
Total liabilities 2,984.1 3,283.4
Total liabilities, minority interest
& shareholders' equity 8,923.0 8,770.5
Consolidated cash flow statement
US$ million 2Q 2Q Dif. 1H 1H Dif.
2007 2006 2007 2006
Net income for the
period 315.0 289.2 25.8 566.6 483.7 82.9
Adjustments for:
Depreciation and
amortization 130.2 105.5 24.7 245.5 211.8 33.7
Income tax accruals
less payments (91.6) (7.4) (84.2) (33.6) 3.5 (37.1)
Equity in losses of
associated
companies 0.4 (0.9) 1.3 1.4 0.9 0.5
Interest accruals
less payments 2.9 17.8 (14.9) (1.8) 1.9 (3.7)
Changes in provisions (2.9) 13.6 (16.4) (6.2) 25.0 (31.2)
Changes in working
capital (3.4) (71.4) 68.1 107.0 (84.0) 191.0
Others 16.2 9.5 6.7 18.3 10.0 8.3
--------------------- ---------------------
Net cash provided by
operating activities 366.8 355.8 11.1 897.1 652.8 244.3
Capital expenditures (94.6) (96.3) 1.6 (197.0)(186.3) (10.8)
Change in trust funds - 5.2 (5.2) - 5.2 (5.2)
Acquisition of business
(1) (0.1) (47.9) 47.7 (0.1)(103.1) 102.9
Proceeds from sale of
property, plant &
equipment 1.2 0.0 1.2 6.4 0.6 5.9
--------------------- ---------------------
Net cash used in
investing activities (93.5)(138.9) 45.4 (190.7)(283.6) 92.8
Dividends paid in cash
and other
distributions to
company's equity
shareholders (100.2) -(100.2) (100.2) -(100.2)
Dividends paid in cash
and other
distributions to
minority shareholders (19.9) (27.2) 7.3 (19.9) (27.2) 7.3
Net proceeds from
Initial Public
Offering - - - - 525.0(525.0)
Contributions from
shareholders - - - - 3.1 (3.1)
Proceeds from
borrowings 72.1 25.2 47.0 192.3 36.5 155.7
Repayment of borrowings (468.2)(201.4)(266.8) (680.7)(754.8) 74.1
--------------------- ---------------------
Net cash used in
financing activities (516.2)(203.4)(312.8) (608.6)(217.4)(391.2)
Increase in cash and cash
equivalents (242.9) 13.4(256.3) 97.8 151.9 (54.0)
(1) Corresponds to the purchase of Impeco and other assets from
Acindar in 1Q 2006 and to the purchase of Worthington Industries' 50%
equity interest in Acerex in 2Q 2006.
Shipments
Thousand tons 2Q 2007 2Q 2006 1Q 2007 1H 2007 1H 2006
South & Central America 1,251.5 1,161.9 1,111.8 2,363.3 2,207.2
North America 598.0 656.2 698.4 1,296.4 1,298.6
Europe & other 111.0 15.9 82.7 193.7 42.5
------- ------- ------- ------- -------
Total flat products 1,960.4 1,834.1 1,892.9 3,853.3 3,548.3
South & Central America 320.1 237.3 292.8 612.9 474.7
North America 286.4 341.5 313.3 599.7 638.0
------- ------- ------- ------- -------
Total long products 606.5 578.8 606.1 1,212.6 1,112.6
Total flat and long products 2,567.0 2,412.9 2,498.9 5,065.9 4,660.9
Revenue / ton
US$/ton 2Q 2007 2Q 2006 1Q 2007 1H 2007 1H 2006
South & Central America 768 667 739 754 665
North America 814 793 748 778 779
Europe & other 671 501 589 636 530
------- ------- ------- ------- -------
Total flat products 776 711 736 756 705
South & Central America 621 551 563 593 531
North America 638 620 616 626 585
------- ------- ------- ------- -------
Total long products 629 592 590 609 562
Total flat and long products 741 682 701 721 671
Net Sales
US$ million 2Q 2007 2Q 2006 1Q 2007 1H 2007 1H 2006
South & Central America 960.6 775.3 821.8 1,782.4 1,467.8
North America 486.7 520.4 522.5 1,009.2 1,011.4
Europe & other 74.5 8.0 48.7 123.1 22.5
------- ------- ------- ------- -------
Total flat products 1,521.8 1,303.6 1,392.9 2,914.8 2,501.8
South & Central America 198.6 130.8 164.9 363.5 252.3
North America 182.6 211.9 192.9 375.5 373.3
------- ------- ------- ------- -------
Total long products 381.3 342.7 357.7 739.0 625.6
------- ------- ------- ------- -------
Total flat and long products 1,903.1 1,646.3 1,750.7 3,653.8 3,127.3
Other products (1) 57.9 61.4 47.6 105.6 111.3
------- ------- ------- ------- -------
Total net sales 1,961.1 1,707.7 1,798.3 3,759.4 3,238.7
(1) Includes iron ore and pig iron
(1) EBITDA equals operating income of US$450.6 million plus
depreciation and amortization of US$130.2 million.
(2) EBITDA equals operating income of US$866.0 million plus
depreciation and amortization of US$245.5 million.
CONTACT: Ternium S.A.
Investor Relations:
Sebastian Marti, +1 (866) 890 0443 or
+52 (81) 8865 2111 or +54 (11) 4018 2389
www.ternium.com
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 second quarter and
first half 2007 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: August 2, 2007