Ternium S.A. (NYSE:TX) Q3 2023 Earnings Conference Call November 1, 2023 8:30 AM ET

Company Participants

Sebastian Marti - Investor Relations

Maximo Vedoya - Chief Executive Officer

Pablo Brizzio - Chief Financial Officer

Conference Call Participants

Carlos de Alba - Morgan Stanley

Timna Tanners - Wolfe Research

Gabriel Simões - Goldman Sachs

Rodolfo De Angele - JPMorgan

Caio Greiner - BTG Pactual

Camilla Barder - Bradesco

Operator

Thank you for standing by. My name is Eric and I will be your conference operator today. At this time, I would now like to welcome everyone to the Ternium Third Quarter 2023 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

I would now like to turn the call over to Sebastian Marti. Please go ahead.

Sebastian Marti

Good morning. Thank you for joining us today. My name is Sebastian Marti and I am Ternium's Global IR and Compliance Senior Director. Ternium released yesterday its financial results for the third quarter and the first nine months of 2023. This call is complementary to that presentation.

Joining me today are Chinese Chief Executive Officer Maximo Valeria and the Company's Chief Financial Officer, Pablo Brizzio who will discuss the risk business environment and performance. At the conclusion of our prepared remarks there will be a Q&A session.

Before we begin, I would like to remind you that this conference call contains forward-looking information, and that actual results may vary from those expressed or implied. Factors that could affect results are contained in our filings with the Securities and Exchange Commission and on page two in today's webcast presentation. You will also find any reference to non-IFRS financial measures reconciled to the most directly comparable IFRS measure in the press release issued yesterday.

With that, I'll turn the call over to Mr. Vedoya.

Maximo Vedoya

Thank you, Sebastian. Good morning. And thank you all for participating in Ternium's conference call today. I'm glad to report we have healthy third quarter with the consolidation of Usiminas. For the first time we had a margin of 13%. As you may know, Usiminas main blast furnace has been offline for a realigning, and its operating results in the quarter were affected accordingly. When considering Ternium operations, before the consolidation, we had a margin of approximately 17% in the quarter, which is within our usual margin range. With steel prices recently increasing in the USMCA region. And Usiminas starting the ramp up of its main blast furnace, I am positive that from the beginning of next year, we will see more normalized improved margin performance.