Ternium S.A. (NYSE:TX) Q3 2024 Earnings Conference Call November 6, 2024 8:30 AM ET

Company Participants

Sebastian Marti - Global IR & Compliance Senior Director
Maximo Vedoya - Chief Executive Officer
Pablo Brizzio - Chief Financial Officer

Conference Call Participants

Marcio Farid - Goldman Sachs
Alfonso Salazar - Scotiabank
Henrique Braga - Morgan Stanley
Camilla Barder - Bradesco BBI

Operator

Thank you for standing by. My name is Kayla, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ternium Third Quarter 2024 Results 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]

I would now like to turn the call over to Sebastian Marti. You may begin.

Sebastian Marti

Good morning, and thank you for joining us. My name is Sebastian Marti, Ternium's Global IR and Compliance Senior Director.

Yesterday, Ternium released its financial results for the third quarter and first nine months of 2024. This call is intended to complement that presentation.

I'm joined today by Maximo Vedoya, Ternium's Chief Executive Officer; and Pablo Brizzio, Ternium's Chief Financial Officer, who will discuss Ternium's business environment and performance. We will open up the floor to questions following our prepared remarks.

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 2 in today's webcast presentation.

You will also find any reference to non-IFRS financial measures reconciled to the most directly-comparable IFRS measures in the press release issued yesterday.

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

Maximo Vedoya

Good morning, and thank you very much for participating in today's Ternium third quarter earnings call.

Ternium reported an adjusted EBITDA of $368 million and a net income of $93 million for the third quarter. We experienced increased shipments across all our primary markets and, as anticipated in the last quarter's call, our margins declined, primarily due to the decrease in realized price in our main market.

Let's review the status of these markets. The steel market in Mexico remains healthy, operating at consistent levels after last year's significant 14% year-over-year increase in apparent steel consumption. In fact, in the third quarter of 2024, we had record high shipments in this market. For the fourth quarter, we expect a decline in shipments as a result of this period being the seasonally weak of the year.