Steelmaker Ternium reported Wednesday net income of $134.4 million for Q2 2013, down from $151.4 million in the previous quarter, but higher than the $115.4 million reported in Q2 2012. Steel shipments in Q2 2013 of 2.2 billion tons were down 1 percent from Q1, and up 2 percent from the prior's year's Q2. Net sales of $2.1 billion were essentially unchanged from Q1 and down slightly year-on-year.
The steel segment's operating income was $247.9 million in Q2 2013, relatively stable compared to Q2 2012, reflecting lower sales and operating cost. Net sales of steel products in Q2 2013 decreased 3 percent compared to Q2 2012, reflecting a $43 decrease in steel revenue per ton shipped, mainly due to lower steel prices in Mexico and other markets, partially offset by higher prices and a higher value mix in the Southern Region. Shipments increased 39,600 tons, or 2 percent, compared to Q2 2012, mainly due to higher sales volume in the Southern Region and Other Markets, partially offset by lower sales volume in Mexico.
For the first six months of 2013, net income was $285.8 million, compared to $286.6 million for the first half of 2012. Steel shipments were up 3 percent to 4.5 billion tons, while iron ore shipments surged 154 percent to 3.2 million tons.
The company said that steel shipments in Ternium's main markets remain healthy. In Mexico, activity continues at a good pace in the industrial sector, while the country's commercial sector, which is more closely tied to construction, has yet to benefit from increased infrastructure investment. In the Southern Region, the shipment levels of Q2 2013 are expected to continue into Q3.
Ternium anticipates a reduction in operating income in Q3 2013 compared to Q2 2013 mainly as a result of lower average prices in Argentina and Mexico. Average prices in Mexico are expected to decrease mainly due to lower contract prices, which are set in accordance to prior quarter's price levels.
