Ternium(TX)2025-04-30 12:30Financial Data and Key Metrics Changes - Ternium reported a net income of 45 million provision adjustment charge related to ongoing litigation [16] - Adjusted net income, excluding the major charge, was 4 billion, representing a 16% increase from previous estimates [11] - The expansion will integrate advanced technology to improve operational efficiency and product quality, enabling Ternium to meet growing demand in the USMCA region [11][12] Management's Comments on Operating Environment and Future Outlook - Management highlighted that trade tensions and uncertainty are impacting global economic growth, but there is optimism regarding the reduction of reliance on Asian suppliers in North America [5][6] - The implementation of Plan Mexico is expected to enhance industrialization and strengthen the North American supply chain [6][13] - Management expressed confidence that the USMCA will become stronger and better prepared for future growth [14] Other Important Information - The company continues to maintain a strong balance sheet with a net cash position of 2.5 billion, with significant investments in ongoing projects [22] Q&A Session Summary Question: Regarding the situation in Mexico and industrial customers - Management acknowledged the challenges in the Mexican market but expects demand to improve in the following quarters, particularly in the commercial sector [30][31] Question: On margins and profitability levels - Management noted that while margins have decreased, they expect a gradual improvement moving forward, with better margins anticipated in Q2 2025 [35][36] Question: On cost reductions and future volume growth - Management confirmed ongoing cost reduction initiatives and the potential for volume growth in Mexico, with a significant decrease in imports creating opportunities [41][42] Question: On cash returns and dividend payments - Management stated that despite uncertainties, they aim to sustain dividend payments due to a solid financial position [50] Question: On the outlook for Argentina's steel sector - Management expressed optimism about the improving outlook for the steel sector in Argentina, with expectations for increased shipments in the coming quarters [52] Question: On CapEx increase and project timelines - Management explained that the CapEx increase is due to higher construction costs and inflation, with the revised budget impacting the timeline of the expansion project [59][60] Question: On the U.S.-Mexico relationship and steel pricing - Management emphasized the need for a reasonable negotiation between the U.S. and Mexico regarding steel tariffs, expressing confidence in a favorable outcome [72][75] Question: On FX controls in Argentina and dividend payments - Management indicated that recent changes in FX controls are positive, allowing for more flexibility in dividend payments from Ternium Argentina [78][80]