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Ternium S.A. Message Board

  • minigirl173 minigirl173 Jul 27, 2012 5:38 PM Flag

    Morningstar on TX/Mexico/Usiminas

    watch the link...people starting to understand that USNZY is SO CHEAP and pushed TX +5% and Usiminas +11% today

    Ternium produces and processes steel through its 61% ownership of Siderar in Argentina, 88% ownership in Hylsamex in Mexico, and fully owned Mexican subsidiary Grupo Imsa. All together, these mills have capacity for nearly 10 million tons of finished flat and long steel products, largely serving Latin America. Ternium also has steel processing interests in Colombia and is looking to grow in Latin America by acquisition and organic expansion investments, including its 22. Ternium has given itself a September deadline to make a decision on its potential greenfield steel complex in Brazil, with the potential to proceed with only an iron ore pelletizing plant or to invite additional partners to join the project. Much will hinge on its ability to secure low-cost natural gas, in our view. We think Ternium's investment in Usiminas (USNZY) can aid the company in gaining a foothold in the competitive but growing Brazilian market. We are more cautious on Ternium's objectives for Usiminas. Management believes Usiminas can capitalize on Ternium's network outside Brazil to reach 8.5 million tons of steel product sales, reduce SG&A expenses by 20%, and achieve 20% EBITDA margins for the steel business. However, details on timing and how these goals will be reached are sparse.

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    • I´m afraid of your faith, tx is suffering for Argentine ´s policies
      and they decided to play the game they used to play so Tx results will be dissapointing at least for a while
      Why don t you considered they just take their choice for Brasilian USIM, we need litle extra time to check, but if this is the safe place. they will go for a full take over

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