Ternium-Controlled Usiminas Q1 Profit Jumps 166%, Exceeding Forecasts
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Brazilian steelmaker Usiminas, a controlled subsidiary of Ternium (TX), reported a significant Q1 net profit of 896 million reais ($178.32 million), marking a 166% increase year-on-year and substantially beating analyst expectations of 190.9 million reais. This strong performance was primarily attributed to foreign exchange gains from the appreciating Brazilian real. As Ternium consolidates Usiminas' results, this earnings beat is a material positive for Ternium's financial outlook, indicating a stronger-than-expected contribution from its Brazilian operations. Looking ahead, Usiminas anticipates stable steel sales volumes in Q2 but warns of higher costs from raw materials, energy, and freight, which could impact future profitability.
At the time of this announcement, TX was trading at $42.41 on NYSE in the Manufacturing sector, with a market capitalization of approximately $8.3B. The 52-week trading range was $27.12 to $45.57. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.