Ternium SA Reports Weak 3Q Results

Citigroup has published a research report on Ternium SA

following weaker than expected results in the company's 3Q. In the report, Citigroup writes "Ternium announced 3Q10 results with EPS of $0.76/sh compared with consensus of $0.77/sh. EBITDA fell 20% q/q due to higher cost per ton (+6% q/q), a small decrease in shipments (-2% q/q) and almost stable prices (-1% q/q). Guidance is for weaker 4Q10, consistent with other global steelmakers. There was no update on potential expansion in Brazil. Reiterate Buy: Ternium is our top pick in LatAm steel for its globally competitive cost structure, strong execution and low multiples." Citigroup maintains its Buy rating and $39 price target. Ternium SA closed yesterday at $35.26.