(TX) Ternium - Ratings and Ratios

Ternium S.A. is a leading steel manufacturer and distributor with operations spanning Mexico, the Southern Region, Brazil, and international markets. Headquartered in Luxembourg City, the company operates through three distinct segments: Steel, Mining, and Usiminas. The Steel segment produces a wide range of products, including slabs, hot and cold rolled products, coated products, roll formed and tubular products, bars, billets, and other steel-related offerings. This segment is the backbone of the company, catering to various industries such as construction, automotive, and manufacturing.

The Mining segment focuses on the production and sale of iron ore and pellets, which are critical raw materials for steel production. This vertical integration allows Ternium to maintain control over its supply chain, ensuring stability in raw material costs and availability. The segment also engages in the exploration, exploitation, and pelletizing of iron ore, further solidifying the companys position in the steel value chain.

The Usiminas segment, which operates as a joint venture, adds another layer of diversification to Terniums portfolio. This segment is involved in iron ore extraction, steel transformation, and the production of capital goods and logistics. It also manufactures and sells flat steel, stamped steel parts for the automotive industry, and products for civil construction and capital goods. This segment underscores Terniums commitment to providing comprehensive solutions across the steel and related industries.

Beyond its core operations, Ternium offers a range of additional services, including medical and social services, scrap management, renewable energy solutions, and engineering services. The company also operates as a distribution company, further enhancing its market reach and customer accessibility. This diversification strategy allows Ternium to tap into multiple revenue streams, reducing dependency on any single segment.

Founded in 1961, Ternium S.A. is a subsidiary of Techint Holdings S.à r.l., a conglomerate with a strong presence in industrial and energy sectors. The companys strategic location in Luxembourg provides it with access to European markets, while its operations in the Americas position it as a key player in the global steel industry. Terniums international presence is complemented by