Ternium Argentina’s net result was higher than in 1H 2018, although slightly below expectations due to decreases in its volume sold and operating margin, along with lower results of affiliated companies.
Ternium Argentina's consolidated net sales fell 5,9% y-o-y in 1H 2019, driven by lower deliveries in tons (-16,1%), due to domestic market contraction. Cost of sales grew 2,2% in light of higher raw materials and supplies, labor costs, and depreciations. The operating result showed a serious deterioration due to all of the aforementioned, thus the operating margin fell (from 10,7% to 2,8%).
The lower operating result was also fostered by lower result of its associated company Ternium Mexico; offset by an improvement in financial result which became positive. Thus, consolidated net income reached $4.202,0 million, increasing 50,1% y-o-y.