Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6 - K

Report of Foreign Private Issuer

Pursuant to Rule 13a - 16 or 15d - 16 of

the Securities Exchange Act of 1934

As of 12/6/2007

Ternium S.A.

(Translation of Registrant’s name into English)

Ternium S.A.

46a, Avenue John F. Kennedy – 2nd floor

L-1855 Luxembourg

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or 40-F.

Form 20-F  þ    Form   40-F  ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12G3-2(b) under the Securities Exchange Act of 1934.

Yes  ¨    No  þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

Not applicable

The attached material is being furnished to the Securities and Exchange Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange Act of 1934, as amended.

This report contains Ternium S.A.’s presentation at the third quarter and first nine months of 2007 results teleconference.

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TERNIUM S.A.

 

By:   /s/ Roberto Philipps
Name:   Roberto Philipps
Title:   Chief Financial Officer

Dated: December 6, 2007

November 7, 2007
3Q
2007
Results
Teleconference

November 2007
Ternium
2
Forward-Looking Statements
This
presentation
contains
certain
forward-looking
statements
and
information
relating
to
Ternium
S.A.
and
its
subsidiaries
(collectively,
“Ternium”)
that
are
based
on
the
current
beliefs
of
its
management
as
well
as
assumptions
made
by
and
information
currently
available
to
Ternium.
Such
statements
reflect
the
current
views
of
Ternium
with
respect
to
future
events
and
are
subject
to
certain
risks,
uncertainties
and
assumptions.
Many
factors
could
cause
the
actual
results,
performance
or
achievements
of
Ternium
to
be
materially
different
from
any
future
results,
performance
or
achievements
that
may
be
expressed
or
implied
by
such
forward-looking
statements,
including,
among
others,
changes
in
general
economic,
political
conditions
in
the
countries
in
which
Ternium
does
business
or
other
countries
which
have
an
impact
on
Ternium’s
business
activities
and
investments,
changes
in
interest
rates,
changes
in
inflation
rates,
changes
in
exchange
rates,
the
degree
of
growth
and
the
number
of
consumers
in
the
markets
in
which
Ternium
operates
and
sells
its
products,
changes
in
steel
demand
and
prices,
changes
in
raw
material
and
energy
prices
or
difficulties
in
acquiring
raw
materials
or
energy
supply
cut-offs,
changes
in
business
strategy
and
various
other
factors.
Should
one
or
more
of
these
risks
or
uncertainties
materialize,
or
should
underlying
assumptions
prove
incorrect,
actual
results
may
vary
materially
from
those
described
herein
as
anticipated,
believed,
estimated,
expected
or
targeted.
Ternium
does
not
intend,
and
does
not
assume
any
obligation,
to
update
these
forward-looking
statements.

November 2007
Ternium
3
Industry Outlook
World apparent steel use
Source:
IISI (2007-2008
SRO Autumn 07 –
2009-2012 MTF Oct06)
341
352
375
398
419
128
117
134
123
128
51
53
55
64
69
220
246
255
260
37
44
49
55
62
66
70
74
78
501
526
559
594
983
955
929
902
225
477
428
384
353
297
1.079
1.138
1.242
1.414
1.588
1.524
1.323
1.655
1.468
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2004
2005
2006
2007
(p)
2008
(p)
2009
(p)
2010
(p)
2011
(p)
2012
(p)
OTROS
USA
LATAM
EUROPA
INDIA
CHINA

November 2007
Ternium
4
Industry Outlook
GDPs
Source: IISI / World Research Centre / IMF
Annual GDP growth rate
2003
2004
2005
2006
2007 [e]
2008 [p]
China
10,0
10,1
10,4
11,1
11,5
10,9
USA
2,5
3,6
3,1
2,9
2,0
2,0
Latam
2,1
6,0
4,5
5,4
4,9
4,7
Argentina
8,8
9,0
9,2
8,5
7,1
6,5
Brasil
1,1
5,7
2,9
3,7
4,4
4,0
Colombia
3,9
4,9
4,7
6,8
6,6
4,8
Mexico
1,4
4,2
2,8
4,8
3,0
3,0
Venezuela
-7,6
17,7
10,3
10,3
8,7
7,4
Europa
1,3
2,3
1,9
3,1
2,9
2,4
World
2,7
4,0
3,5
3,9
3,6
3,5

November 2007
Ternium
5
Industry Outlook
Prices
117
Avg. Gap
0
100
200
300
400
500
600
700
800
900
0
100
200
300
400
500
600
700
800
900
HRC-Slab gap
HRC USA Midwest
Slab USA Import
Source: CRU

November 2007
Ternium
6
4
6
8
10
12
Jan-
04
Apr-
04
Jul-
04
Oct-
04
Jan-
05
Apr-
05
Jul-
05
Oct-
05
Jan-
06
Apr-
06
Jul-
06
Oct-
06
Jan-
07
Apr-
07
Jul-
07
4
7
10
13
16
Source: AISI / MSCI
Industry Outlook
USA: Crude steel production vs
SC Inventories

November 2007
Ternium
7
Industry Outlook
Raw Materials
Source: Clarkson
Source: CVRD
Source: CRU
US$/t
2004
2005
2006
Actual
Tubarao
a China
35
30
28
88
IRON ORE
NATURAL GAS (HENRY HUB)
FREIGHTS (PANAMAX DAILY RENTAL)
COKE EXPORTS (FOB CHINA)
23
23
25
30
53
63
69
10
20
30
40
50
60
70
80
2001
2002
2003
2004
2005
2006
2007
4,0
3,4
5,5
6,2
9,0
7,0
7,1
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
2001
2002
2003
2004
2005
2006
2007
93
0
15
30
45
60
75
90
145
295
0
50
100
150
200
250
300
350
+ 103%

November 2007
Ternium
8
Grupo Imsa –
Hylsamex Integration
•
April 29th: Contract signing for the acquisition of Imsa
•
From May to July: Development of a 100 days plan
•
July 26th: IMSA consolidated into Ternium’s Financials
•
August 7th: Mexican operations under one new functional structure
•
March 31st 2008: Estimated date for Hylsamex-
Grupo
Imsa merger

November 2007
Ternium
9
•
Mills specialization
•
Procurement & logistics
•
Management reorganization
•
Marketing consolidation
•
Working Capital reduction
Larger runs, dedicated mills, rationalization of
attributes, higher efficiencies
Improved purchasing through Exiros, efficiencies
arising from the supply chain management
system
Lower head count, decrease in administrative &
general expenses and simplified legal &
accounting structure
Unified marketing effort, better use of
distribution channels
Grupo Imsa´s
expected integration synergies
Initiatives launched during 3Q 2007 estimated to reach over
US$200 million per year in pre-tax benefits in the medium term

November 2007
Ternium
10
Ongoing investment plan for 2007-2010 worth
US$2.0 billion
Combined production capacity of selected products
(million metric tons per year)
Strong growth in value added product offerings
•
Capital expenditures in synch with Grupo Imsa integration
•
Partial reduction of crude steel production capacity gap (more expansions needed)
2006
Imsa
Capex
2010
Crude steel - flat
8.3
1.7
10.0
+20%
Hot rolled coils
8.0
2.3
0.8
11.1
+39%
Cold rolled coils
4.1
1.9
0.5
6.5
+59%
Tinplated products
0.4
0.4
Galvanized products
1.2
1.7
0.3
3.2
+167%
Prepainted products
0.3
0.9
0.2
1.4
+367%
Crude steel - long
2.7
0.5
3.2
+19%
Rebars & wire rods
2.1
0.2
2.3
+10%

November 2007
Ternium
11
450
680
490
420
2007E
2008E
2009E
2010E
Total investments (US$ million)
Ongoing investment plan for 2007-2010 worth
US$2.0 billion
Ternium Mexico
Hot rolling mills (+730,000 metric tons/year; US$180 million)
2007 & 2008
Cold rolling mills (+530,000 metric tons/year; US$65 million)
2008
Service centers (+280,000 metric tons/year; US$30 million)
2007
Ternium Argentina
Slab production (+1,2 million metric tons/year; US$570 million¹)
2010
Hot rolling mill (+130,000 metric tons/year; US$35 million)
2010
Hot rolling mill (+170,000 metric tons/year; US$30 million)
2012
Main capacity expansion projects
1
Includes improvements in infrastructure related to logistics, services and port facilities

November 2007
Ternium
12
TECOMAN
C.DE ORTEGA
EL RANCHITO
AQUILA
MINA AQUILA
COAHUAYANA NUEVO
A LAZARO CARDENAS
COLOMERA
MAQUILI
LA PLACITA DE MORELOS
MANZANILLO
COLIMA
PUEBLO
COQUIMATLAN
IXTLAHUACAN
MIRAFLORES
CAMOTLAN DE
MINATITLAN
COMALA
V. DE ALVAREZ
QUESERIA
CUAUHTEMOC
ARMERIA
A GUADALAJARA
A GUADALAJARA
A CIHUATLAN
NAHUATL
PENA
PIHUAMO
EL ENCINO
ESTADO DE
JALISCO
ESTADO DE
JALISCO
MICHOACAN
ESTADO DE
ALZADA
JALA
COLORADA
CERRO
JUAREZ
EL VENADO
CHILILLO
92 Km
6 Km
22 Km
Mining
Iron ore reserves prospecting in progress
Pellet
Plant
6
5
Mines in Operation:
1-
Aquila (Michoacán)
2-
Cerro Náhuatl
(Colima)
3-
El Encino (Jalisco)
4-
Peña Colorada (Colima)
Projects under exploration:
5-
Colomera (Michoacán)
6-
Sierra del Alo
(Jalisco)
7-
Arrayanes (Colima)
1
2
3
4
7
Sierra del Alo
Pellet
Plant
Studies to be completed in 2H 2008

November 2007
Ternium
13
Mining Expansion
Current
Reserves (*) [MMt]
(*) Does not include recent acquisition
Development subject to certification of iron ore reserves, currently in progress
Total
iron
ore
production
target
of
8.0
million
tons
per
year
of
concentrates,
up
from current 4.5 million tons per year
New mining concession in the Mexican State of Michoacán. 56,000 acres added
to
existing
concessions.
Convenient
location
allows
for
an
easy
integration
with
Ternium’s actual mining operations.
Probable
Proven
Total
Total Reserves (Million tons)
233
96
329
Las Encinas
211
49
260
Peña Colorada (1)
22
47
69
Supply in years (2)
60
25
85
(1) 50% of Peña Colorada total reserves
(2) Considering pellet saturation at current capacity

November 2007
Ternium
14
Ternium’s performance in 3Q 2007
3Q 2007 EBITDA of US$588 million, or 25% of net sales
•
Sales
up
mainly
due
to
consolidation
of
Grupo
Imsa
•
Lower
Ebitda
on
account
of
higher
costs
•
Lower
Ebitda
margin
due
to
higher
costs
and
Grupo
Imsa
consolidation
3Q 2007
Shipments (million tons)
2.7
2.2
23%
2.6
6%
Net Sales (US$ million)
2,343.4
1,740.4
35%
1,961.1
19%
Operating Income (US$ million)
432.6
508.2
-15%
450.6
-4%
EBITDA
*
(US$ million)
587.9
614.9
-4%
580.8
1%
EBITDA Margin (% of net sales)
25%
35%
30%
Net Income (US$ million)
214.0
354.0
-40%
315.0
-32%
2Q 2007
3Q 2006

November 2007
Ternium
15
Strong
free
cash
flow¹
generation
•
Free cash flow of US$735 million in 9M 2007, US$840 million for the year 2006
•
Free cash flow in the third quarter 2007 of US$35 million was impacted by a
one-time US$296 million income tax payment related to the acquisition of Grupo
Imsa (tax credit)
Ternium’s performance in 3Q 2007
224
207
261
191
180
428
272
35
224
207
261
191
180
428
272
331
296
4Q 05
1Q 06
2Q 06
3Q 06
4Q 06
1Q 07
2Q 07
3Q 07
Free cash flow (US$ million)
Tax Adjustment
1
Free cash flow equals net cash provided by operating activities
less capital expenditures
2

November 2007
Ternium
16
Third quarter 2007 EBITDA of US$588 million
54
29
10
(84)
(15)
(22)
615
588
534
400
450
500
550
600
650
700
EBITDA
3Q06
Shipments
Revenue
per Ton
Cost per
Ton
SG&A
Other
EBITDA
3Q07 excl.
IMSA
EBITDA
IMSA
EBITDA
3Q07

November 2007
Ternium
17
386
417
328
216
265
214
191
116
100
659
472
218
124
3,693
1,606
477
232
125
2,916
1,586
1,057
567
4,134
424
Dic-05
Jun-06
Dic-06
Jun-07
Sep-07
Holding's debt
Mexican subsidiaries' debt
Amazonia / Sidor's debt
Siderar's debt
Cash & equivalents
Net debt increased to US$2.9 billion as a
result of the acquisition of Grupo Imsa
Cash & equivalents
771
916
643
731
1,194
Borrowings
2,916
1,586
1,057
567
4,134
Net debt / (cash)
2,145
670
414
(164)
2,940
Ternium’s borrowings
(US$ million)
Increase in leverage preserving Company’s financial flexibility
•
Net debt to EBITDA ratio at 1.3 times, based on annualized 3Q 2007 EBITDA
•
Average
pre-tax
interest
rate
of
Libor+56bps
*
and
average
life
of
4
years
(*)
Company estimate

November 2007
Ternium
18