Ternium SA (NYSE:TX) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 11:00 am ET


Ternium SA (NYSE:TX) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Ternium Second Quarter 2020 Results Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Sebastian Marti. Thank you. Please go ahead.

Sebastian Marti

Good morning and thank you for joining us today. My name is Sebastian Marti and I am Ternium's Investor Relations and Compliance Director.

Ternium released yesterday financial results for the second quarter and first half of 2020. This call is complementary to that presentation. Joining me today are Ternium's Chief Executive Officer, Maximo Vedoya; and the company's Chief Financial Officer. Pablo Brizzio, who will discuss Ternium's business environment and performance. At the conclusion of our prepared remarks, there will be a Q&A session.

Before we begin, I would like to remind you that this conference call contains forward-looking information and that actual results may vary from those expressed or implied. Factors that could affect results are contained in our filings with the Securities and Exchange Commission and on Page 2 in today's webcast presentation.

With that, I'll turn the call over to Mr. Vedoya.

Maximo Vedoya

Thank you, Sebastian. Good morning and thank you very much for taking the time to joining our call today. In my prepared remarks, I would like to review the effects of COVID-19 on our company during the second quarter, our actions to mitigate these effects and also the status and prospects of our main markets. After this, Pablo will comment on the results for the second quarter and then we will have a Q&A session.

The second quarter has been one of the most challenging quarters I can remember. Lockdowns or restrictions to operate were in effect in most of our markets during the quarter. Not without effort, we were able to adapt the company to this difficult market situation. In a very short period, we totally redesigned the way we operate our facilities in the current sanitary context with the aim at mitigating contagious risks to the extent possible with the health and safety of our employees, customers and suppliers as our main concern.

In this regard, in addition to the sanitary measures I commented on our last quarter conference call, we continue developing innovative tools to increase the compliance with our protocols. Just as an example, during July, we implemented the use of artificial intelligence system to verify compliance with sanitary protocols within our industrial facilities to help prevent the spread of COVID-19. More than 400 cameras at Ternium's facilities in Mexico, Brazil and Argentina are able to reinforce social distance policies and the use of face mask through video analytics that use in-house developed algorithm.

Yet, our efforts in favor of mitigating the effects of COVID-19 pandemic are not stopping at our facilities' gate. The field hospital we build in Monterrey, Mexico with 100 beds and a fully equipped intensive care unit has been very actively supporting the health needs of the local community in these difficult times. We also supplied 25 Intensive