(Recasts with outlook, adds context)
MEXICO CITY, April 25 (Reuters) - Steel producer Ternium on Tuesday predicted stronger core earnings in the second quarter of this year than the first, on the back of an anticipated rise in steel shipments and prices, even as its profits shrunk over the first quarter.
The company, which operates across the Americas, posted adjusted earnings before interest, taxes, depreciation and amortization down 58% from a year earlier at $508 million for January to March.
This brought its quarterly profit down 45% to $480 million, as Ternium shipped out less iron ore and steel prices shrunk, while revenues dipped 16% to $3.62 billion.
While Ternium predicted lower raw material costs over the current quarter, it warned that "uncertainty regarding economic activity in (North America) in the second half of 2023 could affect steel prices."
In Mexico, Ternium's largest steel market, the company said it shipped record volumes in the first quarter off the back of increased demand as automotive manufacturing recovered.
More demand from carmakers and commercial clients, as well as market share gains, should boost steel volumes in Mexico this quarter, it added.
In Argentina, Ternium said shipments should remain stable in the second quarter, though rampant inflation and the country's "significantly unstable macroeconomic environment" will likely hit demand in the second half of the year. (Reporting by Kylie Madry; Writing by Valentine Hilaire; Editing by Sarah Morland)
