April 24 (Reuters) -

Steelmaker Ternium ( TX ) on Wednesday posted a

first-quarter net profit that edged up 2%, propelled by larger

shipments of steel even as it predicted that margins could

shrink in the coming months.

Ternium ( TX ), which produces flat steel products for

industrial use, posted a net profit of $491 million while its

net sales rose by about a third to reach $4.8 billion during the

quarter. The company's steel shipments during the

January-to-March period, meanwhile, jumped 27% year-on-year to

hit 3.9 million metric tons.

Both metrics landed above forecasts of analysts polled

by LSEG, who had estimated profits of $325 million and revenue

of $4.77 billion.

Adjusted earnings before interest, taxes, depreciation

and amortization (EBITDA), soared 68% to total $855 million.

Looking forward, the company said it expected its

recurring adjusted EBITDA in the second quarter to shrink

compared to the first three months of the year, citing lower

margins even as it expects steel shipments to grow.

"The steel segment's revenue per ton is anticipated to

decline in most of Ternium's ( TX ) markets while cost per ton will

remain relatively stable," the firm said, adding its mining

segment should next quarter produce similar iron ore volumes as

in the first quarter.

In Brazil, the company noted that a blast furnace whose

outage had disrupted slab production was still undergoing

repairs. It forecast slight improvement in the steel market

there, warning of a still "high influx of steel imports at

unfair prices."

In Mexico, the company's main market, Ternium ( TX ) predicted

"a sustained expansion in the northern region fueled by the

relocation of production capacity from Asia to North America."

Mexico has benefited from a trend of near-shoring, or

relocating manufacturing closer to U.S. markets. This has

included moves to produce more steel used for car manufacturing

within the United States, Canada and Mexico.