Cleveland-Cliffs Reports Full-Year and Fourth-Quarter 2023 Results
- Record steel shipments of 16.4 million net tons
- Cash flow from operations of $2.3 billion
- Free cash flow of $1.6 billion
- Net debt reduced to $2.9 billion
- Expectations for 2024 include steel shipment volumes of 16.5 million net tons and steel unit cost reductions of approximately $30 per net ton
- Goodwill impairment charge totaling $125 million
- Adjusted EBITDA was $1.9 billion, down from $3.2 billion in 2022
Insights
Financial analysis of Cleveland-Cliffs Inc.'s full-year and fourth-quarter results reveals several key points. The company's revenues decreased from $23.0 billion in the previous year to $22.0 billion in 2023, indicating a contraction in top-line figures. This contraction could be attributed to lower steel index pricing, which was only partially offset by higher sales volumes and reduced operating costs. Despite the revenue decline, the company managed to reduce its net debt by $1.3 billion, signaling a strong focus on financial health and debt management. The reduction in net pension and OPEB liabilities by $3.6 billion since 2020 is a significant improvement in the company's long-term obligations, potentially enhancing its creditworthiness and reducing financial risk.
Investors should note the record steel shipments of 16.4 million net tons, which is indicative of robust demand, particularly from the automotive sector. This is a positive sign for the company's operational efficiency and market position. The company's strategy to utilize its robust free cash flow for debt reduction and share repurchases reflects a balanced approach to capital allocation, which could be appealing to both debt and equity holders.
Looking ahead, the company's guidance for 2024 suggests further cost reductions and an expected increase in steel shipments. The projected Adjusted EBITDA benefit of approximately $500 million from these cost reductions could be a significant driver for margin improvement and profitability. Investors should monitor the company's ability to maintain cost discipline and capitalize on the expected strong shipments to assess future performance.
The steel industry is highly cyclical and sensitive to both domestic and global economic trends. Cleveland-Cliffs' emphasis on the automotive sector, which performed well in 2023 despite a labor strike, highlights the company's strategic positioning within a key market. The automotive sector's health is a bellwether for steel demand and Cleveland-Cliffs' record automotive shipments suggest a competitive advantage.
However, the company's mention of a fair scrap marketplace raises questions about the volatility of raw material costs, which can significantly impact steel prices and margins. The expectation that hot-rolled coil (HRC) prices will not drop below $1,000 per net ton is contingent upon stable scrap prices, which are influenced by broader economic factors such as supply chain dynamics and global trade policies.
The company's diversified sales across various markets, including direct automotive, infrastructure, manufacturing, distributors and converters, as well as steel producers, indicate a broad customer base, which can mitigate risks associated with demand fluctuations in any single sector. The projected increase in steel shipments for 2024 suggests confidence in continued demand across these segments. Monitoring the distribution of sales across these markets can provide insights into the company's resilience against sector-specific downturns.
From an economic perspective, Cleveland-Cliffs' performance can be seen as a microcosm of the broader manufacturing and construction sectors. The company's ability to navigate a year with reduced steel index pricing while still generating significant free cash flow is indicative of effective cost management and operational agility. The reduction in steel unit costs and the anticipated decrease in 2024 is a positive sign for the company's competitive positioning, potentially allowing it to maintain or grow its market share in a price-sensitive industry.
The focus on reducing net debt to below the publicly stated target demonstrates a conservative financial strategy that may make the company more resilient in the face of economic headwinds. This is particularly relevant given the potential for interest rate fluctuations and economic uncertainty. The company's strong liquidity position of $4.5 billion provides a buffer against unforeseen market disruptions and offers flexibility for strategic investments or further shareholder returns.
The outlook for steel demand, particularly in the context of infrastructure spending and manufacturing activity, is a critical factor for the company's future performance. Given the cyclical nature of the steel industry, Cleveland-Cliffs' proactive measures to strengthen its balance sheet and reduce costs may position it well to capitalize on economic upswings and mitigate the impacts of downturns.
Full-Year Highlights
-
Revenues of
$22.0 billion - Record steel shipments of 16.4 million net tons, including record automotive shipments
-
Cash flow from operations of
$2.3 billion -
Free cash flow of
$1.6 billion $500 million -
Year-end net debt of
$2.9 billion -
Net pension and OPEB liabilities reduced to
$586 million $3.6 billion
Full-Year Consolidated Results
Full-year 2023 consolidated revenues were
As previously foreshadowed in Cliffs' 2022 10-K, full-year results included a goodwill impairment charge totaling
In 2023, the Company recorded cash flows from operations of
Fourth-Quarter Consolidated Results
Fourth-quarter 2023 consolidated revenues were
For the fourth quarter of 2023, the Company recorded a GAAP net loss of
In the fourth quarter of 2023, the Company recorded cash flows from operations of
Fourth-quarter 2023 Adjusted EBITDA1 was
Lourenco Goncalves, Cliffs’ Chairman, President and CEO said: “2023 was another great year for Cleveland-Cliffs, in which we accomplished several goals in commercial, operations, finance and human resources. Steel demand remained healthy throughout the entire year, with our most important market – the automotive sector – performing well. Even with the UAW labor strike late in Q3 and into Q4, automotive steel demand remained consistently strong, as we anticipated. After it was clear that the strike was not creating any real issues in the marketplace, non-automotive clients de-stocking their inventories betting on lower steel prices were compelled to buy steel at higher prices.”
Mr. Goncalves added: “Our 2023 total steel shipments of 16.4 million tons set a record since we became a steel company in 2020. We now have four consecutive quarters with steel shipments above 4 million tons. We generated robust free cash flow of more than
Mr. Goncalves continued: “Another very important highlight of 2023 at Cleveland-Cliffs was our success in significantly reducing our unit costs. We expect steel unit costs to further decrease
Mr. Goncalves concluded: “Our position as an American leader in the steel industry has never been stronger, and that is particularly relevant in turbulent periods for the world, like the one we are living through right now. We remain committed to all stakeholders of Cleveland-Cliffs, and that includes our union represented and non-union workforce, investors, customers, suppliers, communities and
Steelmaking Segment Results
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
Three Months Ended |
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Sept. 30, 2023 |
||
External Sales Volumes |
|
|
|
|
|
|
|
|
|
||||||||||
Steel Products (net tons) |
|
4,039 |
|
|
|
3,838 |
|
|
|
16,432 |
|
|
|
14,751 |
|
|
|
4,106 |
|
Selling Price - Per Net Ton |
|
|
|
|
|
|
|
|
|
||||||||||
Average net selling price per net ton of steel products |
$ |
1,093 |
|
|
$ |
1,156 |
|
|
$ |
1,171 |
|
|
$ |
1,360 |
|
|
$ |
1,203 |
|
Operating Results - In Millions |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
$ |
4,954 |
|
|
$ |
4,902 |
|
|
$ |
21,331 |
|
|
$ |
22,383 |
|
|
$ |
5,443 |
|
Cost of goods sold |
|
(4,798 |
) |
|
|
(4,966 |
) |
|
|
(19,979 |
) |
|
|
(19,914 |
) |
|
|
(4,970 |
) |
Gross margin |
$ |
156 |
|
|
$ |
(64 |
) |
|
$ |
1,352 |
|
|
$ |
2,469 |
|
|
$ |
473 |
|
Full-year 2023 steel product volume of 16.4 million net tons consisted of
Full-year 2023 Steelmaking revenues of
Liquidity and Cash Flow
During the fourth quarter of 2023, the outstanding balance of the Company's ABL Facility was eliminated, a reduction of
The Company ended 2023 with record liquidity of
Outlook
The Company put forth the following expectations for the full-year 2024:
- Steel shipment volumes of 16.5 million net tons, compared to 16.4 million net tons in 2023;
-
Steel unit cost reductions of approximately
$30 $500 million -
Capital expenditures of
$675 $725 million
The Company expects its Adjusted EBITDA performance in the first quarter of 2024 to meaningfully exceed its Adjusted EBITDA performance in the fourth quarter of 2023.
Conference Call Information
Cleveland-Cliffs Inc. will host a conference call on January 30, 2024, at 8:30 a.m. ET. The call will be broadcast live and archived on Cliffs' website: www.clevelandcliffs.com
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in
Forward-Looking Statements
This release contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and projections about our industry or our businesses, are forward-looking statements. We caution investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. Among the risks and uncertainties that could cause actual results to differ from those described in forward-looking statements are the following: continued volatility of steel, iron ore and scrap metal market prices, which directly and indirectly impact the prices of the products that we sell to our customers; uncertainties associated with the highly competitive and cyclical steel industry and our reliance on the demand for steel from the automotive industry; potential weaknesses and uncertainties in global economic conditions, excess global steelmaking capacity, oversupply of iron ore, prevalence of steel imports and reduced market demand; severe financial hardship, bankruptcy, temporary or permanent shutdowns or operational challenges of one or more of our major customers, key suppliers or contractors, which, among other adverse effects, could disrupt our operations or lead to reduced demand for our products, increased difficulty collecting receivables, and customers and/or suppliers asserting force majeure or other reasons for not performing their contractual obligations to us; risks related to
For additional factors affecting the business of Cliffs, refer to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2022, and other filings with the SEC.
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES |
|||||||||||||||||||
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
Three Months Ended |
||||||||||||||
(In Millions, Except Per Share Amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Sept. 30, 2023 |
||
Revenues |
$ |
5,112 |
|
|
$ |
5,044 |
|
|
$ |
21,996 |
|
|
$ |
22,989 |
|
|
$ |
5,605 |
|
Operating costs: |
|
|
|
|
|
|
|
|
|
||||||||||
Cost of goods sold |
|
(4,944 |
) |
|
|
(5,104 |
) |
|
|
(20,605 |
) |
|
|
(20,471 |
) |
|
|
(5,125 |
) |
Selling, general and administrative expenses |
|
(162 |
) |
|
|
(116 |
) |
|
|
(577 |
) |
|
|
(465 |
) |
|
|
(139 |
) |
Acquisition-related costs |
|
(7 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
Goodwill impairment |
|
(125 |
) |
|
|
— |
|
|
|
(125 |
) |
|
|
— |
|
|
|
— |
|
Miscellaneous – net |
|
26 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
(110 |
) |
|
|
(11 |
) |
Total operating costs |
|
(5,212 |
) |
|
|
(5,226 |
) |
|
|
(21,319 |
) |
|
|
(21,050 |
) |
|
|
(5,280 |
) |
Operating income (loss) |
|
(100 |
) |
|
|
(182 |
) |
|
|
677 |
|
|
|
1,939 |
|
|
|
325 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
(63 |
) |
|
|
(71 |
) |
|
|
(289 |
) |
|
|
(276 |
) |
|
|
(70 |
) |
Gain (loss) on extinguishment of debt |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
(75 |
) |
|
|
— |
|
Net periodic benefit credits other than service cost component |
|
54 |
|
|
|
64 |
|
|
|
204 |
|
|
|
212 |
|
|
|
50 |
|
Other non-operating income (loss) |
|
1 |
|
|
|
2 |
|
|
|
5 |
|
|
|
(4 |
) |
|
|
(2 |
) |
Total other expense |
|
(8 |
) |
|
|
(4 |
) |
|
|
(80 |
) |
|
|
(143 |
) |
|
|
(22 |
) |
Income (loss) from continuing operations before income taxes |
|
(108 |
) |
|
|
(186 |
) |
|
|
597 |
|
|
|
1,796 |
|
|
|
303 |
|
Income tax expense |
|
(30 |
) |
|
|
(19 |
) |
|
|
(148 |
) |
|
|
(423 |
) |
|
|
(29 |
) |
Income (loss) from continuing operations |
|
(138 |
) |
|
|
(205 |
) |
|
|
449 |
|
|
|
1,373 |
|
|
|
274 |
|
Income (loss) from discontinued operations, net of tax |
|
(1 |
) |
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
Net income (loss) |
|
(139 |
) |
|
|
(204 |
) |
|
|
450 |
|
|
|
1,376 |
|
|
|
275 |
|
Net income attributable to noncontrolling interests |
|
(16 |
) |
|
|
(10 |
) |
|
|
(51 |
) |
|
|
(41 |
) |
|
|
(11 |
) |
Net income (loss) attributable to Cliffs shareholders |
$ |
(155 |
) |
|
$ |
(214 |
) |
|
$ |
399 |
|
|
$ |
1,335 |
|
|
$ |
264 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) per common share attributable to Cliffs shareholders - basic |
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations |
$ |
(0.31 |
) |
|
$ |
(0.41 |
) |
|
$ |
0.78 |
|
|
$ |
2.57 |
|
|
$ |
0.52 |
|
Discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
$ |
(0.31 |
) |
|
$ |
(0.41 |
) |
|
$ |
0.78 |
|
|
$ |
2.57 |
|
|
$ |
0.52 |
|
Earnings (loss) per common share attributable to Cliffs shareholders - diluted |
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations |
$ |
(0.31 |
) |
|
$ |
(0.41 |
) |
|
$ |
0.78 |
|
|
$ |
2.55 |
|
|
$ |
0.52 |
|
Discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
$ |
(0.31 |
) |
|
$ |
(0.41 |
) |
|
$ |
0.78 |
|
|
$ |
2.55 |
|
|
$ |
0.52 |
|
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES |
|||||
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL POSITION |
|||||
|
December 31, |
||||
(In millions) |
|
2023 |
|
|
2022 |
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
198 |
|
$ |
26 |
Accounts receivable, net |
|
1,840 |
|
|
1,960 |
Inventories |
|
4,460 |
|
|
5,130 |
Other current assets |
|
138 |
|
|
306 |
Total current assets |
|
6,636 |
|
|
7,422 |
Non-current assets: |
|
|
|
||
Property, plant and equipment, net |
|
8,895 |
|
|
9,070 |
Goodwill |
|
1,005 |
|
|
1,130 |
Pension and OPEB assets |
|
329 |
|
|
356 |
Other non-current assets |
|
672 |
|
|
777 |
TOTAL ASSETS |
$ |
17,537 |
|
$ |
18,755 |
LIABILITIES |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
2,099 |
|
$ |
2,186 |
Accrued employment costs |
|
511 |
|
|
429 |
Accrued expenses |
|
380 |
|
|
383 |
Other current liabilities |
|
518 |
|
|
551 |
Total current liabilities |
|
3,508 |
|
|
3,549 |
Non-current liabilities: |
|
|
|
||
Long-term debt |
|
3,137 |
|
|
4,249 |
Pension and OPEB liabilities |
|
821 |
|
|
1,058 |
Deferred income taxes |
|
639 |
|
|
590 |
Other non-current liabilities |
|
1,310 |
|
|
1,267 |
TOTAL LIABILITIES |
|
9,415 |
|
|
10,713 |
TOTAL EQUITY |
|
8,122 |
|
|
8,042 |
TOTAL LIABILITIES AND EQUITY |
$ |
17,537 |
|
$ |
18,755 |
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES |
|||||||||||||||
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
(In millions) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(139 |
) |
|
$ |
(204 |
) |
|
$ |
450 |
|
|
$ |
1,376 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation, depletion and amortization |
|
235 |
|
|
|
246 |
|
|
|
973 |
|
|
|
1,034 |
|
Deferred income taxes |
|
(18 |
) |
|
|
(120 |
) |
|
|
114 |
|
|
|
90 |
|
Pension and OPEB credits |
|
(44 |
) |
|
|
(51 |
) |
|
|
(163 |
) |
|
|
(132 |
) |
Goodwill impairment |
|
125 |
|
|
|
— |
|
|
|
125 |
|
|
|
— |
|
Loss (gain) on extinguishment of debt |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
75 |
|
Other |
|
(45 |
) |
|
|
47 |
|
|
|
76 |
|
|
|
151 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
284 |
|
|
|
342 |
|
|
|
120 |
|
|
|
197 |
|
Inventories |
|
132 |
|
|
|
412 |
|
|
|
670 |
|
|
|
64 |
|
Income taxes |
|
106 |
|
|
|
87 |
|
|
|
122 |
|
|
|
(22 |
) |
Pension and OPEB payments and contributions |
|
(10 |
) |
|
|
(30 |
) |
|
|
(94 |
) |
|
|
(204 |
) |
Payables, accrued employment and accrued expenses |
|
99 |
|
|
|
(136 |
) |
|
|
4 |
|
|
|
(70 |
) |
Other, net |
|
(73 |
) |
|
|
(103 |
) |
|
|
(130 |
) |
|
|
(136 |
) |
Net cash provided by operating activities |
|
652 |
|
|
|
489 |
|
|
|
2,267 |
|
|
|
2,423 |
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
Purchase of property, plant and equipment |
|
(165 |
) |
|
|
(227 |
) |
|
|
(646 |
) |
|
|
(943 |
) |
Acquisition of FPT, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(31 |
) |
Other investing activities |
|
44 |
|
|
|
18 |
|
|
|
55 |
|
|
|
38 |
|
Net cash used by investing activities |
|
(121 |
) |
|
|
(209 |
) |
|
|
(591 |
) |
|
|
(936 |
) |
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
Repurchase of common shares |
|
— |
|
|
|
(30 |
) |
|
|
(152 |
) |
|
|
(240 |
) |
Proceeds from issuance of debt |
|
— |
|
|
|
— |
|
|
|
750 |
|
|
|
— |
|
Repayments of senior notes |
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(1,358 |
) |
Borrowings under credit facilities |
|
— |
|
|
|
1,099 |
|
|
|
3,004 |
|
|
|
5,749 |
|
Repayments under credit facilities |
|
(325 |
) |
|
|
(1,325 |
) |
|
|
(4,868 |
) |
|
|
(5,494 |
) |
Debt issuance costs |
|
— |
|
|
|
— |
|
|
|
(34 |
) |
|
|
— |
|
Other financing activities |
|
(39 |
) |
|
|
(51 |
) |
|
|
(204 |
) |
|
|
(166 |
) |
Net cash used by financing activities |
|
(364 |
) |
|
|
(310 |
) |
|
|
(1,504 |
) |
|
|
(1,509 |
) |
Net increase (decrease) in cash and cash equivalents |
|
167 |
|
|
|
(30 |
) |
|
|
172 |
|
|
|
(22 |
) |
Cash and cash equivalents at beginning of period |
|
31 |
|
|
|
56 |
|
|
|
26 |
|
|
|
48 |
|
Cash and cash equivalents at end of period |
$ |
198 |
|
|
$ |
26 |
|
|
$ |
198 |
|
|
$ |
26 |
|
1 CLEVELAND-CLIFFS INC. AND SUBSIDIARIES |
|||||||||||||||||||
NON-GAAP RECONCILIATION - EBITDA AND ADJUSTED EBITDA |
|||||||||||||||||||
In addition to the consolidated financial statements presented in accordance with |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
Three Months Ended |
||||||||||||||
(In millions) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Sept. 30, 2023 |
||
Net income (loss) |
$ |
(139 |
) |
|
$ |
(204 |
) |
|
$ |
450 |
|
|
$ |
1,376 |
|
|
$ |
275 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
(63 |
) |
|
|
(71 |
) |
|
|
(289 |
) |
|
|
(276 |
) |
|
|
(70 |
) |
Income tax expense |
|
(30 |
) |
|
|
(19 |
) |
|
|
(148 |
) |
|
|
(423 |
) |
|
|
(29 |
) |
Depreciation, depletion and amortization |
|
(235 |
) |
|
|
(246 |
) |
|
|
(973 |
) |
|
|
(1,034 |
) |
|
|
(249 |
) |
Total EBITDA |
$ |
189 |
|
|
$ |
132 |
|
|
$ |
1,860 |
|
|
$ |
3,109 |
|
|
$ |
623 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
EBITDA from noncontrolling interests |
$ |
23 |
|
|
$ |
17 |
|
|
$ |
83 |
|
|
$ |
74 |
|
|
$ |
20 |
|
Gain (loss) on extinguishment of debt |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
(75 |
) |
|
|
— |
|
Acquisition-related expenses and adjustments |
|
(7 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
Goodwill impairment |
|
(125 |
) |
|
|
— |
|
|
|
(125 |
) |
|
|
— |
|
|
|
— |
|
Asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(29 |
) |
|
|
— |
|
Non-cash gain on sale of business |
|
28 |
|
|
|
— |
|
|
|
28 |
|
|
|
— |
|
|
|
— |
|
Other, net |
|
(9 |
) |
|
|
(9 |
) |
|
|
(25 |
) |
|
|
(29 |
) |
|
|
(8 |
) |
Total Adjusted EBITDA1 |
$ |
279 |
|
|
$ |
123 |
|
|
$ |
1,911 |
|
|
$ |
3,169 |
|
|
$ |
614 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EBITDA of noncontrolling interests includes the following: |
|
|
|||||||||||||||||
Net income attributable to noncontrolling interests |
$ |
16 |
|
|
$ |
10 |
|
|
$ |
51 |
|
|
$ |
41 |
|
|
$ |
11 |
|
Depreciation, depletion and amortization |
|
7 |
|
|
|
7 |
|
|
|
32 |
|
|
|
33 |
|
|
|
9 |
|
EBITDA of noncontrolling interests |
$ |
23 |
|
|
$ |
17 |
|
|
$ |
83 |
|
|
$ |
74 |
|
|
$ |
20 |
|
2 CLEVELAND-CLIFFS INC. AND SUBSIDIARIES |
|||||||||||||||||||
ADJUSTED EARNINGS PER SHARE RECONCILIATION |
|||||||||||||||||||
In addition to the consolidated financial statements presented in accordance with |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
Three Months Ended |
||||||||||||||
(In millions) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Sept. 30, 2023 |
||
Net income (loss) attributable to Cliffs shareholders |
$ |
(155 |
) |
|
$ |
(214 |
) |
|
$ |
399 |
|
|
$ |
1,335 |
|
|
$ |
264 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Gain (loss) on extinguishment of debt |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
(75 |
) |
|
|
— |
|
Acquisition-related expenses and adjustments |
|
(7 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
Goodwill impairment1 |
|
(125 |
) |
|
|
— |
|
|
|
(125 |
) |
|
|
— |
|
|
|
— |
|
Tax valuation allowance |
|
(14 |
) |
|
|
— |
|
|
|
(14 |
) |
|
|
— |
|
|
|
— |
|
Asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(29 |
) |
|
|
— |
|
Non-cash gain on sale of business |
|
28 |
|
|
|
— |
|
|
|
28 |
|
|
|
— |
|
|
|
— |
|
Other, net |
|
(9 |
) |
|
|
(9 |
) |
|
|
(25 |
) |
|
|
(29 |
) |
|
|
(8 |
) |
Income tax effect1 |
|
(3 |
) |
|
|
2 |
|
|
|
2 |
|
|
|
32 |
|
|
|
3 |
|
Adjusted net income (loss) attributable to Cliffs shareholders |
$ |
(25 |
) |
|
$ |
(208 |
) |
|
$ |
545 |
|
|
$ |
1,437 |
|
|
$ |
272 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) per common share attributable to Cliffs shareholders - diluted |
$ |
(0.31 |
) |
|
$ |
(0.41 |
) |
|
$ |
0.78 |
|
|
$ |
2.55 |
|
|
$ |
0.52 |
|
Adjusted earnings (loss) per common share attributable to Cliffs shareholders - diluted |
$ |
(0.05 |
) |
|
$ |
(0.40 |
) |
|
$ |
1.07 |
|
|
$ |
2.74 |
|
|
$ |
0.53 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
1Goodwill impairment is non-deductible for income tax purposes. |
|||||||||||||||||||
3 CLEVELAND-CLIFFS INC. AND SUBSIDIARIES |
|||||||||||||||
NON-GAAP RECONCILIATION - FREE CASH FLOW |
|||||||||||||||
Free cash flow is a non-GAAP measure defined as net cash provided by operating activities less purchase of property, plant and equipment. Management believes it is an important measure to assess the cash generation available to service debt, strategic initiatives or other financing activities. The following table provides a reconciliation of operating cash flows to free cash flows: |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
(In millions) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by operating activities |
$ |
652 |
|
|
$ |
489 |
|
|
$ |
2,267 |
|
|
$ |
2,423 |
|
Purchase of property, plant and equipment |
|
(165 |
) |
|
|
(227 |
) |
|
|
(646 |
) |
|
|
(943 |
) |
Free cash flow |
$ |
487 |
|
|
$ |
262 |
|
|
$ |
1,621 |
|
|
$ |
1,480 |
|
4 CLEVELAND-CLIFFS INC. AND SUBSIDIARIES |
||||||||
NON-GAAP RECONCILIATION - NET DEBT |
||||||||
Net debt is a non-GAAP financial measure that management uses in evaluating financial position. Net debt is defined as long-term debt less cash and cash equivalents. Management believes net debt is an important measure of the Company’s financial position due to the amount of cash and cash equivalents on hand. The presentation of this measure is not intended to be considered in isolation from, as a substitute for, or as superior to, the financial information prepared and presented in accordance with |
||||||||
|
||||||||
(In millions) |
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|||
Long-term debt |
$ |
3,137 |
|
$ |
3,458 |
|
$ |
4,249 |
Less: Cash and cash equivalents |
|
198 |
|
|
31 |
|
|
26 |
Net debt |
$ |
2,939 |
|
$ |
3,427 |
|
$ |
4,223 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240129882706/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316
INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719
Source: Cleveland-Cliffs Inc.
FAQ
What were Cleveland-Cliffs Inc.'s revenues for full-year 2023?
What was the net debt of Cleveland-Cliffs Inc. at the end of 2023?
What was the adjusted EBITDA for Cleveland-Cliffs Inc. in 2023?
What were Cleveland-Cliffs Inc.'s steel shipment volumes for 2023?
What are the expected steel shipment volumes for Cleveland-Cliffs Inc. in 2024?
