Cleveland-Cliffs Reports Second-Quarter 2024 Results
Cleveland-Cliffs Inc. (NYSE: CLF) reported its Q2 2024 results with revenues of $5.1 billion and steel shipments of 4.0 million net tons. The company achieved a net income of $9 million and an adjusted EBITDA of $323 million. Notable highlights include:
- Free cash flow of $362 million
- Net debt decrease of $237 million to $3.4 billion
- Repurchased 7.5 million shares
- Liquidity of $3.7 billion as of June 30, 2024
CEO Lourenco Goncalves emphasized the company's strong performance despite challenging market conditions. Cleveland-Cliffs announced the acquisition of Stelco and plans to repurpose its Weirton tinplate plant to produce transformers, potentially re-employing 600 workers.
Cleveland-Cliffs Inc. (NYSE: CLF) ha riportato i risultati del secondo trimestre 2024, con entrate di 5,1 miliardi di dollari e spedizioni di acciaio di 4,0 milioni di tonnellate nette. L'azienda ha registrato un utile netto di 9 milioni di dollari e un EBITDA rettificato di 323 milioni di dollari. Tra i punti salienti ci sono:
- Flusso di cassa libero di 362 milioni di dollari
- Riduzione del debito netto di 237 milioni di dollari a 3,4 miliardi di dollari
- Riacquisto di 7,5 milioni di azioni
- Liquidità di 3,7 miliardi di dollari al 30 giugno 2024
Il CEO Lourenco Goncalves ha sottolineato le forti prestazioni dell'azienda nonostante le difficili condizioni di mercato. Cleveland-Cliffs ha annunciato l'acquisizione di Stelco e i piani per riutilizzare il suo impianto di lattoneria di Weirton per produrre trasformatori, con la possibilità di riassumere 600 lavoratori.
Cleveland-Cliffs Inc. (NYSE: CLF) reportó sus resultados del segundo trimestre de 2024, con ingresos de 5,1 mil millones de dólares y envíos de acero de 4,0 millones de toneladas netas. La compañía logró un ingreso neto de 9 millones de dólares y un EBITDA ajustado de 323 millones de dólares. Los puntos destacados incluyen:
- Flujo de caja libre de 362 millones de dólares
- Disminución de la deuda neta de 237 millones de dólares a 3,4 mil millones de dólares
- Recompra de 7,5 millones de acciones
- Liquidez de 3,7 mil millones de dólares al 30 de junio de 2024
El CEO Lourenco Goncalves enfatizó el sólido desempeño de la compañía a pesar de las desafiantes condiciones del mercado. Cleveland-Cliffs anunció la adquisición de Stelco y planes para reutilizar su planta de hojalata de Weirton para producir transformadores, lo que podría reemplear a 600 trabajadores.
Cleveland-Cliffs Inc. (NYSE: CLF)는 2024년 2분기 실적을 발표하며 51억 달러의 매출과 400만 톤의 강철 출하량을 기록했습니다. 회사는 900만 달러의 순이익과 3억 2300만 달러의 조정된 EBITDA를 달성했습니다. 주요 하이라이트는 다음과 같습니다:
- 3억 6200만 달러의 자유 현금 흐름
- 순부채가 2억 3700만 달러 감소하여 34억 달러로
- 750만 주의 자사주 매입
- 2024년 6월 30일 기준 37억 달러의 유동성
CEO Lourenco Goncalves는 어려운 시장 환경에도 불구하고 회사의 강력한 성과를 강조했습니다. Cleveland-Cliffs는 Stelco의 인수 발표와 Weirton 주석판 제조 공장을 변환기 생산으로 전환할 계획을 세웠으며, 이를 통해 600명의 직원이 재고용될 가능성이 있습니다.
Cleveland-Cliffs Inc. (NYSE: CLF) a rapporté ses résultats pour le deuxième trimestre 2024, avec des revenus de 5,1 milliards de dollars et des expéditions d'acier de 4,0 millions de tonnes nettes. L'entreprise a réalisé un revenu net de 9 millions de dollars et un EBITDA ajusté de 323 millions de dollars. Les points forts notables incluent :
- Flux de trésorerie libre de 362 millions de dollars
- Diminution de la dette nette de 237 millions de dollars à 3,4 milliards de dollars
- Rachat de 7,5 millions d'actions
- Liquidité de 3,7 milliards de dollars au 30 juin 2024
Le PDG Lourenco Goncalves a souligné les solides performances de l'entreprise malgré des conditions de marché difficiles. Cleveland-Cliffs a annoncé l'acquisition de Stelco et des projets de reconversion de son usine de tole de Weirton pour produire des transformateurs, pouvant ainsi réemployer 600 travailleurs.
Cleveland-Cliffs Inc. (NYSE: CLF) hat seine Ergebnisse für das zweite Quartal 2024 veröffentlicht, mit Einnahmen von 5,1 Milliarden Dollar und Stahlversendungen von 4,0 Millionen Nettotonnen. Das Unternehmen erzielte einen Nettoeinkommen von 9 Millionen Dollar und ein bereinigtes EBITDA von 323 Millionen Dollar. Zu den bemerkenswerten Höhepunkten gehören:
- Freier Cashflow von 362 Millionen Dollar
- Rückgang der Nettoverschuldung um 237 Millionen Dollar auf 3,4 Milliarden Dollar
- Rückkauf von 7,5 Millionen Aktien
- Liquidität von 3,7 Milliarden Dollar zum 30. Juni 2024
CEO Lourenco Goncalves betonte die starke Leistung des Unternehmens trotz schwieriger Marktbedingungen. Cleveland-Cliffs kündigte die Übernahme von Stelco und Pläne an, sein Weirton-Zinnblechwerk umzuwidmen, um Transformatoren zu produzieren, was möglicherweise 600 Arbeitnehmer wieder einstellen könnte.
- Generated substantial free cash flow of $362 million in Q2
- Reduced net debt by $237 million to $3.4 billion
- Repurchased 7.5 million CLF common shares
- Announced acquisition of Stelco, expanding North American footprint
- Plans to repurpose Weirton plant for transformer production, potentially creating 600 jobs
- Achieved top ISS ratings for environmental and social performance
- Q2 revenues decreased to $5.1 billion from $5.2 billion in Q1 2024
- Adjusted EBITDA declined to $323 million from $414 million in Q1 2024
- Average net selling price per ton of steel products decreased to $1,125 from $1,175 in Q1 2024
- Steel product sales volumes slightly decreased to 3.989 million net tons from 3.940 million in Q1 2024
The financial results reported by Cleveland-Cliffs for the second quarter of 2024 show a mixed bag of performance metrics. Revenue of $5.1 billion is a slight decrease from the previous quarter's $5.2 billion, signaling a minor decline in sales activity. However, the company managed to generate a positive net income of $9 million, a significant improvement from a net loss of $53 million in the first quarter. This turnaround is important as it reflects improved profitability despite a tough market environment. The most telling figure is the adjusted EBITDA of $323 million, down from $414 million in the previous quarter, which suggests tighter margins. The company also made substantial progress in reducing its net debt by $237 million, bringing it down to $3.4 billion, indicative of better financial health and stronger balance sheet management. The share repurchases and free cash flow generation underline a robust capital allocation strategy aimed at enhancing shareholder value. However, the overall dip in EBITDA and revenue compared to previous quarters warrants cautious optimism for investors.
The strategic initiatives highlighted in the report point to long-term growth opportunities for Cleveland-Cliffs. The acquisition of Stelco, a low-cost flat-rolled steelmaking operation, is particularly noteworthy. This not only expands Cliffs' production capabilities but also aligns with its goal of cost reduction and efficiency improvement. Market response to mergers and acquisitions can be mixed; however, the backing from key stakeholders, including the USW and government officials, adds a layer of credibility and reduces integration risk. Furthermore, repurposing the Weirton tinplate plant to produce electrical transformers is a forward-thinking move. This diversification into the electrical sector, especially in light of the expected surge in demand for electrical components driven by AI and other technologies, positions Cliffs favorably for future growth. The company’s plans to utilize its under-used capacity while providing employment for affected workers also enhance its social and environmental standing, as evidenced by top ratings from ISS. These strategic steps could lead to a stronger market position and potentially higher valuation multiples in the future.
Cleveland-Cliffs' detailed breakdown of steel shipments and market segmentation provides insight into its operational focus. With 35% of shipments being hot-rolled steel and significant portions going to automotive and infrastructure markets, Cliffs is clearly aligned with industries that have steady, albeit cyclical, demand. The reported average selling price per net ton of $1,125 marks a decline from last year’s $1,255, which reflects broader industry pricing pressures. However, the company's ability to meet cost reduction targets and maintain shipment volumes indicates resilient operational management. The shift towards producing Grain Oriented Electrical Steels (GOES) and entering the transformer market points to diversification that buffers against traditional steel market volatility. This strategic pivot, coupled with a keen focus on cost management and stakeholder engagement, suggests Cleveland-Cliffs is adapting well to market dynamics and positioning itself for sustained growth. This diversification not only mitigates risks associated with core steel operations but also taps into emerging markets with higher growth potential.
Second-Quarter 2024 Highlights
-
Revenues of
$5.1 billion - Steel shipments of 4.0 million net tons
-
Net income of
and adjusted net income1 of$9 million $50 million -
Adjusted EPS1 of
per diluted share$0.11 -
Adjusted EBITDA2 of
$323 million -
Net debt3 decrease of
to$237 million $3.4 billion -
Cash flow from operations of
$519 million -
Free cash flow4 of
$362 million - Repurchased 7.5 million shares
-
Liquidity of
as of June 30, 2024$3.7 billion
Second-quarter 2024 revenues were
For the second quarter of 2024, the Company recorded GAAP EPS of
Second-quarter 2024 Adjusted EBITDA2 was
During the second quarter of 2024, the Company repurchased 7.5 million CLF common shares under the previously authorized
Cliffs’ Chairman, President and CEO Lourenco Goncalves said: “Our substantial free cash flow generation of
Mr. Goncalves added: “We also took action on several matters that will lead to further long-term success. We are excited about the acquisition of Stelco that we announced last week. We have long admired Stelco, and are eager to incorporate one of the lowest cost flat-rolled steelmaking assets in
Mr. Goncalves continued: “In addition to the acquisition of Stelco, we have shown our ability to identify and pursue downstream opportunities. As we announced today in
Mr. Goncalves concluded: “Looking forward, we expect to benefit in Q3 from another major step down in costs. Our largest end market - the automotive sector - remains in good shape, and orders from service center customers are expected to increase as seaborne steel imports dry up. Our recent growth announcements, both through M&A and downstream expansion, are clear examples that we are still in the early stages of the new Cleveland-Cliffs that was born in 2020 when we became a steel company. We are clearly not finished yet, and the best is yet to come.”
Steelmaking Segment Results |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
Three Months Ended |
||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Mar. 31, 2024 |
||
External Sales Volumes - In Thousands |
|
|
|
|
|
|
|
|
|
||||||||||
Steel Products (net tons) |
|
3,989 |
|
|
|
4,202 |
|
|
|
7,929 |
|
|
|
8,287 |
|
|
|
3,940 |
|
Selling Price - Per Net Ton |
|
|
|
|
|
|
|
|
|
||||||||||
Average net selling price per net ton of steel products |
$ |
1,125 |
|
|
$ |
1,255 |
|
|
$ |
1,150 |
|
|
$ |
1,193 |
|
|
$ |
1,175 |
|
Operating Results - In Millions |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
$ |
4,915 |
|
|
$ |
5,808 |
|
|
$ |
9,942 |
|
|
$ |
10,934 |
|
|
$ |
5,027 |
|
Cost of goods sold |
|
(4,770 |
) |
|
|
(5,179 |
) |
|
|
(9,527 |
) |
|
|
(10,211 |
) |
|
|
(4,757 |
) |
Gross margin |
$ |
145 |
|
|
$ |
629 |
|
|
$ |
415 |
|
|
$ |
723 |
|
|
$ |
270 |
|
Second-quarter 2024 steel product sales volumes of 4.0 million net tons consisted of
Steelmaking revenues of
Liquidity and Cash Flow
As of June 30, 2024, the Company's long-term debt was
Outlook
Cliffs is lowering its full-year 2024 expected capital expenditures range to
In addition, the Company's objective of year-over-year steel unit cost reductions of approximately
Cleveland-Cliffs Inc. will host a conference call on July 23, 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 a leading
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, 2023, and other filings with the
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES |
|||||||||||||||||||
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
Three Months Ended |
||||||||||||||
(In millions, except per share amounts) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Mar. 31, 2024 |
||
Revenues |
$ |
5,092 |
|
|
$ |
5,984 |
|
|
$ |
10,291 |
|
|
$ |
11,279 |
|
|
$ |
5,199 |
|
Operating costs: |
|
|
|
|
|
|
|
|
|
||||||||||
Cost of goods sold |
|
(4,930 |
) |
|
|
(5,340 |
) |
|
|
(9,844 |
) |
|
|
(10,536 |
) |
|
|
(4,914 |
) |
Selling, general and administrative expenses |
|
(103 |
) |
|
|
(149 |
) |
|
|
(235 |
) |
|
|
(276 |
) |
|
|
(132 |
) |
Restructuring and other charges |
|
(25 |
) |
|
|
— |
|
|
|
(129 |
) |
|
|
— |
|
|
|
(104 |
) |
Asset impairments |
|
(15 |
) |
|
|
— |
|
|
|
(79 |
) |
|
|
— |
|
|
|
(64 |
) |
Miscellaneous – net |
|
(13 |
) |
|
|
(12 |
) |
|
|
(36 |
) |
|
|
(15 |
) |
|
|
(23 |
) |
Total operating costs |
|
(5,086 |
) |
|
|
(5,501 |
) |
|
|
(10,323 |
) |
|
|
(10,827 |
) |
|
|
(5,237 |
) |
Operating income (loss) |
|
6 |
|
|
|
483 |
|
|
|
(32 |
) |
|
|
452 |
|
|
|
(38 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
(69 |
) |
|
|
(79 |
) |
|
|
(133 |
) |
|
|
(156 |
) |
|
|
(64 |
) |
Loss on extinguishment of debt |
|
(6 |
) |
|
|
— |
|
|
|
(27 |
) |
|
|
— |
|
|
|
(21 |
) |
Net periodic benefit credits other than service cost component |
|
62 |
|
|
|
50 |
|
|
|
122 |
|
|
|
100 |
|
|
|
60 |
|
Other non-operating income |
|
1 |
|
|
|
4 |
|
|
|
3 |
|
|
|
6 |
|
|
|
2 |
|
Total other expense |
|
(12 |
) |
|
|
(25 |
) |
|
|
(35 |
) |
|
|
(50 |
) |
|
|
(23 |
) |
Income (loss) from continuing operations before income taxes |
|
(6 |
) |
|
|
458 |
|
|
|
(67 |
) |
|
|
402 |
|
|
|
(61 |
) |
Income tax benefit (expense) |
|
15 |
|
|
|
(102 |
) |
|
|
23 |
|
|
|
(89 |
) |
|
|
8 |
|
Income (loss) from continuing operations |
|
9 |
|
|
|
356 |
|
|
|
(44 |
) |
|
|
313 |
|
|
|
(53 |
) |
Income from discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Net income (loss) |
|
9 |
|
|
|
356 |
|
|
|
(44 |
) |
|
|
314 |
|
|
|
(53 |
) |
Income attributable to noncontrolling interests |
|
(7 |
) |
|
|
(9 |
) |
|
|
(21 |
) |
|
|
(24 |
) |
|
|
(14 |
) |
Net income (loss) attributable to Cliffs shareholders |
$ |
2 |
|
|
$ |
347 |
|
|
$ |
(65 |
) |
|
$ |
290 |
|
|
$ |
(67 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) per common share attributable to Cliffs shareholders - basic |
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations |
$ |
0.00 |
|
|
$ |
0.68 |
|
|
$ |
(0.13 |
) |
|
$ |
0.56 |
|
|
$ |
(0.14 |
) |
Discontinued operations |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.68 |
|
|
$ |
(0.13 |
) |
|
$ |
0.56 |
|
|
$ |
(0.14 |
) |
Earnings (loss) per common share attributable to Cliffs shareholders - diluted |
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations |
$ |
0.00 |
|
|
$ |
0.67 |
|
|
$ |
(0.13 |
) |
|
$ |
0.56 |
|
|
$ |
(0.14 |
) |
Discontinued operations |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.67 |
|
|
$ |
(0.13 |
) |
|
$ |
0.56 |
|
|
$ |
(0.14 |
) |
The sum of quarterly EPS may not equal EPS for the year-to-date period based on changes in share count due to discrete quarterly calculations. |
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES |
|||||
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL POSITION |
|||||
|
|||||
(In millions) |
June 30,
|
|
December 31,
|
||
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
110 |
|
$ |
198 |
Accounts receivable, net |
|
1,773 |
|
|
1,840 |
Inventories |
|
4,199 |
|
|
4,460 |
Other current assets |
|
110 |
|
|
138 |
Total current assets |
|
6,192 |
|
|
6,636 |
Non-current assets: |
|
|
|
||
Property, plant and equipment, net |
|
8,728 |
|
|
8,895 |
Goodwill |
|
1,005 |
|
|
1,005 |
Pension and OPEB assets |
|
354 |
|
|
329 |
Other non-current assets |
|
649 |
|
|
672 |
TOTAL ASSETS |
$ |
16,928 |
|
$ |
17,537 |
LIABILITIES |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
2,080 |
|
$ |
2,099 |
Accrued employment costs |
|
431 |
|
|
511 |
Accrued expenses |
|
296 |
|
|
380 |
Other current liabilities |
|
511 |
|
|
518 |
Total current liabilities |
|
3,318 |
|
|
3,508 |
Non-current liabilities: |
|
|
|
||
Long-term debt |
|
3,507 |
|
|
3,137 |
Pension and OPEB liabilities |
|
757 |
|
|
821 |
Deferred income taxes |
|
621 |
|
|
639 |
Other non-current liabilities |
|
1,353 |
|
|
1,310 |
TOTAL LIABILITIES |
|
9,556 |
|
|
9,415 |
TOTAL EQUITY |
|
7,372 |
|
|
8,122 |
TOTAL LIABILITIES AND EQUITY |
$ |
16,928 |
|
$ |
17,537 |
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES |
|||||||||||||||
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(In millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
9 |
|
|
$ |
356 |
|
|
$ |
(44 |
) |
|
$ |
314 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation, depletion and amortization |
|
228 |
|
|
|
247 |
|
|
|
458 |
|
|
|
489 |
|
Restructuring and other charges |
|
25 |
|
|
|
— |
|
|
|
129 |
|
|
|
— |
|
Asset impairments |
|
15 |
|
|
|
— |
|
|
|
79 |
|
|
|
— |
|
Pension and OPEB credits |
|
(53 |
) |
|
|
(39 |
) |
|
|
(104 |
) |
|
|
(79 |
) |
Loss on extinguishment of debt |
|
6 |
|
|
|
— |
|
|
|
27 |
|
|
|
— |
|
Other |
|
3 |
|
|
|
55 |
|
|
|
47 |
|
|
|
90 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
94 |
|
|
|
(76 |
) |
|
|
67 |
|
|
|
(333 |
) |
Inventories |
|
235 |
|
|
|
196 |
|
|
|
227 |
|
|
|
403 |
|
Income taxes |
|
(11 |
) |
|
|
154 |
|
|
|
(12 |
) |
|
|
169 |
|
Pension and OPEB payments and contributions |
|
(30 |
) |
|
|
(28 |
) |
|
|
(62 |
) |
|
|
(58 |
) |
Payables, accrued employment and accrued expenses |
|
(6 |
) |
|
|
12 |
|
|
|
(176 |
) |
|
|
(78 |
) |
Other, net |
|
4 |
|
|
|
10 |
|
|
|
25 |
|
|
|
(69 |
) |
Net cash provided by operating activities |
|
519 |
|
|
|
887 |
|
|
|
661 |
|
|
|
848 |
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
Purchase of property, plant and equipment |
|
(157 |
) |
|
|
(131 |
) |
|
|
(339 |
) |
|
|
(319 |
) |
Other investing activities |
|
5 |
|
|
|
6 |
|
|
|
8 |
|
|
|
9 |
|
Net cash used by investing activities |
|
(152 |
) |
|
|
(125 |
) |
|
|
(331 |
) |
|
|
(310 |
) |
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
Repurchase of common shares |
|
(124 |
) |
|
|
(94 |
) |
|
|
(733 |
) |
|
|
(94 |
) |
Proceeds from issuance of senior notes |
|
— |
|
|
|
750 |
|
|
|
825 |
|
|
|
750 |
|
Repayments of senior notes |
|
(193 |
) |
|
|
— |
|
|
|
(845 |
) |
|
|
— |
|
Borrowings (repayments) under credit facilities, net |
|
28 |
|
|
|
(1,338 |
) |
|
|
370 |
|
|
|
(1,031 |
) |
Debt issuance costs |
|
— |
|
|
|
(34 |
) |
|
|
(13 |
) |
|
|
(34 |
) |
Other financing activities |
|
2 |
|
|
|
(71 |
) |
|
|
(22 |
) |
|
|
(121 |
) |
Net cash used by financing activities |
|
(287 |
) |
|
|
(787 |
) |
|
|
(418 |
) |
|
|
(530 |
) |
Net increase (decrease) in cash and cash equivalents |
|
80 |
|
|
|
(25 |
) |
|
|
(88 |
) |
|
|
8 |
|
Cash and cash equivalents at beginning of period |
|
30 |
|
|
|
59 |
|
|
|
198 |
|
|
|
26 |
|
Cash and cash equivalents at end of period |
$ |
110 |
|
|
$ |
34 |
|
|
$ |
110 |
|
|
$ |
34 |
|
1 CLEVELAND-CLIFFS INC. AND SUBSIDIARIES |
|||||||||||||||||||
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE RECONCILIATION |
|||||||||||||||||||
|
|||||||||||||||||||
In addition to the consolidated financial statements presented in accordance with |
|||||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
Three Months Ended |
||||||||||||||
(In millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Mar. 31, 2024 |
||
Net income (loss) attributable to Cliffs shareholders |
$ |
2 |
|
|
$ |
347 |
|
|
$ |
(65 |
) |
|
$ |
290 |
|
|
$ |
(67 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
(40 |
) |
|
|
— |
|
|
|
(217 |
) |
|
|
— |
|
|
|
(177 |
) |
Loss on extinguishment of debt |
|
(6 |
) |
|
|
— |
|
|
|
(27 |
) |
|
|
— |
|
|
|
(21 |
) |
Other, net |
|
(1 |
) |
|
|
(8 |
) |
|
|
(5 |
) |
|
|
(10 |
) |
|
|
(4 |
) |
Income tax effect |
|
(1 |
) |
|
|
2 |
|
|
|
47 |
|
|
|
2 |
|
|
|
48 |
|
Adjusted net income attributable to Cliffs shareholders |
$ |
50 |
|
|
$ |
353 |
|
|
$ |
137 |
|
|
$ |
298 |
|
|
$ |
87 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) per common share attributable to Cliffs shareholders - diluted |
$ |
0.00 |
|
|
$ |
0.67 |
|
|
$ |
(0.13 |
) |
|
$ |
0.56 |
|
|
$ |
(0.14 |
) |
Adjusted earnings per common share attributable to Cliffs shareholders - diluted |
$ |
0.11 |
|
|
$ |
0.69 |
|
|
$ |
0.28 |
|
|
$ |
0.58 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
APrimarily includes asset impairments, asset retirement obligation charges and employee-related costs. |
|||||||||||||||||||
The sum of quarterly EPS may not equal EPS for the year-to-date period based on changes in share count due to discrete quarterly calculations. |
2 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 June 30, |
|
Six Months Ended June 30, |
|
Three Months Ended |
||||||||||||||
(In millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Mar. 31, 2024 |
||
Net income (loss) |
$ |
9 |
|
|
$ |
356 |
|
|
$ |
(44 |
) |
|
$ |
314 |
|
|
$ |
(53 |
) |
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
(69 |
) |
|
|
(79 |
) |
|
|
(133 |
) |
|
|
(156 |
) |
|
|
(64 |
) |
Income tax benefit (expense) |
|
15 |
|
|
|
(102 |
) |
|
|
23 |
|
|
|
(89 |
) |
|
|
8 |
|
Depreciation, depletion and amortization |
|
(228 |
) |
|
|
(247 |
) |
|
|
(458 |
) |
|
|
(489 |
) |
|
|
(230 |
) |
Total EBITDA |
$ |
291 |
|
|
$ |
784 |
|
|
$ |
524 |
|
|
$ |
1,048 |
|
|
$ |
233 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
EBITDA of noncontrolling interests |
$ |
15 |
|
|
$ |
17 |
|
|
$ |
36 |
|
|
$ |
40 |
|
|
$ |
21 |
|
|
|
(40 |
) |
|
|
— |
|
|
|
(217 |
) |
|
|
— |
|
|
|
(177 |
) |
Loss on extinguishment of debt |
|
(6 |
) |
|
|
— |
|
|
|
(27 |
) |
|
|
— |
|
|
|
(21 |
) |
Other, net |
|
(1 |
) |
|
|
(8 |
) |
|
|
(5 |
) |
|
|
(10 |
) |
|
|
(4 |
) |
Total Adjusted EBITDA |
$ |
323 |
|
|
$ |
775 |
|
|
$ |
737 |
|
|
$ |
1,018 |
|
|
$ |
414 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EBITDA of noncontrolling interests includes the following: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to noncontrolling interests |
$ |
7 |
|
|
$ |
9 |
|
|
$ |
21 |
|
|
$ |
24 |
|
|
$ |
14 |
|
Depreciation, depletion and amortization |
|
8 |
|
|
|
8 |
|
|
|
15 |
|
|
|
16 |
|
|
|
7 |
|
EBITDA of noncontrolling interests |
$ |
15 |
|
|
$ |
17 |
|
|
$ |
36 |
|
|
$ |
40 |
|
|
$ |
21 |
|
3 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) |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|||
Long-term debt |
$ |
3,507 |
|
$ |
3,664 |
|
$ |
3,137 |
Less: Cash and cash equivalents |
|
110 |
|
|
30 |
|
|
198 |
Net debt |
$ |
3,397 |
|
$ |
3,634 |
|
$ |
2,939 |
4 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 June 30, |
|
Six Months Ended June 30, |
||||||||||||
(In millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
519 |
|
|
$ |
887 |
|
|
|
661 |
|
|
|
848 |
|
Purchase of property, plant and equipment |
|
(157 |
) |
|
|
(131 |
) |
|
|
(339 |
) |
|
|
(319 |
) |
Free cash flow |
$ |
362 |
|
|
$ |
756 |
|
|
$ |
322 |
|
|
$ |
529 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240722555045/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' (CLF) Q2 2024 financial results?
How many shares did Cleveland-Cliffs (CLF) repurchase in Q2 2024?
What is Cleveland-Cliffs' (CLF) plan for the Weirton tinplate facility?