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Cleveland-Cliffs Reports Third-Quarter 2024 Results

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Cleveland-Cliffs (NYSE: CLF) reported Q3 2024 results with revenues of $4.6 billion and steel shipments of 3.8 million net tons. The company recorded a GAAP net loss of $230 million and adjusted net loss of $156 million, with adjusted EBITDA of $124 million. The quarter was impacted by weaker demand and pricing, leading to tighter margins and the temporary idling of Cleveland #6 blast furnace. The company recently acquired Stelco, which reported Q3 adjusted EBITDA of US$64 million. For 2025, CLF expects lower capital budget and anticipates $70 million in coal cost savings compared to 2024.

Cleveland-Cliffs (NYSE: CLF) ha riportato i risultati del terzo trimestre 2024, con ricavi di 4,6 miliardi di dollari e spedizioni di acciaio pari a 3,8 milioni di tonnellate nette. L'azienda ha registrato una perdita netta secondo i principi contabili GAAP di 230 milioni di dollari e una perdita netta rettificata di 156 milioni di dollari, con un EBITDA rettificato di 124 milioni di dollari. Il trimestre è stato influenzato da una domanda e prezzi più deboli, portando a margini più ristretti e all'inattivazione temporanea del forno a coke Cleveland #6. Recentemente, l'azienda ha acquisito Stelco, che ha riportato un EBITDA rettificato per il terzo trimestre di 64 milioni di dollari statunitensi. Per il 2025, CLF prevede un budget di capitale inferiore e anticipa risparmi sui costi del carbone per 70 milioni di dollari rispetto al 2024.

Cleveland-Cliffs (NYSE: CLF) reportó los resultados del tercer trimestre de 2024, con ingresos de 4.6 mil millones de dólares y envíos de acero de 3.8 millones de toneladas netas. La empresa registró una pérdida neta GAAP de 230 millones de dólares y una pérdida neta ajustada de 156 millones de dólares, con un EBITDA ajustado de 124 millones de dólares. El trimestre estuvo afectado por una demanda y precios más débiles, lo que llevó a márgenes más ajustados y al cierre temporal del horno de coque Cleveland #6. La empresa adquirió recientemente Stelco, que reportó un EBITDA ajustado del tercer trimestre de 64 millones de dólares estadounidenses. Para 2025, CLF espera un presupuesto de capital más bajo y anticipa ahorros en costos de carbón de 70 millones de dólares en comparación con 2024.

클리블랜드-클리프스 (NYSE: CLF)는 2024년 3분기 실적을 발표하였고, 매출은 46억 달러이며, 강철 출하량은 380만 순 톤에 달합니다. 회사는 GAAP 기준으로 2억 3천만 달러의 순손실을 기록하였고, 조정된 순손실은 1억 5천6백만 달러로, 조정된 EBITDA는 1억 2천4백만 달러입니다. 이번 분기는 수요와 가격이 약세를 보이면서 마진이 축소되고, 클리블랜드 #6 고로가 임시 가동 중단되는 영향을 받았습니다. 회사는 최근 스텔코를 인수하였으며, 스텔코는 3분기 조정 EBITDA로 6천4백만 달러를 보고하였습니다. 2025년을 위해 CLF는 자본 예산을 줄일 것으로 예상하며, 2024년 대비 석탄 비용에서 7천만 달러의 절감 효과를 기대하고 있습니다.

Cleveland-Cliffs (NYSE: CLF) a annoncé ses résultats pour le troisième trimestre 2024, avec des revenus de 4,6 milliards de dollars et des expéditions d'acier de 3,8 millions de tonnes nettes. L'entreprise a enregistré une perte nette selon les principes comptables GAAP de 230 millions de dollars et une perte nette ajustée de 156 millions de dollars, avec un EBITDA ajusté de 124 millions de dollars. Le trimestre a été impacté par une demande et des prix plus faibles, entraînant des marges réduites et l'arrêt temporaire du haut fourneau Cleveland #6. L'entreprise a récemment acquis Stelco, qui a annoncé un EBITDA ajusté pour le troisième trimestre de 64 millions de dollars américains. Pour 2025, CLF prévoit un budget d'investissement inférieur et anticipe des économies de coûts de charbon de 70 millions de dollars par rapport à 2024.

Cleveland-Cliffs (NYSE: CLF) hat die Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit Einnahmen von 4,6 Milliarden Dollar und Stahlverkäufen von 3,8 Millionen Nettotonnen. Das Unternehmen verzeichnete einen GAAP-nettoverlust von 230 Millionen Dollar und einen bereinigten Nettoverlust von 156 Millionen Dollar, mit einem bereinigten EBITDA von 124 Millionen Dollar. Das Quartal war von schwacher Nachfrage und Preisrückgang betroffen, was zu engeren Margen und der vorübergehenden Stilllegung des Hochofens Cleveland #6 führte. Das Unternehmen hat kürzlich Stelco übernommen, das für das 3. Quartal ein bereinigtes EBITDA von 64 Millionen US-Dollar meldete. Für 2025 erwartet CLF ein niedrigeres Investitionsbudget und rechnet mit Einsparungen bei den Kohlekosten in Höhe von 70 Millionen Dollar im Vergleich zu 2024.

Positive
  • Liquidity position remains strong at $3.8 billion
  • Achieved lowest unit cost since 2021
  • Strategic projects expected to boost annual EBITDA by $600 million once completed
  • Expected $70 million coal cost savings benefit for 2025
  • Stelco acquisition brings diversification from automotive sector exposure
Negative
  • Q3 revenues declined to $4.6B from $5.1B in Q2 2024
  • GAAP net loss of $230 million ($0.52 per share)
  • Steel shipments decreased to 3.8M tons from 4.1M tons YoY
  • Average net selling price per ton declined to $1,045 from $1,203 YoY
  • Negative impact from underperforming automotive clients
  • Temporary idling of Cleveland #6 blast furnace

Insights

Cleveland-Cliffs' Q3 results reveal significant challenges, with $4.6 billion in revenues marking a 9.8% decline from Q2. The $230 million GAAP net loss and weak margins reflect serious headwinds in the automotive sector. Key concerns include:

  • Steel shipments dropped to 3.8 million net tons, down from 3.989 million in Q2
  • Average selling price declined to $1,045 per net ton from $1,125
  • Automotive exposure (30% of sales) proving problematic with underperforming clients

The Stelco acquisition brings diversification away from automotive dependency, with strong margins and efficient assets. The reduced $600 million capital budget for 2025 and expected $70 million coal cost savings provide some optimism, but near-term challenges persist.

The strategic significance of the Stelco acquisition becomes clear against CLF's current challenges. Stelco's 13% EBITDA margin and different customer mix offer immediate portfolio diversification. Notable strategic elements include:

  • Stelco's 639,000 net tons of shipments with minimal automotive exposure
  • Expected $600 million annual EBITDA boost from strategic projects
  • Strong liquidity position of $3.8 billion provides financial flexibility

The market structure shift away from automotive dependency through Stelco integration positions CLF for better resilience against sector-specific downturns, though integration execution will be crucial.

CLEVELAND--(BUSINESS WIRE)-- Cleveland-Cliffs Inc. (NYSE: CLF) today reported third-quarter results for the period ended September 30, 2024.

Third-Quarter 2024 Highlights

  • Revenues of $4.6 billion
  • Steel shipments of 3.8 million net tons
  • GAAP net loss of $230 million and adjusted net loss1 of $156 million
  • Adjusted EBITDA2 of $124 million
  • Does not include Stelco's third-quarter adjusted EBITDA3 of US$64 million and adjusted EBITDA3 margin of 13%
  • Liquidity of $3.8 billion as of September 30, 2024

Third-quarter 2024 revenues were $4.6 billion, compared to $5.1 billion in the second quarter of 2024. For the third quarter of 2024, the Company recorded a GAAP net loss of $0.52 per diluted share to Cliffs shareholders and adjusted net loss1 of $0.33 per diluted share. Included in the GAAP results were discrete charges and losses totaling $145 million, primarily related to an arbitration decision and acquisition-related expenses.

Cliffs’ Chairman, President and CEO Lourenco Goncalves said: “In Q3, weaker demand and pricing drove tighter margins, and ultimately led us to temporarily idle our Cleveland #6 blast furnace. We achieved our lowest unit cost since 2021, exceeding our already aggressive cost reduction targets, but that was not enough to offset the negative impact of two of our top four automotive clients who continue to underperform their own expectations. Due to our high exposure to the automotive sector, Cliffs was more affected than our competitors."

Mr. Goncalves continued: “We are thrilled to have closed on the acquisition of Stelco last week. Stelco’s portfolio of business is very different from ours, with virtually no exposure to the automotive sector. Stelco’s low-cost, efficient assets will make us more resilient in times of underperformance from the automotive clients. Stelco’s industry-best third-quarter adjusted EBITDA margin is direct proof of the cost advantages and strong business model Cliffs will benefit from. Unlike our previous acquisitions, which were underperforming companies needing significant capital investment, Stelco’s assets are well capitalized and are a major contributor to us on day 1."

Mr. Goncalves concluded: "For 2025, we’ve set a much lower capital budget, even after including the strategic projects that are expected to boost annual EBITDA by over $600 million once completed. Additionally, lower coal costs will bring a $70 million benefit next year compared to 2024. We expect steel demand to rebound in early 2025, supported by a number of economic and political factors. With Stelco’s assets and our cost reductions, we’re well-positioned to capitalize on this upswing and will be able to reduce acquisition debt quickly with healthy free cash flow."

Steelmaking Segment Results

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

Three Months
Ended

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

June 30, 2024

External Sales Volumes - In Thousands

 

 

 

 

 

 

 

 

 

Steel Products (net tons)

 

3,840

 

 

 

4,106

 

 

 

11,769

 

 

 

12,393

 

 

 

3,989

 

Selling Price - Per Net Ton

 

 

 

 

 

 

 

 

 

Average net selling price per net ton of steel products

$

1,045

 

 

$

1,203

 

 

$

1,116

 

 

$

1,196

 

 

$

1,125

 

Operating Results - In Millions

 

 

 

 

 

 

 

 

 

Revenues

$

4,419

 

 

$

5,443

 

 

$

14,361

 

 

$

16,377

 

 

$

4,915

 

Cost of goods sold*

 

(4,533

)

 

 

(4,970

)

 

 

(14,060

)

 

 

(15,181

)

 

 

(4,770

)

Gross margin

$

(114

)

 

$

473

 

 

$

301

 

 

$

1,196

 

 

$

145

 

*Includes $71 million arbitration decision.

Third-quarter 2024 steel product sales volumes of 3.8 million net tons consisted of 36% hot-rolled, 28% coated, 17% cold-rolled, 4% plate, 4% stainless and electrical, and 11% other, including slabs and rail.

Steelmaking revenues of $4.4 billion included $1.3 billion, or 30%, of direct sales to the automotive market; $1.3 billion, or 30%, of sales to the distributors and converters market; $1.2 billion, or 26%, of sales to the infrastructure and manufacturing market; and $608 million, or 14%, of sales to steel producers.

Stelco Third-Quarter Highlights3

Cliffs' acquisition of Stelco closed on November 1, 2024. Key highlights of Stelco's third-quarter 2024 results include:

  • Steel shipments of 639,000 net tons, including 66% hot-rolled
  • Revenues of US$480 million
  • Steel average selling price of US$725 per net ton
  • Adjusted EBITDA of US$64 million
  • Capital expenditures of US$32 million

Capital Expenditures Outlook

Cliffs lowered its full-year 2024 expected capital expenditures range by $50 million to $600 to $650 million, from its previous range of $650 to $700 million.

Additionally, Cliffs expects standalone (excluding Stelco) full-year 2025 capital expenditures to be approximately $600 million, inclusive of strategic growth projects at Middletown, Butler and Weirton.

Sustaining capital spend from Stelco is expected to be approximately US$100 million annually.

Cleveland-Cliffs Inc. will host a conference call on November 5, 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 North America-based steel producer with focus on value-added sheet products, particularly for the automotive industry. The Company is vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 30,000 people across its operations in the United States and Canada.

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 U.S. government actions with respect to Section 232 of the Trade Expansion Act of 1962 (as amended by the Trade Act of 1974), the United States-Mexico-Canada Agreement and/or other trade agreements, tariffs, treaties or policies, as well as the uncertainty of obtaining and maintaining effective antidumping and countervailing duty orders to counteract the harmful effects of unfairly traded imports; impacts of existing and increasing governmental regulation, including potential environmental regulations relating to climate change and carbon emissions, and related costs and liabilities, including failure to receive or maintain required operating and environmental permits, approvals, modifications or other authorizations of, or from, any governmental or regulatory authority and costs related to implementing improvements to ensure compliance with regulatory changes, including potential financial assurance requirements, and reclamation and remediation obligations; potential impacts to the environment or exposure to hazardous substances resulting from our operations; our ability to maintain adequate liquidity, our level of indebtedness and the availability of capital could limit our financial flexibility and cash flow necessary to fund working capital, planned capital expenditures, acquisitions, and other general corporate purposes or ongoing needs of our business, or to repurchase our common shares; our ability to reduce our indebtedness or return capital to shareholders within the currently expected timeframes or at all; adverse changes in credit ratings, interest rates, foreign currency rates and tax laws; the outcome of, and costs incurred in connection with, lawsuits, claims, arbitrations or governmental proceedings relating to commercial and business disputes, antitrust claims, environmental matters, government investigations, occupational or personal injury claims, property-related matters, labor and employment matters, or suits involving legacy operations and other matters; supply chain disruptions or changes in the cost, quality or availability of energy sources, including electricity, natural gas and diesel fuel, critical raw materials and supplies, including iron ore, industrial gases, graphite electrodes, scrap metal, chrome, zinc, other alloys, coke and metallurgical coal, and critical manufacturing equipment and spare parts; problems or disruptions associated with transporting products to our customers, moving manufacturing inputs or products internally among our facilities, or suppliers transporting raw materials to us; the risk that the cost or time to implement a strategic or sustaining capital project may prove to be greater than originally anticipated; our ability to consummate any public or private acquisition transactions and to realize any or all of the anticipated benefits or estimated future synergies, as well as to successfully integrate any acquired businesses into our existing businesses; uncertainties associated with natural or human-caused disasters, adverse weather conditions, unanticipated geological conditions, critical equipment failures, infectious disease outbreaks, tailings dam failures and other unexpected events; cybersecurity incidents relating to, disruptions in, or failures of, information technology systems that are managed by us or third parties that host or have access to our data or systems, including the loss, theft or corruption of sensitive or essential business or personal information and the inability to access or control systems; liabilities and costs arising in connection with any business decisions to temporarily or indefinitely idle or permanently close an operating facility or mine, which could adversely impact the carrying value of associated assets and give rise to impairment charges or closure and reclamation obligations, as well as uncertainties associated with restarting any previously idled operating facility or mine; our level of self-insurance and our ability to obtain sufficient third-party insurance to adequately cover potential adverse events and business risks; uncertainties associated with our ability to meet customers' and suppliers' decarbonization goals and reduce our greenhouse gas emissions in alignment with our own announced targets; challenges to maintaining our social license to operate with our stakeholders, including the impacts of our operations on local communities, reputational impacts of operating in a carbon-intensive industry that produces greenhouse gas emissions, and our ability to foster a consistent operational and safety track record; our actual economic mineral reserves or reductions in current mineral reserve estimates, and any title defect or loss of any lease, license, easement or other possessory interest for any mining property; our ability to maintain satisfactory labor relations with unions and employees; unanticipated or higher costs associated with pension and other post-employment benefit obligations resulting from changes in the value of plan assets or contribution increases required for unfunded obligations; uncertain availability or cost of skilled workers to fill critical operational positions and potential labor shortages caused by experienced employee attrition or otherwise, as well as our ability to attract, hire, develop and retain key personnel; the amount and timing of any repurchases of our common shares; potential significant deficiencies or material weaknesses in our internal control over financial reporting; the risk that the Stelco acquisition may be less accretive than expected, or may be dilutive, to Cliffs’ earnings per share, which may negatively affect the market price of Cliffs’ common shares; the risk that adverse reactions or changes to business or regulatory relationships may result from the Stelco acquisition; the risk that the financing transactions undertaken in connection with the Stelco acquisition may have a negative impact on the combined company’s credit profile, financial condition or financial flexibility; the possibility that the anticipated benefits of the Stelco acquisition are not realized to the same extent as projected and that the integration of the acquired business into our existing business, including uncertainties associated with maintaining relationships with customers, vendors and employees, is not as successful as expected; the risk that future synergies from the Stelco acquisition may not be realized or may take longer than expected to achieve; the possibility that the business and management strategies currently in place or implemented in the future for the maintenance, expansion and growth of the combined company’s operations may not be as successful as anticipated; the risk associated with the retention and hiring of key personnel, including those of Stelco; the risk that the Stelco acquisition could have adverse effects on the market price of Cliffs' common shares; and the risk of any unforeseen liabilities and future capital expenditures related to the Stelco acquisition.

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, our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024, and other filings with the U.S. Securities and Exchange Commission.

FINANCIAL TABLES FOLLOW

CLEVELAND-CLIFFS INC. AND SUBSIDIARIES

STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

Three Months
Ended

(In millions, except per share amounts)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

June 30, 2024

Revenues

$

4,569

 

 

$

5,605

 

 

$

14,860

 

 

$

16,884

 

 

$

5,092

 

Operating costs:

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

(4,673

)

 

 

(5,125

)

 

 

(14,517

)

 

 

(15,661

)

 

 

(4,930

)

Selling, general and administrative expenses

 

(112

)

 

 

(139

)

 

 

(347

)

 

 

(415

)

 

 

(103

)

Acquisition-related costs

 

(14

)

 

 

(5

)

 

 

(14

)

 

 

(5

)

 

 

 

Restructuring and other charges

 

(2

)

 

 

 

 

 

(131

)

 

 

 

 

 

(25

)

Asset impairments

 

 

 

 

 

 

 

(79

)

 

 

 

 

 

(15

)

Miscellaneous – net

 

(27

)

 

 

(11

)

 

 

(63

)

 

 

(26

)

 

 

(13

)

Total operating costs

 

(4,828

)

 

 

(5,280

)

 

 

(15,151

)

 

 

(16,107

)

 

 

(5,086

)

Operating income (loss)

 

(259

)

 

 

325

 

 

 

(291

)

 

 

777

 

 

 

6

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(102

)

 

 

(70

)

 

 

(235

)

 

 

(226

)

 

 

(69

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

(27

)

 

 

 

 

 

(6

)

Net periodic benefit credits other than service cost component

 

62

 

 

 

50

 

 

 

184

 

 

 

150

 

 

 

62

 

Changes in fair value of foreign currency contracts, net

 

(7

)

 

 

 

 

 

(7

)

 

 

 

 

 

 

Other non-operating income (expense)

 

 

 

 

(2

)

 

 

3

 

 

 

4

 

 

 

1

 

Total other expense

 

(47

)

 

 

(22

)

 

 

(82

)

 

 

(72

)

 

 

(12

)

Income (loss) from continuing operations before income taxes

 

(306

)

 

 

303

 

 

 

(373

)

 

 

705

 

 

 

(6

)

Income tax benefit (expense)

 

76

 

 

 

(29

)

 

 

99

 

 

 

(118

)

 

 

15

 

Income (loss) from continuing operations

 

(230

)

 

 

274

 

 

 

(274

)

 

 

587

 

 

 

9

 

Income from discontinued operations, net of tax

 

 

 

 

1

 

 

 

 

 

 

2

 

 

 

 

Net income (loss)

 

(230

)

 

 

275

 

 

 

(274

)

 

 

589

 

 

 

9

 

Income attributable to noncontrolling interests

 

(12

)

 

 

(11

)

 

 

(33

)

 

 

(35

)

 

 

(7

)

Net income (loss) attributable to Cliffs shareholders

$

(242

)

 

$

264

 

 

$

(307

)

 

$

554

 

 

$

2

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share attributable to Cliffs shareholders - basic

 

 

 

 

 

 

 

 

 

Continuing operations

$

(0.52

)

 

$

0.52

 

 

$

(0.64

)

 

$

1.08

 

 

$

0.00

 

Discontinued operations

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

$

(0.52

)

 

$

0.52

 

 

$

(0.64

)

 

$

1.08

 

 

$

0.00

 

Earnings (loss) per common share attributable to Cliffs shareholders - diluted

 

 

 

 

 

 

 

 

 

Continuing operations

$

(0.52

)

 

$

0.52

 

 

$

(0.64

)

 

$

1.08

 

 

$

0.00

 

Discontinued operations

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

$

(0.52

)

 

$

0.52

 

 

$

(0.64

)

 

$

1.08

 

 

$

0.00

 

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)

September 30,
2024

 

December 31,
2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

39

 

$

198

Accounts receivable, net

 

1,583

 

 

1,840

Inventories

 

4,236

 

 

4,460

Other current assets

 

169

 

 

138

Total current assets

 

6,027

 

 

6,636

Non-current assets:

 

 

 

Property, plant and equipment, net

 

8,687

 

 

8,895

Goodwill

 

1,005

 

 

1,005

Pension and OPEB assets

 

378

 

 

329

Other non-current assets

 

699

 

 

672

TOTAL ASSETS

$

16,796

 

$

17,537

LIABILITIES

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

1,983

 

$

2,099

Accrued employment costs

 

413

 

 

511

Accrued expenses

 

379

 

 

380

Other current liabilities

 

480

 

 

518

Total current liabilities

 

3,255

 

 

3,508

Non-current liabilities:

 

 

 

Long-term debt

 

3,774

 

 

3,137

Pension and OPEB liabilities

 

666

 

 

821

Deferred income taxes

 

567

 

 

639

Other non-current liabilities

 

1,439

 

 

1,310

TOTAL LIABILITIES

 

9,701

 

 

9,415

TOTAL EQUITY

 

7,095

 

 

8,122

TOTAL LIABILITIES AND EQUITY

$

16,796

 

$

17,537

CLEVELAND-CLIFFS INC. AND SUBSIDIARIES

STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

(In millions)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income (loss)

$

(230

)

 

$

275

 

 

$

(274

)

 

$

589

 

Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

235

 

 

 

249

 

 

 

693

 

 

 

738

 

Restructuring and other charges

 

2

 

 

 

 

 

 

131

 

 

 

 

Asset impairments

 

 

 

 

 

 

 

79

 

 

 

 

Pension and OPEB credits

 

(53

)

 

 

(40

)

 

 

(157

)

 

 

(119

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

27

 

 

 

 

Other

 

19

 

 

 

163

 

 

 

66

 

 

 

253

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable, net

 

191

 

 

 

169

 

 

 

258

 

 

 

(164

)

Inventories

 

(37

)

 

 

135

 

 

 

190

 

 

 

538

 

Income taxes

 

(34

)

 

 

(153

)

 

 

(46

)

 

 

16

 

Pension and OPEB payments and contributions

 

(100

)

 

 

(26

)

 

 

(162

)

 

 

(84

)

Payables, accrued employment and accrued expenses

 

(41

)

 

 

(17

)

 

 

(217

)

 

 

(95

)

Other, net

 

(36

)

 

 

12

 

 

 

(11

)

 

 

(57

)

Net cash provided (used) by operating activities

 

(84

)

 

 

767

 

 

 

577

 

 

 

1,615

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

(151

)

 

 

(162

)

 

 

(490

)

 

 

(481

)

Other investing activities

 

5

 

 

 

2

 

 

 

13

 

 

 

11

 

Net cash used by investing activities

 

(146

)

 

 

(160

)

 

 

(477

)

 

 

(470

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

Repurchase of common shares

 

 

 

 

(58

)

 

 

(733

)

 

 

(152

)

Proceeds from issuance of senior notes

 

596

 

 

 

 

 

 

1,421

 

 

 

750

 

Repayments of senior notes

 

 

 

 

 

 

 

(845

)

 

 

 

Borrowings (repayments) under credit facilities, net

 

(323

)

 

 

(508

)

 

 

47

 

 

 

(1,539

)

Debt issuance costs

 

(60

)

 

 

 

 

 

(73

)

 

 

(34

)

Other financing activities

 

(54

)

 

 

(44

)

 

 

(76

)

 

 

(165

)

Net cash provided (used) by financing activities

 

159

 

 

 

(610

)

 

 

(259

)

 

 

(1,140

)

Net increase (decrease) in cash and cash equivalents

 

(71

)

 

 

(3

)

 

 

(159

)

 

 

5

 

Cash and cash equivalents at beginning of period

 

110

 

 

 

34

 

 

 

198

 

 

 

26

 

Cash and cash equivalents at end of period

$

39

 

 

$

31

 

 

$

39

 

 

$

31

 

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 U.S. GAAP, the Company has presented adjusted net income (loss) attributable to Cliffs shareholders and adjusted earnings (loss) per common share attributable to Cliffs shareholders - diluted. These measures are used by management, investors, lenders and other external users of our financial statements to assess our operating performance and to compare operating performance to other companies in the steel industry, showing results exclusive of certain non-recurring and/or non-cash items. The presentation of these measures 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 U.S. GAAP. The presentation of these measures may be different from non-GAAP financial measures used by other companies. A reconciliation of these consolidated measures to their most directly comparable GAAP measures is provided in the table below.

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

Three Months
Ended

(In millions)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

June 30, 2024

Net income (loss) attributable to Cliffs shareholders

$

(242

)

 

$

264

 

 

$

(307

)

 

$

554

 

 

$

2

 

Adjustments:

 

 

 

 

 

 

 

 

 

Weirton indefinite idleA

 

(2

)

 

 

 

 

 

(219

)

 

 

 

 

 

(40

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

(27

)

 

 

 

 

 

(6

)

Acquisition-related costs

 

(14

)

 

 

(3

)

 

 

(14

)

 

 

(5

)

 

 

 

Acquisition-related interest expense

 

(32

)

 

 

 

 

 

(32

)

 

 

 

 

 

 

Changes in fair value of foreign currency contracts, net

 

(7

)

 

 

 

 

 

(7

)

 

 

 

 

 

 

Arbitration decision

 

(71

)

 

 

 

 

 

(71

)

 

 

 

 

 

 

Other, net

 

(19

)

 

 

(8

)

 

 

(24

)

 

 

(16

)

 

 

(1

)

Income tax effect

 

59

 

 

 

 

 

 

106

 

 

 

2

 

 

 

(1

)

Adjusted net income (loss) attributable to Cliffs shareholders

$

(156

)

 

$

275

 

 

$

(19

)

 

$

573

 

 

$

50

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share attributable to Cliffs shareholders - diluted

$

(0.52

)

 

$

0.52

 

 

$

(0.64

)

 

$

1.08

 

 

$

0.00

 

Adjusted earnings (loss) per common share attributable to Cliffs shareholders - diluted

$

(0.33

)

 

$

0.54

 

 

$

(0.04

)

 

$

1.12

 

 

$

0.11

 

 

 

 

 

 

 

 

 

 

 

A Primarily 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 U.S. GAAP, the Company has presented EBITDA and Adjusted EBITDA on a consolidated basis. These measures are used by management, investors, lenders and other external users of our financial statements to assess our operating performance and to compare operating performance to other companies in the steel industry, showing results exclusive of certain non-recurring and/or non-cash items. The presentation of these measures 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 U.S. GAAP. The presentation of these measures may be different from non-GAAP financial measures used by other companies. A reconciliation of these consolidated measures to their most directly comparable GAAP measures is provided in the table below.

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

Three Months
Ended

(In millions)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

June 30, 2024

Net income (loss)

$

(230

)

 

$

275

 

 

$

(274

)

 

$

589

 

 

$

9

 

Less:

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(102

)

 

 

(70

)

 

 

(235

)

 

 

(226

)

 

 

(69

)

Income tax benefit (expense)

 

76

 

 

 

(29

)

 

 

99

 

 

 

(118

)

 

 

15

 

Depreciation, depletion and amortization

 

(235

)

 

 

(249

)

 

 

(693

)

 

 

(738

)

 

 

(228

)

Total EBITDA

$

31

 

 

$

623

 

 

$

555

 

 

$

1,671

 

 

$

291

 

Less:

 

 

 

 

 

 

 

 

 

EBITDA of noncontrolling interests

$

20

 

 

$

20

 

 

$

56

 

 

$

60

 

 

$

15

 

Weirton indefinite idle

 

(2

)

 

 

 

 

 

(219

)

 

 

 

 

 

(40

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

(27

)

 

 

 

 

 

(6

)

Acquisition-related costs

 

(14

)

 

 

(3

)

 

 

(14

)

 

 

(5

)

 

 

 

Changes in fair value of foreign currency contracts, net

 

(7

)

 

 

 

 

 

(7

)

 

 

 

 

 

 

Arbitration decision

 

(71

)

 

 

 

 

 

(71

)

 

 

 

 

 

 

Other, net

 

(19

)

 

 

(8

)

 

 

(24

)

 

 

(16

)

 

 

(1

)

Total Adjusted EBITDA

$

124

 

 

$

614

 

 

$

861

 

 

$

1,632

 

 

$

323

 

 

 

 

 

 

 

 

 

 

 

EBITDA of noncontrolling interests includes the following:

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interests

$

12

 

 

$

11

 

 

$

33

 

 

$

35

 

 

$

7

 

Depreciation, depletion and amortization

 

8

 

 

 

9

 

 

 

23

 

 

 

25

 

 

 

8

 

EBITDA of noncontrolling interests

$

20

 

 

$

20

 

 

$

56

 

 

$

60

 

 

$

15

 

3 STELCO FINANCIAL RESULTS

Stelco financial information represents the historical consolidated financial information prepared by Stelco management in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board which differ in certain respects from U.S. GAAP. This financial information does not include any adjustments for differences between IFRS and US GAAP and also does not reflect any purchase accounting or pro forma adjustments as required by ASC Topic 805, Business Combinations. Due to the limited time since the closing of acquisition, the reconciliation of IFRS to US GAAP, valuation efforts and related acquisition accounting is incomplete at the time of the filing of Cliffs’ unaudited condensed consolidated financial statements. As a result, the Company is unable to provide these adjustments. This Stelco financial information should be read in conjunction with Stelco Holdings Inc.’s historical audited consolidated financial statements and notes thereto contained for the year ended December 31, 2023 and the Stelco historical unaudited interim condensed consolidated financial statements and notes thereto for prior interim periods that can be accessed through the SEDAR+ website.

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 was Cleveland-Cliffs (CLF) revenue in Q3 2024?

Cleveland-Cliffs reported revenues of $4.6 billion in Q3 2024, down from $5.1 billion in Q2 2024.

How much steel did Cleveland-Cliffs (CLF) ship in Q3 2024?

Cleveland-Cliffs shipped 3.8 million net tons of steel products in Q3 2024.

What was Cleveland-Cliffs (CLF) net loss in Q3 2024?

Cleveland-Cliffs reported a GAAP net loss of $230 million and adjusted net loss of $156 million in Q3 2024.

What is Cleveland-Cliffs (CLF) capital expenditure outlook for 2025?

CLF expects standalone capital expenditures of approximately $600 million for 2025, plus about US$100 million annually for Stelco's sustaining capital.

Cleveland-Cliffs Inc.

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6.15B
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Steel
Metal Mining
Link
United States of America
CLEVELAND