Cleveland-Cliffs ( (CLF) ) has released its Q3 earnings. Here is a breakdown of the information Cleveland-Cliffs presented to its investors.
Cleveland-Cliffs Inc., a major steel producer in North America, is renowned for its vertically integrated operations from mining to steelmaking, with a significant focus on serving the automotive industry.
In its third-quarter earnings report for 2024, Cleveland-Cliffs announced a revenue of $4.6 billion, alongside a GAAP net loss of $230 million. The company highlighted its acquisition of Stelco, a move expected to diversify its portfolio and enhance resilience against the automotive sector’s underperformance.
Key financial metrics from the report included steel shipments of 3.8 million net tons and an adjusted EBITDA of $124 million. The company faced challenges due to weaker demand and pricing, leading to the temporary idling of its Cleveland #6 blast furnace. However, the acquisition of Stelco, with its robust EBITDA margin, is seen as a strategic step towards mitigating these challenges.
Looking ahead, Cleveland-Cliffs anticipates a lower capital budget in 2025 and expects a rebound in steel demand. The integration of Stelco’s assets is poised to enhance Cleveland-Cliffs’ operational efficiency, positioning it well for future opportunities in the steel market.
