Cleveland-Cliffs Inc (CLF) reported a loss for the third quarter, citing weak demand and lower steel prices, particularly impacting its automotive sector exposure. The company lowered its capital expenditure outlook for 2024 but expressed optimism for a rebound in steel demand in early 2025.
Cleveland-Cliffs Inc. (CLF) has secured a four-year labor deal with the United Auto Workers (UAW) at its Dearborn Works operations. The company also reported a decline in its second-quarter earnings and revenues, citing reduced steelmaking revenues and selling prices. Despite the challenges, Cleveland-Cliffs remains optimistic about its cost reduction initiatives and its outlook for the future.
Cleveland-Cliffs (NYSE: CLF) reported a relatively lackluster Q1’24 due to headwinds in the steel market and geopolitical pressures. Despite these challenges, the company remains focused on its long-term decarbonization initiatives and cost-cutting measures. Management also announced a $1.5 billion share repurchase program. While the near-term outlook is uncertain, the company’s positive long-term prospects and efforts to enhance shareholder value warrant a BUY recommendation with a price target of $28.05/share.
Lourenco Goncalves, CEO of Cleveland-Cliffs, joined ‘Closing Bell Overtime’ to discuss the company’s quarterly results, share buybacks, and provide insights on the U.S. Steel-Nippon deal. He also shared his thoughts on the overall steel industry landscape.
Cleveland-Cliffs CEO Lourenco Goncalves appeared on ‘Closing Bell Overtime’ to discuss the company’s quarterly results, share buybacks, and the U.S. Steel-Nippon deal. Here’s a summary of the key points covered:
Cleveland-Cliffs executives reiterated their interest in acquiring U.S. Steel, albeit at a significantly reduced price compared to their previous offer. In light of President Biden’s public stance against the sale to Nippon Steel, Cleveland-Cliffs believes it is the only viable alternative for U.S. Steel.
Several companies made headlines in after-hours trading due to earnings reports and guidance updates. Nucor underwhelmed with its first-quarter results and cut its second-quarter outlook, sending its shares down 6.3%. Cleveland-Cliffs similarly missed estimates, resulting in a loss of nearly 3%. Cadence Design Systems’ lackluster second-quarter guidance dragged its shares down 8.9%. Meanwhile, Globe Life raised its full-year earnings guidance, leading to a 1.8% gain. Crane Company’s earnings and revenue beat, pushing its shares up 3.7%. Other movers included Alexandria Real Estate Equities, Packaging Corporation of America, Calix, Simpson Manufacturing, Medpace, and TrustCo Bank Corp. NY.
Cleveland-Cliffs reported weaker-than-expected first-quarter results due to a buyers’ strike from service centers. Although revenue slightly declined, the company’s adjusted earnings per share improved year-over-year. Steel product sales volumes decreased, but average selling prices increased. The company maintained its outlook for steel shipment volumes and unit cost reductions.
