Cleveland-Cliffs Inc. (NYSE:CLF) Q3 2024 Earnings Conference Call November 4, 2024 8:30 AM ET Company Participants Lourenco Goncalves - Chairman, President & CEO Celso Goncalves - EVP & CFO Conference Call Participants Lucas Pipes - B. Riley Securities Lawson Winder - Bank of America Carlos De Alba - Morgan Stanley William Peterson - JPMorgan Alexander Hacking - Citigroup Chris LaFemina - Jefferies Philip Gibbs - KeyBanc Capital Markets Operator Good morning, ladies and gentlemen. My name is Darryl, and I’m ...

Cleveland-Cliffs Inc (NYSE:CLF) stock is plummeting today, down 11.3% at $11.63 at last glance, after the company's disappointing third-quarter report. The steel giant posted losses of 33 cents per share, larger than analysts' anticipated losses of 31 cents per share, and revenue below expectations. Headed for its largest single-day percentage loss since a 14.7% drop in February of 2021, the stock is on the short sell restricted (SSR) list today amid the volatility. Prior to today's gap lower, the shares we ...

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $124 million on shipments of 3.8 million tons during Q3, impacted by weaker steel demand and pricing [11] - Average selling prices fell by $80 per ton, and shipments decreased by 150,000 tons compared to the prior quarter [12] - Unit costs were reduced by over $40 per ton, exceeding previous guidance [13] Business Line Data and Key Metrics Changes - The automotive segment experienced the lowest build rates since the semiconductor shortage, with only 3.75 million units built in Q3, leading to decreased shipments and margins [11] - The non-automotive business also faced continued weakness in demand and pricing across flat rolled and plate products [12] Market Data and Key Metrics Changes - North American automotive build expectations for the year were revised down to approximately 15.5 million units, about 1 million less than previous estimates [11] - The company temporarily idled one blast furnace, reducing annual capacity by about 1.5 million net tons, due to reduced order activity [12] Company Strategy and Development Direction - The acquisition of Stelco is expected to enhance the overall EBITDA margin and improve the cost structure, allowing the company to better serve non-automotive markets [7][10] - The company plans to prioritize debt repayment over share repurchases following the acquisition of Stelco [15] - Strategic projects at Middletown, Butler, and Weirton are progressing well, with Phase 1 funding approvals received [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a strong 2025, citing factors such as falling interest rates, election certainty, and manufacturing onshoring [20] - The current demand weakness is attributed to high interest rates affecting consumer purchasing decisions [67][70] - Management anticipates a recovery in demand as economic conditions improve and trade protections are potentially strengthened [94] Other Important Information - The company achieved significant cost savings, with quarterly SG&A of $112 million and capital spending of $151 million remaining below historical averages [13] - The company expects to generate $120 million in cost synergies within the first year post-Stelco acquisition [10][103] Q&A Session Summary Question: Q4 volume price and cost expectations - Management anticipates a strong Q1 with volumes returning to normal by the first half of next year, driven by improved customer order activity [25] Question: CapEx guidance for 2025 - The company has reduced CapEx guidance to $600 million for 2025, reflecting lower needs across the footprint and updated estimates for strategic projects [14][36] Question: Cost savings potential heading into Q4 - While significant cost savings were achieved in Q3, similar reductions are not expected in Q4 due to the idling of the Cleveland 6 blast furnace [46] Question: Current contracting cycle and pricing - Pricing for the October contracts is expected to be stable, with some flexibility required to avoid price dumping from foreign competitors [48] Question: Impact of high interest rates on demand - High interest rates are significantly affecting consumer purchasing decisions, leading to reduced demand in both automotive and housing markets [67][70] Question: Synergies from Stelco acquisition - The company is confident in achieving $120 million in synergies within the first year, with potential for higher estimates in future calls [103][106]

NEWS RELEASE Cleveland-Cliffs Reports Third-Quarter 2024 Results CLEVELAND—November 4, 2024—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 1 • GAAP net loss of $230 million and adjusted net loss of $156 million 2 • Adjusted EBITDA of $124 million 3 3 • Does not include Stelco's third-quarter adjusted EBITDA of US$64 million and adjusted EBITDA ma ...

Wall Street analysts expect Cleveland-Cliffs (CLF) to post quarterly loss of $0.30 per share in its upcoming report, which indicates a year-over-year decline of 155.6%. Revenues are expected to be $4.76 billion, down 15% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 13.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. Prior to a company's ...

Core Viewpoint - Cleveland-Cliffs Inc. (CLF) is expected to report third-quarter 2024 results on November 4, with anticipated challenges due to lower steel prices despite some cost-saving measures [1][5]. Financial Performance - The Zacks Consensus Estimate for CLF's third-quarter consolidated revenues is $4,763.4 million, indicating a year-over-year decline of 15% [4]. - CLF has a trailing four-quarter earnings surprise of approximately 15.4% on average [1]. - The expected average net selling price per net ton of steel products is $1,048, reflecting a 6.8% sequential decrease [7]. - External sales volumes for steel products are estimated at 4.04 million net tons, suggesting a 1.2% sequential rise [7]. Market Conditions - U.S. steel prices have experienced a significant decline, dropping more than 40% from $1,200 per short ton at the beginning of 2024, influenced by reduced demand and increased imports [5][6]. - Current prices are around $700 per short ton, with a modest uptick due to recent price hikes, but a significant recovery is not expected in the near term [6]. Cost Management - Cleveland-Cliffs is projected to have achieved a $30 per ton sequential decline in steelmaking unit costs during the third quarter [8]. Earnings Prediction - The Earnings ESP for CLF is -10.62%, with a consensus estimate indicating a loss of 30 cents for the third quarter [10].

KYIV, UKRAINE - 2024/01/24: In this photo illustration, the Cleveland-Cliffs Inc. (CCI) logo is seen ... [+] on a smartphone and a PC screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesCleveland-Cliffs, a vertically integrated steel mill operator, has seen its stock decline by more than 30% in the last six months. This fall has been primarily due to the adverse business conditions that the industry is going through. Steel prices in t ...

The latest trading session saw Cleveland-Cliffs (CLF) ending at $12.88, denoting a -1.3% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.76%. Meanwhile, the Dow experienced a drop of 0.75%, and the technology-dominated Nasdaq saw a decrease of 1.01%.Coming into today, shares of the mining company had gained 11.06% in the past month. In that same time, the Basic Materials sector gained 2.96%, while the S&P 500 gained 4.31%.Analysts and investors alike will be keeping a cl ...

In the latest trading session, Cleveland-Cliffs (CLF) closed at $12.85, marking a +1.1% move from the previous day. This move outpaced the S&P 500's daily gain of 0.71%. Meanwhile, the Dow experienced a rise of 1.03%, and the technology-dominated Nasdaq saw an increase of 0.6%.The mining company's stock has climbed by 16.5% in the past month, exceeding the Basic Materials sector's gain of 5.75% and the S&P 500's gain of 6.41%.The investment community will be paying close attention to the earnings performanc ...

Shares of Cleveland-Cliffs (CLF, Financial), North America's largest iron ore producer, fell by over 4%, trading at $12.46. The decline follows news that the company has passed the United States Department of Justice's antitrust review for its acquisition of Canadian steel company Stelco. The transaction is expected to finalize by the fourth quarter of 2024. ...