Cleveland-Cliffs Stock Sinks on Lackluster Q4 Results

Core Insights - Cleveland-Cliffs (CLF) stock declined significantly after reporting disappointing fourth-quarter results, with revenue and losses worse than expected [1][2] Financial Performance - The company reported $4.33 billion in revenue for Q4 2024, representing a decline of over 15% year-over-year [2] - An adjusted loss per share of $0.68 was reported, which is substantially larger than the $0.05 adjusted loss per share from the same quarter last year [2] Market Conditions - CEO Lourenco Goncalves described 2024 as "the worst steel demand environment since 2010," excluding the pandemic, citing a decline in U.S. vehicle production and increased steel imports leading to "unsustainably low" prices [3][7] - The company is experiencing lower sales and larger losses than analysts had anticipated, attributed to the influx of vehicle and steel imports [7] Strategic Moves - Cleveland-Cliffs is reportedly considering a joint bid with Nucor for U.S. Steel following the blocking of its $14.1 billion acquisition by Japan's Nippon [4][7] - The CEO expressed optimism that the fourth quarter would be the worst for the company, anticipating a rebound in 2025 due to built-up inventory and regulatory changes [5] Regulatory Environment - The CEO praised proposed tariffs by U.S. President Donald Trump on Canada, China, and Mexico, viewing them as beneficial for U.S. manufacturing and specifically for Cleveland-Cliffs [6] - Signs of a "dramatic rebound" in early 2025 were noted, suggesting potential recovery for the company [6]