CLEVELAND – Cleveland-Cliffs Inc. (NYSE:) reported disappointing third-quarter outcomes on Monday, with earnings and income falling wanting analyst expectations, sending shares down 4% in early buying and selling.
The steelmaker posted an adjusted lack of $0.33 per share for the quarter, worse than the $0.30 loss analysts had been anticipating. Income got here in at $4.57 billion, beneath the $4.74 billion consensus estimate and down from $5.1 billion within the earlier quarter.
Cleveland-Cliffs cited weaker demand and pricing as key components impacting its efficiency. The corporate stated it was pressured to quickly idle its Cleveland #6 blast furnace on account of softer market situations.
“In Q3, weaker demand and pricing drove tighter margins, and finally led us to quickly idle our Cleveland #6 blast furnace,” stated CEO Lourenco Goncalves. He famous the corporate was “extra affected than our rivals” on account of its excessive publicity to the automotive sector.
Metal shipments fell to three.8 million internet tons in Q3, in comparison with 4.1 million internet tons in the identical quarter final 12 months. The typical internet promoting value per ton of metal merchandise declined to $1,045 from $1,203 YoY.
Regardless of the difficult quarter, Goncalves expressed optimism concerning the firm’s latest acquisition of Stelco, which he stated will make Cleveland-Cliffs “extra resilient” going ahead on account of Stelco’s decrease publicity to the auto trade.
Wanting forward, the corporate expects metal demand to rebound in early 2025. It additionally lowered its full-year 2024 capital expenditure steering to $600-$650 million from $650-$700 million beforehand.
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