Cleveland-Cliffs Inc. Reports Disappointing Q3 Results

CLEVELAND – Cleveland-Cliffs Inc. (NYSE:CLF) reported disappointing third-quarter results on Monday, with earnings and revenue falling short of analyst expectations, causing shares to drop 4% in early trading.

The steelmaker posted an adjusted loss of $0.33 per share for the quarter, worse than the $0.30 loss analysts predicted. Revenue was $4.57 billion, below the $4.74 billion consensus estimate and decreased from $5.1 billion in the previous quarter.

Cleveland-Cliffs cited weaker demand and pricing as significant factors affecting its performance. The company announced it had to temporarily idle its Cleveland #6 blast furnace due to softer market conditions.

CEO Lourenco Goncalves stated, "In Q3, weaker demand and pricing drove tighter margins, leading us to temporarily idle our Cleveland #6 blast furnace." He mentioned that the company was "more affected than our competitors" due to its high exposure to the automotive sector.

Steel shipments fell to 3.8 million net tons in Q3, compared to 4.1 million net tons in the same quarter last year. The average net selling price per ton of steel products declined to $1,045 from $1,203 year-over-year.

Despite the challenging quarter, Goncalves expressed optimism about the company's recent acquisition of Stelco, stating it will make Cleveland-Cliffs "more resilient" going forward due to Stelco's lower exposure to the auto industry.

Looking ahead, the company expects steel demand to rebound in early 2025. It also lowered its full-year 2024 capital expenditure guidance to $600-$650 million, down from $650-$700 million previously.

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