- Fourth-quarter Net Income of $318
million and Earnings of $1.05 per diluted share
- Fourth-quarter Adjusted EBITDA1 of $129
million
Cleveland-Cliffs Inc. (NYSE: CLF) today reported
fourth-quarter and full-year results for the period ended
December 31, 2017.
Fourth-quarter 2017 consolidated revenues were $601 million,
compared to prior-year fourth-quarter revenues of $754 million.
Cost of goods sold was $492 million, compared to $573 million
reported in the fourth quarter of 2016.
For the fourth quarter of 2017, the Company recorded net income
of $318 million, or $1.05 per diluted share, compared to net income
of $81 million, or $0.34 per diluted share, recorded in the
prior-year quarter.
For the fourth-quarter of 2017, adjusted EBITDA1 was $129
million, compared to $174 million in the fourth quarter of
2016.
Full-Year Consolidated Results
Full-year 2017 consolidated revenues were $2.3 billion, compared
to the prior year's revenues of $2.1 billion. Cost of goods sold
was $1.8 billion, compared to $1.7 billion reported in 2016.
For the full-year 2017, the Company recorded net income of $371
million, or $1.28 per diluted share, compared to net income of $199
million, or $0.87 per diluted share, recorded in the prior
year.
For the full-year 2017, adjusted EBITDA1 was $513 million,
compared to $374 million in 2016.
Adjusted EBITDA1 by Segment (in
millions) U.S. Asia Pacific
Corporate/ Iron Ore Iron Ore
Other Total
Q4 2017
AdjustedEBITDA1 (in millions)
$ 159.6 $ (3.4 ) $ (27.0 )
$ 129.2
2017 AdjustedEBITDA1
(in millions)
$ 559.4 $ 58.3 $ (104.9 )
$ 512.8
Lourenco Goncalves, Chairman, President and Chief Executive
Officer, said: “Cleveland-Cliffs delivered in 2017 strong and
sustainable financial results, and that was exactly what I promised
one year ago. As a consequence of the several successful
initiatives implemented in overall strategy, commercial,
operations, and finance since I joined this great company in August
of 2014, we have delivered in 2017 the second consecutive year of
greater than 25 percent EBITDA growth." Mr. Goncalves added: "2017
was also the year in which the industry finally woke up to the
importance of both rational supply behavior and environmental
compliance. This new, more logical approach to business should
provide us solid support to deliver even stronger results in
2018."
U.S. Iron Ore
Three Months Ended Year Ended
December 31, December 31, 2017 2016
2017 2016
Volumes - In
Thousands of Long Tons
Total sales volume
5,392 6,881
18,683 18,224 Total
production volume
5,543 4,923
18,776 15,982
Sales Margin - In
Millions
Revenues from product sales and services
$ 511.8 $
579.0
$ 1,866.0 $ 1,554.5 Cost of goods sold and
operating expenses
396.2 453.0
1,400.6
1,278.8 Sales margin
$ 115.6 $ 126.0
$ 465.4 $ 275.7
Sales Margin -
Per Long Ton
Revenues from product sales and services*
$ 83.38 $
73.86
$ 88.03 $ 75.71 Cash cost of goods sold
and operating expense rate2
58.79 52.80
59.55 55.97
Depreciation, depletion and amortization
3.15 2.75
3.56 4.61 Cost of goods sold and operating
expenses*
61.94 55.55
63.11
60.58 Sales margin
$ 21.44 $ 18.31
$ 24.92 $ 15.13 *Excludes revenues and
expenses related to domestic freight, which are offsetting and have
no impact on sales margin. Revenues and expenses also exclude
venture partner cost reimbursements.
U.S. Iron Ore pellet sales volume in the fourth quarter of 2017
was 5.4 million long tons, a 22 percent decrease when compared with
6.9 million long tons sold in the fourth quarter of 2016. The
decrease was a result of a stronger than historical shipping pace
during the first nine months of 2017 leading to lower required
fourth quarter shipments to meet full-year customer nominations, as
well as the previously disclosed nomination reduction from a major
customer.
Cash cost of goods sold and operating expense rate2 in U.S. Iron
Ore was $58.79 per long ton, up 11 percent from $52.80 per long ton
in the prior year's fourth quarter. The increase was primarily
driven by higher costs associated with maintenance and repairs,
employee benefits, and energy rates.
Asia Pacific Iron Ore
Three Months Ended Year Ended
December 31, December 31, 2017 2016
2017 2016
Volumes - In
Thousands of Metric Tons
Total sales volume
2,049 2,937
9,812 11,642 Total
production volume
2,203 3,264
10,113 11,839
Sales Margin - In
Millions
Revenues from product sales and services
$ 89.1 $
175.0
$ 464.2 $ 554.5 Cost of goods sold and
operating expenses
96.1 119.5
420.0
440.9 Sales margin
$ (7.0 ) $ 55.5
$ 44.2 $ 113.6
Sales Margin -
Per Metric Ton
Revenues from product sales and services*
$ 42.61 $
57.30
$ 45.31 $ 45.85 Cash cost of goods sold
and operating expense rate2
44.56 36.40
39.35 33.94
Depreciation, depletion and amortization
1.46 2.01
1.46 2.16 Cost of goods sold and operating
expenses*
46.02 38.41
40.81
36.10 Sales margin
$ (3.41 ) $ 18.89
$ 4.50 $ 9.75 *Excludes revenues and expenses
related to freight, which are offsetting and have no impact on
sales margin.
Fourth-quarter 2017 Asia Pacific Iron Ore sales volume of 2.0
million metric tons decreased 30 percent from the prior-year
quarter. The decrease was driven primarily by lower production
volumes, a result of operational decisions reflecting current
market conditions and quality ore availability.
Cash cost of goods sold and operating expense rate2 in Asia
Pacific Iron Ore was $44.56 per metric ton in the fourth quarter of
2017, a 22 percent increase from $36.40 in the prior-year quarter.
This was primarily attributable to increased mining costs, driven
by a change in the overall production plan resulting in a higher
strip ratio. It was also driven by increased logistics and
unfavorable exchange rate variances.
Other Income Statement Items
Cliffs' fourth-quarter 2017 SG&A expenses were $28 million.
This represents a 22 percent decrease when compared to the
fourth-quarter 2016 expenses of $36 million. The decrease was
driven primarily by reduced incentive compensation.
Cliffs' net interest expense during the fourth quarter was $29
million, a 35 percent decrease when compared to the fourth-quarter
2016 expense of $44 million, as a result of capital structure
optimization initiatives executed by the Company during 2017.
Cliffs recognized a $246 million income tax benefit during the
quarter. This was primarily attributable to a reversal of the
valuation allowance on approximately $250 million of Alternate
Minimum Tax (AMT) credit carryovers. With the passage of the Tax
Cuts and Jobs Act of 2017 and corresponding repeal of the AMT, this
amount will be refunded to Cliffs in cash over the next four tax
years.
Debt and Cash Flow
Total capital expenditures during the quarter were $77 million,
which included sustaining capital, preliminary spending related to
the Hot-Briquetted Iron (HBI) project, and the acquisition of
certain real estate interests located in Nashwauk, Minnesota
(Nashwauk) from Glacier Park Iron Ore Properties LLC
(GPIOP). The purchased and leased properties include parcels that
were formerly leased by GPIOP to Mesabi Metallics Company LLC,
formerly known as Essar Steel Minnesota.
Cash and cash equivalents at the end of the fourth quarter of
2017 totaled $1.0 billion, compared to $323 million at the end of
the fourth quarter of 2016. Total debt at the end of the fourth
quarter of 2017 was $2.3 billion, versus $2.2 billion at the end of
the fourth quarter of 2016. At the end of the fourth quarter of
2017, including the impact of the transactions related to the
ownership of Tilden, Empire, and Nashwauk, Cliffs had net debt3 of
$1.3 billion, compared to $1.8 billion of net debt3 at the end of
the fourth quarter of 2016.
Segment Outlook
After evaluating current and anticipated future market
conditions in connection with the remaining iron ore reserves at
Cliffs' APIO, including quality and the current market price for
the ore, the Company has decided to accelerate the projected time
frame for the planned closure of mining operations in Australia,
which will more than likely occur in 2018. Accordingly, the Company
will no longer provide guidance related to this business
segment.
2018 Outlook Summary Per Long Ton Information
U.S. Iron Ore Revenues from product sales and
services (A) $97 - $102 Cost of goods sold and operating
expense rate $69 - $74 Less: Freight expense rate (B) $7
Depreciation, depletion & amortization rate $4 Cash cost of
goods sold and operating expense rate2 $58 - $63 Sales
volume (million long tons) 20 Production volume (million long tons)
20 (A) This expectation is based on the assumption that iron ore
prices, steel prices, and pellet premiums will average for the
remainder of 2018 their respective year-to-date averages. (B)
Freight has an offsetting amount in revenue and has no impact on
sales margin.
U.S. Iron Ore Outlook (Long Tons)
Based on the assumption that iron ore prices, steel prices, and
pellet premiums will average for the remainder of 2018 their
respective year-to-date averages, Cliffs would realize USIO
revenue rates in the range of $97 to $102 per long ton.
As previously disclosed, for 2018 Cliffs expects full-year sales
and production volumes of approximately 20 million long tons from
its U.S. Iron Ore business. This compares to 18.7 million long tons
of sales and 18.8 million long tons of production in 2017.
Cliffs' full-year 2018 U.S. Iron Ore cash cost of goods sold and
operating expense2 expectation is $58 - $63 per long ton, which
compares to $60 per long ton for the full-year 2017.
SG&A Expenses and Other Expectations
Full-year 2018 SG&A expenses are expected to be
approximately $115 million. Cliffs also notes that of the $115
million expectation, approximately $20 million is considered
non-cash. The increase compared to 2017 is partially attributable
to an accounting change related to the reclassification of certain
Pension/OPEB components.
The Company's full-year 2018 interest expense is expected to be
approximately $130 million, compared to $132 million recorded in
2017. Consolidated full-year 2018 depreciation, depletion and
amortization is expected to be approximately $100 million, incurred
ratably throughout the year.
Capital Expenditures
Cliffs' 2018 capital spending expectations are:
- Approximately $85 million in sustaining
capital
- Approximately $250 million toward the
HBI project in Toledo, OH (fully funded with the December 2017
financing transactions)
- Approximately $50 million toward the
upgrade of the Northshore mine to produce up to 3.5 million long
tons of DR-grade pellets a year
Conference Call Information
Cleveland-Cliffs Inc. will host a conference call this morning,
January 25, 2018, at 10 a.m. ET. The call will be broadcast live
and archived on Cliffs' website: www.clevelandcliffs.com
About Cleveland-Cliffs Inc.
Founded in 1847, Cleveland-Cliffs Inc. is the largest and oldest
independent iron ore mining company in the United States. We are a
major supplier of iron ore pellets to the North American steel
industry from our mines and pellet plants located in Michigan and
Minnesota. Additionally, we operate an iron ore mining complex in
Western Australia. By 2020, Cliffs expects to be the sole producer
of hot briquetted iron (HBI) in the Great Lakes region with the
development of its first production plant in Toledo, Ohio. Driven
by the core values of safety, social, environmental and capital
stewardship, our employees endeavor to provide all stakeholders
with operating and financial transparency. For more information,
visit http://www.clevelandcliffs.com.
Forward-Looking Statements
This release contains statements that constitute
"forward-looking statements" within the meaning of the federal
securities laws. As a general matter, forward-looking statements
relate to anticipated trends and expectations rather than
historical matters. Forward-looking statements are subject to
uncertainties and factors relating to Cliffs’ operations and
business environment that are difficult to predict and may be
beyond our control. Such uncertainties and factors may cause actual
results to differ materially from those expressed or implied by the
forward-looking statements. These statements speak only as of the
date of this release, and we undertake no ongoing obligation, other
than that imposed by law, to update these statements. Uncertainties
and risk factors that could affect Cliffs’ future performance and
cause results to differ from the forward-looking statements in this
release include, but are not limited to: uncertainty and weaknesses
in global economic conditions, including downward pressure on
prices caused by oversupply or imported products, the impact of
barriers to trade, the outcomes of trade cases, reduced market
demand and any change to the economic growth rate in China;
continued volatility of iron ore and steel prices and other trends,
including the supply approach of the major iron ore producers,
affecting our financial condition, results of operations or future
prospects—specifically, the impact of price-adjustment factors on
our sales contracts; our ability to successfully diversify our
product mix and add new customers beyond our traditional blast
furnace clientele, specifically successful completion of our HBI
production plant; our level of indebtedness could limit cash flow
available to fund working capital, capital expenditures,
acquisitions and other general corporate purposes or ongoing needs
of our business; availability of capital and our ability to
maintain adequate liquidity; risks related to former and current
international operations, including our ability to successfully
conclude the CCAA process in Canada and plan for the end of mine
life in Australia in a manner that minimizes cash outflows and
associated liabilities; our actual economic iron ore reserves or
changes in current mineral estimates, including whether any
mineralized material qualifies as a reserve; the impact of our
customers reducing their steel production due to increased market
share of steel produced using other methods or lighter-weight steel
alternatives; the ability of our customers, joint venture partners
and significant suppliers and service providers to meet their
obligations to us on a timely basis or at all; the outcome of any
litigation or arbitration, including any contractual disputes with
our customers, joint venture partners or significant energy,
material or service providers; our ability to maintain satisfactory
relations with unions and employees; impacts of existing and
increasing governmental regulation and related costs and
liabilities, including failure to receive or maintain required
operating and environmental permits, approvals, modifications or
other authorization of, or from, any governmental or regulatory
entity and costs related to implementing improvements to ensure
compliance with regulatory changes; problems or uncertainties with
productivity, tons mined, transportation, capital spending,
mine-closure obligations, environmental liabilities,
employee-benefit costs and other risks of the mining industry; our
ability to cost-effectively achieve planned production rates or
levels, including at our HBI production plant; our ability to
successfully identify and consummate any strategic investments or
development projects, including our HBI production plant; changes
in sales volume or mix; our ability to reach agreement with our
customers regarding any modifications to sales contract provisions,
renewals or new arrangements; events or circumstances that could
impair or adversely impact the viability of a mine and the carrying
value of associated assets, as well as any resulting impairment
charges; uncertainties associated with natural disasters, weather
conditions, unanticipated geological conditions, supply or price of
energy, equipment failures and other unexpected events; adverse
changes in currency values, currency exchange rates, interest rates
and tax laws; uncertainty relating to restructurings in the steel
industry and/or affecting the steel industry; and the potential
existence of significant deficiencies or material weaknesses in our
internal control over financial reporting.
For additional factors affecting the business of Cliffs, refer
to Part I – Item 1A. Risk Factors of our Annual Report on Form
10-K for the year ended December 31, 2016. You are urged to
carefully consider these risk factors.
FINANCIAL TABLES FOLLOW
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES STATEMENTS
OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS (In
Millions, Except Per Share Amounts) Three Months Ended
Year Ended December 31, December 31,
2017 2016
2017 2016 REVENUES FROM
PRODUCT SALES AND SERVICES Product
$ 536.9 $ 676.5
$ 2,089.2 $ 1,913.5 Freight and venture partners'
cost reimbursements
64.0 77.5
241.0
195.5
600.9 754.0
2,330.2 2,109.0 COST
OF GOODS SOLD AND OPERATING EXPENSES
(492.3 ) (572.5
)
(1,820.6 ) (1,719.7 ) SALES MARGIN
108.6
181.5
509.6 389.3 OTHER OPERATING INCOME (EXPENSE) Selling,
general and administrative expenses
(28.0 ) (36.0 )
(105.8 ) (117.8 ) Miscellaneous - net
24.7
(13.8 )
27.7 (30.7 )
(3.3 )
(49.8 )
(78.1 ) (148.5 )
OPERATING INCOME
105.3 131.7
431.5 240.8 OTHER INCOME (EXPENSE)
Interest expense, net
(28.9 ) (44.3 )
(132.0
) (200.5 ) Gain (loss) on extinguishment/restructuring of
debt
— 2.2
(165.4 ) 166.3 Other non-operating
income
0.9 —
3.2 0.4
(28.0 ) (42.1 )
(294.2 ) (33.8 ) INCOME
FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY LOSS FROM
VENTURES
77.3 89.6
137.3 207.0 INCOME TAX BENEFIT
245.6 10.5
252.4 12.2
INCOME FROM CONTINUING OPERATIONS
322.9 100.1
389.7 219.2 LOSS FROM DISCONTINUED OPERATIONS,
net of tax
(5.1 ) (19.3 )
(18.7 ) (19.9
) NET INCOME
317.8 80.8
371.0 199.3 INCOME (LOSS)
ATTRIBUTABLE TO NONCONTROLLING INTEREST
— (1.7 )
3.9 (25.2 ) NET INCOME ATTRIBUTABLE TO CLIFFS
SHAREHOLDERS
$ 317.8 $ 79.1
$
374.9 $ 174.1 EARNINGS (LOSS) PER COMMON SHARE
ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - BASIC Continuing operations
$ 1.09 $ 0.43
$ 1.36 $ 0.98
Discontinued operations
(0.02 ) (0.08 )
(0.06
) (0.10 )
$ 1.07 $ 0.35
$
1.30 $ 0.88 EARNINGS (LOSS) PER COMMON SHARE
ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - DILUTED Continuing operations
$ 1.07 $ 0.42
$ 1.34 $ 0.97
Discontinued operations
(0.02 ) (0.08 )
(0.06
) (0.10 )
$ 1.05 $ 0.34
$
1.28 $ 0.87 AVERAGE NUMBER OF SHARES (IN
THOUSANDS) Basic
296,429 231,273
288,435 197,659
Diluted
300,858 234,640
292,961 200,145
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES STATEMENTS OF
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL POSITION
(In Millions) December 31, 2017 2016
ASSETS
CURRENT ASSETS Cash and cash equivalents
$ 1,007.7 $
323.4 Accounts receivable, net
140.6 128.7 Inventories
183.4 178.4 Supplies and other inventories
93.9 91.4
Derivative assets
39.4 33.1 Loans to and accounts
receivables from the Canadian Entities
51.6 48.6 Other
current assets
28.0 21.0 TOTAL CURRENT ASSETS
1,544.6 824.6 PROPERTY, PLANT AND EQUIPMENT, NET
1,051.0 984.4 Income tax receivable
235.3 — Other
non-current assets
122.5 114.9 TOTAL ASSETS
$ 2,953.4 $ 1,923.9
LIABILITIES
CURRENT LIABILITIES Accounts payable
$ 127.7 $ 107.6
Accrued employment costs
56.1 56.1 State and local taxes
payable
30.2 28.3 Accrued expenses
33.7 41.1 Accrued
interest
31.4 40.2 Accrued royalties
17.3 26.2
Contingent claims
55.6 — Partnership distribution payable
44.2 8.7 Other current liabilities
56.0 82.9
TOTAL CURRENT LIABILITIES
452.2 391.1 POSTEMPLOYMENT
BENEFIT LIABILITIES Pensions
222.8 245.7 Other
postretirement benefits
34.9 34.8 TOTAL
POSTEMPLOYMENT BENEFIT LIABILITIES
257.7 280.5 ENVIRONMENTAL
AND MINE CLOSURE OBLIGATIONS
188.5 193.9 LONG-TERM DEBT
2,304.2 2,175.1 OTHER LIABILITIES
186.9 213.8
TOTAL LIABILITIES
3,389.5 3,254.4
EQUITY
CLIFFS SHAREHOLDERS' DEFICIT
(436.3 ) (1,464.3 )
NONCONTROLLING INTEREST
0.2 133.8 TOTAL
DEFICIT
(436.1 ) (1,330.5 ) TOTAL LIABILITIES AND
DEFICIT
$ 2,953.4 $ 1,923.9
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES STATEMENTS
OF UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS (In
Millions) Year Ended December 31, 2017
2016 OPERATING ACTIVITIES Net income
$ 371.0 $
199.3 Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation, depletion and amortization
87.7 115.4 Loss (gain) on extinguishment/restructuring of
debt
165.4 (166.3 ) Loss on deconsolidation, net of cash
deconsolidated
20.2 17.5 Other
12.9 10.0 Changes in
operating assets and liabilities: Receivables and other assets
(248.6 ) 43.2 Product inventories
(1.8
) 157.8 Payables and accrued expenses
(68.9 )
(73.9 ) Net cash provided by operating activities
337.9
303.0 INVESTING ACTIVITIES Purchase of property, plant and
equipment
(155.7 ) (69.1 ) Other investing activities
(4.3 ) 11.2 Net cash used by investing
activities
(160.0 ) (57.9 ) FINANCING ACTIVITIES Net
proceeds from issuance of common shares
661.3 287.4 Proceeds
from issuance of debt
1,771.5 — Debt issuance costs
(28.2 ) (5.2 ) Borrowings under credit facilities
— 105.0 Repayment under credit facilities
— (105.0 )
Repayments of equipment loans
— (95.6 ) Repurchase of debt
(1,720.7 ) (305.4 ) Acquisition of noncontrolling
interest
(105.0 ) — Distributions of partnership
equity
(49.1 ) (59.9 ) Other financing activities
(26.7 ) (27.7 ) Net cash provided (used) by financing
activities
503.1 (206.4 ) EFFECT OF EXCHANGE RATE CHANGES ON
CASH
3.3 (0.5 ) INCREASE IN CASH AND CASH EQUIVALENTS
684.3 38.2 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
323.4 285.2 CASH AND CASH EQUIVALENTS AT END
OF YEAR
$ 1,007.7 $ 323.4
1 CLEVELAND-CLIFFS INC. AND
SUBSIDIARIESNON-GAAP RECONCILIATION - EBITDA AND ADJUSTED
EBITDA
In addition to the consolidated financial statements presented
in accordance with U.S. GAAP, the Company has presented EBITDA and
adjusted EBITDA on both a consolidated basis and on a segment
basis, which are non-GAAP financial measures that management uses
in evaluating operating performance. The presentation of these
measures is not intended to be considered in isolation from, as a
substitute for, or as superior to, the financial information
prepared and presented in accordance with U.S. GAAP. The
presentation of these measures may be different from non-GAAP
financial measures used by other companies. A reconciliation of
these consolidated measures to their most directly comparable GAAP
measures is provided in the table below.
(In Millions) (In Millions) Three
Months Ended Year Ended December 31, December
31, 2017 2016
2017 2016 Net Income
$ 317.8 $ 80.8
$ 371.0 $ 199.3 Less:
Interest expense, net
(28.9 ) (44.3 )
(132.0
) (200.5 ) Income tax benefit (expense)
245.6 10.5
252.4 12.2 Depreciation, depletion and amortization
(21.4 ) (26.5 )
(87.7 ) (115.4 ) EBITDA
$ 122.5 $ 141.1
$ 338.3
$ 503.0 Less: Gain (loss) on
extinguishment/restructuring of debt
— 2.2
(165.4
) 166.3 Impact of discontinued operations
(5.1
) (19.3 )
(18.7 ) (19.9 ) Foreign exchange
remeasurement
0.2 (15.6 )
11.4 (16.8 ) Severance and
contractor termination costs
— —
— (0.1 ) Supplies
inventory adjustment
(1.8 ) —
(1.8
) — Adjusted EBITDA
129.2 173.8
512.8 373.5
2 CLEVELAND-CLIFFS INC. AND
SUBSIDIARIESNON-GAAP RECONCILIATION EXPLANATIONS
The Company presents cash cost of goods sold and operating
expense rate per long/metric ton, which is a non-GAAP financial
measure that management uses in evaluating operating performance.
Cliffs believes the presentation of non-GAAP cash cost of goods
sold and operating expenses is useful to investors because it
excludes depreciation, depletion and amortization, which are
non-cash, and freight and venture partners' cost reimbursements,
which have no impact on sales margin, thus providing a more
accurate view of the cash outflows related to the sale of iron ore.
The presentation of this measure is not intended to be considered
in isolation from, as a substitute for, or as superior to, the
financial information prepared and presented in accordance with
U.S. GAAP. The presentation of this measure may be different from
non-GAAP financial measures used by other companies.
(In Millions) Three Months Ended December 31,
Three Months Ended December 31, 2017
2016 U.S. Iron Asia Pacific U.S.
Iron Asia Pacific
Ore Iron Ore
Total Ore Iron Ore Total Cost of goods sold and operating
expenses
$ (396.2 ) $ (96.1
) $ (492.3 ) $ (453.0 ) $ (119.5 ) $
(572.5 ) Less: Freight and reimbursements
(62.2 )
(1.8 ) (64.0 ) (70.8 ) (6.7 ) (77.5 )
Depreciation, depletion & amortization
(17.0 )
(3.0 ) (20.0 ) (18.9 ) (5.9 ) (24.8 )
Cash cost of goods sold and operating expenses
$
(317.0 ) $ (91.3 ) $
(408.3 ) $ (363.3 ) $ (106.9 ) $ (470.2 )
(In Millions) Year Ended December 31,
Year Ended December 31,
2017 2016
U.S. Iron
Asia Pacific U.S. Iron Asia Pacific
Ore Iron Ore Total Ore Iron Ore Total Cost of
goods sold and operating expenses
$ (1,400.6 )
$ (420.0 ) $ (1,820.6 ) $
(1,278.8 ) $ (440.9 ) $ (1,719.7 ) Less: Freight and reimbursements
(221.4 ) (19.6 ) (241.0 )
(174.8 ) (20.7 ) (195.5 ) Depreciation, depletion &
amortization
(66.6 ) (14.3 )
(80.9 ) (84.0 ) (25.1 ) (109.1 ) Cash cost of goods
sold and operating expenses
$ (1,112.6 )
$ (386.1 ) $ (1,498.7 ) $
(1,020.0 ) $ (395.1 ) $ (1,415.1 )
3 NET DEBT RECONCILIATION
Net debt is a non-GAAP financial measure that management uses in
evaluating financial position. The presentation of this measure is
not intended to be considered in isolation from, as a substitute
for, or as superior to, the financial information prepared and
presented in accordance with U.S. GAAP. The presentation of this
measure may be different from non-GAAP financial measures used by
other companies. Net debt is defined as long-term debt plus the
current portion of short term debt, less cash and cash equivalents
and undiscounted interest. A reconciliation of this measure to its
most directly comparable GAAP measure is provided in the table
below.
(In Millions) December 31, December
31, 2017 2016 Long-term debt
$
2,304.2 $ 2,175.1 Short-term debt and current portion of
long-term debt
— 17.5 Total Debt
$
2,304.2 $ 2,192.6 Less: Cash and cash equivalents
1,007.7 323.4 Undiscounted interest
— 65.7 Net
Debt
$ 1,296.5 $ 1,803.5
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Cleveland-Cliffs Inc.MEDIA CONTACT:Patricia Persico,
216-694-5316Director, Global CommunicationsorINVESTOR
CONTACT:Paul Finan, 216-694-6544Director, Investor
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Cleveland Cliffs (NYSE:CLF)
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From Aug 2024 to Sep 2024
Cleveland Cliffs (NYSE:CLF)
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From Sep 2023 to Sep 2024