Cleveland-Cliffs Inc. (NYSE: CLF) today provided updated
financial guidance based on its most recent 2021 financial
forecast.
The Company’s forecast includes the following expectations:
- Second-quarter 2021 adjusted EBITDA* of $1.3 billion
- Full-year 2021 adjusted EBITDA* of $5 billion
The full-year expectation is based on current contractual
business and the conservative assumption that the US HRC index
price averages $1,175 per net ton for the remainder of the
year.
The Company will announce its full second-quarter 2021 earnings
results before the U.S. market open on Thursday, July 22, 2021.
The Company invites interested parties to listen to a live
broadcast of a conference call with securities analysts and
institutional investors to discuss the results on July 22, 2021 at
10:00 am ET. The call can be accessed at www.clevelandcliffs.com
and will also be archived and available for replay at that
address.
* Adjusted EBITDA is a non-GAAP financial measure that
management uses in evaluating operating performance. 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. We are unable
to reconcile, without unreasonable effort, our expected adjusted
EBITDA to its most directly comparable GAAP financial measure, net
income, due to the uncertainty and inherent difficulty of
predicting the occurrence and the financial impact of items
impacting comparability. This includes the finalization of the
preliminary allocation of consideration related to the
ArcelorMittal USA acquisition to the net tangible and intangible
assets acquired and liabilities assumed and associated tax impacts.
For the same reasons, we are unable to address the significance of
the unavailable information.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in
North America. Founded in 1847 as a mine operator, Cliffs also is
the largest manufacturer of iron ore pellets in North America. The
Company is vertically integrated from mined raw materials and
direct reduced iron to primary steelmaking and downstream
finishing, stamping, tooling, and tubing. The Company serves a
diverse range of markets due to its comprehensive offering of
flat-rolled steel products and is the largest steel supplier to the
automotive industry in North America. Headquartered in Cleveland,
Ohio, Cleveland-Cliffs employs approximately 25,000 people across
its mining, steel and downstream manufacturing operations in the
United States and Canada. For more information, visit
www.clevelandcliffs.com.
Forward-Looking Statements
This release contains statements that constitute
"forward-looking statements" within the meaning of the federal
securities laws. All statements other than historical facts,
including, without limitation, statements regarding our current
expectations, estimates and projections about our industry or our
businesses, are forward-looking statements. We caution investors
that any forward-looking statements are subject to risks and
uncertainties that may cause actual results and future trends to
differ materially from those matters expressed in or implied by
such forward-looking statements. Investors are cautioned not to
place undue reliance on forward-looking statements. Among the risks
and uncertainties that could cause actual results to differ from
those described in forward-looking statements are the following:
disruptions to our operations relating to the COVID-19 pandemic,
including the heightened risk that a significant portion of our
workforce or on-site contractors may suffer illness or otherwise be
unable to perform their ordinary work functions; continued
volatility of steel and iron ore market prices, which directly and
indirectly impact the prices of the products that we sell to our
customers; uncertainties associated with the highly competitive and
cyclical steel industry and our reliance on the demand for steel
from the automotive industry, which has been experiencing a trend
toward light weighting that could result in lower steel volumes
being consumed; potential weaknesses and uncertainties in global
economic conditions, excess global steelmaking capacity, oversupply
of iron ore, prevalence of steel imports and reduced market demand,
including as a result of the COVID-19 pandemic; severe financial
hardship, bankruptcy, temporary or permanent shutdowns or
operational challenges, due to the COVID-19 pandemic or otherwise,
of one or more of our major customers, including customers in the
automotive market, key suppliers or contractors, which, among other
adverse effects, could lead to reduced demand for our products,
increased difficulty collecting receivables, and customers and/or
suppliers asserting force majeure or other reasons for not
performing their contractual obligations to us; our ability to
return capital to shareholders within the expected timeframe or at
all, depending on market and other conditions; risks related to
U.S. government actions with respect to Section 232 of the Trade
Expansion Act (as amended by the Trade Act of 1974), the United
States-Mexico-Canada Agreement and/or other trade agreements,
tariffs, treaties or policies, as well as the uncertainty of
obtaining and maintaining effective antidumping and countervailing
duty orders to counteract the harmful effects of unfairly traded
imports; impacts of existing and increasing governmental
regulation, including climate change and other environmental
regulation that may be proposed under the Biden Administration, and
related costs and liabilities, including failure to receive or
maintain required operating and environmental permits, approvals,
modifications or other authorizations of, or from, any governmental
or regulatory authority and costs related to implementing
improvements to ensure compliance with regulatory changes,
including potential financial assurance requirements; potential
impacts to the environment or exposure to hazardous substances
resulting from our operations; our ability to maintain adequate
liquidity, our level of indebtedness and the availability of
capital could limit cash flow necessary to fund working capital,
planned capital expenditures, acquisitions, and other general
corporate purposes or ongoing needs of our business; adverse
changes in credit ratings, interest rates, foreign currency rates
and tax laws; limitations on our ability to realize some or all of
our deferred tax assets or net operating loss carryforwards; our
ability to realize the anticipated synergies and benefits of our
acquisitions of AK Steel and ArcelorMittal USA and to successfully
integrate the businesses of AK Steel and ArcelorMittal USA into our
existing businesses, including uncertainties associated with
maintaining relationships with customers, vendors and employees;
additional debt we assumed, incurred or issued in connection with
the acquisitions of AK Steel and ArcelorMittal USA, as well as
additional debt we incurred in connection with enhancing our
liquidity during the COVID-19 pandemic, may negatively impact our
credit profile and limit our financial flexibility; known and
unknown liabilities we assumed in connection with the acquisitions
of AK Steel and ArcelorMittal USA, including significant
environmental, pension and other postretirement benefits (“OPEB”)
obligations; the ability of our customers, joint venture partners
and third-party service providers to meet their obligations to us
on a timely basis or at all; supply chain disruptions or changes in
the cost or quality of energy sources or critical raw materials and
supplies, including iron ore, industrial gases, graphite
electrodes, scrap, chrome, zinc, coke and coal; liabilities and
costs arising in connection with any business decisions to
temporarily idle or permanently close a mine or production
facility, which could adversely impact the carrying value of
associated assets and give rise to impairment charges or closure
and reclamation obligations, as well as uncertainties associated
with restarting any previously idled mine or production facility;
problems or disruptions associated with transporting products to
our customers, moving products internally among our facilities or
suppliers transporting raw materials to us; uncertainties
associated with natural or human-caused disasters, adverse weather
conditions, unanticipated geological conditions, critical equipment
failures, infectious disease outbreaks, tailings dam failures and
other unexpected events; our level of self-insurance and our
ability to obtain sufficient third-party insurance to adequately
cover potential adverse events and business risks; disruptions in,
or failures of, our information technology systems, including those
related to cybersecurity; our ability to successfully identify and
consummate any strategic investments or development projects,
cost-effectively achieve planned production rates or levels, and
diversify our product mix and add new customers; our actual
economic iron ore and coal reserves or reductions in current
mineral estimates, including whether we are able to replace
depleted reserves with additional mineral bodies to support the
long-term viability of our operations; the outcome of any
contractual disputes with our customers, joint venture partners,
lessors, or significant energy, raw material or service providers,
or any other litigation or arbitration; our ability to maintain our
social license to operate with our stakeholders, including by
fostering a strong reputation and consistent operational and safety
track record; our ability to maintain satisfactory labor relations
with unions and employees; availability of workers to fill critical
operational positions and potential labor shortages caused by the
COVID-19 pandemic, as well as our ability to attract, hire, develop
and retain key personnel; unanticipated or higher costs associated
with pension and OPEB obligations resulting from changes in the
value of plan assets or contribution increases required for
unfunded obligations; and potential 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, 2020, and other filings with the
SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20210615005370/en/
MEDIA CONTACT: Patricia Persico Director, Global
Communications (216) 694-5316 INVESTOR CONTACT: Paul Finan
Vice President, Investor Relations (216) 694-6544
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