DewDiligence
4 days ago
CLF reports 2Q24 results:
https://www.clevelandcliffs.com/investors/news-events/press-releases/detail/645/cleveland-cliffs-reports-second-quarter-2024-results
All year-over-year comparisons (except volume shipped) are unfavorable due to the lower average price realization in 2Q24 compared to 2Q23. Still, 2Q24 was slightly better than some investors expected, which is why the stock is up ~3% in AH trading. CC Tuesday at 8:30am ET.
2Q24 highlights
• Revenue of $4.9B, -15% YoY
• Non-GAAP EPS of $0.11 (excluding a $0.11 impairment charge from the idling of the Weirton WV tinplate plant)* vs $0.28 in 2Q23
• Adjusted EBITDA of $323M, -58% YoY
• Free cash flow of $362M, -52% YoY
• Steel shipments of 4.0M net tons, +1% YoY
• 6/30/24 net debt of $3.4B, down $237M from 3/31/24 (despite repurchasing approximately $125M of CLF shares during 2Q24)
2024 guidance
• No updated or re-iterated guidance for 2024 steel shipment volume; the guidance given three months ago was 16.5M tons (vs 16.4M in 2023)
• Re-iterated cost reductions of ~$30 per net ton, corresponding to ~$500M adjusted EBITDA benefit compared to 2023
• Cap-ex guidance lowered $25M to $650-$700M (from prior range of $675-725M)
*See new plans for Weirton, WV site in #msg-174789843.
DewDiligence
2 weeks ago
CLF acquires Canada’s Stelco for $2.5B* cash/stock—an 87% premium to STLC.TO’s closing price on 7/12/24:
https://www.clevelandcliffs.com/news/news-releases/detail/643/cleveland-cliffs-announces-the-acquisition-of-stelco Cleveland-Cliffs Inc…is pleased to announce that it has entered into a definitive agreement to acquire Stelco Holdings Inc. (TSX:STLC) ("Stelco"). The acquisition confirms Cliffs’ commitment and leadership in integrated steel production in North America, and also brings an additional 1,800 United Steelworkers ("USW") union employees into Cliffs’ workforce.
Under the terms of the agreement, Stelco shareholders will receive CAD $60.00 per Stelco common share in cash and 0.454 shares of Cliffs common stock per share of Stelco common stock (or CAD $10.00 per share as of July 12, 2024), representing a total consideration of CAD $70.00 per Stelco share.
The transaction has received full support from David McCall, International President of the USW union.
The transaction implies a total enterprise value of approximately USD $2.5 billion (CAD $3.4 billion) for Stelco and represents an acquisition multiple of 4.8x 3/31/24 LTM [last twelve months] Adjusted EBITDA with synergies. Cliffs has a clear line of sight to the achievement of approximately $120 million of estimated annual cost savings with no impact to union jobs.
The acquisition is expected to be immediately accretive to 2024 and 2025 EPS. The transaction implies pro forma net leverage of 2.4x 3/31/2024 LTM Adjusted EBITDA. Upon completion of the transaction, Cliffs shareholders will own approximately 95% and Stelco shareholders will own approximately 5% of the combined company, on a fully diluted basis.
Stelco is an integrated steelmaker consisting of two operational sites, both located in the province of Ontario: Lake Erie Works, the newest and lowest-cost integrated steelmaking facility in North America; and Hamilton Works, a downstream finishing and cokemaking facility. Stelco ships approximately 2.6 million net tons of flat-rolled steel annually, primarily hot-rolled steel to service center customers.
…Upon closing of the transaction, Stelco is expected to continue operations as a wholly-owned subsidiary, preserving the name and legacy of the business.
… The transaction has been unanimously approved by Cliffs’ and Stelco’s respective Boards… The transaction is expected to close in the fourth quarter of 2024, subject to approval by Stelco shareholders, receipt of regulatory approvals and satisfaction of other customary closing conditions. *Enterprise value. The nominal deal value (i.e. the market value of the cash + stock consideration) is approximately $2.8B (C$3.85B). $1 = C$1.36.
abracky
3 weeks ago
Cleveland-Cliffs to Announce Second-Quarter 2024 Earnings Results on July 22 and Host Conference Call on July 23
Source: Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) will announce its second-quarter 2024 earnings results after the U.S. market close on Monday, July 22, 2024.
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 Tuesday, July 23, 2024, at 8:30 am ET. The call can be accessed at www.clevelandcliffs.com and will also be archived and available for replay at that address.
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, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20240701721806/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316
INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719
abracky
1 month ago
Cleveland-Cliffs to Host U.S. Senator Sherrod Brown and USW International President David McCall at Cleveland Works
Source: Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) announced that Lourenco Goncalves, Chairman, President and Chief Executive Officer is hosting Senator Sherrod Brown (OH) and leadership from the United Steelworkers, David McCall, USW International President and Donnie Blatt, Director of USW District 1, at its Cleveland Works plant in Ohio on Wednesday, June 26 for a press conference. Senator Brown’s visit follows the recent bipartisan legislation introduced to stop the dramatic increase in Mexican steel imports. The Stop Mexico’s Steel Surge Act reinstates the 232 tariffs on Mexican steel imports at 25 percent, for no less than a year, and gives the President of the United States the authority to impose additional quotas and tariff rate quotas on specific products if necessary. Senator Brown has led efforts pushing the current administration to take aggressive action to enforce the agreement to level the playing field for American manufacturers and workers in the steel industry.
During the visit, Senator Brown will meet with Cleveland-Cliffs’ CEO Lourenco Goncalves and USW International President David McCall, as well as with local union leaders and employees regarding this important trade enforcement matter. Mr. Goncalves will be hosting a press conference with Senator Brown, David McCall and Donnie Blatt that will be live streamed on the Company’s YouTube channel.
Featured Speakers
U.S. Senator Sherrod Brown (OH)
David McCall, USW International President
Donnie Blatt, Director of USW District 1
Lourenco Goncalves, Cleveland-Cliffs' Chairman, President and Chief Executive Officer
Livestream Details:
Cleveland-Cliffs Program
Wednesday, June 26, 2024
Time: 11:15 a.m. ET
The live broadcast is accessible via Cleveland-Cliffs’ YouTube channel:
Cleveland-Cliffs Live Stream Link
A replay will be available after the event on Cleveland-Cliffs’ channel.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs is also the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20240624980801/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316
INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719
abracky
1 month ago
Up soon.
Cleveland-Cliffs has received several prestigious industry awards for its business and financial performance.
Annual S&P Global Platts Global Metals Awards
The Global Metals Award program recognizes exemplary performance in the metals and mining industry. Cleveland-Cliffs took top honors in three categories.
2021: The Deal of the Year Award
Recognizing the significance and success of the Company’s 2020 acquisitions.
2021: Metals Company of the Year
Selecting a company for all-around excellence in executing a total metals strategy.
2021: CEO/Chairperson of the Year
Honoring a leader who is highly respected by both peers and competitors, admired and followed by employees, trusted by investors and welcomed by the community. Mr. Goncalves was recognized for his leadership and taking decisive action and adapting to market shifts by balancing long-term growth with short-term challenges.
General Motors Supplier of the Year
GM recognized the best and distinguished global suppliers with the highest quality and innovation in the automotive industry. This is the fourth consecutive year Cleveland-Cliffs/AK Steel has received this award.
Association for Iron & Steel Technology (AIST) Steelmaker of the Year
The Steelmaker of the Year award recognizes prominent leaders and their contribution to the steel industry. Mr. Goncalves was honored for his distinguished career, strong leadership, passion and outstanding contributions to the global mining and steel industries for more than 30 years.
Fastmarkets Global Awards for Steel Excellence - Advocate of the Year
The Steel Excellence awards honor truly exceptional and the “best of the best” steel industry thought leaders and organizations.
Mr. Goncalves was named Advocate of the Year for his longtime leadership within the steel industry and transformation of Cliffs into a leading steel company.
Fastmarkets Global Awards for Steel Excellence - Scrap Company of the Year
The Steel Excellence awards honor truly exceptional and the “best of the best” steel industry thought leaders and organizations.
Ferrous Processing and Trading Co. was recognized by steel producers, service centers, scrap companies, pipe and tube producers and suppliers of materials and services in the steel industry.
Association of Steel Distributors (ASD) Steel Executive of the Year
This award, received by Mr. Goncalves, recognizes distinguished individuals who have made lasting contributions to the steel distribution industry over a significant period of time.
General Motors Supplier of the Year
GM recognized the best and distinguished global suppliers with the highest quality and innovation in the automotive industry. This is the sixth consecutive year Cleveland-Cliffs has received this award.
Willy Korf/Ken Iverson Steel Vision Award
2022: Mr. Goncalves was presented with the award, which honors individuals who have made significant contributions to the steel industry while promoting goodwill and integrity.