Cleveland-Cliffs Inc. (NYSE: CLF) today reported
full-year and fourth-quarter results for the period ended December
31, 2024.
Full-Year Consolidated Results
Full-year 2024 consolidated revenues were $19.2 billion,
compared to the prior year's consolidated revenues of $22.0
billion.
For the full-year 2024, the Company recorded a GAAP net loss of
$708 million, or $1.57 per diluted share, with adjusted net loss2
of $351 million, or $0.73 per diluted share. This compares to 2023
net income of $450 million, or $0.78 per diluted share, with
adjusted net income2 of $545 million, or $1.07 per diluted share.
For the full-year 2024, Adjusted EBITDA1 was $780 million, compared
to $1.9 billion in 2023. The reduction was primarily driven by
lower steel index pricing in 2024 compared to 2023, partially
offset by lower operating costs.
Fourth-Quarter Consolidated Results
Fourth-quarter 2024 consolidated revenues were $4.3 billion,
compared to prior-year fourth-quarter consolidated revenues of $5.1
billion.
For the fourth quarter of 2024, the Company recorded a GAAP net
loss of $434 million, or $0.92 per diluted share, with an adjusted
net loss2 of $332 million, or $0.68 per diluted share. In the
prior-year fourth quarter, the Company recorded a net loss of $139
million, or $0.31 per diluted share, with an adjusted net loss2 of
$25 million, or $0.05 per diluted share.
For the fourth quarter of 2024, the Company reported an Adjusted
EBITDA1 loss of $81 million, compared to Adjusted EBITDA1 of $279
million in the fourth quarter of 2023.
Lourenco Goncalves, Cliffs’ Chairman, President and CEO said:
“Our results in 2024 were a consequence of the worst steel demand
environment since 2010 (ex-COVID). Cleveland-Cliffs is an American
steel company, designed to supply high-end manufacturers producing
things in the United States. That said, for the first time, the
number of cars sold in the United States that were produced abroad
and imported into the United States surpassed the number of cars
sold that were produced domestically. With this decline in domestic
automotive production, and too much imported steel from abroad that
drove unsustainably low steel prices, Cliffs was deeply impacted.
As a steel producer equipped to supply high-end steel -- like
automotive exposed parts, among others -- we by design carry a
higher fixed cost structure, and we are more impacted than others
when markets are weak. This impact was particularly evident in the
fourth quarter, which we expect to be the trough going forward. Our
cash use in the fourth quarter, due largely to inventory build, has
set us up nicely for the rebound we are seeing so far in 2025.”
Mr. Goncalves concluded: “Since January 20th, President Trump
has made clear that proper enforcement of our trade laws and a
supportive industrial policy prioritizing manufacturing in the
United States are both being implemented. That should benefit
Cleveland-Cliffs more than others. As of late February,
Cleveland-Cliffs is well on the way for a dramatic rebound in 2025.
We can already see the early signals of this rebound in automotive
pull, index pricing, and our overall order book. Also, with the
addition of Stelco’s spot price driven non-automotive book of
business to our footprint, we are even better equipped now to ride
this upside than in previous cycles, as we are now less dependent
on fixed price contracts."
Steelmaking Segment Results
Three Months Ended December
31,
Year Ended
December 31,
Three Months
Ended
2024
2023
2024
2023
Sept. 30, 2024
External Sales
Volumes - In Thousands
Steel Products (net tons)
3,827
4,039
15,596
16,432
3,840
Selling Price -
Per Net Ton
Average net selling price per net ton of
steel products
$
976
$
1,093
$
1,081
$
1,171
$
1,045
Operating Results
- In Millions
Revenues
$
4,168
$
4,954
$
18,529
$
21,331
$
4,419
Cost of goods sold
(4,449
)
(4,798
)
(18,509
)
(19,979
)
(4,533
)
Gross margin
$
(281
)
$
156
$
20
$
1,352
$
(114
)
Full-year 2024 steel product sales volume of 15.6 million net
tons consisted of 36% hot-rolled, 29% coated, 16% cold-rolled, 5%
plate, 3% stainless and electrical, and 11% other, including slabs
and rail. Fourth-quarter 2024 steel product sales volume of 3.8
million net tons consisted of 40% hot-rolled, 26% coated, 16%
cold-rolled, 5% plate, 3% stainless and electrical, and 10% other,
including slabs and rail.
Full-year 2024 Steelmaking revenues of $18.5 billion included
approximately $5.6 billion, or 30%, of sales to direct automotive
customers; $5.3 billion, or 29%, of sales to the distributors and
converters market; $5.2 billion, or 28%, of sales to the
infrastructure and manufacturing market; and $2.5 billion, or 13%,
of sales to steel producers. Fourth-quarter 2024 Steelmaking
revenues of $4.2 billion included approximately $1.2 billion, or
30%, of sales to the infrastructure and manufacturing market; $1.2
billion, or 28%, of sales to direct automotive customers; $1.2
billion, or 27%, of sales to the distributors and converters
market; and $623 million, or 15%, of sales to steel producers.
2025 Expectations
The Company put forth the following expectations for the
full-year 2025, which now include Stelco:
- Steel unit cost reductions of approximately $40 per net ton
compared to 2024
- Capital expenditures of approximately $700 million
- Selling, general and administrative expenses of approximately
$625 million
- Depreciation, depletion and amortization of approximately $1.1
billion
- Cash Pension and OPEB payments and contributions of
approximately $150 million
Conference Call Information
Cleveland-Cliffs Inc. will host a conference call on February
25, 2025, at 8:30 a.m. ET. The call will be broadcast live and
archived on Cliffs' website: www.clevelandcliffs.com
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is a leading North America-based steel producer
with focus on value-added sheet products, particularly for the
automotive industry. The Company is vertically integrated from the
mining of iron ore, production of pellets and direct reduced iron,
and processing of ferrous scrap through primary steelmaking and
downstream finishing, stamping, tooling, and tubing. Headquartered
in Cleveland, Ohio, Cleveland-Cliffs employs approximately 30,000
people across its operations in the United States and Canada.
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 our 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 report, and we undertake no ongoing obligation, other
than that imposed by law, to update these statements. Investors are
cautioned not to place undue reliance on forward-looking
statements. Uncertainties and risk factors that could affect our
future performance and cause results to differ from the
forward-looking statements in this report include, but are not
limited to: continued volatility of steel, scrap metal 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; potential weaknesses and uncertainties in global economic
conditions, excess global steelmaking capacity and production,
prevalence of steel imports, reduced market demand and oversupply
of iron ore; severe financial hardship, bankruptcy, temporary or
permanent shutdowns or operational challenges of one or more of our
major customers, key suppliers or contractors, which, among other
adverse effects, could disrupt our operations or 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; risks related to U.S. government actions and other
countries' reactions with respect to Section 232 of the Trade
Expansion Act of 1962 (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 actual and potential
environmental regulations relating to climate change and carbon
emissions, 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, and
reclamation and remediation obligations; 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 our
financial flexibility and cash flow necessary to fund working
capital, planned capital expenditures, acquisitions, and other
general corporate purposes or ongoing needs of our business, or to
repurchase our common shares; our ability to reduce our
indebtedness or return capital to shareholders within the currently
expected timeframes or at all; adverse changes in credit ratings,
interest rates, foreign currency rates and tax laws; challenges to
successfully implementing our business strategy to achieve
operating results in line with our guidance; the outcome of, and
costs incurred in connection with, lawsuits, claims, arbitrations
or governmental proceedings relating to commercial and business
disputes, antitrust claims, environmental matters, government
investigations, occupational or personal injury claims,
property-related matters, labor and employment matters, or suits
involving legacy operations and other matters; supply chain
disruptions or changes in the cost, quality or availability of
energy sources, including electricity, natural gas and diesel fuel,
critical raw materials and supplies, including iron ore, industrial
gases, graphite electrodes, scrap metal, chrome, zinc, other
alloys, coke and metallurgical coal, and critical manufacturing
equipment and spare parts; problems or disruptions associated with
transporting products to our customers, moving manufacturing inputs
or products internally among our facilities, or suppliers
transporting raw materials to us; the risk that the cost or time to
implement a strategic or sustaining capital project may prove to be
greater than originally anticipated; our ability to consummate any
public or private acquisition transactions and to realize any or
all of the anticipated benefits or estimated future synergies, as
well as to successfully integrate any acquired businesses into our
existing businesses; 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; cybersecurity incidents relating to, disruptions in, or
failures of, information technology systems that are managed by us
or third parties that host or have access to our data or systems,
including the loss, theft or corruption of our or third parties'
sensitive or essential business or personal information and the
inability to access or control systems; liabilities and costs
arising in connection with any business decisions to temporarily or
indefinitely idle or permanently close an operating facility or
mine, 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 operating facility or mine; our
ability to realize the anticipated synergies or other expected
benefits of the acquisition of Stelco Holdings Inc., as well as the
impact of additional liabilities and obligations incurred in
connection with such acquisition; our level of self-insurance and
our ability to obtain sufficient third-party insurance to
adequately cover potential adverse events and business risks;
uncertainties associated with our ability to meet customers’ and
suppliers’ decarbonization goals and reduce our greenhouse gas
emissions in alignment with our own announced targets; challenges
to maintaining our social license to operate with our stakeholders,
including the impacts of our operations on local communities,
reputational impacts of operating in a carbon-intensive industry
that produces greenhouse gas emissions, and our ability to foster a
consistent operational and safety track record; our actual economic
mineral reserves or reductions in current mineral reserve
estimates, and any title defect or loss of any lease, license,
option, easement or other possessory interest for any mining
property; our ability to maintain satisfactory labor relations with
unions and employees; unanticipated or higher costs associated with
pension and other postretirement benefits obligations resulting
from changes in the value of plan assets or contribution increases
required for unfunded obligations; uncertain availability or cost
of skilled workers to fill critical operational positions and
potential labor shortages caused by experienced employee attrition
or otherwise, as well as our ability to attract, hire, develop and
retain key personnel; 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, 2023, our Quarterly Report on Form
10-Q for the quarterly period ended June 30, 2024, and other
filings with the U.S. Securities and Exchange Commission.
FINANCIAL TABLES FOLLOW
CLEVELAND-CLIFFS INC. AND
SUBSIDIARIES
STATEMENTS OF UNAUDITED
CONDENSED CONSOLIDATED OPERATIONS
Three Months Ended
December 31,
Year Ended
December 31,
Three Months Ended
(In millions, except per share
amounts)
2024
2023
2024
2023
Sept. 30, 2024
Revenues
$
4,325
$
5,112
$
19,185
$
21,996
$
4,569
Operating costs:
Cost of goods sold
(4,598
)
(4,944
)
(19,115
)
(20,605
)
(4,673
)
Selling, general and administrative
expenses
(139
)
(162
)
(486
)
(577
)
(112
)
Restructuring and other charges
2
—
(129
)
—
(2
)
Acquisition-related costs
(30
)
(7
)
(44
)
(12
)
(14
)
Asset impairment
—
—
(79
)
—
—
Goodwill impairment
—
(125
)
—
(125
)
—
Miscellaneous – net
(25
)
26
(88
)
—
(27
)
Total operating costs
(4,790
)
(5,212
)
(19,941
)
(21,319
)
(4,828
)
Operating income (loss)
(465
)
(100
)
(756
)
677
(259
)
Other income (expense):
Interest expense, net
(135
)
(63
)
(370
)
(289
)
(102
)
Loss on extinguishment of debt
—
—
(27
)
—
—
Net periodic benefit credits other than
service cost component
63
54
247
204
62
Other non-operating income (loss)
(33
)
1
(37
)
5
(7
)
Total other expense
(105
)
(8
)
(187
)
(80
)
(47
)
Income (loss) from continuing
operations before income taxes
(570
)
(108
)
(943
)
597
(306
)
Income tax benefit (expense)
136
(30
)
235
(148
)
76
Income (loss) from continuing
operations
(434
)
(138
)
(708
)
449
(230
)
Income (loss) from discontinued
operations, net of tax
—
(1
)
—
1
—
Net income (loss)
(434
)
(139
)
(708
)
450
(230
)
Net income attributable to noncontrolling
interests
(13
)
(16
)
(46
)
(51
)
(12
)
Net income (loss) attributable to
Cliffs shareholders
$
(447
)
$
(155
)
$
(754
)
$
399
$
(242
)
Earnings (loss) per common share
attributable to Cliffs shareholders - basic
Continuing operations
$
(0.92
)
$
(0.31
)
$
(1.57
)
$
0.78
$
(0.52
)
Discontinued operations
—
—
—
—
—
$
(0.92
)
$
(0.31
)
$
(1.57
)
$
0.78
$
(0.52
)
Earnings (loss) per common share
attributable to Cliffs shareholders - diluted
Continuing operations
$
(0.92
)
$
(0.31
)
$
(1.57
)
$
0.78
$
(0.52
)
Discontinued operations
—
—
—
—
—
$
(0.92
)
$
(0.31
)
$
(1.57
)
$
0.78
$
(0.52
)
CLEVELAND-CLIFFS INC. AND
SUBSIDIARIES
STATEMENTS OF UNAUDITED
CONDENSED CONSOLIDATED FINANCIAL POSITION
December 31,
(In millions)
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$
54
$
198
Accounts receivable, net
1,576
1,840
Inventories
5,094
4,460
Other current assets
183
138
Total current assets
6,907
6,636
Non-current assets:
Property, plant and equipment, net
9,942
8,895
Goodwill
1,768
1,005
Intangible assets
1,170
201
Pension and OPEB assets
427
329
Other non-current assets
733
471
TOTAL ASSETS
$
20,947
$
17,537
LIABILITIES
Current liabilities:
Accounts payable
$
2,008
$
2,099
Accrued employment costs
447
511
Accrued expenses
375
380
Other current liabilities
492
518
Total current liabilities
3,322
3,508
Non-current liabilities:
Long-term debt
7,065
3,137
Pension and OPEB liabilities
751
821
Deferred income taxes
858
639
Asset retirement and environmental
obligations
601
557
Other non-current liabilities
1,453
753
TOTAL LIABILITIES
14,050
9,415
TOTAL EQUITY
6,897
8,122
TOTAL LIABILITIES AND EQUITY
$
20,947
$
17,537
CLEVELAND-CLIFFS INC. AND
SUBSIDIARIES
STATEMENTS OF UNAUDITED
CONDENSED CONSOLIDATED CASH FLOWS
Three Months Ended
December 31,
Year Ended
December 31,
(In millions)
2024
2023
2024
2023
OPERATING ACTIVITIES
Net income (loss)
$
(434
)
$
(139
)
$
(708
)
$
450
Adjustments to reconcile net income (loss)
to net cash provided (used) by operating activities:
Depreciation, depletion and
amortization
258
235
951
973
Pension and OPEB credits
(54
)
(44
)
(211
)
(163
)
Deferred income taxes
(129
)
(18
)
(195
)
114
Other
116
80
485
201
Changes in operating assets and
liabilities, net of business combination:
Accounts receivable, net
106
284
364
120
Inventories
(195
)
132
(5
)
670
Income taxes
29
106
(17
)
122
Pension and OPEB payments and
contributions
(33
)
(10
)
(195
)
(94
)
Payables, accrued employment and accrued
expenses
(191
)
99
(408
)
4
Other, net
55
(73
)
44
(130
)
Net cash provided (used) by operating
activities
(472
)
652
105
2,267
INVESTING ACTIVITIES
Purchase of property, plant and
equipment
(205
)
(165
)
(695
)
(646
)
Acquisition of Stelco, net of cash
acquired
(2,512
)
—
(2,512
)
—
Other investing activities
(18
)
44
(5
)
55
Net cash used by investing activities
(2,735
)
(121
)
(3,212
)
(591
)
FINANCING ACTIVITIES
Repurchase of common shares
—
—
(733
)
(152
)
Proceeds from issuance of debt
1,800
—
3,221
750
Repayments of senior notes
—
—
(845
)
—
Borrowings (repayments) under credit
facilities
1,513
(325
)
1,560
(1,864
)
Debt issuance costs
(36
)
—
(109
)
(34
)
Other financing activities
(48
)
(39
)
(124
)
(204
)
Net cash provided (used) by financing
activities
3,229
(364
)
2,970
(1,504
)
Net increase (decrease) in cash and cash
equivalents
22
167
(137
)
172
Cash, cash equivalents, and restricted
cash at beginning of period
39
31
198
26
Effect of exchange rate changes on
cash
(1
)
—
(1
)
$
—
Cash, cash equivalents, and restricted
cash at end of period
$
60
$
198
$
60
$
198
Restricted cash
(6
)
—
(6
)
—
Cash and cash equivalents at end of
year
$
54
$
198
$
54
$
198
1 CLEVELAND-CLIFFS INC. AND SUBSIDIARIES
NON-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 a consolidated basis. These measures are used by
management, investors, lenders and other external users of our
financial statements to assess our operating performance and to
compare operating performance to other companies in the steel
industry, showing results exclusive of non-cash and/or
non-recurring items. 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.
Three Months Ended
December 31,
Year Ended
December 31,
Three Months Ended
(In millions)
2024
2023
2024
2023
Sept. 30, 2024
Net income (loss)
$
(434
)
$
(139
)
$
(708
)
$
450
$
(230
)
Less:
Interest expense, net
(135
)
(63
)
(370
)
(289
)
(102
)
Income tax benefit (expense)
136
(30
)
235
(148
)
76
Depreciation, depletion and
amortization
(258
)
(235
)
(951
)
(973
)
(235
)
Total EBITDA
$
(177
)
$
189
$
378
$
1,860
$
31
Less:
EBITDA from noncontrolling interests
$
20
$
23
$
76
$
83
$
20
Weirton indefinite idle
2
—
(217
)
—
(2
)
Arbitration decision
—
—
(71
)
—
(71
)
Acquisition-related costs
(30
)
(7
)
(44
)
(12
)
(14
)
Changes in fair value of derivatives,
net
(34
)
—
(41
)
—
(7
)
Loss on extinguishment of debt
—
—
(27
)
—
—
Amortization of inventory step-up
(26
)
—
(26
)
—
—
Loss on currency exchange
(20
)
—
(20
)
—
—
Loss on disposal of assets
(5
)
(7
)
(16
)
(15
)
(7
)
Goodwill impairment
—
(125
)
—
(125
)
—
Other, net
(3
)
26
(16
)
18
(12
)
Total Adjusted EBITDA1
$
(81
)
$
279
$
780
$
1,911
$
124
EBITDA of noncontrolling interests
includes the following:
Net income attributable to noncontrolling
interests
$
13
$
16
$
46
$
51
$
12
Depreciation, depletion and
amortization
7
7
30
32
8
EBITDA of noncontrolling interests
$
20
$
23
$
76
$
83
$
20
2 CLEVELAND-CLIFFS INC. AND SUBSIDIARIES
ADJUSTED EARNINGS PER SHARE RECONCILIATION
In addition to the consolidated financial statements presented
in accordance with U.S. GAAP, the Company has presented Adjusted
net income (loss) attributable to Cliffs shareholders and Adjusted
earnings (loss) per common share attributable to Cliffs
shareholders - diluted. These measures are used by management,
investors, lenders and other external users of our financial
statements to assess our operating performance and to compare
operating performance to other companies in the steel industry,
showing results exclusive of non-cash and/or non-recurring items.
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.
Three Months Ended
December 31,
Year Ended
December 31,
Three Months Ended
(In millions)
2024
2023
2024
2023
Sept. 30, 2024
Net income (loss) attributable to Cliffs
shareholders
$
(447
)
$
(155
)
$
(754
)
$
399
$
(242
)
Adjustments:
Weirton indefinite idle
2
—
(217
)
—
(2
)
Arbitration decision
—
—
(71
)
—
(71
)
Acquisition-related expenses and
adjustments
(30
)
(7
)
(44
)
(12
)
(14
)
Acquisition-related interest expense
(21
)
—
(53
)
—
(32
)
Changes in fair value of derivatives,
net
(34
)
—
(41
)
—
(7
)
Loss on extinguishment of debt
—
—
(27
)
—
—
Amortization of inventory step-up
(26
)
—
(26
)
—
—
Loss on currency exchange
(20
)
—
(20
)
—
—
Loss on disposal of assets
(5
)
(7
)
(16
)
(15
)
(7
)
Goodwill impairment1
—
(125
)
—
(125
)
—
Other, net
(3
)
26
(16
)
18
(12
)
Tax valuation allowance
—
(14
)
—
(14
)
—
Income tax effect
22
(3
)
128
2
59
Adjusted net income (loss) attributable to
Cliffs shareholders
$
(332
)
$
(25
)
$
(351
)
$
545
$
(156
)
Earnings (loss) per common share
attributable to Cliffs shareholders - diluted
$
(0.92
)
$
(0.31
)
$
(1.57
)
$
0.78
$
(0.52
)
Adjusted earnings (loss) per common share
attributable to Cliffs shareholders - diluted
$
(0.68
)
$
(0.05
)
$
(0.73
)
$
1.07
$
(0.33
)
1Goodwill impairment is non-deductible for
income tax purposes.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250224835810/en/
MEDIA CONTACT: Patricia Persico Senior Director,
Corporate Communications (216) 694-5316
INVESTOR CONTACT: James Kerr Director, Investor Relations
(216) 694-7719
Cleveland Cliffs (NYSE:CLF)
Historical Stock Chart
From Feb 2025 to Mar 2025
Cleveland Cliffs (NYSE:CLF)
Historical Stock Chart
From Mar 2024 to Mar 2025
