CLEVELAND - Cleveland-Cliffs Inc. (NYSE:CLF) reported disappointing third-quarter results on Monday, with earnings and revenue falling short of analyst expectations, sending shares down 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 were anticipating. Revenue came in at $4.57 billion, below the $4.74 billion consensus estimate and down from $5.1 billion in the previous quarter.
Cleveland-Cliffs cited weaker demand and pricing as key factors impacting its performance. The company said it was forced to temporarily idle its Cleveland #6 blast furnace due to softer market conditions.
"In Q3, weaker demand and pricing drove tighter margins, and ultimately led us to temporarily idle our Cleveland #6 blast furnace," said CEO Lourenco Goncalves. He noted 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 YoY.
Despite the challenging quarter, Goncalves expressed optimism about the company's recent acquisition of Stelco, which he said 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 from $650-$700 million previously.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.