Wed, Jul 24, 8:21 PM (45 days ago)
Cleveland-Cliffs Inc. reported a decline in financial performance for the quarter ended June 30, 2024. Revenues fell by 15% YoY to $5.092 billion, primarily due to decreased shipments and lower average selling prices. The company experienced a 77% drop in gross margin, attributed to lower sales volumes and reduced prices, partially offset by lower production costs. Adjusted EBITDA decreased by 58% YoY to $323 million. The company also reported a net loss attributable to shareholders of $65 million for the first half of 2024, compared to a net income of $290 million in the same period in 2023. Additionally, Cleveland-Cliffs announced the indefinite idling of its Weirton tinplate production plant, resulting in $129 million in restructuring charges and $79 million in asset impairments. The company returned $733 million to shareholders through share repurchases and issued $825 million in senior notes to refinance existing debt. The pending acquisition of Stelco Holdings Inc. is expected to close in Q4 2024, potentially increasing the company’s debt to $6.0-$6.5 billion.