Cleveland-Cliffs Shares Plunge 4% Amidst Third Quarter Earnings and Revenue Miss

CLEVELAND - Cleveland-Cliffs Inc. (NYSE:CLF) reported disappointing third-quarter results on Monday, missing earnings and revenue analyst expectations, leading to a 4% decline in the company's shares in early trading.
The steel producer posted a loss of $0.33 per share, worse than the expected loss of $0.30. Revenue was reported at $4.57 billion, falling short of the consensus estimate of $4.74 billion and down from $5.1 billion in the previous quarter.
Cleveland-Cliffs cited weak demand and pricing as key factors affecting its performance. The company indicated it had to temporarily close its Cleveland #6 blast furnace due to softening market conditions.
CEO Lourenco Goncalves stated, "In the 3rd quarter, weak demand and pricing squeezed margins and consequently led us to temporarily close our Cleveland #6 blast furnace." Goncalves noted that the company was "more affected than its competitors" due to its high exposure to the automotive sector.
Steel shipments declined to 3.8 million net tons in the third quarter, down from 4.1 million net tons in the same quarter last year. The average net selling price of steel products fell to $1,045 per ton from $1,203 in the same period last year.
Despite the challenging quarter, Goncalves expressed optimism regarding the recent acquisition of Stelco, stating that it would make Cleveland-Cliffs "more resilient" due to Stelco's lower exposure to the automotive industry.
Looking ahead, the company expects a recovery in steel demand by early 2025. Additionally, it revised its full-year 2024 capital expenditure guidance down from a previous range of $650-700 million to $600-650 million.