Cleveland-Cliffs (CLF) Tops Q3 EPS by 8c

Cleveland-Cliffs (NYSE: CLF) reported Q3 EPS of ($0.02), $0.08 better than the analyst estimate of ($0.10). Revenue for the quarter came in at $1.6 billion versus the consensus estimate of $1.6 billion.

Cliffs' Chairman, President, and CEO Lourenco Goncalves said: “Our strong third quarter results reflect the positive outcome of the actions we took in Q2, when we saw opportunity when others were paralyzed. During the almost three months when our main market, the automotive industry, went through unprecedented shutdowns across the entire sector, we prepared our inventories and our plants to be ready as soon as our clients were back in business. As a direct consequence of that, we generated $150 million in free cash flow during the quarter.”

Mr. Goncalves added: “Our results demonstrate how quickly and efficiently we were able to turn things around. The new way of doing business we have been implementing in our newly acquired steel assets is demonstrated by our strong cost performance across the entire company, allowing us to benefit from improved demand and higher sales prices. While the third quarter started slow with underlying demand in July not very different from June, business activity progressively improved through the quarter, achieving in September shipment rates normalized to prior-year levels. This momentum has continued into October and, as such, we look forward to even further improved financial results in the fourth quarter.”

Mr. Goncalves concluded, “On September 28th we announced the acquisition of ArcelorMittal USA, a transaction we expect to close by the end of this year. We continue to be thrilled about the future of Cleveland-Cliffs with this asset portfolio all under one roof and the significant optimization opportunities that come with it. The completion of this deal should also coincide with the start-up of our Toledo HBI plant, which is currently being commissioned. With all that, we will be ending this uniquely challenging year on a high note, and all set for a sensational and transformative year in 2021.”

For earnings history and earnings-related data on Cleveland-Cliffs (CLF) click here.

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