2024-01-29 16:46:08 ET
Cleveland-Cliffs Inc (NYSE: CLF) is trading down in extended hours on Monday after reporting weaker-than-expected revenue for its fourth financial quarter.
Cleveland-Cliffs guidance for fiscal 2024
The iron-ore and steel making company now forecasts $675 million to $725 million in capital expenditures for fiscal 2024.
Despite coming in shy of revenue expectations in the recently concluded quarter, Cleveland-Cliffs is confident that its adjusted EBITDA will improve sequentially in Q1. Lourenco Goncalves – its chief executive said in a press release today:
Even with the UAW labour strike late in Q3 and into Q4, automotive steel demand remained consistently strong, as we anticipated.
Cleveland-Cliffs ended the year with record steel shipments of 16.4 million net tons. In December, Invezz reported that the New York listed firm is willing to pay over $40 a share to acquire United States Steel Corporation.
Watch here: https://www.youtube.com/embed/0RJ_S4Ysdso?feature=oembedCleveland-Cliffs Q4 earnings snapshot
- Lost $155 million versus the year-ago $214 million
- Per-share loss also narrowed from 41 cents to 31 cents
- Adjusted loss printed at 5 cents as per the press release
- Revenue climbed over 1.0% year-on-year to $5.11 billion
- Consensus was 5 cents loss and $5.16 billion in revenue
Note that Cleveland-Cliffs Inc ended last year with a record $4.5 billion liquidity. Its CEO Goncalves also said on Monday:
We expect steel unit costs to further decrease $30 per ton in 2024. We should continue to generate healthy free cash flow. With our net debt target achieved and our shares still undervalued, we can now focus on aggressive share buybacks.
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