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Mar 31, 2023
Cleveland-Cliffs Q1 2023 Earnings Report
Cleveland-Cliffs reported mixed results for Q1 2023, with a net loss but increased automotive sales and steel shipments.
Key Takeaways
Cleveland-Cliffs reported first-quarter 2023 revenues of $5.3 billion and a GAAP net loss of $42 million, or $0.11 per diluted share. Adjusted EBITDA was $243 million. Steel shipments reached 4.1 million net tons, with 36% of steelmaking revenues from direct automotive sales.
Revenues reached $5.3 billion.
Steel shipments totaled 4.1 million net tons.
GAAP net loss was $42 million, or $0.11 per diluted share.
Adjusted EBITDA was $243 million.
Forward Guidance
Cleveland-Cliffs anticipates significant EBITDA expansion in Q2, driven by higher automotive sales volumes and increased prices from yearly renegotiations with car manufacturers.
Positive Outlook
- Expects to benefit from higher sales volumes to the automotive sector.
- Achieved increased prices in yearly renegotiations with car manufacturers.
- Outlook for a significant EBITDA expansion in Q2 remains intact.
- Expects to continue increasing steel shipments to above 4 million tons.
- Expects 2023 to be another year of great cash flow generation.
Challenges Ahead
- Continued volatility of steel, iron ore and scrap metal market prices.
- Uncertainties associated with the highly competitive and cyclical steel industry.
- Potential weaknesses and uncertainties in global economic conditions.
- Impacts of existing and increasing governmental regulation.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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