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Jun 30, 2022
Cleveland-Cliffs Q2 2022 Earnings Report
Cleveland-Cliffs reported mixed results for Q2 2022, with revenue increasing but net income and Adjusted EBITDA decreasing compared to the prior year. The company focused on debt reduction and share repurchases, anticipating improved performance in the second half of the year.
Key Takeaways
Cleveland-Cliffs reported Q2 2022 revenue of $6.3 billion and net income of $601 million. While revenue increased compared to Q2 2021, net income and Adjusted EBITDA decreased. The company highlighted its focus on debt reduction and share repurchases, and anticipates improved performance in the second half of the year.
Second-quarter revenue reached $6.3 billion.
Net income for the second quarter was $601 million.
Adjusted EBITDA for the second quarter was $1.1 billion.
The company completed significant debt reduction and share repurchases during the quarter.
Forward Guidance
Based on the current 2022 futures curve, the Company expects its full-year 2022 average selling price to be approximately $1,410 per net ton, incorporating substantial increases in fixed price contracts resetting on October 1, 2022.
Positive Outlook
- Expects full-year 2022 average selling price to be approximately $1,410 per net ton.
- Anticipates substantial increases in fixed price contracts resetting on October 1, 2022.
- Expects healthy level of free cash flow to continue.
- Declining capex needs.
- Accelerating release of working capital.
Challenges Ahead
- Continued volatility of steel, iron ore and scrap metal market prices.
- Uncertainties associated with the highly competitive and cyclical steel industry.
- Reliance on the demand for steel from the automotive industry.
- Potential weaknesses and uncertainties in global economic conditions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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