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Jun 30, 2023
Cleveland-Cliffs Q2 2023 Earnings Report
Cleveland-Cliffs reported strong Q2 2023 results driven by record automotive shipments and higher realized prices, leading to industry-leading EBITDA expansion and significant debt reduction.
Key Takeaways
Cleveland-Cliffs reported second-quarter 2023 revenues of $6.0 billion and a net income of $356 million. The company's performance was driven by record automotive shipments and higher realized prices, resulting in an adjusted EBITDA of $775 million. The company reduced its debt by over $550 million and repurchased 6.5 million shares during the quarter.
Total steel shipments exceeded 4.2 million net tons, driven by record automotive shipments.
Shift to a higher automotive mix led to higher realized prices, driving EBITDA expansion.
Generated substantial free cash flow, enabling debt reduction of over $550 million and share buybacks.
On pace for the best shipment year since becoming a steel company, with service center inventories significantly lower than historical levels.
Cleveland-Cliffs
Cleveland-Cliffs
Forward Guidance
The Company expects another $40 per net ton reduction in steel unit costs from the second quarter to the third quarter of 2023, with an additional $10 per ton reduction from the third to the fourth quarter of 2023.
Positive Outlook
- Cost reduction objectives remain on target.
- Anticipates a $40 per net ton reduction in steel unit costs from Q2 to Q3 2023.
- Expects an additional $10 per ton reduction from Q3 to Q4 2023.