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Sep 30, 2022
Cleveland-Cliffs Q3 2022 Earnings Report
Cleveland-Cliffs reported mixed Q3 2022 results, with revenue declining slightly year-over-year but significant progress made in reducing pension and OPEB liabilities.
Key Takeaways
Cleveland-Cliffs reported third-quarter revenue of $5.7 billion and net income of $165 million. The company achieved a substantial $1.8 billion reduction in pro forma pension/OPEB net liabilities. Adjusted EBITDA was $452 million, compared to $1.9 billion in the third quarter of 2021.
Revenue for the third quarter was $5.7 billion, a decrease from $6.0 billion in the prior-year quarter.
Net income for the third quarter was $165 million, or $0.29 per diluted share, compared to $1.3 billion, or $2.33 per diluted share in the prior-year quarter.
Adjusted EBITDA for the third quarter was $452 million, a decrease from $1.9 billion in the prior-year quarter.
The company reduced pro forma pension/OPEB liabilities by $1.8 billion, or 63%, since December 31, 2021.
Forward Guidance
Based on the current 2022 futures curve, the Company expects its full-year 2022 average selling price to be approximately $1,370 per net ton. Steelmaking unit operating costs are expected to decrease by at least $80 per net ton in the fourth quarter of 2022.
Positive Outlook
- Improvements in fixed contract prices resetting on October 1, 2022.
- Updates to expected mix, including higher expected slab shipments during the fourth quarter of 2022.
- Reduced repair and maintenance costs.
- Higher production volume.
- Lower energy and raw material costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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