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Dec 31, 2019
Cleveland-Cliffs Q4 2019 Earnings Report
Cleveland-Cliffs' fourth-quarter results decreased compared to the previous year, but the company announced the acquisition of AK Steel.
Key Takeaways
Cleveland-Cliffs Inc. reported a net income of $63 million, or $0.23 per diluted share, for the fourth quarter of 2019. This includes $7 million in costs related to the acquisition of AK Steel. Consolidated revenues were $534 million, compared to $696 million in the prior-year quarter. Adjusted EBITDA was $111 million, compared to $188 million in the fourth quarter of 2018.
Net income for the fourth quarter was $63 million, or $0.23 per diluted share, including acquisition-related costs.
Consolidated revenues for the fourth quarter were $534 million, a decrease from $696 million in the prior-year quarter.
Adjusted EBITDA for the fourth quarter was $111 million, down from $188 million in the fourth quarter of 2018.
The company announced the acquisition of AK Steel, expected to close in the first quarter of 2020.
Forward Guidance
Cliffs expects to generate approximately $300-325 million of net income and $550-575 million of Adjusted EBITDA for the full-year 2020 on a standalone basis, based on iron ore prices of $90 per metric ton, steel prices of $650 per short ton, and pellet premiums of $50 per metric ton.
Positive Outlook
- Iron ore prices of $90 per metric ton.
- Steel prices of $650 per short ton.
- Pellet premiums of $50 per metric ton.
- Expects to receive approximately $60 million in cash tax refunds during the third quarter of 2020.
- Becoming a leading supplier of the most sophisticated carbon and stainless steel products to high-end clients, including engineered parts to the automotive industry as a Tier 1 supplier to several different models of cars, SUVs and trucks.
Challenges Ahead
- $125 million in interest expense.
- $25 million in tax expense (all non-cash).
- $100 million in depreciation, depletion, and amortization.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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