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Dec 31, 2021
Cleveland-Cliffs Q4 2021 Earnings Report
Cleveland-Cliffs reported record annual revenue and net income, driven by strategic acquisitions and strong demand.
Key Takeaways
Cleveland-Cliffs reported Q4 2021 consolidated revenues of $5.3 billion and a net income of $899 million, or $1.69 per diluted share. The company's Adjusted EBITDA for the quarter was $1.5 billion. They also announced a $1 billion share repurchase program.
Record annual revenue of $20.4 billion.
Record annual net income of $3.0 billion.
Record annual Adjusted EBITDA of $5.3 billion.
Announced $1 billion share repurchase program.
Forward Guidance
Cleveland-Cliffs anticipates a phenomenal year for profitability in 2022, driven by demand rebound and renewed contracts at higher selling prices. The company expects its 2022 average selling price to be approximately $1,225 per net ton, based on successful contract renewals and current steel futures curve.
Positive Outlook
- Demand on the rebound, particularly in automotive.
- Vast majority of fixed-price contractual volumes at substantially higher selling prices.
- Expectation of higher average selling prices for steel in 2022 than in 2021.
- Limited needs for capex.
- Comfortable to implement shareholder-focused actions.
Challenges Ahead
- Automotive clients may not resolve supply chain issues.
- Potential lighter demand from service centers.
- Short-term impact on unit costs due to accelerated maintenance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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