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Dec 31, 2022
Cleveland-Cliffs Q4 2022 Earnings Report
Cleveland-Cliffs reported a net loss of $204 million and revenues of $5.0 billion for Q4 2022, with free cash flow of $262 million.
Key Takeaways
Cleveland-Cliffs Inc. reported full-year and fourth-quarter results for the period ended December 31, 2022. The company reported Q4 revenues of $5.0 billion and a net loss of $204 million. Despite the loss, the company generated healthy free cash flow of $262 million and achieved its targeted unit cost reduction of $80 per net ton.
Q4 2022 consolidated revenues were $5.0 billion, compared to $5.3 billion in the prior-year fourth quarter.
The Company recorded a net loss of $204 million, corresponding to a loss of $0.41 per diluted share attributable to Cliffs shareholders.
Fourth-quarter 2022 Adjusted EBITDA was $123 million, compared to $1.5 billion in the fourth quarter of 2021.
The company expects a $115 per ton increase on fixed price contracts for its direct automotive business in 2023 compared to 2022.
Forward Guidance
Cleveland-Cliffs expects improved profitability throughout 2023, driven by higher fixed price contracts, declining unit costs, and improved sales volumes. The company anticipates a $115 per ton increase on fixed price contracts for its direct automotive business and expects its Q1 2023 Adjusted EBITDA to exceed Q4 2022 performance.
Positive Outlook
- Expected $115 per ton increase on fixed price contracts for direct automotive business.
- Anticipated $2 billion reduction in Steelmaking COGS in 2023 compared to 2022.
- Expected sequential decline of $50 per ton in Steelmaking unit costs during Q1 2023.
- Anticipated further reductions in unit costs into Q2 and Q3 2023.
- Expected Q1 2023 Adjusted EBITDA to exceed Q4 2022 performance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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