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Cliffs isn't going anywhere. Just a matter of time till it goes way up. They've been around a long time, and have set themselves up for success. I've worked for them for many years.
I'm hearing, Union Rail Workers are planning strike.
I hope not but it's looking grim. Everything is affected.
CLF’s 1-day chart shows the effect of the Fed’s press conference (as opposed to the Fed’s rate hike)—the high for the day came at 2:30pm, just before the press conference:
https://finance.yahoo.com/quote/CLF?p=CLF
Several levels it could bounce but if the Fed is willing to over shoot on the interest rates the 2020 bottom could be in play.
so where's the bottom ?
this appears to be falling off the " Cliff "....
The Market Is technically looking a lot like 2008 meaning there is more downside.
Fundamentally the market is of course different than 2008 the only constant is human behavior.
If you don't think we a have started a recession this qtr or aren't going to be in one next year buy Cliff and all the cyclicals with both hands. But you must have confidence the fed will get it just right and not over shoot their targets.
Then remember that part about human behavior.
The average consumer is under allot of price pressure with out much wage relief.
Understood. That's why the stock is such a value.
The market is worried about the recession outlook.
I think almost all the bad news is already baked-in to the CLF price.
Not much downside here, IMO.
Down the hatch, I personally would not buy anything in the steel space when entering a recession..
Agreed: they are headed in the right direction under the leadership of the CEO.
Thanks for link on plant. I grew up in Toledo and am familiar with the area since I'm of Hungarian descent. I checked up on its progress every few months during construction.
It's a long term investment (+2 years) that will pay off well IMO.
Congrats on your first purchase!
Opus X
Just bought my first shares of CLF today, at around 14.25
I live in Toledo, where CLF just opened a sate-of-the-art Direct Reduction plant along the Maumee river last summer.
https://www.businesswire.com/news/home/20210609005453/en/Cleveland-Cliffs-Holds-Ribbon-Cutting-Ceremony-at-Direct-Reduction-Plant-in-Toledo
I think the company is doing all the right things, and that American steel is one of those things that will continue to be in high demand.
Aslo impressd that they reduced their pension liability significantly in the last quarter. That seems to me to be a big deal, in the current environment.
I would think so.
I have continued to buy CLF for that very reason. Started at $4 and buying on dips like today.
Good luck to you,
Opus X
A dividend will likely come in due course when more debt had been paid down and the macroeconomic environment has stabilized.
Thanks for your notes from the CC.
I'm a little surprised about no plans for reinstating a dividend....short term I can see that but on long term basis if CEO wants to change the composition of share ownership and eradicate (hopefully) the volatility of share price I thought that was a good plan.
Yes, nothing eradicates volatility like consistently growing earnings per share.
Opus X
CLF CC notes—3Q22 production volume, revenue, and profit were down in large part from repairs and maintenance to mills that formerly belonged to ArcellorMittal. This work is now complete and CLF expects a $700M cash-flow improvement in 2023 relative to 2022 as a result of both lower cap-ex and lower op-ex.
CLF’s net debt is now lower than it was before the AKS and Arcellor acquisitions. Paying down debt continues to be CLF’s top priority for cash usage; however, CLF repurchased 2M common shares during 3Q22 and may continue to repurchase shares opportunistically. There are no plans to reinstate a dividend.
Finally, it looks like it is time for gold..
Cleveland-Cliffs Reports Third-Quarter 2022 Results and Announces $1.8 Billion Reduction in Net Pension/OPEB Liabilities
View News Release Here
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NEWS
Cleveland-Cliffs Reports Third-Quarter 2022 Results and Announces $1.8 Billion Reduction in Net Pension/OPEB Liabilities
October 25, 2022 7:00am EDT Download as PDF
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Third-quarter revenue of $5.7 billion
Third-quarter net income of $165 million
Third-quarter Adjusted EBITDA1 of $452 million
$1.8 billion reduction in pro forma pension/OPEB net liabilities from previous remeasurement
CLEVELAND--(BUSINESS WIRE)-- Cleveland-Cliffs Inc. (NYSE: CLF) today reported third-quarter results for the period ended September 30, 2022.
Third-quarter 2022 consolidated revenues were $5.7 billion, compared to the prior-year third-quarter revenues of $6.0 billion. For the third quarter of 2022, the Company recorded net income of $165 million, or $0.29 per diluted share attributable to Cliffs shareholders. In the prior-year third quarter, the Company recorded net income of $1.3 billion, or $2.33 per diluted share.
For the nine months ended September 30, 2022, the Company recorded revenues of $17.9 billion and net income of $1.6 billion, or $2.95 per diluted share. In the first nine months of 2021, the Company recorded revenues of $15.1 billion and net income of $2.1 billion, or $3.69 per diluted share.
Pension/OPEB Liability Reduction
In conjunction with its newly ratified labor agreements with the United Steelworkers, the Company has remeasured its associated pension/OPEB plan assets and obligations. Pro forma pension/OPEB liabilities, net of assets, were reduced by $1.8 billion, or 63%, since the last remeasurement on December 31, 2021. The reduction is due primarily to lower healthcare premiums negotiated separately from the labor agreements. Due to ratification timing, the full impact was not reflected on this quarter's balance sheet. The Company has provided the table below with pro forma information.
(In Millions)
Pension/OPEB2
Actual
Actual
Pro forma
December 31,
2021
September 30,
2022
September 30,
2022
Non-current assets
$
224
$
390
$
390
Current liabilities
(135
)
(134
)
(98
)
Non-current liabilities
(2,961
)
(2,751
)
(1,359
)
Funded Status
$
(2,872
)
$
(2,495
)
$
(1,067
)
The remeasurement reflects updates for plan amendments, discount rates, asset values, and other actuarial assumptions as of September 30, 2022, for the affected plans. The impact of higher interest rates was mostly offset by lower market returns during 2022.
As an additional benefit, Cliffs expects cash flow requirements related to OPEB plans to be reduced by more than $100 million annually, or approximately 50%, going forward.
Third-quarter 2022 Adjusted EBITDA1 was $452 million, compared to Adjusted EBITDA1 of $1.9 billion in the third quarter of 2021. For the first nine months of 2022, the Company reported Adjusted EBITDA1 of $3.0 billion, compared to $3.8 billion for the same period in 2021.
(In Millions)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Adjusted EBITDA1
Steelmaking
$
436
$
1,934
$
2,967
$
3,796
Other Businesses
9
6
58
25
Eliminations (A)
7
(7
)
8
(15
)
Total Adjusted EBITDA1
$
452
$
1,933
$
3,033
$
3,806
(A) Starting in 2022, the Company has allocated Corporate SG&A to its operating segments. Prior periods have been adjusted to reflect this change. The Eliminations line now only includes sales between segments.
Lourenco Goncalves, Cliffs' Chairman, President, and CEO said: “Our third quarter results were affected by the delayed inventory impact of higher input costs and maintenance activities from prior periods. Now, that all major projects have been concluded and production levels are back to normal, we expect costs to decline meaningfully, into Q4 and further into 2023.”
Mr. Goncalves added: “Shipments to our automotive clients significantly improved in Q3, achieving a level among the highest in six quarters. That allowed us to hold sales volumes steady in Q3, despite much weaker service center activity. We expect this positive trend in automotive shipments to continue into Q4, with the added benefit of improved pricing from our successful renewal of contracts pertaining to the October cycle. As the automotive industry increases production, supply on the spot trade should tighten. That supports pricing going forward.”
Mr. Goncalves continued: “The most important event of our third quarter was the agreement and subsequent ratification of the new 4-year labor contracts with our USW-represented employees, corresponding to over half of our workforce. In parallel, we used our scale to successfully negotiate better healthcare rates for our retirees, achieving a massive reduction in our post-retirement liabilities.”
Mr. Goncalves concluded: “It is well known that the assumption of Pension & OPEB liabilities at the time of the acquisition was the main source of enterprise value we leveraged to in order acquire the U.S. assets from ArcelorMittal in December 2020. Fast forward, our combined total balance of $4.2 billion in liabilities following the acquisition has been made irrelevant, as we now have only $1.1 billion remaining on the books. We also concurrently renegotiated lower healthcare premiums for our non-USW retiree plans, which have not been remeasured yet. The remeasurement of these non-USW plans will happen at year-end, when we expect the total Pension & OPEB liabilities to be even lower than what is shown in the pro-forma's at this time.”
Steelmaking
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
External Sales Volumes
Steel Products (net tons)
3,635
4,153
10,913
12,502
Selling Price - Per Net Ton
Average net selling price per net ton of steel products
$
1,360
$
1,334
$
1,431
$
1,122
Operating Results - In Millions
Revenues
$
5,511
$
5,869
$
17,481
$
14,710
Cost of goods sold
(5,167
)
(4,098
)
(14,948
)
(11,472
)
Gross margin
$
344
$
1,771
Supply chains are destroying the automotive customers.
Cliffs needs to move on to the EV market and capture the base as Ford and GM are no longer the force, they once were. The Ford Lightning is a dud trying to convert mechanical to electrical.
The new 4-year contact at Cliffs has been ratified.
We're back on the Gold Standard and Fiat money is being taken out. The Petrol Fiat Dollar soon to be eliminated. All contracts must be in a currency backed by Gold. Its a new beginning in reality called Gesara Nesara. A transfer of wealth with no restrictions world wide.
In the end, Cliffs will be able to do business abroad without doing a currency exchange in value as every currency world wide will be backed by Gold. Nixon took us off the Brenton Wood Gold Standard in 1971 when we started using the Fiat Petrol Dollar that was ushered in. Now we're returning to gold and Central Banks are going to crash. They are already. The new system will be the Quantum Financial System which will be digital and backed by Gold across the board. Global Trading anything will become easy, proficient and more profitable.
Cliffs needs to watch the banks that are holding their notes. When the bank is in trouble, Cliffs is in trouble. I think it was Goldman Sachs. This is cyclical as it is.
I've been through many contracts at Cliffs. In my opinion, this contact will pass. I don't mean this as a stock thing, purely from my experience. It's a pretty good contact.
Don’t lose sight of what is happening in the overall economy this is a cyclical stock. Regardless of the vote.
Agreed. Removing uncertainty is always to the plus side.
You were definitely. I still believe that when the contract is voted on, it will go up.
Normally, I don't pat myself on the back, but in this case i will.
My call for the 15 bottom amidst a lot of pumping was pretty much SPOT ON.
Voting on unions new contract is taking place on 9/29/22.
Would like to understand if scrap prices have gone up and are impacting everyone (other than CLF).
NUE's PR said the main issue was reduced volume in 3Q22 compared to 2Q22.
That is mainly because of increases in the iron (mining) commodity price,. Isn't it nice to own a company that does its own mining?
CLF -7% on NUE’s lowered EPS guidance:
https://www.barrons.com/articles/nucor-stock-dips-disappointing-forecast-51663162036
Nucor (ticker: NUE) estimated third-quarter earnings to be in the range of $6.30 to $6.40 a share. That’s lower than analysts’ estimate of $7.56 a share for the quarter ending September, according to FactSet.
Nucor sees weakness in its steel-mills segment, where it expects earnings to be considerably lower compared with the second quarter due to reduced shipping volumes. Both the steel-products and raw-materials segments are supposed to report earnings similar to the second quarter. Nucor believes 2022 will be the most profitable year in the company’s history.
Still, the stock is down 5.5%, to $128.60, in Wednesday’s premarket trading. Other steel stocks like Cleveland-Cliffs CLF –6.76% (CLF), Steel Dynamics STLD –8.70% (STLD), and U.S. Steel (X) have also dropped after Nucor’s report.
Cleveland Cliffs is headed back to a bottom around USD 15.00
The automobile market, CLF's biggest customers, is still tanking with no end in sight.
The union have a meeting on Tuesday to go over the tentative contract. It would be out shortly after. Here's the best I can do at this time.
https://www.usw.org/news/media-center/releases/2022/steelworkers-reach-tentative-agreement-on-four-year-contract-at-cleveland-cliffs-mines
…one of the [contract] pieces…Cliffs will commit to invest 275 million into their USW represented facilities over the course of this tentative contract.
Time to buy more. With the contract almost signed and sealed, things look pretty good. If the contract is signed, one of the pieces in it is Cliffs will commit to invest 275 million into their USW represented facilities over the course of this tentative contract. Saddle up, or miss out on a really good ride.
Statement of Changes in Beneficial Ownership (4)
Source: Edgar (US Regulatory)
FORM 4
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES
OMB APPROVAL
OMB Number: 3235-0287
Estimated average burden
hours per response... 0.5
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940
1. Name and Address of Reporting Person *
Miller Janet L2. Issuer Name and Ticker or Trading Symbol
CLEVELAND-CLIFFS INC. [ CLF ]5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last) (First) (Middle)
200 PUBLIC SQUARE, SUITE 33003. Date of Earliest Transaction (MM/DD/YYYY)
9/8/2022(Street)
CLEVELAND, OH 44114(City) (State) (Zip)4. If Amendment, Date Original Filed (MM/DD/YYYY)
6. Individual or Joint/Group Filing (Check Applicable Line)
_X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned1.Title of Security
(Instr. 3)2. Trans. Date2A. Deemed Execution Date, if any3. Trans. Code
(Instr. 8)4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)7. Nature of Indirect Beneficial Ownership (Instr. 4)CodeVAmount(A) or (D)PriceCommon Shares 9/8/2022 P 1425 A$17.4494 80606.297 D
Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)1. Title of Derivate Security
(Instr. 3)2. Conversion or Exercise Price of Derivative Security3. Trans. Date3A. Deemed Execution Date, if any4. Trans. Code
(Instr. 8)5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)6. Date Exercisable and Expiration Date7. Title and Amount of Securities Underlying Derivative Security
(Instr. 3 and 4)8. Price of Derivative Security
(Instr. 5)9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)11. Nature of Indirect Beneficial Ownership (Instr. 4)CodeV(A)(D)Date ExercisableExpiration DateTitleAmount or Number of Shares
Explanation of Responses:
Reporting Owners
Reporting Owner Name / AddressRelationshipsDirector10% OwnerOfficerOtherMiller Janet L
200 PUBLIC SQUARE
SUITE 3300
CLEVELAND, OH 44114X
Signatures
/s/ James D. Graham by Power of Attorney9/8/2022**Signature of Reporting PersonDate
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.*If the form is filed by more than one reporting person, see Instruction 4(b)(v).**Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).Note:File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.
Cleveland-Cliffs Announces Price Increase for Carbon Steel Products
CLEVELAND--(BUSINESS WIRE)--Aug 24, 2022--
Cleveland-Cliffs Inc. (NYSE: CLF) today announced that it is increasing current spot market base prices for all carbon steel hot rolled, cold rolled and coated steel products by a minimum of $75 per ton, effective immediately with new orders in North America.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. We are the largest supplier of steel to the automotive industry in North America and serve a diverse range of other markets due to our comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 27,000 people across its operations in the United States and Canada
Executive VP & CFO recently bought US$97k worth of stockOn the 16th of August, Celso Goncalves bought around 5k shares on-market at roughly US$19.36 per share. This was the largest purchase by an insider in the last 3 months. Celso has been a buyer over the last 12 months, purchasing a net total of US$409k worth in shares.
Statement of Changes in Beneficial Ownership (4)
Source: Edgar (US Regulatory)
FORM 4
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES
OMB APPROVAL
OMB Number: 3235-0287
Estimated average burden
hours per response... 0.5
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940
1. Name and Address of Reporting Person *
Goncalves Celso L Jr2. Issuer Name and Ticker or Trading Symbol
CLEVELAND-CLIFFS INC. [ CLF ]5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
EVP, CFO(Last) (First) (Middle)
200 PUBLIC SQUARE, SUITE 33003. Date of Earliest Transaction (MM/DD/YYYY)
8/17/2022(Street)
CLEVELAND, OH 44114(City) (State) (Zip)4. If Amendment, Date Original Filed (MM/DD/YYYY)
6. Individual or Joint/Group Filing (Check Applicable Line)
_X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned1.Title of Security
(Instr. 3)2. Trans. Date2A. Deemed Execution Date, if any3. Trans. Code
(Instr. 8)4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)7. Nature of Indirect Beneficial Ownership (Instr. 4)CodeVAmount(A) or (D)PriceCommon Shares 8/17/2022 P 6000 A$18.4299 154284.613 D
Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)1. Title of Derivate Security
(Instr. 3)2. Conversion or Exercise Price of Derivative Security3. Trans. Date3A. Deemed Execution Date, if any4. Trans. Code
(Instr. 8)5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)6. Date Exercisable and Expiration Date7. Title and Amount of Securities Underlying Derivative Security
(Instr. 3 and 4)8. Price of Derivative Security
(Instr. 5)9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)11. Nature of Indirect Beneficial Ownership (Instr. 4)CodeV(A)(D)Date ExercisableExpiration DateTitleAmount or Number of Shares
Explanation of Responses:
Reporting Owners
Reporting Owner Name / AddressRelationshipsDirector10% OwnerOfficerOtherGoncalves Celso L Jr
200 PUBLIC SQUARE
SUITE 3300
CLEVELAND, OH 44114
EVP, CFO
Signatures
/s/ James D. Graham by Power of Attorney8/17/2022**Signature of Reporting PersonDate
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.*If the form is filed by more than one reporting person, see Instruction 4(b)(v).**Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).Note:File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.
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