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Cleveland-Cliffs Announces Proposed Offering of $750 Million of Senior Unsecured Guaranteed Notes
Source: Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) announced today that it intends to offer to sell, subject to market and other conditions, $750 million aggregate principal amount of senior unsecured guaranteed notes due 2032 (the “Notes”) in an offering that is exempt from the registration requirements of the Securities Act of 1933 (the “Securities Act”). The Notes will be guaranteed on a senior unsecured basis by the Company’s material direct and indirect wholly-owned domestic subsidiaries, other than certain excluded subsidiaries.
The Company intends to use the net proceeds from the Notes, along with liquidity on hand, to repurchase in a tender offer or otherwise redeem all of the Company’s outstanding 6.750% Senior Secured Notes due 2026 (the “Secured Notes”).
This news release does not constitute a notice of redemption with respect to the Secured Notes or an offer to sell or the solicitation of an offer to buy any securities. The Notes and related guarantees are being offered only to qualified institutional buyers in reliance on the exemption from registration set forth in Rule 144A under the Securities Act, and outside the United States to non-U.S. persons in reliance on the exemption from registration set forth in Regulation S under the Securities Act. The Notes and the related guarantees have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities or blue sky laws and foreign securities laws.
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. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.
Forward-Looking Statements
This release contains statements that constitute “forward-looking statements” within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and projections about our industry or our businesses, are forward-looking statements. We caution investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. Among the risks and uncertainties that could cause actual results to differ from those described in forward-looking statements are the following: continued volatility of steel, iron ore and scrap metal market prices, which directly and indirectly impact the prices of the products that we sell to our customers; uncertainties associated with the highly competitive and cyclical steel industry and our reliance on the demand for steel from the automotive industry; potential weaknesses and uncertainties in global economic conditions, excess global steelmaking capacity, oversupply of iron ore, prevalence of steel imports and reduced market demand; severe financial hardship, bankruptcy, temporary or permanent shutdowns or operational challenges of one or more of our major customers, key suppliers or contractors, which, among other adverse effects, could disrupt our operations or lead to reduced demand for our products, increased difficulty collecting receivables, and customers and/or suppliers asserting force majeure or other reasons for not performing their contractual obligations to us; risks related to U.S. government actions with respect to Section 232 of the Trade Expansion Act of 1962 (as amended by the Trade Act of 1974), the United States-Mexico-Canada Agreement and/or other trade agreements, tariffs, treaties or policies, as well as the uncertainty of obtaining and maintaining effective antidumping and countervailing duty orders to counteract the harmful effects of unfairly traded imports; impacts of existing and increasing governmental regulation, including potential environmental regulations relating to climate change and carbon emissions, and related costs and liabilities, including failure to receive or maintain required operating and environmental permits, approvals, modifications or other authorizations of, or from, any governmental or regulatory authority and costs related to implementing improvements to ensure compliance with regulatory changes, including potential financial assurance requirements, and reclamation and remediation obligations; potential impacts to the environment or exposure to hazardous substances resulting from our operations; our ability to maintain adequate liquidity, our level of indebtedness and the availability of capital could limit our financial flexibility and cash flow necessary to fund working capital, planned capital expenditures, acquisitions, and other general corporate purposes or ongoing needs of our business, or to repurchase our common shares; our ability to reduce our indebtedness or return capital to shareholders within the currently expected timeframes or at all; adverse changes in credit ratings, interest rates, foreign currency rates and tax laws; the outcome of, and costs incurred in connection with, lawsuits, claims, arbitrations or governmental proceedings relating to commercial and business disputes, antitrust claims, environmental matters, government investigations, occupational or personal injury claims, property-related matters, labor and employment matters, or suits involving legacy operations and other matters; supply chain disruptions or changes in the cost, quality or availability of energy sources, including electricity, natural gas and diesel fuel, critical raw materials and supplies, including iron ore, industrial gases, graphite electrodes, scrap metal, chrome, zinc, other alloys, coke and metallurgical coal, and critical manufacturing equipment and spare parts; problems or disruptions associated with transporting products to our customers, moving manufacturing inputs or products internally among our facilities, or suppliers transporting raw materials to us; the risk that the cost or time to implement a strategic or sustaining capital project may prove to be greater than originally anticipated; our ability to consummate any public or private acquisition transactions and to realize any or all of the anticipated benefits or estimated future synergies, as well as to successfully integrate any acquired businesses into our existing businesses; uncertainties associated with natural or human-caused disasters, adverse weather conditions, unanticipated geological conditions, critical equipment failures, infectious disease outbreaks, tailings dam failures and other unexpected events; cybersecurity incidents relating to, disruptions in, or failures of, information technology systems that are managed by us or third parties that host or have access to our data or systems, including the loss, theft or corruption of sensitive or essential business or personal information and the inability to access or control systems; liabilities and costs arising in connection with any business decisions to temporarily or indefinitely idle or permanently close an operating facility or mine, which could adversely impact the carrying value of associated assets and give rise to impairment charges or closure and reclamation obligations, as well as uncertainties associated with restarting any previously idled operating facility or mine; our level of self-insurance and our ability to obtain sufficient third-party insurance to adequately cover potential adverse events and business risks; uncertainties associated with our ability to meet customers’ and suppliers’ decarbonization goals and reduce our greenhouse gas emissions in alignment with our own announced targets; challenges to maintaining our social license to operate with our stakeholders, including the impacts of our operations on local communities, reputational impacts of operating in a carbon-intensive industry that produces greenhouse gas emissions, and our ability to foster a consistent operational and safety track record; our actual economic mineral reserves or reductions in current mineral reserve estimates, and any title defect or loss of any lease, license, easement or other possessory interest for any mining property; our ability to maintain satisfactory labor relations with unions and employees; unanticipated or higher costs associated with pension and other post-employment benefit obligations resulting from changes in the value of plan assets or contribution increases required for unfunded obligations; uncertain availability or cost of skilled workers to fill critical operational positions and potential labor shortages caused by experienced employee attrition or otherwise, as well as our ability to attract, hire, develop and retain key personnel; the amount and timing of any repurchases of our common shares; potential significant deficiencies or material weaknesses in our internal control over financial reporting; and our ability to successfully repurchase and/or redeem the Secured Notes.
For additional factors affecting the business of Cliffs, refer to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2023, and other filings with the U.S. Securities and Exchange Commission.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240303027267/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316
INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719
Cleveland-Cliffs and the United Steelworkers Union Jointly Comment on the Tin Mill Products Final Report Released by the ITC
Source: Business Wire
The U.S. International Trade Commission (ITC) this week issued public documents detailing the rationale behind its unanimous negative injury determination in the tin mill products trade case brought by co-petitioners Cleveland-Cliffs and the United Steelworkers (USW). This determination by the ITC negated the implementation of anti-dumping and countervailing duties calculated by the Department of Commerce and will result in the continuation of widespread unfair trade practices in the tin mill products market.
Lourenco Goncalves, Cleveland-Cliffs' Chairman, President and Chief Executive Officer, stated, "It is now clear that the decision by United States Steel Corporation not to participate as a petitioner in this trade case -- or provide a substantive response to the ITC’s request for further information on the idling of tin lines in Gary and East Chicago, Indiana and the closure of UPI in California -- directly led to the ITC’s negative determination. Had U.S. Steel cooperated with the ITC, the Commission would not have been left without the information needed to discern the market forces behind U.S. Steel’s withdrawal from the tin mill products market in the United States.”
Mr. Goncalves continued, “U.S. Steel’s January 2022 announcement that it would shut down its UPI tin mill in Pittsburg, California left the West Coast completely exposed to imports, particularly from Asian countries like Japan and China. This decision played a major role in the surge of imported tin mill product that hit the U.S. in mid-2022 and decimated the domestic industry, harming workers and communities. In spite of U.S. Steel’s intransigence, I am grateful for the partnership of the USW that allowed this case to go forward. The report issued this week made clear that, unfortunately, the ITC discounted the filings and testimony of the USW that clearly articulated how its members at Cleveland-Cliffs and U.S. Steel had been materially injured by unfair trade.”
“USW members across the tin mill industry can compete with anyone on a level playing field,” said USW International President David McCall. “Unfortunately, the ITC’s decision continues to leave them and their families vulnerable to unfair trade, threatening their livelihoods and imperiling the communities in which they live and work.
“Dumped and illegally subsidized tin mill products have already cost far too many good, American jobs, and USW members understand as well as anyone that without relief, foreign producers will continue to undercut our market until we are wholly dependent on them.
“It’s clear that our nation urgently needs strategic reform of our broken trade system so that domestic workers and industries aren’t forced to fight on a case-by-case basis to ensure they have a future.”
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs is also 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. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.
About the United Steelworkers
The USW represents 850,000 workers employed in metals, mining, pulp and paper, rubber, chemicals, glass, auto supply and the energy-producing industries, along with a growing number of workers in health care, public sector, higher education, tech and service occupations.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240229790051/en/
MEDIA CONTACTS:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316
Jess Kamm
USW Communications Director
412-562-2444
INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719
Cleveland-Cliffs: A 'Trump Trade' With Significant Upside Potential
Feb. 27, 2024 10:41 AM ETCleveland-Cliffs Inc. (CLF) Stock12 Comments6 Likes
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Leo Nelissen
Investing Group Leader
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Summary
Cleveland-Cliffs remains in a strong position despite challenges in global demand and economic uncertainties.
The company has successfully hiked its prices and generated over $1.6 billion in free cash flow in 2023.
Cleveland-Cliffs is strategically positioned for future growth with its focus on renewable energy and sustainable steel production.
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Sushiman
Introduction
It's time to dive into Cleveland-Cliffs Inc. (NYSE:CLF) again - this time by incorporating a political angle.
However, don't worry. This is not going to be a biased piece trying to get you to support a certain candidate. I have never written a biased political article, and I am not going to start now.
What we're doing in this article is discussing the bull case for one of my favorite steel stocks, Cleveland-Cliffs, which not only turned from an iron ore supplier without any steel production to one of America's producers within a few years, but it is also one of the biggest beneficiaries of the renewable energy trend, economic re-shoring, and other secular tailwinds.
On top of that, it could get political support if former President Trump were to win in November.
My most recent article on Cleveland-Cliffs was written roughly two months ago when I went with the title Why I Am Even More Bullish After Cleveland-Cliffs Failed To Buy U.S. Steel."
Since then, shares have appreciated roughly 6%, boosted by strong earnings, which we will discuss in great detail in this article.
?Data by YCharts
So, as we have a LOT to discuss, let's get right to it!
Cleveland-Cliffs Remains In A Great Spot
Pressure on Chinese construction demand.
Elevated recession risks in Europe and the United Kingdom.
The leading ISM Manufacturing Index has been below 50 since 2022, indicating demand issues in cyclical industries.
Usually, these three issues are very bearish for steel stocks - especially when they happen at the same time, as we are currently witnessing.
The chart below compares the Cleveland-Cliffs stock price to the ISM Manufacturing Index (the blue line).
But no change in CLF's 2024 production guidance of 16.5MT — because the tin-plate segment is a minuscule portion of CLF's operations.
Consensus EPS estimates increase by 10%
The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved.
2024 revenue forecast increased from US$20.7b to US$21.5b.
EPS estimate increased from US$1.73 to US$1.91 per share.
Net income forecast to grow 144% next year vs 26% growth forecast for Metals and Mining industry in the US.
Consensus price target broadly unchanged at US$21.27.
Share price was steady at US$19.78 over the past week.
https://simplywall.st/stocks/us/materials/nyse-clf/cleveland-cliffs/future
Cleveland-Cliffs offered to buy U.S. Steel, leading the latter company to put itself up for sale. Cleveland-Cliffs final per-share proposal to U.S. Steel included $27 in cash, $27 in Cleveland-Cliffs stock and $6 in synergy, Goncalves said.
He estimated the total value to be over $60 per share for U.S. Steel stockholders.
https://www.nwitimes.com/news/local/business/cleveland-cliffs-ceo-casts-doubt-on-whether-u-s-steel-sale-to-nippon-will-close/article_8a461756-c151-11ee-9645-13c8e04f2d8c.html
CLF director bought $500K of stock on the open market today:
https://www.sec.gov/Archives/edgar/data/764065/000076406524000035/xslF345X05/wk-form4_1706806823.xml
CLF 4Q23 CC notes:
In 2024, CLF expects to use free cash flow approximately 50% for debt reduction and 50% for share buybacks (subject to market prices). This is a big change from the 2023 allocation, which was roughly 85% for debt reduction and 15% for share buybacks.
CLF expects the US index price of HRC to be relatively stable in 2024 (unlike 2023). For the fixed-price contracts up for renewal in 2024, CLF expects to realize an ASP for HRC in the range of $1,000-1,150/ton.
Toyota, CLF’s largest individual customer, has its fixed-price contract up for renewal on 4/1/24.
Cleveland-Cliffs Expects Strong Steel Shipments in 2024 -- Commodity Comment
Published: Jan. 29, 2024 at 6:32 p.m. ET
By Stephen Nakrosis
Cleveland-Cliffs on Monday said it was expecting strong steel shipments this year, with anticipated steel shipments rising slightly from last year.
On 2023 steel demand:
Lourenco Goncalves, chairman, president and chief executive, said steel demand stayed healthy in 2023, adding the company's most important market -- the automotive sector -- performed well. "Even with the UAW labor strike late in Q3 and into Q4, automotive steel demand remained consistently strong, as we anticipated. After it was clear that the strike was not creating any real issues in the marketplace, non-automotive clients de-stocking their inventories betting on lower steel prices were compelled to buy steel at higher prices," he said.
The company's 2023 total steel shipments of 16.4 million tons "set a record since we became a steel company in 2020."
On 2024 outlook:
Cleveland-Cliffs said it was expecting 2024 steel shipment volumes of 16.5 million net tons, slightly above the 16.4 million net tons shipped in 2023. The company also was anticipating steel unit cost reductions of about $30 per net ton in 2024.
Goncalves said, "Going forward, and assuming a fair scrap marketplace -- free from artificial, provoked and hard-to-explain moves -- with scrap demand growing and scrap supply shrinking, there is no good reason for scrap prices to go down. If true supply and demand for scrap in the U.S. prevails, there is no good reason for HRC prices to go below $1,000 per net ton."
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
CLF reports 4Q23 results—issues 2024 guidance:
https://www.clevelandcliffs.com/investors/news-events/press-releases/detail/621/cleveland-cliffs-reports-full-year-and-fourth-quarter-2023
CLF progresses hydrogen use in blast furnaces:
https://finance.yahoo.com/news/cleveland-cliffs-completes-successful-blast-194200321.html
Clf's argument that their bid was superior to Nippon's adds fuel to the USW grievance that US Steel breached the Successorship Language of their contract. It won't surprise me if the whole deal falls apart. Rick
Cleveland-Cliffs (CLF) Exceeds Market Returns: Some Facts to Consider
Zacks Equity Research
Wed, January 24, 2024 at 6:00 PM EST·2 min read
In this article:
CLF
+0.77%
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Cleveland-Cliffs (CLF) closed the most recent trading day at $18.27, moving +1.22% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq increased by 0.36%.
Prior to today's trading, shares of the mining company had lost 13.47% over the past month. This has lagged the Basic Materials sector's loss of 6.84% and the S&P 500's gain of 2.4% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Cleveland-Cliffs in its upcoming earnings disclosure. The company's earnings report is set to go public on January 29, 2024. On that day, Cleveland-Cliffs is projected to report earnings of -$0.07 per share, which would represent year-over-year growth of 76.67%. Meanwhile, our latest consensus estimate is calling for revenue of $5.16 billion, up 2.34% from the prior-year quarter.
Wall Street Highlights: Nokia’s Margins Surprise, FAA Halts Boeing Production Expansion, and More
Source: IH Market News
In the pre-market on Thursday, U.S. index futures are showing positive performance, with investors keeping an eye on the fourth-quarter GDP.
At 05:45 AM, Dow Jones futures (DOWI:DJI) rose by 102 points, or 0.27%. S&P 500 futures increased by 0.07%, and Nasdaq-100 futures remained stable. The yield on 10-year Treasury bonds stood at 4.157%.
In the commodity market, West Texas Intermediate crude oil for March rose by 1.54% to $76.25 per barrel. Brent crude oil for March increased by 1.39%, nearing $81.15 per barrel. Iron ore with a 62% concentration, traded on the Dalian exchange, rose by 1.60% to $139.24 per metric ton.
Thursday’s economic agenda will be busy with important indicators. At 08:30 AM, the Chicago Fed will release the December national activity index, followed by the fourth-quarter GDP reading and December durable goods orders from the Department of Commerce. It is expected that the fourth-quarter GDP will reveal a seasonally adjusted annual expansion of 2%, marking a decrease compared to the 4.9% growth observed in the previous quarter. These numbers could significantly influence the stock market as investors seek a better understanding of the economic condition at the beginning of the year.
At the same time, the Department of Labor will report on last week’s jobless claims. Ending the day at 10 AM, December new home sales will be announced by the Department of Commerce, providing a comprehensive overview of the US economic health.
Asian markets closed higher, led by significant gains in China (+3.03%) and Hong Kong (+1.96%), following the People’s Bank of China’s announcement of a reduction in reserve requirements, especially boosting the real estate sector and promoting greater liquidity as a strategy to revitalize the economy.
European markets are declining, with investors keeping an eye on the imminent ECB decision on monetary policy. There is a 60% expectation of a possible rate cut in April, according to Reuters analysis based on LSEG data.
On Wednesday, U.S. stocks opened higher but retreated throughout the day, with the Dow Jones closing in the negative and both the S&P 500 and Nasdaq posting modest gains. Technology stocks led the initial gains, driven by positive results from Netflix (NASDAQ:NFLX) and ASML (NASDAQ:ASML). The Dow Jones fell by 0.26% to 37,806.39 points. The S&P 500 rose by 0.08% to 4,868.55 points. The Nasdaq increased by 0.36% to 15,481.92 points. The enthusiasm waned due to concerns over interest rates and a turnaround in treasury yields. While the oil services and semiconductor sectors showed strength, the shares of gold and telecommunications fell, as did those sensitive to interest rates.
For the quarterly earnings front on Thursday, financial reports are scheduled to be presented by American Airlines (NASDAQ:AAL), Southwest Airlines (NYSE:LUV), Alaska Airlines (NYSE:ALK), NextEra Energy (NYSE:NEE), The Blackstone Group (NYSE:BX), Humana (NYSE:HUM), Dow Inc (NYSE:DOW), Sherwin Williams (NYSE:SHW), Valero (NYSE:VLO), and others before the market opens. After the close, numbers from Intel (NASDAQ:INTC), Visa (NYSE:V), T-Mobile (NASDAQ:TMUS), L3 Harris (NYSE:LHX), Levi’s (NYSE:LEVI), CapitalOne (NYSE:COF), and more are awaited.
Wall Street corporate highlights for today
Alphabet (NASDAQ:GOOGL) – Google, part of Alphabet, will invest $8 million in Israeli and Palestinian tech companies to assist during the Israel-Hamas conflict. $4 million will support AI startups in Israel, while $4 million will go to early-stage Palestinian startups and companies, in addition to providing grants and loans to 1,000 small Palestinian businesses and early support for 50 tech startups in the region. The initiative aims to preserve jobs and create new ones. Moreover, Google reached a settlement in a patent infringement lawsuit involving chips used in its artificial intelligence technology. The settlement was reached on the same day that closing arguments were scheduled to begin in the trial of the lawsuit filed by Singular Computing, which sought $1.67 billion in damages for allegations of Google’s improper use of its computing processing innovations. The details of the settlement were not disclosed. Google denied Singular’s patent violations and expressed satisfaction in resolving the matter.
Apple (NASDAQ:AAPL) – Smartphone shipments in China fell 2.1% in the last quarter of 2023 due to local competition led by Huawei. Apple faces challenges in its third-largest market, with some companies and government agencies restricting the use of Apple devices. Huawei saw its shipments increase by 36.2% in the last quarter of the year. Although Apple led smartphone sales in China in 2023, analysts predict sales pressure this year due to competition and limited product upgrades. In other news, Apple is adjusting its strategy to launch an electric car after a decade of efforts. Previously aiming for a fully autonomous vehicle, the company is now focusing on a Level 2+ driver assistance model. The launch, planned for 2028, is a crucial step in a tumultuous project aimed at revitalizing Apple’s growth. Uncertainty hangs over the project, but the company continues to invest significant resources. Additionally, Apple plans to impose new fees and restrictions on allowing third-party software downloads outside the App Store, only in Europe, in compliance with the European Union’s Digital Markets Act (DMA), targeting the influence of big tech companies.
Microsoft (NASDAQ:MSFT) – Microsoft briefly surpassed the $3 trillion market value mark on Wednesday, remaining the world’s second most valuable company, behind Apple (NASDAQ:AAPL). Both companies compete for the title of Wall Street’s most capitalized stocks.
Nvidia (NASDAQ:NVDA), Equinix (NASDAQ:EQIX) – Equinix and Nvidia have partnered to offer Nvidia’s supercomputing systems to corporate customers. This will allow companies to have artificial intelligence systems and more control over their data, rather than relying on cloud providers like Amazon (NASDAQ:AMZN) or Microsoft (NASDAQ:MSFT). The partnership aims to meet companies’ privacy and security needs, with Equinix handling the construction and operation of Nvidia’s systems.
IBM (NYSE:IBM) – IBM exceeded expectations in the fourth quarter with adjusted earnings of $3.87 per share and revenue of $17.4 billion. Shares rose 7.8% in Thursday’s pre-market to $187.49. The company projected continued growth for 2024, forecasting single-digit revenue growth and generating about $12 billion in free cash flow. In 2023, total revenue was $61.9 billion, surpassing the free cash flow target of $10.5 billion with $11.2 billion.
Spotify (NYSE:SPOT) – Spotify will allow European users to purchase audiobooks and subscriptions within the music streaming app, complying with the EU’s Digital Markets Act. This bypasses Apple’s 30% App Store fee, which has previously generated disputes.
Seagate Technology (NASDAQ:STX) – Seagate Technology forecasted revenue of approximately $1.65 billion for the third quarter, in line with analysts’ estimates, driven by continued recovery in PC and cloud markets. In the second quarter, the company reported revenue of $1.56 billion, exceeding estimates, and adjusted earnings of 12 cents per share, reversing three quarters of losses.
Lam Research (NASDAQ:LRCX) – Lam Research, a chip equipment manufacturer, reported a significant drop in second-quarter profits, but its adjusted earnings per share of $7.52 beat analysts’ projections. Additionally, the company announced an adjusted earnings forecast for the third quarter between $6.50 and $8, surpassing Wall Street’s estimate of $6.63.
ServiceNow (NYSE:NOW) – ServiceNow raised its annual subscription revenue forecasts, expecting to reach between $10.56 billion and $10.58 billion in 2024, up from a previous projection of $10.4 billion. In the fourth quarter, the company reported revenue of $2.44 billion and subscription revenue of $2.37 billion, exceeding analysts’ expectations. Adjusted earnings were $3.11 per share, compared to the forecast of $2.79 per share.
Hewlett Packard Enterprise (NYSE:HPE) – Last Wednesday, Hewlett Packard Enterprise announced that on December 12, it discovered that the “Midnight Blizzard” hacker group had breached its cloud email system since May 2023. According to HP, the group extracted emails related to cybersecurity, market strategies, business operations, and other areas of the company. The Midnight Blizzard group, associated with the 2020 SolarWinds attack on Microsoft (NASDAQ:MSFT), did not significantly impact HP’s operations.
Nokia (NYSE:NOK) – Nokia’s shares rose 8% in Thursday’s pre-market after reporting better-than-expected margins, despite sales falling short of estimates. The company posted a loss of 33 million euros, with revenues of 5.71 billion euros, while analysts expected adjusted earnings of 659 million euros on sales of 6.27 billion euros. Nokia cited economic uncertainty as a reason for the pressure on carrier spending, but investors were impressed with its gross margin of 43.1%, which fell by only 0.4 percentage points, due to improvements in mobile networks and cloud services.
Paramount Global (NASDAQ:PARA) – Paramount Global’s shares rose 3.1% in the pre-market due to interest from Skydance Media in leading an acquisition, along with RedBird Capital Partners and KKR (NYSE:KKR), which would also include purchasing Shari Redstone’s National Amusements.
United Airlines (NASDAQ:UAL) – United Airlines embarked on a new phase on Wednesday, after receiving final approval from the Federal Aviation Administration (FAA) to reintegrate its Boeing (NYSE:BA) aircraft fleet, including the Boeing 737 MAX 9, into scheduled service beginning on Sunday.
Boeing (NYSE:BA) – Boeing resumed deliveries of the 737 MAX to a Chinese airline after a four-year freeze, marking the first delivery since March 2019 for the U.S. airplane manufacturer’s profitable jet. Additionally, Boeing’s CEO, Dave Calhoun, met with U.S. lawmakers to discuss the explosion of a 737 MAX 9’s cabin panel. Senators Maria Cantwell and Jerry Moran called for Congressional oversight and will hold hearings to investigate the incident. Boeing has not disclosed the cause but stated it is committed to finding out. The U.S. Federal Aviation Administration also intervened, freezing production increases and causing market uncertainties.
Tesla (NASDAQ:TSLA) – Tesla plans to start production of its next electric vehicle in Texas in the second half of 2025, according to Elon Musk, although it faces significant technological challenges. Musk also warned that Chinese automakers, without trade barriers, will dominate the global electric vehicle market, mentioning the success of BYD. The company warned of slower sales growth and reported a fourth-quarter gross margin of 17.6%, below estimates. Tesla’s fourth-quarter revenue increased to $25.17 billion, while net profit was $7.9 billion, boosted by non-cash gains. Shares fell 8% in Thursday’s pre-market.
Ford Motor (NYSE:F) – Ford Motor announced a remeasurement loss of about $1.7 billion before taxes, related to pensions and post-retirement benefits for its employees in the fourth quarter, reducing its net income by about $1.3 billion after taxes. This loss was influenced by lower discount rates compared to the previous year. Additionally, Ford Motor announced a global recall of 2.24 million older Explorer SUVs due to issues with the A-pillar trim retention clips, affecting 1.89 million SUVs in the U.S.
Aurora Innovations (NASDAQ:AUR) – The autonomous vehicle company restructured, reducing its workforce by 3% (1,700 employees as of the end of 2022) to optimize operations as it prepares to launch autonomous trucks in partnership with Continental AG and Volvo later this year. Additionally, the company completed the design of the Aurora Driver autonomous driving system, planning production in 2027 and large-scale deployment following the initial driverless launch in 2024.
General Motors (NYSE:GM) – General Motors plans to invest 7 billion reais ($1.42 billion) in Brazil by 2028 to boost sustainable mobility, renew its portfolio, develop technologies, and possibly produce electric vehicles, supporting the national industry. President Lula praised the investment, part of a new cycle of strengthening GM’s competitiveness in Brazil. GM also plans to launch six new vehicle models in the country this year.
Cleveland-Cliffs (NYSE:CLF) – Cleveland-Cliffs made a takeover bid higher than US Steel Corp (NYSE:X) by $1.4 billion compared to Nippon Steel’s cash offer, according to a regulatory filing. Nippon Steel won with a $14.1 billion offer, at a significant premium. US Steel reported an entity referred to as “Company D”, possibly Cleveland-Cliffs, raising the offer to $54 per share, predicting synergies of $6.50 per share. Concerns included regulations and material costs, leading Cleveland-Cliffs to agree to pay a $1.5 billion termination fee and divest assets up to $2 billion in revenues to secure antitrust approval.
Kinder Morgan (NYSE:KMI) – Kinder Morgan remains optimistic about natural gas demand, driven by LNG exports and shipments to Mexico. The U.S. led LNG exports in 2023, with forecasts for increased export capacity in North America by 2027. The company is investing in natural gas-related projects, despite weaknesses in pipeline operations in the fourth quarter. Owning the largest natural gas transmission network in the U.S., it also works on projects to address shortages in the southeast market.
DuPont De Nemours (NYSE:DD) – DuPont De Nemours signaled a loss in the fourth quarter and forecasted first-quarter sales below Wall Street expectations. The company estimates a loss between $220 million and $370 million, compared to a profit of $105 million in the previous year. Inventory reductions by customers will continue to affect first-quarter sales. Estimated sales for the first quarter are about $2.8 billion, below the average analyst estimate of $3.04 billion.
UBS (NYSE:UBS) – UBS appointed Aleksandar Ivanovic as the new head of its $1.6 trillion asset management unit, part of the integration of Credit Suisse. Wealth management remains the main source of revenue. The search for a successor to CEO Sergio Ermotti will also begin. Beatriz Martin Jimenez will become Leader of Sustainability and Impact on the global executive board. Changes will take effect on March 1.
Citigroup (NYSE:C) – Laid-off Citigroup employees in New York, part of a major job cut, will receive salaries until April. The 90-day notice period begins on February 1. Access to bank systems will be cut off, but salaries and benefits will be maintained until March and April, and 2023 bonuses will be incorporated into severance packages.
Goldman Sachs (NYSE:GS) – Goldman Sachs and the World Bank’s International Finance Corporation are expanding their “10,000 Women” program to offer free online business training in French to over 60 million women in Francophone Africa starting in April. The program aims to bridge the financing gap for female entrepreneurs and has already benefited over 164,000 businesses. The partnership seeks to boost women’s entrepreneurship and economic growth in the region.
Haleon Plc (NYSE:HLN) – Haleon Plc agreed to sell its ChapStick lip balm line to Suave Brands for about $510 million, streamlining its portfolio and seeking to pay off debt. The CEO stated that ChapStick is not the company’s main focus. Haleon’s shares remained stable in Thursday’s pre-market.
Tyson Foods (NYSE:TSN) – Tyson Foods replaced CVS Health (NYSE:CVS) with Rightway as the pharmacy benefits manager for its 175,000 employees, seeking more transparency and cost savings. CVS will continue to serve Tyson for specialty medications. Rightway promises to cut employers’ spending by an average of 18%.
Abbott Laboratories (NYSE:ABT) – Abbott reported sales from its medical devices unit in the fourth quarter of $4.44 billion, exceeding estimates of $4.33 billion. Sales of the FreeStyle Libre glucose monitoring device totaled $1.4 billion in the quarter, an increase of 25.5% from the previous year. The company forecast adjusted earnings for 2024 in the range of $4.50 to $4.70 per share, with the midpoint below analysts’ estimate of $4.64 per share. The adjusted quarterly profit was in line with analysts’ estimates, at $1.19 per share.
Las Vegas Sands (NYSE:LVS) – Las Vegas Sands announced a 161% increase in fourth-quarter revenue, reaching $2.92 billion, surpassing analysts’ expectations of $2.89 billion. The casino company attributed this performance to continuous improvements in its operations in Macau and Singapore. Casino revenue in the same period rose to $2.11 billion, compared to $654 million in the previous year, resulting in a 2.9% increase in the company’s shares.
Cleveland-Cliffs (NYSE:CLF) – Cleveland-Cliffs made a takeover bid higher than US Steel Corp (NYSE:X) by $1.4 billion compared to Nippon Steel’s cash offer, according to a regulatory filing. Nippon Steel won with a $14.1 billion offer, at a significant premium. US Steel reported an entity referred to as “Company D”, possibly Cleveland-Cliffs, raising the offer to $54 per share, predicting synergies of $6.50 per share. Concerns included regulations and material costs, leading Cleveland-Cliffs to agree to pay a $1.5 billion termination fee and divest assets up to $2 billion in revenues to secure antitrust approval.
Cleveland-Cliffs argued its US Steel bid was worth more than Nippon Steel's, filing shows
https://finance.yahoo.com/news/cleveland-cliffs-argued-us-steel-122255850.html
Earnings report in 12 days, let's hope for a big beat!
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