Replies to post #29236 on The Rising Influence of Rising Affluence

[jbog]

Adjusted EBITDA of $414M, +70% YoY and +48% QoQ

Gaap Loss of $67 mil.

[DewDiligence]

CLF 1Q24 CC notes re capital allocation:

CLF’s targeted debt leverage is <=2.5x EBITDA. There is ample room for CLF to continue to repurchase shares while staying well below the 2.5x ceiling.

CLF has no debt maturities until 2027.

[DewDiligence]

CLF 1Q24 CC slides:

https://d1io3yog0oux5.cloudfront.net/_3efb7c3d63ae6bae87e3b8ff1637f911/clevelandcliffs/db/1111/11752/file/CLF+-+Q1+2024+Earnings+Presentation.pdf

[DewDiligence]

CLF 1Q24 CC transcript:

https://finance.yahoo.com/news/cleveland-cliffs-clf-q1-2024-170011838.html

Much discussion of the non-takeover of US Steel.

Caution: this transcript has several OCR-generated errors. E.g., the transcript says “gold” in several places where the actual word is GOS (Grain-Oriented [electrical] Steel).

[DewDiligence]

CLF reports 2Q24 results:

https://www.clevelandcliffs.com/investors/news-events/press-releases/detail/645/cleveland-cliffs-reports-second-quarter-2024-results

All year-over-year comparisons (except volume shipped) are unfavorable due to the lower average price realization in 2Q24 compared to 2Q23. Still, 2Q24 was slightly better than some investors expected, which is why the stock is up ~3% in AH trading. CC Tuesday at 8:30am ET.


2Q24 highlights

• Revenue of $4.9B, -15% YoY

• Non-GAAP EPS of $0.11 (excluding a $0.11 impairment charge from the idling of the Weirton WV tinplate plant)* vs $0.28 in 2Q23

• Adjusted EBITDA of $323M, -58% YoY

• Free cash flow of $362M, -52% YoY

• Steel shipments of 4.0M net tons, +1% YoY

• 6/30/24 net debt of $3.4B, down $237M from 3/31/24 (despite repurchasing approximately $125M of CLF shares during 2Q24)


2024 guidance

• No updated or re-iterated guidance for 2024 steel shipment volume; the guidance given three months ago was 16.5M tons (vs 16.4M in 2023)

• Re-iterated cost reductions of ~$30 per net ton, corresponding to ~$500M adjusted EBITDA benefit compared to 2023

• Cap-ex guidance lowered $25M to $650-$700M (from prior range of $675-725M)


*See new plans for Weirton, WV site in #msg-174789843.