Cleveland-Cliffs Inc Stock Price, News & Analysis

Cleveland-Cliffs has reached a tentative agreement with the International Association of Machinists and Aerospace Workers (IAM) Local 1943 for a new four-year contract covering approximately 2,100 employees at its Middletown Works steelmaking operations, effective May 15, 2023. CEO Lourenco Goncalves emphasized that this agreement reflects a strong relationship with union partners, which is considered vital for future success. The Middletown Works operation produces various carbon and stainless steels, primarily for the automotive industry. The agreement is pending ratification by IAM local union memberships.

Cleveland-Cliffs is North America's largest flat-rolled steel producer and iron ore pellet manufacturer, with around 27,000 employees in the U.S. and Canada.

Cleveland-Cliffs Inc. (NYSE: CLF) reported first-quarter 2023 results, showing revenues of $5.3 billion and steel shipments of 4.1 million net tons. The company experienced a GAAP net loss of $42 million, or $0.11 per diluted share. This is an improvement from a loss of $204 million in the previous quarter. Adjusted EBITDA rose to $243 million compared to $123 million in Q4 2022. Direct automotive sales accounted for 36% of steelmaking revenues. Cliffs’ liquidity stands at $3.1 billion, aided by a recent $750 million Senior Unsecured Notes offering. The company has reduced its full-year capital expenditure outlook to $675-$725 million. A conference call is scheduled for April 25, 2023, to discuss these results further.

Cleveland-Cliffs Inc. (NYSE: CLF) has successfully closed the offering of $750 million in senior unsecured guaranteed notes due 2030, featuring a 6.75% annual coupon. The net proceeds will be allocated to reducing borrowings under the company's asset-based revolving credit facility.

This transaction is designed to be leverage and interest expense neutral, indicating it won't impact the company's financial leverage or increase interest costs. Cleveland-Cliffs is recognized as the largest flat-rolled steel producer and iron ore pellet manufacturer in North America, holding a key position in supplying steel to the automotive sector and other markets.

Cleveland-Cliffs Inc. (NYSE: CLF) has priced $750 million in senior unsecured guaranteed notes due 2030 with a 6.75% interest rate. The offering, exempt from registration under the Securities Act, is set to close on April 14, 2023. Proceeds will be utilized to reduce borrowings under its revolving credit facility, maintaining a leverage-neutral stance. After the offering, the company will have over $2 billion in callable debt, which it aims to decrease through cash flow generation. Cleveland-Cliffs remains the largest flat-rolled steel producer in North America, with a vertically integrated operation from raw materials to primary steelmaking.