Cleveland-Cliffs Inc Stock Price, News & Analysis

Cleveland-Cliffs Inc. (NYSE: CLF) has commended President Biden's reported decision to block the foreign takeover of U.S. Steel by Japan's Nippon Steel. CEO Lourenco Goncalves emphasized the importance of American ownership in the steel industry for national security and domestic manufacturing. He criticized U.S. Steel's threats to shut down production and fire union workers if the deal doesn't close, calling it a 'pathetic blackmail attempt'.

Goncalves highlighted the United Steelworkers union's opposition to Nippon Steel, citing its history of unfair trade practices. Cleveland-Cliffs, with support from the USW and financing from J.P. Morgan and Wells Fargo, has expressed readiness to acquire and invest in any union-represented assets that U.S. Steel might shut down, aiming to protect union jobs and local communities.

Cleveland-Cliffs Inc. (NYSE: CLF) has announced the promotion of Michael Hrosik to Senior Vice President, Commercial, effective immediately. With over 30 years of steel industry experience, Hrosik will oversee all of Cliffs' commercial operations, including sales, marketing, and customer service. His extensive background with Cliffs and its legacy companies will be important in driving the company's strategy forward.

Additionally, Michael Cooney has been appointed Enterprise Director, Flat-Rolled Steel Sales, succeeding Hrosik in his previous role. Cooney, recently hired from Reliance, Inc., brings significant experience in the steel industry, particularly with service centers. He will manage Cliffs' commercial relationships with service centers and non-automotive end users.

Cleveland-Cliffs Inc. (NYSE: CLF) has announced the ratification of a new four-year labor contract with the United Auto Workers (UAW) Local 600 for its Dearborn Works operations. The contract, effective through July 31, 2028, will cover approximately 1,000 UAW-represented workers at Dearborn. Lourenco Goncalves, Chairman, President and CEO of Cleveland-Cliffs, emphasized the company's commitment to a collaborative relationship that benefits both employees and the company as a whole. This agreement marks another step in solidifying the partnership between Cleveland-Cliffs and the UAW for the coming years.

GrafTech International (NYSE: EAF) has announced the appointment of Rory O'Donnell as its new Chief Financial Officer and Senior Vice President, effective September 3, 2024. O'Donnell will report directly to CEO Timothy Flanagan and oversee all financial aspects of the company. He brings extensive financial expertise from his previous roles, including serving as Senior VP, Controller, and Principal Accounting Officer at Covia , where he also held the position of Interim CFO. Prior experiences include senior positions at Signet Jewelers and Cleveland-Cliffs Inc. O'Donnell holds a B.S. in Accounting from the University of Dayton and is a licensed CPA in Ohio.

Cleveland-Cliffs Inc. (NYSE: CLF) has announced the upsizing and pricing of an additional $600 million in Senior Guaranteed Notes due 2032. The Additional Notes will have a 7.000% annual interest rate and be issued at 99.25% of their principal amount. This upsized offering reduces the capital needed for the upcoming Stelco acquisition financing. The Additional Notes Offering is expected to close on August 16, 2024.

The company's pro-forma liquidity is anticipated to be approximately $4.3 billion after the offering's completion. Cliffs plans to use the net proceeds to finance part of the Stelco Acquisition's cash consideration, expected to conclude in Q4 2024. Prior to the acquisition's completion, Cliffs intends to use the proceeds to pay off its outstanding asset-based lending facility balance and for cash on hand.

Cleveland-Cliffs Inc. (NYSE: CLF) has announced its intention to offer an additional $500 million in Senior Guaranteed Notes due 2032. This offering is an extension of the existing 7.000% Senior Guaranteed Notes due 2032, of which $825 million was previously issued. The Additional Notes will be guaranteed by Cliffs' material wholly-owned domestic subsidiaries.

The net proceeds from this offering are intended to finance part of the cash consideration for the previously announced acquisition of Stelco Holdings Inc., expected to complete in Q4 2024. Prior to the acquisition's completion, Cliffs plans to use the proceeds to pay off the outstanding balance of its asset-based lending facility.

The offering is exempt from SEC registration requirements and is only available to qualified institutional buyers and non-U.S. persons outside the United States.

Cleveland-Cliffs Inc. (NYSE: CLF) reported its Q2 2024 results with revenues of $5.1 billion and steel shipments of 4.0 million net tons. The company achieved a net income of $9 million and an adjusted EBITDA of $323 million. Notable highlights include:

- Free cash flow of $362 million
- Net debt decrease of $237 million to $3.4 billion
- Repurchased 7.5 million shares
- Liquidity of $3.7 billion as of June 30, 2024

CEO Lourenco Goncalves emphasized the company's strong performance despite challenging market conditions. Cleveland-Cliffs announced the acquisition of Stelco and plans to repurpose its Weirton tinplate plant to produce transformers, potentially re-employing 600 workers.

Cleveland-Cliffs Inc. (NYSE: CLF) has announced plans to establish a new electrical distribution transformer production plant in Weirton, West Virginia. The $150 million investment, including a $50 million forgivable loan from the state, aims to address the critical shortage of distribution transformers in the United States. The plant is expected to begin operations in the first half of 2026 and will create reemployment opportunities for 600 USW-represented workers from the idled Weirton tinplate mill.

The new facility will utilize American-made Grain Oriented Electrical Steel (GOES) produced by Cleveland-Cliffs at its Butler Works steel mill in Pennsylvania. This investment is expected to generate additional demand for GOES and potentially lead to employment expansion at the Butler Works. The plant will also consume stainless and carbon steel produced by Cliffs in other steel plants across Ohio, Michigan, and Indiana.

Cleveland-Cliffs Inc. (NYSE:CLF) has announced a definitive agreement to acquire Stelco Holdings Inc. (TSX:STLC) for approximately USD $2.5 billion. The deal values Stelco at CAD $70.00 per share, with shareholders receiving CAD $60.00 in cash and 0.454 Cliffs shares per Stelco share. This acquisition expands Cliffs' steelmaking footprint, doubling its exposure to the flat-rolled spot market. The transaction is expected to be immediately accretive to 2024 and 2025 EPS, with estimated annual cost savings of $120 million. Cliffs shareholders will own approximately 95% of the combined company. The deal has received support from the United Steelworkers union and is expected to close in Q4 2024, subject to approvals.