Cleveland-Cliffs Inc. reports developments in its North American flat-rolled steel and iron ore pellet business, including earnings releases, steel shipment trends and product mix across hot-rolled, coated, cold-rolled, plate, stainless and electrical steel. Company updates also address automotive customer demand, trade-enforcement conditions, cost controls, debt maturity actions and capital spending within its vertically integrated steelmaking footprint.
Recurring news also covers technology and governance developments, including enterprise AI deployment for production planning, order entry and operational workflows, board appointments and committee leadership changes. Strategic and commercial updates are framed around Cliffs’ role as a steel supplier to the North American automotive industry and its integrated chain from mined raw materials, direct reduced iron and scrap through finishing, stamping, tooling and tubing.
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.
Cleveland-Cliffs (NYSE: CLF) has agreed to acquire Stelco Holdings Inc. (TSX: STLC) for C$70.00 per share, consisting of C$60.00 in cash and 0.454 Cliffs shares. The deal values Stelco at approximately C$3.4 billion, representing an 87% premium to Stelco's closing price on July 12, 2024. Key shareholders holding about 45% of Stelco shares have agreed to support the transaction. The acquisition is expected to close in Q4 2024, subject to regulatory approvals and shareholder vote. Cliffs commits to maintaining Stelco's Canadian operations, increasing production, and preserving its legacy. The deal aims to create synergies and strengthen Cliffs' position in the North American steel market.
Cleveland-Cliffs (NYSE: CLF) will release its second-quarter 2024 earnings results after the U.S. market closes on July 22, 2024. The company will host a conference call to discuss the results on July 23, 2024, at 8:30 am ET. Interested parties can access the live broadcast and subsequent replay on the company's website.
Cleveland-Cliffs (NYSE: CLF) hosted a press conference featuring U.S. Senator Sherrod Brown and USW leadership at its Cleveland Works plant in Ohio. Key speakers included David McCall, USW International President, and Donnie Blatt, Director of USW District 1. The event, aimed at addressing industry-specific issues and company developments, included prepared remarks and a media Q&A session. A full video of the event has been made available on the company's website and YouTube page for public viewing.
Cleveland-Cliffs (NYSE: CLF) will host a press conference at its Cleveland Works plant on Wednesday, June 26, featuring U.S. Senator Sherrod Brown and USW leadership, including President David McCall and Director Donnie Blatt. CEO Lourenco Goncalves will lead discussions on the recently introduced bipartisan legislation aimed at reinstating the 25% tariffs on Mexican steel imports. This 'Stop Mexico’s Steel Surge Act' is designed to protect American manufacturers and steel workers by potentially imposing additional quotas and tariffs as needed. The event will be live-streamed on Cleveland-Cliffs’ YouTube channel at 11:15 a.m. ET, with a replay available afterward.
Cleveland-Cliffs (NYSE: CLF) has announced new greenhouse gas (GHG) emissions reduction targets.
The company, having already achieved its prior goal of a 25% reduction in Scope 1 and Scope 2 GHG emissions by 2030 relative to 2017 levels, now aims to reduce emissions further by 2035 and 2050.
Specifically, Cleveland-Cliffs plans to reduce Scope 1 and Scope 2 GHG emissions intensity per metric ton of crude steel by 30% and Scope 3 emissions by 20% by 2035, with a long-term goal of near net-zero emissions by 2050.
These reductions will be driven by projects in Middletown, OH, and Butler, PA, conducted in cooperation with the U.S. Department of Energy (DOE), along with other operational initiatives.
Capital expenditure plans remain unchanged despite these new targets.
Cleveland-Cliffs (CLF) addressed allegations from U.S. Steel's Board on May 21, 2024, regarding its attempt to sell to foreign buyers without Union support. CEO Lourenco Goncalves emphasized the company's transparent practices and reiterated their stance on keeping U.S. Steel American-owned with Union backing. The U.S. Steel Board's claim that the Union lacked veto power is disputed by Cliffs, highlighting support from the United Steelworkers (USW) only for Cleveland-Cliffs. U.S. Steel's decision to pursue a deal with Nippon Steel, without Union endorsement, is criticized as presenting CFIUS risks and negative impacts on workers and national security. Prominent figures, including President Biden and candidate Donald Trump, have opposed the transaction to maintain U.S. Steel's American ownership.