Cleveland-Cliffs Inc. (NYSE:CLF) told investors that it expects to report first-quarter 2023 revenues of approximately $5.2 billion after it shipped 4.1 million net tons of steel.
North America’s largest flat-rolled steel producer — formerly called Cliffs Natural Resources — also said in a preliminary 1Q results announcement that adjusted underlying earnings (EBITDA) are likely to be about $200 million, ‘significantly higher’ than the $123 million reported for the previous quarter due to unit cost reductions.
“As we start the second quarter and continue to execute on further cost reductions as planned, we are also enjoying the full benefits of the meaningful price increases Cleveland-Cliffs has implemented for this year, which cover contracts with automotive and non-auto clients, as well as transactional sales,” Cliffs’ chairman, president and CEO Lourenco Goncalves said in a statement. “With that, we expect Q2 EBITDA will be multiple times higher than Q1 EBITDA.”
On April 3, the company announced it was increasing current spot market base prices for all carbon hot rolled, cold rolled and coated steel products by a minimum of $100 per net ton, effective immediately with all new orders. Its minimum base price for hot rolled steel is now $1,300 per net ton.
The company said it will announce its full first-quarter 2023 earnings results after the US market close on April 24, 2023.
Its shares were 6% higher at $18.36 by 10am in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com