Cleveland-Cliffs Inc. (NYSE:CLF) shares surged almost 15% after the steel producer’s latest quarterly report impressed.
Revenue for the quarter was $4.9 billion, ahead of the Wall Street consensus of $4.85 billion.
The company posted a smaller-than-expected loss of $0.50 per share, better than estimates of a loss per share of $0.68.
These results were driven by record steel shipments of 4.3 million tons and cost reductions, such as a $15 per ton decrease in steel unit costs.
“Our second quarter results demonstrate that the footprint optimization initiatives announced a few months ago are already generating a positive impact on both costs and revenues,” CEO Lourenco Goncalves said in a statement.
“Our good cost performance in Q2 will be even further amplified into Q3 and Q4, with further expected improvements in adjusted EBITDA as a result. In Q2 we also further reduced inventories, which drove a meaningful release in working capital during the quarter."
The company also updated its full-year capital expenditures guidance, trimming its expectation to $600 million from $625 million.
It also expects reduced selling, general, and administrative expenses of $575 million, down from earlier guidance of $600 million.
Shares of Cleveland-Cliffs added 14.5% just shy of $11 in the early afternoon on Monday.