Cleveland-Cliffs Inc. (CLF) has reported its financial results for the second quarter of 2023, which ended on June 30. The company achieved impressive financial performance during this period, with revenues reaching $6.0 billion, compared to $5.3 billion in the first quarter of 2023.
Key financial highlights for the second quarter of 2023 include:
- Revenues of $6.0 billion.
- Steel shipments of 4.2 million net tons.
- Net income of $356 million.
- Adjusted EBITDA of $775 million.
- Cash flow from operations of $887 million.
- Free cash flow of $756 million.
- Net debt down to $3.9 billion.
- Total liquidity of $3.8 billion, the highest in the company’s history.
The steelmaking segment showed positive results, with revenues of $5.8 billion, and sales volumes comprising 34% direct sales to the automotive market, 27% sales to the infrastructure and manufacturing market, 25% sales to the distributors and converters market, and 14% sales to steel producers.
Cleveland-Cliffs’ Chairman, President, and CEO, Lourenco Goncalves, attributed the strong performance to record automotive shipments, which led to higher realized prices and industry-leading quarter-over-quarter EBITDA expansion. The company also reduced its net debt by over $550 million during the quarter while returning nearly $100 million to shareholders through share buybacks.
Looking ahead, Goncalves expressed optimism about the company’s shipment prospects, with service center inventories lower than historical levels and a healthy second half of the year anticipated. Despite the improving performance of automotive clients, the sector has not returned to pre-COVID levels, indicating potential future value for Cleveland-Cliffs.
The company plans to host a conference call on July 25, 2023, to discuss the results further.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America and the largest manufacturer of iron ore pellets in the region. Headquartered in Cleveland, Ohio, it serves a diverse range of markets and employs approximately 27,000 people across its operations in the United States and Canada.
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