Cleveland-Cliffs Inc. (NASDAQ: (CLF) stock gained by 8.55% in the current market trading session. Cleveland-Cliffs is North America’s largest flat-rolled steel manufacturer. Cliffs, which began as a mine operator in 1847, is now North America’s largest producer of iron ore pellets.
CLF stock’ Financial Highlights
Cleveland-Cliffs announced financial outcomes for the third quarter of 2021. Given below is the summary:
- The consolidated revenue for the third quarter of 2021 was $6.0 billion relative to $1.6 billion in the third quarter of 2020.
- The company reported its net income as $1.3 billion for the third quarter of 2021 whereas in the third quarter of 2020 the net income was $2 million.
- The Company generated $15.1 billion in sales and $2.1 billion in net income, or $3.69 per diluted share, in the first nine months of 2021. The Company had revenues of $3.1 billion and a net loss of $155 million, or $0.51 per diluted share, in the first nine months of 2020.
- Adjusted EBITDA1 in the third quarter of 2021 was $1.9 billion, relative to $126 million in the third quarter of 2020.
President Chief Executive Officer Lourenco Goncalves commented,
They decided to buy Ferrous Processing and Trading Company, the largest primary scrap processor in the United States, earlier this month. The addition of FPT to its Cleveland-Cliffs footprint as a leading flat-rolled steel manufacturer should allow them to use more prime scrap in their BOFs, lowering both their coke usage and carbon emissions. They anticipate concluding this transaction in the fourth quarter and immediately extracting more value from their scrap. This is true growth: profitable expansion that is also ecologically beneficial.
The Cleveland-Cliffs’ business strategy is heavily reliant on contract sales. They have already renewed many annual fixed-price sales agreements with a large number of their most important clients, and they are delighted with the positive outcomes of these talks. Unlike other steel firms that are more vulnerable to spot pricing, they think that their average sales price will be greater next year than it was in 2021, allowing them to maintain excellent profitability and enhance the financial sheet.
