Cleveland-Cliffs Inc. (CLF) declined in the pre-market after announcing its fourth quarter and fiscal 2021 results. CLF values at $20.01, losing more than 4.49% compared to yesterday’s closing price. The stock closed at $20.95 at the end of the last trading session. The stock volume traded in the last trading session was around 21.10 million shares. The current market cap of the company is around $10.48 billion.
CLF: Q4 and Fiscal 2021 Key Financials
- Cleveland-Cliffs Inc. (CLF) revenue in Q4 2021 was $5.3 billion. It is a gain of more than two times compared to the $2.3 billion revenue of Q4 in 2020.
- Fiscal year revenue was $20.4 billion, and it is an increase of 3 times compared to the $5.3 billion revenue in fiscal 2020.
- The company’s net income in Q4 2021 was around $899. Q4 2020 net income was around $74 million.
- Cleveland-Cliffs Inc. (CLF) net income in fiscal 2021 was around $3 billion compared to the net loss of $81 million in fiscal 2020.
- The Q4 2021 net income per diluted share was $1.69, compared to $0.14 in the Q4 of 2020.
- For fiscal 2021, net income per diluted share was $5.36 compared to a net loss of $0.32 of fiscal 2020.
CLF CEO’s remarks about the Fiscal 2021 results
Lourenco Goncalves, Cliffs president and CEO, said the company paid for two large steel and a significant scrap company. Its revenue doubled from $2 billion in 2019 to over $20 billion in 2021—an increase of $5.3 billion in EBITDA and net income. In addition, we reduced our leverage to a healthy 1x Adjusted EBITDA.
Our Q4 2021 results demonstrate supply control. We anticipated weak sector demand in Q4 due to supply chain issues for our automotive clients in Q3. Rather than chase weak demand, we shifted maintenance to Q4. However, our Q4 unit costs increased.
CLF 2022 Outlook
It is based on the current 2022 futures curves and the rest of the year’s average hot-rolled coil steel index price of $925. When the index price was around $1,600 in 2021, the Company’s average selling price was $1,187.
Conclusion
The numbers of the company depict some outstanding performance. The revenue and net income gained significantly. The company also announced a $1 billion share repurchase program. After a spectacular year in 2021, they are now confident in implementing shareholder-focused activities ahead of our original expectations because of our modest capital expenditure needs.
