CLEVELAND - Cleveland-Cliffs Inc. (NYSE: NYSE:CLF), a major North American steel producer, reported a mixed financial performance for the first quarter of 2024, with revenues slightly increasing to $5.2 billion from $5.1 billion in the previous quarter.
Despite the revenue growth, the company experienced a GAAP net loss of $53 million. Still, when adjusted for certain charges, the net income stood at $87 million, or $0.18 per diluted share.
The company's steel shipments totaled 3.9 million net tons during the quarter. Adjusted EBITDA saw a significant year-over-year improvement of 70%, reaching $414 million, and a quarter-over-quarter increase of 48%.
Cleveland-Cliffs also highlighted its liquidity position, reporting $4.0 billion as of March 31, 2024. In a notable move, the company repurchased 30.4 million shares, representing 6% of its total outstanding shares, under its $1 billion share repurchase program. Subsequently, the Board of Directors authorized a new $1.5 billion share repurchase program, underlining a strategic focus on capital return to shareholders.
Lourenco Goncalves, Chairman, President, and CEO of Cleveland-Cliffs, commented on the first-quarter results, attributing the company's performance to the resilience of automotive production in the United States.
He also emphasized the company's focus on returning capital to shareholders and mentioned the federal grants received for decarbonization efforts, which position Cleveland-Cliffs as a significant player in green steel production.
Looking ahead, Cleveland-Cliffs maintained its full-year 2024 guidance, including steel shipment volumes of 16.5 million net tons and a reduction in steel unit costs that is expected to enhance Adjusted EBITDA by approximately $500 million compared to 2023. Capital expenditures are projected to be between $675 and $725 million.
The company's next earnings call is scheduled for April 23, 2024, at 8:30 a.m. ET. Cleveland-Cliffs has a long-standing history, founded in 1847, and remains a key supplier to the automotive industry, employing approximately 28,000 people across its operations.
This article is based on a press release statement from Cleveland-Cliffs Inc.
InvestingPro Insights
Cleveland-Cliffs Inc. (NYSE: CLF) has demonstrated a strong commitment to shareholder returns, as evidenced by its aggressive share buyback strategy. The company's management repurchased 30.4 million shares, aligning with the InvestingPro Tip that highlights management's focus on buying back shares.
This is a signal of confidence in the company's value and future performance, and is also reflected in the authorization of a new $1.5 billion share repurchase program.
Despite the GAAP net loss reported for Q1 2024, Cleveland-Cliffs maintains a robust liquidity position and has shown resilience in its financials. The company's valuation implies a strong free cash flow yield, which is a crucial metric for investors looking for companies with the potential to generate cash and sustain dividends or buybacks.
This aligns with another InvestingPro Tip that points to a high shareholder yield, further reinforcing the company's attractiveness to investors seeking income-generating assets.
From a data perspective, Cleveland-Cliffs has a market capitalization of approximately $9.95 billion, indicating its significant presence in the Metals & Mining industry. The P/E ratio stands at 22.1 when adjusted for the last twelve months as of Q4 2023, offering an insight into the company's earnings relative to its share price.
Moreover, the company has achieved a strong return over the last three months, with a price total return of 15.1%, which is indicative of the market's positive reception to its strategic moves and operational performance.
For those interested in deeper analysis and more tips, InvestingPro offers additional insights on Cleveland-Cliffs Inc. There are 13 InvestingPro Tips available, which can provide further guidance on investment decisions. To access these tips and gain a more comprehensive understanding of CLF's financial health and market position, visit https://www.investing.com/pro/CLF. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of financial data and expert analysis.
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