Cleveland Cliffs Reports 2020 Earnings
US’s iron ore miner and steelmaker Cleveland Cliffs Inc has reported USD 81 million net loss and consolidated revenues of USD 5.4 billion. Cleveland Cliffs chairman, President & Chief Executive Officer Mr Lourenco Goncalves said “Without question, 2020 was the most transformational year in our company's 173 year history. We completed two seminal acquisitions, AK Steel and ArcelorMittal USA that transformed us from an iron ore miner into the largest flat rolled steelmaker in North America. We also completed our Toledo direct reduction plant, which began operations in the fourth quarter. We were able to accomplish all of this while navigating through the COVID-19 pandemic and taking action to preserve the health and safety of our workforce and our company for the long-term.”
2020 Consolidated Results
Consolidated revenues were USD 5.4 billion, compared to the prior year’s revenues of USD 2.0 billion.
Company recorded a net loss of USD 81 million, which included USD 186 million of acquisition related, amortization of inventory step-up and severance costs. This compares to 2019 net income of USD 293 million, which included USD 9 million of acquisition-related and severance costs.
Adjusted EBITDA was USD 353 million, compared to USD 525 million in 2019.
Regarding business outlook, Mr Goncalves said, “We expect the continuation of the favourable market environment we are in now, and an increasingly positive impact of the well-known lagged pricing mechanisms common in our steel sales. With the contribution of steel sales from Cleveland-Cliffs Steel LLC for a full quarter, we expect first-quarter 2021 steel product shipments of approximately 4 million net tons, and a significant improvement in first-quarter 2021 Adjusted EBITDA from the fourth quarter of 2020. Additionally positive, our second-quarter 2021 profitability should be enhanced even further by the impact of our initial sales of HBI to outside clients.”
Cleveland Cliffs Inc is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cleveland Cliff is also the largest producer of iron ore pellets in North America