Cleveland-Cliffs Inc CLF shares are trading higher Tuesday morning after the company reported mixed second-quarter financial results. Here's a rundown of the report.
- Q2 Revenue: $5.98 billion beat estimates of $5.8 billion
- Q2 EPS: 69 cents missed estimates of 70 cents
Steel shipments reached 4.2 million net tons in the second quarter, driven by strong automotive shipments. Cash flow from operations totaled $887 million, while free cash flow came in at $756 million.
Cleveland-Cliffs ended the quarter with a total liquidity position of $3.8 billion. Net debt fell to $3.9 billion.
"This shift to a higher automotive mix led to even higher realized prices than we were expecting, ultimately driving our industry leading quarter-over-quarter EBITDA expansion," said Lourenco Goncalves, chairman, president and CEO of Cleveland-Cliffs.
"Looking forward, we are on pace for our best shipment year since becoming a steel company. Service center inventories are significantly lower than historical levels, creating support for a healthy second half of the year."
Cleveland-Cliffs said it anticipates another $40 per net ton reduction in steel unit costs in the third quarter and another $10 reduction in the fourth quarter.
Management is set to hold a conference call to discuss these results Tuesday at 8:30 a.m. ET.
CLF Price Action: Cleveland-Cliffs shares were up 6.28% at $17.55 at the time of publication, according to Benzinga Pro.
Photo: ludex2014 from Pixabay.
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