Cleveland-Cliffs Stock Down On Wider-than-expected Q4 Loss, Weak Revenues; Sees Rebound In FY25

(RTTNews) - Shares of Cleveland-Cliffs Inc. (CLF) were down around 5 percent in the extended trading on Monday after the steel producer reported a wider -than-expected loss in its fourth quarter with weak revenues.

Looking ahead, Lourenco Goncalves, Cliffs' Chairman, President and CEO stated that as of late February, the company is well on the way for a dramatic rebound in 2025.

Goncalves said, "Our results in 2024 were a consequence of the worst steel demand environment since 2010 (ex-COVID). .. for the first time, the number of cars sold in the United States that were produced abroad and imported into the United States surpassed the number of cars sold that were produced domestically. With this decline in domestic automotive production, and too much imported steel from abroad that drove unsustainably low steel prices, Cliffs was deeply impacted... This impact was particularly evident in the fourth quarter, which we expect to be the trough going forward. "

The company's net loss was $447 million or $0.92 per share, compared to loss of $155 million or $0.31 per share last year.

Adjusted loss was $332 million or $0.68 per share for the period. Analysts on average had expected the company to report loss of $0.67 per share. Analysts' estimates typically exclude special items.

For the fourth quarter, the company reported an Adjusted EBITDA loss of $81 million, compared to Adjusted EBITDA of $279 million a year ago.

The company's revenue for the period fell 15.4% to $4.325 billion from $5.112 billion last year.

On the NYSE, Cleveland-Cliffs shares had closed Monday's regular trading at $11.15, down 1.76%. In the after-hours trading, the shares lost 4.6 percent further to $10.64.

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