Cleveland-Cliffs Inc. (NYSE: CLF) today reported
full-year and fourth-quarter results for the period ended December
31, 2023.
Full-Year Highlights
- Revenues of $22.0 billion
- Record steel shipments of 16.4 million net tons, including
record automotive shipments
- Cash flow from operations of $2.3 billion
- Free cash flow of $1.6 billion3, including approximately $500
million in the fourth quarter of 2023
- Year-end net debt of $2.9 billion4
- Net pension and OPEB liabilities reduced to $586 million, a
$3.6 billion reduction since 2020
Full-Year Consolidated Results
Full-year 2023 consolidated revenues were $22.0 billion,
compared to the prior year's consolidated revenues of $23.0
billion.
As previously foreshadowed in Cliffs' 2022 10-K, full-year
results included a goodwill impairment charge totaling $125
million, related to the Tooling & Stamping business within the
Other Businesses segment, primarily driven by revised investment
plans and higher discount rates. For the full year 2023, the
Company generated GAAP net income of $450 million, or $0.78 per
diluted share, with adjusted net income2 of $545 million and
adjusted EPS2 of $1.07 per diluted share. This compares to 2022 net
income of $1.4 billion, or $2.55 per diluted share, with adjusted
net income2 of $1.4 billion or $2.74 per diluted share. For the
full year 2023, Adjusted EBITDA1 was $1.9 billion, compared to $3.2
billion in 2022. The reduction was primarily driven by lower steel
index pricing in 2023 compared to 2022, partially offset by higher
sales volumes and lower operating costs.
In 2023, the Company recorded cash flows from operations of $2.3
billion and had capital expenditures of $646 million, equating to
free cash flow of $1.6 billion3. During 2023, the Company reduced
its net debt3 by $1.3 billion, using the majority of its free cash
flow for this purpose.
Fourth-Quarter Consolidated Results
Fourth-quarter 2023 consolidated revenues were $5.1 billion,
compared to prior-year fourth-quarter consolidated revenues of $5.0
billion.
For the fourth quarter of 2023, the Company recorded a GAAP net
loss of $139 million, or $0.31 per diluted share, with an adjusted
net loss2 of $25 million or $0.05 per diluted share. In the
prior-year fourth quarter, the Company recorded a net loss of $204
million, or $0.41, with an adjusted net loss2 of $208 million or
$0.40 per diluted share.
In the fourth quarter of 2023, the Company recorded cash flows
from operations of $652 million and had capital expenditures of
$165 million, equating to free cash flow of $487 million3. Net
debt4 was reduced by approximately $500 million during the
quarter.
Fourth-quarter 2023 Adjusted EBITDA1 was $279 million, compared
to $123 million in the fourth quarter of 2022.
Lourenco Goncalves, Cliffs’ Chairman, President and CEO said:
“2023 was another great year for Cleveland-Cliffs, in which we
accomplished several goals in commercial, operations, finance and
human resources. Steel demand remained healthy throughout the
entire year, with our most important market – the automotive sector
– performing well. Even with the UAW labor strike late in Q3 and
into Q4, automotive steel demand remained consistently strong, as
we anticipated. After it was clear that the strike was not creating
any real issues in the marketplace, non-automotive clients
de-stocking their inventories betting on lower steel prices were
compelled to buy steel at higher prices.”
Mr. Goncalves added: “Our 2023 total steel shipments of 16.4
million tons set a record since we became a steel company in 2020.
We now have four consecutive quarters with steel shipments above 4
million tons. We generated robust free cash flow of more than $1.6
billion and primarily used it to continue to pay down debt, while
also repurchasing more than 10 million shares at an average price
of $14.68 per share. Our net debt of $2.9 billion at the end of
2023 is below our publicly stated target of $3.0 billion, and our
liquidity is now at an all-time high of $4.5 billion. We ended 2023
with a zero balance on our ABL, as planned. Going forward, and
assuming a fair scrap marketplace -- free from artificial, provoked
and hard-to-explain moves -- with scrap demand growing and scrap
supply shrinking, there is no good reason for scrap prices to go
down. If true supply and demand for scrap in the U.S. prevails,
there is no good reason for HRC prices to go below $1,000 per net
ton."
Mr. Goncalves continued: “Another very important highlight of
2023 at Cleveland-Cliffs was our success in significantly reducing
our unit costs. We expect steel unit costs to further decrease $30
per ton in 2024. Together with expected strong shipments in 2024,
we should continue to generate healthy free cash flow throughout
the year. With our net debt target achieved and our shares still
undervalued, we can now put a stronger focus on aggressive share
buybacks.”
Mr. Goncalves concluded: “Our position as an American leader in
the steel industry has never been stronger, and that is
particularly relevant in turbulent periods for the world, like the
one we are living through right now. We remain committed to all
stakeholders of Cleveland-Cliffs, and that includes our union
represented and non-union workforce, investors, customers,
suppliers, communities and the United States of America. Our
relationship with each and every one of these stakeholders is
incorporated into every decision we make as a company.
Cleveland-Cliffs is proud of being American owned, American
operated, and a reliable foundation of American values.”
Steelmaking Segment Results
Three Months Ended
December 31,
Year Ended
December 31,
Three Months
Ended
2023
2022
2023
2022
Sept. 30,
2023
External Sales
Volumes
Steel Products (net tons)
4,039
3,838
16,432
14,751
4,106
Selling Price -
Per Net Ton
Average net selling price per net ton of
steel products
$
1,093
$
1,156
$
1,171
$
1,360
$
1,203
Operating Results
- In Millions
Revenues
$
4,954
$
4,902
$
21,331
$
22,383
$
5,443
Cost of goods sold
(4,798
)
(4,966
)
(19,979
)
(19,914
)
(4,970
)
Gross margin
$
156
$
(64
)
$
1,352
$
2,469
$
473
Full-year 2023 steel product volume of 16.4 million net tons
consisted of 36% hot-rolled, 29% coated, 15% cold-rolled, 5% plate,
4% stainless and electrical, and 11% other, including slabs and
rail. Fourth-quarter 2023 steel product volume of 4.0 million net
tons consisted of 36% hot-rolled, 28% coated, 15% cold-rolled, 5%
plate, 4% stainless and electrical, and 12% other, including slabs
and rail.
Full-year 2023 Steelmaking revenues of $21.3 billion included
approximately $7.4 billion, or 35%, of sales to direct automotive
customers; $5.6 billion, or 26%, of sales to the infrastructure and
manufacturing market; $5.3 billion, or 25%, of sales to the
distributors and converters market; and $2.9 billion, or 14%, of
sales to steel producers. Fourth-quarter 2023 Steelmaking revenues
of $5.0 billion included approximately $1.6 billion, or 33%, of
sales to direct automotive customers; $1.3 billion, or 26%, of
sales to the distributors and converters market; $1.3 billion, or
26%, of sales to the infrastructure and manufacturing market; and
$715 million, or 14%, of sales to steel producers.
Liquidity and Cash Flow
During the fourth quarter of 2023, the outstanding balance of
the Company's ABL Facility was eliminated, a reduction of $325
million during the quarter. The ABL was fully undrawn as of
December 31, 2023. As of December 31, 2023, the Company's net debt4
was $2.9 billion, down from $3.4 billion in the third quarter of
2023.
The Company ended 2023 with record liquidity of $4.5
billion.
Outlook
The Company put forth the following expectations for the
full-year 2024:
- Steel shipment volumes of 16.5 million net tons, compared to
16.4 million net tons in 2023;
- Steel unit cost reductions of approximately $30 per net ton,
corresponding to an approximate $500 million Adjusted EBITDA
benefit compared to 2023; and
- Capital expenditures of $675 to $725 million.
The Company expects its Adjusted EBITDA performance in the first
quarter of 2024 to meaningfully exceed its Adjusted EBITDA
performance in the fourth quarter of 2023.
Conference Call Information
Cleveland-Cliffs Inc. will host a conference call on January 30,
2024, at 8:30 a.m. ET. The call will be broadcast live and archived
on Cliffs' website: www.clevelandcliffs.com
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in
North America. Founded in 1847 as a mine operator, Cliffs also is
the largest manufacturer of iron ore pellets in North America. The
Company is vertically integrated from mined raw materials, direct
reduced iron, and ferrous scrap to primary steelmaking and
downstream finishing, stamping, tooling, and tubing.
Cleveland-Cliffs is the largest supplier of steel to the automotive
industry in North America and serves a diverse range of other
markets due to its comprehensive offering of flat-rolled steel
products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs
employs approximately 28,000 people across its operations in the
United States and Canada.
Forward-Looking Statements
This release contains statements that constitute
"forward-looking statements" within the meaning of the federal
securities laws. All statements other than historical facts,
including, without limitation, statements regarding our current
expectations, estimates and projections about our industry or our
businesses, are forward-looking statements. We caution investors
that any forward-looking statements are subject to risks and
uncertainties that may cause actual results and future trends to
differ materially from those matters expressed in or implied by
such forward-looking statements. Investors are cautioned not to
place undue reliance on forward-looking statements. Among the risks
and uncertainties that could cause actual results to differ from
those described in forward-looking statements are the following:
continued volatility of steel, iron ore and scrap metal market
prices, which directly and indirectly impact the prices of the
products that we sell to our customers; uncertainties associated
with the highly competitive and cyclical steel industry and our
reliance on the demand for steel from the automotive industry;
potential weaknesses and uncertainties in global economic
conditions, excess global steelmaking capacity, oversupply of iron
ore, prevalence of steel imports and reduced market demand; severe
financial hardship, bankruptcy, temporary or permanent shutdowns or
operational challenges of one or more of our major customers, key
suppliers or contractors, which, among other adverse effects, could
disrupt our operations or lead to reduced demand for our products,
increased difficulty collecting receivables, and customers and/or
suppliers asserting force majeure or other reasons for not
performing their contractual obligations to us; risks related to
U.S. government actions with respect to Section 232 of the Trade
Expansion Act of 1962 (as amended by the Trade Act of 1974), the
United States-Mexico-Canada Agreement and/or other trade
agreements, tariffs, treaties or policies, as well as the
uncertainty of obtaining and maintaining effective antidumping and
countervailing duty orders to counteract the harmful effects of
unfairly traded imports; impacts of existing and increasing
governmental regulation, including potential environmental
regulations relating to climate change and carbon emissions, and
related costs and liabilities, including failure to receive or
maintain required operating and environmental permits, approvals,
modifications or other authorizations of, or from, any governmental
or regulatory authority and costs related to implementing
improvements to ensure compliance with regulatory changes,
including potential financial assurance requirements, and
reclamation and remediation obligations; potential impacts to the
environment or exposure to hazardous substances resulting from our
operations; our ability to maintain adequate liquidity, our level
of indebtedness and the availability of capital could limit our
financial flexibility and cash flow necessary to fund working
capital, planned capital expenditures, acquisitions, and other
general corporate purposes or ongoing needs of our business, or to
repurchase our common shares; our ability to reduce our
indebtedness or return capital to shareholders within the currently
expected timeframes or at all; adverse changes in credit ratings,
interest rates, foreign currency rates and tax laws, including
adverse impacts as a result of the Inflation Reduction Act; the
outcome of, and costs incurred in connection with, lawsuits,
claims, arbitrations or governmental proceedings relating to
commercial and business disputes, antitrust claims, environmental
matters, government investigations, occupational or personal injury
claims, property-related matters, labor and employment matters, or
suits involving legacy operations and other matters; supply chain
disruptions or changes in the cost, quality or availability of
energy sources, including electricity, natural gas and diesel fuel,
critical raw materials and supplies, including iron ore, industrial
gases, graphite electrodes, scrap metal, chrome, zinc, coke and
metallurgical coal, and critical manufacturing equipment and spare
parts; problems or disruptions associated with transporting
products to our customers, moving manufacturing inputs or products
internally among our facilities, or suppliers transporting raw
materials to us; the risk that the cost or time to implement a
strategic or sustaining capital project may prove to be greater
than originally anticipated; our ability to consummate any public
or private acquisition transactions and to realize any or all of
the anticipated benefits or estimated future synergies, as well as
to successfully integrate any acquired businesses into our existing
businesses; uncertainties associated with natural or human-caused
disasters, adverse weather conditions, unanticipated geological
conditions, critical equipment failures, infectious disease
outbreaks, tailings dam failures and other unexpected events;
cybersecurity incidents relating to, disruptions in, or failures
of, information technology systems that are managed by us or third
parties that host or have access to our data or systems, including
the loss, theft or corruption of sensitive or essential business or
personal information and the inability to access or control
systems; liabilities and costs arising in connection with any
business decisions to temporarily or indefinitely idle or
permanently close an operating facility or mine, which could
adversely impact the carrying value of associated assets and give
rise to impairment charges or closure and reclamation obligations,
as well as uncertainties associated with restarting any previously
idled operating facility or mine; our level of self-insurance and
our ability to obtain sufficient third-party insurance to
adequately cover potential adverse events and business risks;
uncertainties associated with our ability to meet customers’ and
suppliers’ decarbonization goals and reduce our greenhouse gas
emissions in alignment with our own announced targets; challenges
to maintaining our social license to operate with our stakeholders,
including the impacts of our operations on local communities,
reputational impacts of operating in a carbon-intensive industry
that produces greenhouse gas emissions, and our ability to foster a
consistent operational and safety track record; our actual economic
mineral reserves or reductions in current mineral reserve
estimates, and any title defect or loss of any lease, license,
easement or other possessory interest for any mining property; our
ability to maintain satisfactory labor relations with unions and
employees; unanticipated or higher costs associated with pension
and OPEB obligations resulting from changes in the value of plan
assets or contribution increases required for unfunded obligations;
uncertain availability or cost of skilled workers to fill critical
operational positions and potential labor shortages caused by
experienced employee attrition or otherwise, as well as our ability
to attract, hire, develop and retain key personnel; the amount and
timing of any repurchases of our common shares; and potential
significant deficiencies or material weaknesses in our internal
control over financial reporting.
For additional factors affecting the business of Cliffs, refer
to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K
for the year ended December 31, 2022, and other filings with the
SEC.
CLEVELAND-CLIFFS INC. AND
SUBSIDIARIES
STATEMENTS OF UNAUDITED
CONDENSED CONSOLIDATED OPERATIONS
Three Months Ended
December 31,
Year Ended
December 31,
Three Months
Ended
(In Millions, Except Per Share
Amounts)
2023
2022
2023
2022
Sept. 30,
2023
Revenues
$
5,112
$
5,044
$
21,996
$
22,989
$
5,605
Operating costs:
Cost of goods sold
(4,944
)
(5,104
)
(20,605
)
(20,471
)
(5,125
)
Selling, general and administrative
expenses
(162
)
(116
)
(577
)
(465
)
(139
)
Acquisition-related costs
(7
)
—
(12
)
(4
)
(5
)
Goodwill impairment
(125
)
—
(125
)
—
—
Miscellaneous – net
26
(6
)
—
(110
)
(11
)
Total operating costs
(5,212
)
(5,226
)
(21,319
)
(21,050
)
(5,280
)
Operating income (loss)
(100
)
(182
)
677
1,939
325
Other income (expense):
Interest expense, net
(63
)
(71
)
(289
)
(276
)
(70
)
Gain (loss) on extinguishment of debt
—
1
—
(75
)
—
Net periodic benefit credits other than
service cost component
54
64
204
212
50
Other non-operating income (loss)
1
2
5
(4
)
(2
)
Total other expense
(8
)
(4
)
(80
)
(143
)
(22
)
Income (loss) from continuing
operations before income taxes
(108
)
(186
)
597
1,796
303
Income tax expense
(30
)
(19
)
(148
)
(423
)
(29
)
Income (loss) from continuing
operations
(138
)
(205
)
449
1,373
274
Income (loss) from discontinued
operations, net of tax
(1
)
1
1
3
1
Net income (loss)
(139
)
(204
)
450
1,376
275
Net income attributable to noncontrolling
interests
(16
)
(10
)
(51
)
(41
)
(11
)
Net income (loss) attributable to
Cliffs shareholders
$
(155
)
$
(214
)
$
399
$
1,335
$
264
Earnings (loss) per common share
attributable to Cliffs shareholders - basic
Continuing operations
$
(0.31
)
$
(0.41
)
$
0.78
$
2.57
$
0.52
Discontinued operations
—
—
—
—
—
$
(0.31
)
$
(0.41
)
$
0.78
$
2.57
$
0.52
Earnings (loss) per common share
attributable to Cliffs shareholders - diluted
Continuing operations
$
(0.31
)
$
(0.41
)
$
0.78
$
2.55
$
0.52
Discontinued operations
—
—
—
—
—
$
(0.31
)
$
(0.41
)
$
0.78
$
2.55
$
0.52
CLEVELAND-CLIFFS INC. AND
SUBSIDIARIES
STATEMENTS OF UNAUDITED
CONDENSED CONSOLIDATED FINANCIAL POSITION
December 31,
(In millions)
2023
2022
ASSETS
Current assets:
Cash and cash equivalents
$
198
$
26
Accounts receivable, net
1,840
1,960
Inventories
4,460
5,130
Other current assets
138
306
Total current assets
6,636
7,422
Non-current assets:
Property, plant and equipment, net
8,895
9,070
Goodwill
1,005
1,130
Pension and OPEB assets
329
356
Other non-current assets
672
777
TOTAL ASSETS
$
17,537
$
18,755
LIABILITIES
Current liabilities:
Accounts payable
$
2,099
$
2,186
Accrued employment costs
511
429
Accrued expenses
380
383
Other current liabilities
518
551
Total current liabilities
3,508
3,549
Non-current liabilities:
Long-term debt
3,137
4,249
Pension and OPEB liabilities
821
1,058
Deferred income taxes
639
590
Other non-current liabilities
1,310
1,267
TOTAL LIABILITIES
9,415
10,713
TOTAL EQUITY
8,122
8,042
TOTAL LIABILITIES AND EQUITY
$
17,537
$
18,755
CLEVELAND-CLIFFS INC. AND
SUBSIDIARIES
STATEMENTS OF UNAUDITED
CONDENSED CONSOLIDATED CASH FLOWS
Three Months Ended
December 31,
Year Ended
December 31,
(In millions)
2023
2022
2023
2022
OPERATING ACTIVITIES
Net income (loss)
$
(139
)
$
(204
)
$
450
$
1,376
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation, depletion and
amortization
235
246
973
1,034
Deferred income taxes
(18
)
(120
)
114
90
Pension and OPEB credits
(44
)
(51
)
(163
)
(132
)
Goodwill impairment
125
—
125
—
Loss (gain) on extinguishment of debt
—
(1
)
—
75
Other
(45
)
47
76
151
Changes in operating assets and
liabilities:
Accounts receivable, net
284
342
120
197
Inventories
132
412
670
64
Income taxes
106
87
122
(22
)
Pension and OPEB payments and
contributions
(10
)
(30
)
(94
)
(204
)
Payables, accrued employment and accrued
expenses
99
(136
)
4
(70
)
Other, net
(73
)
(103
)
(130
)
(136
)
Net cash provided by operating
activities
652
489
2,267
2,423
INVESTING ACTIVITIES
Purchase of property, plant and
equipment
(165
)
(227
)
(646
)
(943
)
Acquisition of FPT, net of cash
acquired
—
—
—
(31
)
Other investing activities
44
18
55
38
Net cash used by investing activities
(121
)
(209
)
(591
)
(936
)
FINANCING ACTIVITIES
Repurchase of common shares
—
(30
)
(152
)
(240
)
Proceeds from issuance of debt
—
—
750
—
Repayments of senior notes
—
(3
)
—
(1,358
)
Borrowings under credit facilities
—
1,099
3,004
5,749
Repayments under credit facilities
(325
)
(1,325
)
(4,868
)
(5,494
)
Debt issuance costs
—
—
(34
)
—
Other financing activities
(39
)
(51
)
(204
)
(166
)
Net cash used by financing activities
(364
)
(310
)
(1,504
)
(1,509
)
Net increase (decrease) in cash and cash
equivalents
167
(30
)
172
(22
)
Cash and cash equivalents at beginning of
period
31
56
26
48
Cash and cash equivalents at end of
period
$
198
$
26
$
198
$
26
1 CLEVELAND-CLIFFS INC. AND
SUBSIDIARIES
NON-GAAP RECONCILIATION -
EBITDA AND ADJUSTED EBITDA
In addition to the consolidated
financial statements presented in accordance with U.S. GAAP, the
Company has presented EBITDA and Adjusted EBITDA on a consolidated
basis. These measures are used by management, investors, lenders
and other external users of our financial statements to assess our
operating performance and to compare operating performance to other
companies in the steel industry, showing results exclusive of
non-cash and/or non-recurring items. The presentation of these
measures is not intended to be considered in isolation from, as a
substitute for, or as superior to, the financial information
prepared and presented in accordance with U.S. GAAP. The
presentation of these measures may be different from non-GAAP
financial measures used by other companies. A reconciliation of
these consolidated measures to their most directly comparable GAAP
measures is provided in the table below.
Three Months Ended
December 31,
Year Ended
December 31,
Three Months
Ended
(In millions)
2023
2022
2023
2022
Sept. 30,
2023
Net income (loss)
$
(139
)
$
(204
)
$
450
$
1,376
$
275
Less:
Interest expense, net
(63
)
(71
)
(289
)
(276
)
(70
)
Income tax expense
(30
)
(19
)
(148
)
(423
)
(29
)
Depreciation, depletion and
amortization
(235
)
(246
)
(973
)
(1,034
)
(249
)
Total EBITDA
$
189
$
132
$
1,860
$
3,109
$
623
Less:
EBITDA from noncontrolling interests
$
23
$
17
$
83
$
74
$
20
Gain (loss) on extinguishment of debt
—
1
—
(75
)
—
Acquisition-related expenses and
adjustments
(7
)
—
(12
)
(1
)
(3
)
Goodwill impairment
(125
)
—
(125
)
—
—
Asset impairment
—
—
—
(29
)
—
Non-cash gain on sale of business
28
—
28
—
—
Other, net
(9
)
(9
)
(25
)
(29
)
(8
)
Total Adjusted EBITDA1
$
279
$
123
$
1,911
$
3,169
$
614
EBITDA of noncontrolling interests
includes the following:
Net income attributable to noncontrolling
interests
$
16
$
10
$
51
$
41
$
11
Depreciation, depletion and
amortization
7
7
32
33
9
EBITDA of noncontrolling interests
$
23
$
17
$
83
$
74
$
20
2 CLEVELAND-CLIFFS INC. AND
SUBSIDIARIES
ADJUSTED EARNINGS PER SHARE
RECONCILIATION
In addition to the consolidated financial
statements presented in accordance with U.S. GAAP, the Company has
presented Adjusted net income (loss) attributable to Cliffs
shareholders and Adjusted earnings (loss) per common share
attributable to Cliffs shareholders - diluted. These measures are
used by management, investors, lenders and other external users of
our financial statements to assess our operating performance and to
compare operating performance to other companies in the steel
industry, showing results exclusive of non-cash and/or
non-recurring items. The presentation of these measures is not
intended to be considered in isolation from, as a substitute for,
or as superior to, the financial information prepared and presented
in accordance with U.S. GAAP. The presentation of these measures
may be different from non-GAAP financial measures used by other
companies. A reconciliation of these consolidated measures to their
most directly comparable GAAP measures is provided in the table
below.
Three Months Ended
December 31,
Year Ended
December 31,
Three Months
Ended
(In millions)
2023
2022
2023
2022
Sept. 30,
2023
Net income (loss) attributable to Cliffs
shareholders
$
(155
)
$
(214
)
$
399
$
1,335
$
264
Adjustments:
Gain (loss) on extinguishment of debt
—
1
—
(75
)
—
Acquisition-related expenses and
adjustments
(7
)
—
(12
)
(1
)
(3
)
Goodwill impairment1
(125
)
—
(125
)
—
—
Tax valuation allowance
(14
)
—
(14
)
—
—
Asset impairment
—
—
—
(29
)
—
Non-cash gain on sale of business
28
—
28
—
—
Other, net
(9
)
(9
)
(25
)
(29
)
(8
)
Income tax effect1
(3
)
2
2
32
3
Adjusted net income (loss) attributable to
Cliffs shareholders
$
(25
)
$
(208
)
$
545
$
1,437
$
272
Earnings (loss) per common share
attributable to Cliffs shareholders - diluted
$
(0.31
)
$
(0.41
)
$
0.78
$
2.55
$
0.52
Adjusted earnings (loss) per common share
attributable to Cliffs shareholders - diluted
$
(0.05
)
$
(0.40
)
$
1.07
$
2.74
$
0.53
1Goodwill impairment is non-deductible for
income tax purposes.
3 CLEVELAND-CLIFFS INC. AND
SUBSIDIARIES
NON-GAAP RECONCILIATION - FREE
CASH FLOW
Free cash flow is a non-GAAP measure
defined as net cash provided by operating activities less purchase
of property, plant and equipment. Management believes it is an
important measure to assess the cash generation available to
service debt, strategic initiatives or other financing activities.
The following table provides a reconciliation of operating cash
flows to free cash flows:
Three Months Ended
December 31,
Year Ended
December 31,
(In millions)
2023
2022
2023
2022
Net cash provided by operating
activities
$
652
$
489
$
2,267
$
2,423
Purchase of property, plant and
equipment
(165
)
(227
)
(646
)
(943
)
Free cash flow
$
487
$
262
$
1,621
$
1,480
4 CLEVELAND-CLIFFS INC. AND
SUBSIDIARIES
NON-GAAP RECONCILIATION - NET
DEBT
Net debt is a non-GAAP financial measure
that management uses in evaluating financial position. Net debt is
defined as long-term debt less cash and cash equivalents.
Management believes net debt is an important measure of the
Company’s financial position due to the amount of cash and cash
equivalents on hand. The presentation of this measure is not
intended to be considered in isolation from, as a substitute for,
or as superior to, the financial information prepared and presented
in accordance with U.S. GAAP. The presentation of this measure may
be different from non-GAAP financial measures used by other
companies. A reconciliation of this measure to its most directly
comparable GAAP measure is provided in the table below:
(In millions)
December 31,
2023
September 30,
2023
December 31,
2022
Long-term debt
$
3,137
$
3,458
$
4,249
Less: Cash and cash equivalents
198
31
26
Net debt
$
2,939
$
3,427
$
4,223
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240129882706/en/
MEDIA CONTACT: Patricia Persico Senior Director,
Corporate Communications (216) 694-5316
INVESTOR CONTACT: James Kerr Director, Investor Relations
(216) 694-7719
Cleveland Cliffs (NYSE:CLF)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Cleveland Cliffs (NYSE:CLF)
Historical Stock Chart
Von Mai 2023 bis Mai 2024