Cleveland-Cliffs Reports Significant Financial Challenges in Q3 2024, Citing Reduced Demand in Automotive and Infrastructure Markets

Cleveland-Cliffs Inc. reported significant financial challenges in its third quarter of 2024, with total revenues declining to $4,569 million, down from $5,605 million in Q3 2023. For the nine months ending September 30, 2024, revenues also fell to $14,860 million from $16,884 million in the same period last year. The decrease in revenue is attributed primarily to reduced demand in the automotive and infrastructure markets, with automotive revenues dropping by 24% and infrastructure revenues by 8%.

The company's operating income for Q3 2024 was a loss of $259 million, compared to a profit of $325 million in Q3 2023. This trend continued for the nine-month period, where the operating loss reached $291 million, down from a profit of $777 million in the previous year. Net income for Q3 2024 was a loss of $230 million, contrasting sharply with a net income of $275 million in Q3 2023. For the nine months, net income was a loss of $274 million, compared to a profit of $589 million in the prior year.

Cleveland-Cliffs' total assets decreased to $16,796 million as of September 30, 2024, from $17,537 million at the end of 2023. Total liabilities increased to $9,701 million, up from $9,415 million, while total equity fell to $7,095 million from $8,122 million. Cash and cash equivalents also saw a significant decline, dropping to $39 million from $198 million at the end of 2023.

In terms of strategic developments, Cleveland-Cliffs completed the acquisition of Stelco on November 1, 2024, valued at approximately $3.2 billion. This acquisition is expected to enhance the company's integrated steel production capabilities and strengthen its cost position. The financing for this acquisition involved issuing $1.4 billion in senior notes and amending its $4.75 billion ABL Facility.

Additionally, the company announced the indefinite idling of its tinplate production plant in Weirton, West Virginia, incurring $212 million in charges related to this decision. The company anticipates nominal future charges primarily associated with employee-related costs.

Cleveland-Cliffs continues to focus on its automotive steel business, which remains a competitive strength, and is investing in new production capabilities, including a $150 million electrical distribution transformer plant in West Virginia, expected to be completed in 2026. The company is also committed to reducing greenhouse gas emissions, with new targets set for 2035 and a long-term goal of achieving near net-zero emissions by 2050.