AK Steel owner reports record second-quarter results

Revenue was $5 billion compared to $1.1 billion in 2020, according to the company.

Cleveland-Cliffs Inc., formerly AK Steel, reported a record second quarter for the period ending June 30.

The company, which acquired Middletown-based AK Steel for $1.1 billon in 2020, on Thursday announced it set records for quarterly revenue, quarterly net income and quarterly adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization.

The revenue was $5 billion, net income was $795 million and the adjusted EBITDA was $1.4 billion, according to Lourenco Goncalves, chairman, president and CEO of Cliffs.

Last year’s second-quarter revenue was $1.1 billion, he said during a conference call.

In the prior-year second quarter, the company recorded a net loss of $108 million, or a loss of $0.31 per diluted share.

For the first six months of 2021, the company recorded revenues of $9.1 billion and net income of $852 million, or $1.48 per diluted share. In the first six months of 2020, the company recorded revenues of $1.5 billion and a net loss of $157 million, or a loss of $0.51 per diluted share.

In the second quarter last year, adjusted EBITDA was a loss of $82 million.

Goncalves said the numbers “unequivocally confirm” the company’s efficiency in operating the new footprint, resulting from the integration of the two major steel companies acquired in 2020 as a single and indivisible mining and steel company.

Besides AK Steel, Cliffs bought the U.S. assets of ArcelorMittal for $1.4 billion last year, making it the largest flat-rolled steel producer in North America, officials said.

“Our team has done a remarkable job in meeting the demand for steel we have been experiencing over the past six months, overcoming the impact of the automotive chip shortage as well as limited rail and truck availability,” he said.

Middletown’s Cleveland-Cliffs has about 2,400 employees and trails Cincinnati Financial Corporation and GE Aviation in West Chester as the largest private employers in Butler County. Union President Neil Douglas said Middletown has about 1,850 hourly union employees.

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