Cleveland-Cliffs announces record $23 billion in revenues in 2022

MIDDLETOWN — Cleveland-Cliffs, which owns and operates the Middletown steel company, recorded revenues of $23 billion, an all-time record, last year, the company announced Tuesday.

The company reported full-year and fourth-quarter results for the period ended Dec. 31, 2022.

Consolidated revenues in 2021 were $20.4 billion, according to Lourenco Goncalves, chairman, president and CEO of Cliffs.

For the full year 2022, the company generated net income of $1.4 billion, or $2.55 per diluted share attributable to Cliffs shareholders, he said. This compares to 2021 net income of $3.0 billion, or $5.36 per diluted share attributable to Cliffs shareholders.

For the full year 2022, the Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $3.2 billion, compared to $5.3 billion in 2021. The reduction was primarily driven by higher operating costs and lower sales volumes in 2022 compared to 2021, partially offset by higher fixed contract pricing, according to Goncalves.

In 2022, the company recorded cash flows from operations of $2.4 billion and had capital expenditures of $943 million, equating to free cash flow of $1.5 billion.

In addition, the company reduced its outstanding debt by $1.1 billion during 2022, using the majority of its free cash flow.

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Fourth-quarter 2022 consolidated revenues were $5.0 billion, compared to 2021 fourth-quarter consolidated revenues of $5.3 billion.

For the fourth quarter of 2022, Cleveland-Cliffs recorded a net loss of $204 million, corresponding to a loss of $0.41 per diluted share attributable to Cliffs shareholders. This included the following charges totaling $57 million, or $0.11 per diluted share:

  • charges of $49 million, or $0.09 per diluted share, related to state tax provision reconciliations; and
  • net charges of $8 million, or $0.02 per diluted share, for loss on disposals of assets, partially offset by gains on extinguishment of debt.

Goncalves said through the synergies the company envisioned in 2020 in which it acquired two steel companies, it reduced combined debt and post-retirement liabilities by more than $3 billion. Even in the face of falling steel prices in the broad market, the company achieved substantially higher selling prices, he said.

Cleveland-Cliffs purchased AK Steel for $1.1 billion in 2020. After that the Cleveland-based company bought the U.S. assets of ArcelorMittal for $1.4 billion, making it the largest flat-rolled steel producer in North America, officials said.

He said the company signed long-term labor agreements with more than half of its workforce, and completed major maintenance initiatives “setting us up for continued success going forward.”

Additionally, the company has the following expectations for the full-year 2023:

  • Steel shipment volumes of approximately 16 million net tons, compared to 14.8 million net tons in 2022;
  • Capital expenditures of $700 to $750 million, compared to $943 million in 2022;
  • Cash contributions related to pension and OPEB plans of approximately $100 million, compared to approximately $200 million in 2022; and
  • Federal cash tax refunds of approximately $140 million.

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