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cleveland cliffs (NYSE: CLF) +1.4% Second-quarter adjusted earnings, reported after the bell on Monday, beat expectations and guided for lower capital spending for the full year.
The steelmaker’s second-quarter GAAP profit was $2 million, or less than $0.01 a share, compared with a GAAP profit of $347 million, or $0.68 a share, in the year-earlier period; total Margins fell to $145 million from $629 million in the previous quarter.
Second-quarter adjusted EBITDA fell to $323 million from $414 million in the first quarter, but was well above Bloomberg’s consensus estimate of $284 million.
Cleveland-Cliffs (CLF) lowered its full-year capital expenditure guidance to $650 million to $725 million from the previous range of $675 million to $725 million, and said its target for an annual steel unit cost reduction of about $30 per net ton remains unchanged.
Chief Executive Lourenco Goncalves said free flow cash flow of $362 million in the quarter showed the company was operating despite unfavorable business conditions, including “suboptimal” demand and weak steel pricing. Still capable of continuing to perform.
Earlier Monday, Cleveland-Cliffs (CLF) announced plans to open a new distribution transformer plant in West Virginia, spending $150 million on the site of a tinplate plant that the company closed in February. distribution transformer factory, on the grounds that it cannot compete with foreign imported products.
