Cleveland-Cliffs Inc.’s CLF full-owned subsidiary, AK Steel, is increasing the base prices for all carbon flat-rolled steel products by a minimum $40 per ton. The company stated that the price hike is effective immediately for new orders in North America.
Cleveland-Cliffs reported a net loss of $48.6 million or 18 cents in first-quarter 2020, wider than a loss of $22.1 million or 8 cents in the prior-year quarter. Barring one-time items, adjusted earnings came in at 4 cents per share, which beat the Zacks Consensus Estimate of a loss of 18 cents.
Revenues surged 128.7% year over year to $359.1 million. However, the figure trailed the Zacks Consensus Estimate of $367.8 million.
Cleveland-Cliffs’ shares have lost 49.4% in the past year compared with the industry’s 0.7% decline.
On the first-quarter 2020 earnings call, Cleveland-Cliffs stated that if the automotive manufacturers continue to restart production as they have indicated to the company, its operations will normalize throughout the rest of the second quarter.
Management plans to restart hot briquetted iron (HBI) construction as quickly as possible. The company noted that the coronavirus pandemic and related production stoppages have created a significant scarcity of scrap in the marketplace. This has further increased demand and value of its HBI.
Zacks Rank & Key Picks
Cleveland-Cliffs currently carries a Zacks Rank #3 (Hold).
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