Main to remember
- Cleveland-Cliffs slowed down and reduces expenses after posting a broader than expected quarterly loss.
- The Aciérien said that the decision would have an impact on six facilities and his investment in a production site for Virginia-Western transformer.
- CEO Lourenco Goncalves explained that movements are designed to rationalize operations and improve efficiency.
The Cleveland-Cliffs (CLF) shares fell 17% on Thursday, one day after the SI Aciérique announced that it reduced production and capital expenses in order to improve operations.
The company said that it “will be entirely or partially inactive of six installations to optimize its footprint, to reposition itself far from loss of loss and release an excess working fund”. The measures should save more than $ 300 million a year, with additional saving in general costs and improving productivity in its other factories.
In addition, Cleveland-Cliffs will no longer invest in the development of a production of production of transformers in Weirton, W.VA., “due to changes in scope of the project partner who no longer meet the cliffs’ investment requirements”.
The CEO Lourenco Goncalves explained that the results of the company’s first quarter were injured by “non -essential assets and the delayed effect of the lower index at the end of 2024 and at the beginning of 2025”. Goncalves noted that the measures taken are aimed at rationalizing the company and improving efficiency.
Cleveland-Cliffs displays a wider loss than expected
During the quarter, Cleveland-Cliffs declared an adjusted net loss of $ 0.92, with revenues up 7% in annual shift to $ 4.63 billion. The analysts interviewed by Visible Alpha expected a net loss of $ 0.83 on a turnover of $ 4.62 billion.
Including today’s acid reductions, Cleveland-Cliffs’ actions have lost about a quarter of their value this year. In January, CNBC said the company joined Rival Nucor (naked) for a potential offer for US Steel (X), whose acquisition of $ 14.1 billion by Nippon Steel was blocked by President Joe Biden.
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