Cleveland-Cliffs Stock Is Falling: What's Going On?

Cleveland-Cliffs Inc CLF shares are trading lower Tuesday after the company reported worse-than-expected financial results.

Cleveland-Cliffs reported-third-quarter revenue of $5.7 billion, which was down from $6 billion year-over-year. The company's topline results came in below average analyst estimates of $5.82 billion, according to Benzinga Pro

Cleveland-Cliffs reported quarterly earnings of 29 cents per share, which missed average analyst estimates of 55 cents per share.

In conjunction with the company's newly ratified labor agreements with the United Steelworkers, Cleveland-Cliffs said it has remeasured its associated pension/OPEB plan assets and obligations. Pro forma pension/OPEB liabilities, net of assets, were reduced by $1.8 billion, or 63%, since the last remeasurement at the end of 2021.

"Our third quarter results were affected by the delayed inventory impact of higher input costs and maintenance activities from prior periods. Now, that all major projects have been concluded and production levels are back to normal, we expect costs to decline meaningfully, into Q4 and further into 2023," said Lourenco Goncalves, chairman, president and CEO of Cleveland-Cliffs.

Cleveland-Cliffs said reduced repair and maintenance costs, higher production volume and lower energy and raw material costs are expected to drive Steelmaking unit operating costs at least $80 per net ton lower in the fourth quarter.

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CLF Price Action: Cleveland-Cliffs has a 52-week high of $34.04 and a 52-week low of $12.90.

The stock was down 11.1% at $13.80 at time of publication.

Photo: tianya1223 from Pixabay.