Cleveland-Cliffs Full-Year Report 2023
Full-Year Financial Highlights
- Revenues of $23.0 billion, a new all-time record
- Net income of $1.4 billion
- Adjusted EBITDA1 of $3.2 billion
- Operating cash flow of $2.4 billion
- Combined debt and net pension/OPEB liabilities reduced by over $3 billion
CLEVELAND–(BUSINESS WIRE)– Cleveland-Cliffs Inc. (NYSE: CLF) today reported full-year and fourth-quarter results for the period ended December 31, 2022.
Full-Year Consolidated Results
Full-year 2022 consolidated revenues were $23.0 billion, compared to the prior year’s consolidated revenues of $20.4 billion.
For the full year 2022, the Company generated net income of $1.4 billion, or $2.55 per diluted share attributable to Cliffs shareholders. 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, Adjusted EBITDA 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.
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.
Lourenco Goncalves, Cliffs’ Chairman, President and CEO said: “The most important achievement of this newly configured Cleveland-Cliffs has been the successful renewals of our fixed price contracts for 2023, particularly for those with our automotive customers, breaking a historical paradigm that was so detrimental to the steel companies of the past. Even with flat-rolled prices falling over 60% from the peak in April, we were able to achieve price increases that average $115 per ton for 2023 compared to 2022 for our direct automotive business, our largest end market. This validates what we have been saying all along, that any model tying our automotive fixed prices to steel index prices no longer applies.”
