Q2 2024 Cleveland-Cliffs Inc Earnings Call Transcript
Key Points
- Generated strong cash flow of $362 million in Q2, driven by higher shipments and lower costs.
- Reduced net debt by $237 million, bringing the net debt balance down to $3.4 billion.
- Successfully reduced share count by 7.5 million shares, enhancing shareholder value.
- Achieved a $50 million reduction in SG&A expenses compared to the same period last year.
- Continued progress on value-enhancing projects, including partnerships with the US Department of Energy.
- Lower-than-expected realized pricing in Q2, leading to a $50 decline in average selling price quarter over quarter.
- Weak demand from service centers and other buyers of commercial grades, affecting sales mix.
- Continued challenges in the steel pricing environment, impacting overall profitability.
- Pending resolution of trade issues with Mexico, which continues to be a major problem in the marketplace.
- Significant idle expenses related to the Weirton plant, totaling $217 million year-to-date.
Good morning, ladies and gentlemen. My name is Darryl, and I am your conference facilitator today. I would like to welcome everyone to Cleveland-Cliffs second-quarter 2024 earnings conference call. (Operator Instructions) The Company reminds you that certain comments made on today's call will include predictive statements that are intended to be made as forward-looking within the Safe Harbor protections of the Private Securities Litigation Reform Act of 1995.
Although the Company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially. Important factors that could cause results to differ materially are set forth in reports on Forms 10-K and 10-Q and news releases filed with the SEC, which are available on the company's website. Today's conference call is also available and being broadcast on Cleveland-Cliffs.com.
At the conclusion of the call. It will be archived on the website and available for replay. The company will also discuss results excluding
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