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Why did CLF's Q4 earnings miss forecasts slightly?

4/9/2025 01:23pm

Cleveland-Cliffs' Q4 earnings missed forecasts slightly due to a combination of factors: 1. **Revenue Shortfall**: The company's total revenue for Q4 was $4.33 billion, which fell short of the expected $4.54 billion. This shortfall can be attributed to weaker-than-expected steel demand, particularly in the automotive sector, and ongoing challenges in the global steel market. 2. **Operational Changes and Impact on Earnings**: Cleveland-Cliffs implemented operational changes, including the temporary shutdown of its Dearborn steel mill and the reactivation of the Cleveland C6 blast furnace. These shifts were aimed at optimizing capacity and enhancing efficiency. However, they also had an immediate impact on earnings, as the idling of two iron ore operations affected approximately 1,200 employees and resulted in a larger-than-expected loss. 3. **Global Steel Market Conditions**: The global steel market is facing weak demand and oversupply, which has put downward pressure on steel prices. As a raw-material-heavy company, Cleveland-Cliffs is particularly affected by these conditions. Despite potential benefits from tariffs on imported steel, the current market environment posed significant challenges for the company's profitability. In summary, Cleveland-Cliffs' Q4 earnings miss can be attributed to a combination of revenue shortfall, operational changes and impact on earnings, and global steel market conditions. |code|Ticker|Name|Date|Revenue Surprise|Total Revenue|market_code| |---|---|---|---|---|---|---| |CLF|CLF.N|Cleveland-Cliffs|2024 Q1|-1.51E8|5.199E9|169| |CLF|CLF.N|Cleveland-Cliffs|2024 Q2|-1.08E8|5.092E9|169| |CLF|CLF.N|Cleveland-Cliffs|2024 Q3|-1.7E8|4.569E9|169| |CLF|CLF.N|Cleveland-Cliffs|2024 Q4|-2.4E8|4.325E9|169| |code|Ticker|Name|Date|Net Income|market_code| |---|---|---|---|---|---| |CLF|CLF.N|Cleveland-Cliffs|2024 Q1|-5.3E7|169| |CLF|CLF.N|Cleveland-Cliffs|2024 Q2|9000000|169| |CLF|CLF.N|Cleveland-Cliffs|2024 Q3|-2.3E8|169| |CLF|CLF.N|Cleveland-Cliffs|2024 Q4|-4.34E8|169|