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Cleveland-Cliffs (NYSE:CLF) +1.4% post-market Monday after reporting better than expected Q2 adjusted earnings and guiding for lower capital expenditures for the full year.
The steelmaker eked out a Q2 GAAP profit of $2M, or less than $0.01/share, compared with a GAAP profit of $347M, or $0.68/share, in the year-earlier quarter; gross margin fell to $145M from $629M last quarter.
Q2 adjusted EBITDA fell to $323M from $414M in Q1 but came in well ahead of the $284M Bloomberg consensus estimate.
Cleveland-Cliffs (CLF) cut its full-year capex guidance to $650M-$700M from its previous outlook of $675M-$725M, and said its target of Y/Y steel unit cost reductions of ~$30/net ton remains on track.
CEO Lourenco Goncalves said $362M free flow cash generation during the quarter showed the company's ability to continue performing despite adverse business conditions including "less than ideal" demand and weak steel pricing.
Earlier on Monday, Cleveland-Cliffs (CLF) unveiled plans to open a new electrical distribution transformer plant in West Virginia, spending $150M on the site of a former tinplate factory the company closed in February, citing an inability to compete with foreign imports.