The company reported first-quarter 2023 revenues at $5.3 billion, compared to $5 billion in the fourth quarter of 2022.
Cleveland-Cliffs Chairman, President and CEO Lourenco Goncalves said during the first quarter that ended March 31, direct sales to automotive clients increased to 36%, confirming the view that its “most important market is strong, and getting stronger.”
He expects the company, throughout the year, to benefit from higher sales volumes to the automotive sector and from the increased prices it achieves in yearly renegotiations with each the car manufacturers that have Cleveland-Cliffs as their largest supplier of automotive steel.
The company shipped 4.1 million tons of steel during the first quarter.
“Improved demand from our automotive clients has allowed us to be more selective when selling flat-rolled steel to the general marketplace,” Goncalves said, adding that allowed the company in the first quarter to implement several price increases to non-contract clients. “With further results from the cost side, we expect 2023 to be another year of great cash flow generation.”
The company has about $3.1 billion in liquidity. It now expects to spend $675 million to $725 million in capital expenditures this year, down from $700 million to $750 million.
Cleveland-Cliffs purchased AK Steel for $1.1 billion in 2020. After that the Cleveland-based company bought the U.S. assets of ArcelorMittal for $1.4 billion, making it the largest flat-rolled steel producer in North America, officials said.
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