On Tuesday morning, the company, which owns and operates the Middletown Works, reported third-quarter revenue of $5.7 billion, compared to the prior-year third-quarter revenues of $6.0 billion. Five analysts surveyed by Zacks Investment Research expected $5.81 billion.
For the third quarter, the company recorded net income of $165 million, or $0.29 per diluted share attributable to Cliffs shareholders. In the prior year third quarter, the company recorded net income of $1.3 billion, or $2.33 per diluted share.
The results did not meet Wall Street expectations. The average estimate of three analysts surveyed by Zacks was for earnings of $0.45 per share.
In conjunction with its newly ratified labor agreements with the United Steelworkers, the company has remeasured its associated pension/OPEB plan assets and obligations. Pro forma pension/OPEB liabilities, net of assets, were reduced by $1.8 billion, or 63%, since Dec. 31, 2021, the company announced.
Goncalves called the labor agreement the “most important event” of the company’s third quarter.
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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