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Released October 25, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Executives with steel producer Cleveland-Cliffs Incorporated (NYSE:CLF) (Cleveland, Ohio) said this week the company has weathered the effects of the United Auto Workers' (UAW) strike against the Big Three U.S. automakers. In fact, the company reported what it said was a record in automotive steel shipments during the just-ended third quarter of this year.
Cleveland-Cliffs reported steel shipments of 4.1 million tons in the third quarter, including automotive shipments, the company said Monday in its third-quarter earnings results.
Chief Executive Officer Lourenco Goncalves said in a press release that the "strength in shipments to our automotive clients has been happening both before and also after the UAW strike affecting three of our clients headquartered in Detroit was announced, with our other major clients outside of Detroit picking up the slack."
The company reported net income of $275 million, compared with $165 million in the same quarter of 2022.
"As of right now, the impact of the current outages to Cleveland-Cliffs are less significant than what we had felt from the microchip shortage and other supply-chain issues the entire automotive sector went through in 2021 and 2022," Goncalves said during the company's third-quarter earnings conference call.
The UAW began its strike against Ford Motor Company (NYSE:F) (Dearborn, Michigan), General Motors Company (NYSE:GM) (Detroit, Michigan) and Stellantis (NYSE:STLA) (Hoofddorf, Netherlands) on September 15.
The ripple effect of the work stoppage was felt by United States Steel Corporation (U.S. Steel) (NYSE:X) (Pittsburgh, Pennsylvania), which temporarily idled its Granite City Works blast furnace "B" in September as a result of the automotive plant strike. For more information, see September 20, 2023, article - Ripple Effect: U.S. Steel Temporarily Idles Granite City Works Blast Furnace, Cites UAW Strike.
"The majority of our automotive shipments do not go to the Detroit Three, and that's particularly true for our largest customers," Goncalves said. "In fact, we have seen much better demand from these other automakers."
Goncalves said he expects the UAW strike to end by the fourth quarter.
Cleveland-Cliffs also lowered its full-year 2023 capital expenditures expectation to $670 million, a reduction from the midpoint of its previous guidance range of $700 million.
Industrial Info is tracking 92 Cleveland-Cliffs projects, with a total investment value of $1.34 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of detailed project reports.
Under construction is a modernization of Cleveland-Cliffs' Butler Steel Works in Pennsylvania. The $100 million project involves adding new equipment and upgrading existing equipment at the 1 million-ton-per-year steel mill to meet increasing demand for electric vehicle (EV) production. The project is expected to wrap up by the end of the year. Subscribers to the GMI Database can click here for a detailed project report and click here for the related plant profile.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Cleveland-Cliffs reported steel shipments of 4.1 million tons in the third quarter, including automotive shipments, the company said Monday in its third-quarter earnings results.
Chief Executive Officer Lourenco Goncalves said in a press release that the "strength in shipments to our automotive clients has been happening both before and also after the UAW strike affecting three of our clients headquartered in Detroit was announced, with our other major clients outside of Detroit picking up the slack."
The company reported net income of $275 million, compared with $165 million in the same quarter of 2022.
"As of right now, the impact of the current outages to Cleveland-Cliffs are less significant than what we had felt from the microchip shortage and other supply-chain issues the entire automotive sector went through in 2021 and 2022," Goncalves said during the company's third-quarter earnings conference call.
The UAW began its strike against Ford Motor Company (NYSE:F) (Dearborn, Michigan), General Motors Company (NYSE:GM) (Detroit, Michigan) and Stellantis (NYSE:STLA) (Hoofddorf, Netherlands) on September 15.
The ripple effect of the work stoppage was felt by United States Steel Corporation (U.S. Steel) (NYSE:X) (Pittsburgh, Pennsylvania), which temporarily idled its Granite City Works blast furnace "B" in September as a result of the automotive plant strike. For more information, see September 20, 2023, article - Ripple Effect: U.S. Steel Temporarily Idles Granite City Works Blast Furnace, Cites UAW Strike.
"The majority of our automotive shipments do not go to the Detroit Three, and that's particularly true for our largest customers," Goncalves said. "In fact, we have seen much better demand from these other automakers."
Goncalves said he expects the UAW strike to end by the fourth quarter.
Cleveland-Cliffs also lowered its full-year 2023 capital expenditures expectation to $670 million, a reduction from the midpoint of its previous guidance range of $700 million.
Industrial Info is tracking 92 Cleveland-Cliffs projects, with a total investment value of $1.34 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of detailed project reports.
Under construction is a modernization of Cleveland-Cliffs' Butler Steel Works in Pennsylvania. The $100 million project involves adding new equipment and upgrading existing equipment at the 1 million-ton-per-year steel mill to meet increasing demand for electric vehicle (EV) production. The project is expected to wrap up by the end of the year. Subscribers to the GMI Database can click here for a detailed project report and click here for the related plant profile.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
