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Investing.com -- Cleveland-Cliffs Inc. (NYSE:CLF) reported disappointing first-quarter results on Thursday, with earnings and revenue falling short of analyst expectations, sending shares tumbling 9.2% in early trading.
The steelmaker posted an adjusted loss of $0.92 per share for Q1 2025, wider than the $0.67 loss analysts had forecast. Revenue came in at $4.63 billion, below the consensus estimate of $4.68 billion but up 7% YoY from $4.3 billion.
Cleveland-Cliffs’ Q1 performance was negatively impacted by underperforming non-core assets and lagging effects of lower index prices from late 2024 and early 2025. In response, the company announced plans to idle six facilities fully or partially, aiming to optimize its footprint and reposition away from loss-making operations.
CEO Lourenco Goncalves stated, "These actions will allow us to consolidate operations, withdraw from loss-making businesses, and deliver annualized savings exceeding $300 million." He added that the company is strategically repositioning its portfolio away from non-core markets, including rail, high-carbon sheet, and specialty plate products.
The company maintained its full-year 2025 guidance for depreciation, depletion and amortization at approximately $1.1 billion, and cash pension and OPEB payments at about $150 million. However, it lowered capital expenditure expectations to $625 million from $700 million previously.
Cleveland-Cliffs reported healthy liquidity of $3.0 billion and $3.3 billion of secured note capacity. The company expects reduced growth capital expenditures going forward due to likely changes in scope on major projects.
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