CLEVELAND (WLUC) - Cleveland-Cliffs Inc. reported second-quarter results Friday morning for the period that ended June 30, 2018.
Cleveland-Cliffs reported consolidated revenues of $714 million, compared to the prior year's second-quarter revenues of $471 million. Cost of goods sold was $430 million compared to $327 million reported in the second quarter of 2017.
Cleveland-Cliffs recorded income from continuing operations of $229 million in the second quarter, or $0.76 per diluted share, compared to $84 million, or $0.28 per diluted share, in the second quarter of 2017. Net income for the quarter was $165 million, which included a $64 million, or $0.21 per diluted share, loss from discontinued operations, primarily associated with the Company's Asia Pacific Iron Ore assets. This compares to net income of $30 million in the second quarter of 2017. For the six months ended June 30, 2018, net income was $81 million, compared to $0.3 million during the same period in 2017.
For the second quarter of 2018, the Company reported adjusted EBITDA1 of $276 million, a 103 percent increase from the prior-year's second quarter adjusted EBITDA1 of $136 million.
Lourenco Goncalves, Cleveland-Cliffs' Chairman, President and Chief Executive Officer, said, “Our second quarter is a definitive statement about the new Cliffs and our earnings power. After almost four years of consistent execution of a well-designed and thoroughly implemented strategy, our company has become a very powerful cash-generating enterprise. With the announced sale of the Asia Pacific Iron Ore segment, we have now completed our multi-year transformation back to our roots as a supplier of high-grade iron units to the Great Lakes steel industry. This transformation has enabled us to take full advantage of our unique position within the Great Lakes steel market and, with that, the following quarters should be a continuation of this strong second quarter, with the added positive contribution of the usual favorable seasonality of warmer weather during the entire second half of the year. As a consequence, we expect to generate in 2018 a level of free cash flow that we have not seen in years." Mr. Goncalves added, “Going forward, we expect 2019 to be a continuation of a great 2018, based on the renewed strength of American manufacturing, the multi-year positive impact of the tax reform implemented in 2018 in the United States, and our strong position as the supplier of iron ore pellets within the Great Lakes region.” Mr. Goncalves concluded, "Our strategy is not only to protect our strong market position in the Great Lakes, but to grow and evolve with the continuously changing steel industry by supplying high-performance ore-based metallics to Electric Arc Furnaces, starting in 2020. This evolution should further improve our already tremendous profitability in the coming years."