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What to Expect from Cleveland-Cliffs’ 3Q17 Earnings

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Dec. 4 2020, Updated 10:42 a.m. ET

CLF: Upcoming 3Q17 results

Cleveland-Cliffs (CLF) is scheduled to release its 3Q17 results before the US market opens on October 20, 2017. On the same day at 10:00 AM EDT, the company has scheduled its conference call with analysts and investors to discuss the results. The link to the live broadcast of the conference call can be found on CLF’s investor page.

In this series, we’ll provide a preview of what to expect from CLF’s earnings and management call. This preview will allow you to compare the company’s actual performance with the expectations.

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Why should you watch the results?

Cleveland-Cliffs’ 3Q17 results are important in several ways. For one, the company has downgraded its EBITDA[1. earnings before interest, tax, depreciation, and amortization] guidance for 2017 twice due to weaker US steel prices and seaborne iron ore prices.

The current seaborne prices are even lower than the level the company had guided the cut for. So, it would be interesting to see whether the company maintains its current guidance or cuts it even further. Investors should note that a large part of the guidance could depend on US steel prices, which have remained more or less steady.

Secondly, Cleveland-Cliffs recently acquired the remaining 15% interest in the Tilden mine from U.S. Steel (X). Investors would be looking forward to any updates, as this would increase the company’s overall US pellets capacity.

During the earnings call, Cleveland-Cliffs’ management could also address the Section 232 probe into steel imports and their expectations regarding the timing of the decision. This would have a direct impact on CLF and its US peers (XME) such as AK Steel (AKS), ArcelorMittal (MT), and Steel Dynamics (STLD).

Series preview

In this series, we’ll see what investors could expect from Cleveland-Cliffs’ (CLF) 3Q17 earnings report. We’ll look at the expectations for volumes and realized prices for the US and Asia-Pacific divisions. We’ll also discuss the earnings estimates for Cleveland-Cliffs.

Let’s start by looking at the expectations regarding CLF’s US volumes in the next part of this series.

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