US-based mining and natural resources company Cleveland-Cliffs Inc. reported third quarter results for the period ended September 30, 2020. The company reported total revenues of $1.6 billion, compared to the prior year’s third quarter consolidated revenues of $556 million.
The company recorded a net income of $1.9 million during the third quarter this year, compared to net income of $91 million in the prior-year third quarter.
Adjusted EBITDA for the steel and manufacturing division was a $33.3 million income, compared to a $2.1 million loss in the third quarter of 2019. Total flat rolled steel tons shipped in the third quarter reached 1.11 million net tons. For the mining and pelletizing division, the company recorded an adjusted EBITDA net income of $145.3 million, compared to income of $182.7 million in the same quarter of 2019. The total production volume in the mining and pelletizing division reached 4.56 million long tons, compared to 5.15 million long tons in the third quarter of 2019.
“While the third quarter started slow with underlying demand in July not very different from June, business activity progressively improved through the quarter, achieving in September shipment rates normalized to prior-year levels. This momentum has continued into October and, as such, we look forward to even further improved financial results in the fourth quarter,” Lourenco Goncalves, chairman, president and CEO, said.
Regarding the business outlook, “As we continue to fulfill orders for our automotive customers at a remarkably healthy pace, with our facilities back to normalized operating rates and with current pricing, we would expect further sequential improvement in our adjusted EBITDA performance in the fourth quarter. This takes into account increased shipments from both our Steel & Manufacturing and Mining & Pelletizing segments, as well as an expected sharp reduction in idle costs,” Goncalves said.