Cleveland-Cliffs Inc. reported second-quarter results for the period ended June 30, 2020. The company reported total revenues of $1.1 billion, compared to the prior year's second-quarter consolidated revenues of $743 million.
The company recorded a net loss of $108 million during the second quarter of 2020, compared to net income of $161 million recorded in the prior-year second quarter.
Adjusted EBITDA for the steel and manufacturing division was a $104.0 loss, compared to a $1.1 million loss in Q2 2019. Total flat rolled steel tons shipped in Q2 2020 reached 619,000 net tons. For the mining and pelletizing division, the company recorded an adjusted EBITDA net incoming of $82.4 million, compared to income of $280.5 million in Q2 2019. Total production volume in the mining and pelletizing division reached 2.04 million long tons, compared to 5.18 million long tons in Q2 2019.
Chairman, President, and CEO Lourenco Goncalves said, “In any given year, the second quarter is always the time when our iron ore clients replenish their pellet inventories, depleted during the winter. Our success in continuing to sell pellets during this second quarter was also very important to our results, showing a clear differentiation between Cleveland-Cliffs and other companies in our space.”
Regarding business outlook, Goncalves said, “Now that nearly all our facilities which were idled during the second quarter have resumed normal operations, during the second half of 2020 we will be able to demonstrate the potential of our new Cleveland-Cliffs footprint. With demand accelerating faster and more consistently than originally expected, we were pleased to record positive adjusted EBITDA during the month of June, way ahead of our initial forecast made earlier in Q2. Also, we expect idle costs to be less than $50 million during the third quarter and minimal in the fourth quarter, which will lead to a significant improvement in unit cost performance. As the market currently stands, we expect to see positive free cash flow in the second half of the year, which includes the capital spending necessary to complete the Toledo HBI project.”