Cleveland-Cliffs Inc. (CLF) Q4 2024 Earnings Call Transcript

For the period ending December 31, 2024

February 25, 2024 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, ladies and gentlemen. My name is Kevin and I'm your conference facilitator today. I'd like to welcome everyone to Cleveland-Cliffs' Full Year and Fourth Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there'll be a question-and-answer session.

The company reminds you that certain comments made on today's call will include predictive statements that are intended to be made as forward-looking within the Safe Harbor protections of the Private Securities Litigation Reform Act of 1995. Although the company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially. Important risk factors that could cause results to differ materially are set forth in reports on Forms 10-K and 10-Q and news releases filed with the SEC, which are available on the company's website.

Today's conference call is also available and being broadcast at clevelandcliffs.com. At the conclusion of the call, it will be archived on the website and available for replay. The company will also discuss results, excluding certain special items. Reconciliation for Regulation G purposes can be found in the earnings release, which was published yesterday.

At this time, I would like to introduce Lourenco Goncalves, Chairman, President and Chief Executive Officer. Please go ahead, sir.

Lourenco Goncalves

Thank you, Kevin, and good morning, everyone. 2024 is in the rearview mirror and we have great potential for a strong 2025 right in front of us. Our order book has picked up substantially over the past months and steel pricing is back on the rise. Less than a month ago, our lead times for hot-rolled steel were three weeks. As of today, they are seven weeks. Order book and lead times are our most important forward-looking indicators and they are both in their strongest position in nearly a year.

In 2024, demand for steel was the weakest we have seen since 2010 other than during the temporary collapse caused by COVID-19 in early 2020. The second half of last year was especially bad with the steel demand from the automotive sector slowing down, construction activity lagging and industrial production taking a hit. This led to the idle of our C6 blast furnace at Cleveland Works last quarter.