Why Cleveland-Cliffs Stock Is Falling Today
On Tuesday morning, Cleveland-Cliffs (NYSE: CLF) reported third-quarter results that came in well below expectations due to higher input costs and maintenance expenses. In response to the report, disappointed investors sent shares of the giant steelmaker down by more than 12% in early trading. As of 10:37 a.m. ET, shares were still down by 10.8%.
This is an uncertain time for industrial companies. Prices for raw materials and commodities have spiked, and there are serious questions about future demand and the macroeconomic outlook. In the recently ended quarter, Cleveland-Cliffs earned $0.29 per share in the quarter on revenue of $5.65 billion, well short of the $0.55 per share in earnings on revenue of $5.81 billion that analysts had been expecting.
In the press release accompanying the results, CEO Lourenco Goncalves said that the quarter's results were affected "by the delayed inventory impact of higher input costs and maintenance activities from prior periods." He also said that the company has completed its major maintenance projects and production levels have returned to normal, noting "we expect costs to decline meaningfully, into Q4 and further into 2023."
Source Fool.com
