Cleveland-Cliffs Inc. (NYSE: CLF) today praised the U.S.
Department of Commerce’s self-initiation of an urgent Section 232
investigation covering laminations for stacked transformer cores,
stacked and wound transformer cores, electrical transformers, and
transformer regulators. The outcome of this investigation will be
critical to addressing circumvention of existing national security
tariffs covering Grain Oriented Electrical Steel (GOES) using
laminations and cores cut in Mexico and in Canada as means for
tariff evasion. Cleveland-Cliffs’ wholly-owned subsidiary AK Steel
is the last remaining producer of GOES in North America. This
blatant circumvention activity has degraded the domestic electrical
steel market and now threatens the viability of Cleveland-Cliffs
continuing to produce GOES, a critical element to the security of
America’s electric grid.
Lourenco Goncalves, Chairman, President and Chief Executive
Officer said, “We are confident that this self-initiated
investigation will reinforce the critical nature of ensuring a
reliable domestic supply of GOES to support electric power
distribution, and will address the circumvention of national
security tariffs involving transformer laminations and cores of
GOES. Cleveland-Cliffs greatly appreciates the bipartisan
leadership of Senator Rob Portman (OH), Senator Bob Casey (PA),
Senator Sherrod Brown (OH), Congressman Mike Kelly (PA),
Congressman Troy Balderson (OH), Congresswoman Marcy Kaptur (OH)
and other Congressional leaders who helped facilitate this path
forward, as well as the great support from our Union partners with
the United Auto Workers. The integrity of America’s electric grid
and over 1,400 family-sustaining jobs at AK Steel’s Butler Works in
Pennsylvania and Zanesville Works in Ohio depend on speedy
resolution of this investigation.”
About Cleveland-Cliffs Inc.
Founded in 1847, Cleveland-Cliffs is among the largest
vertically integrated producers of differentiated iron ore and
steel in North America. With an emphasis on non-commoditized
products, Cliffs is uniquely positioned to supply both customized
iron ore pellets and sophisticated steel solutions to a
quality-focused customer base, with an industry-leading market
share in the automotive industry. A commitment to environmental
sustainability is core to our business operations and extends to
how we partner with stakeholders across our communities and the
steel value chain. Headquartered in Cleveland, Ohio,
Cleveland-Cliffs employs approximately 12,000 people across mining
and steel manufacturing operations in the United States, Canada and
Mexico. For more information, visit
http://www.clevelandcliffs.com
Forward-looking Statements
This communication contains certain forward-looking statements
within the meaning of the federal securities laws, including
Section 27A of the Securities Act of 1933, as amended, Section 21E
of the Securities Exchange Act of 1934, as amended, and the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. When used in this communication, words such as
“anticipate,” “assume,” “believe,” “build,” “continue,” “create,”
“design,” “estimate,” “expect,” “focus,” “forecast,” “future,”
“goal,” “guidance,” “imply,” “intend,” “look,” “objective,”
“opportunity,” “outlook,” “plan,” “position,” “potential,”
“predict,” “project,” “prospective,” “pursue,” “seek,” “strategy,”
“target,” “work,” “could,” “may,” “should,” “will,” “would” or the
negative of such terms or other variations thereof and words and
terms of similar substance used in connection with any discussion
of future plans, actions or events identify forward-looking
statements with respect to our business, strategy and plans,
expectations relating to the merger (the “Merger”) between Cliffs
and AK Steel Holding Corporation (“AK Steel”) and future financial
condition and performance. We caution investors that any
forward-looking statements are subject to risks and uncertainties
that may cause actual results and future trends to differ
materially from those matters expressed in or implied by such
forward-looking statements. Investors are cautioned not to place
undue reliance on forward-looking statements. Among the risks and
uncertainties that could cause actual results to differ from those
described in forward-looking statements are the following: the
severe financial hardship, bankruptcy, temporary or permanent shut
downs or operational challenges, due to the ongoing novel strain of
coronavirus (“COVID-19”) pandemic or otherwise, of one or more of
our major customers, including customers in the automotive market,
key suppliers or contractors, which among other adverse effects,
could lead to reduced demand for our products, increased difficulty
collecting receivables and customers and/or suppliers/contractors
asserting force majeure or other reasons for not performing their
contractual obligations to us; the uncertainty and weaknesses in
global economic conditions, including downward pressure on prices
caused by the ongoing COVID-19 pandemic, oversupply of imported
products, reduced market demand and risks related to U.S.
government actions with respect to Section 232 of the Trade
Expansion Act (as amended by the Trade Act of 1974), the United
States-Mexico-Canada Agreement and/or other trade agreements,
treaties or policies; the uncertainties associated with the highly
competitive and highly cyclical steel industry and reliance on the
demand for steel from the automotive industry; the continued
volatility of iron ore and steel prices and other trends, which may
impact the price adjustment calculations under certain of our sales
contracts; our ability to cost-effectively achieve planned
production rates or levels, including at our hot briquetted iron
(“HBI”) plant once we re-start construction activities, and to
resume full operations, at our facilities that are temporarily
idled due to the COVID-19 pandemic; our ability to successfully
identify and consummate any strategic investments or development
projects, including our HBI plant; the impact of our steel-making
furnace customers reducing their steel production due to the
COVID-19 pandemic or increased market share of steel produced using
other methods or lighter-weight steel alternatives, including
aluminum; our ability to maintain adequate liquidity, our level of
indebtedness and the availability of capital could limit cash flow
available to fund working capital, planned capital expenditures,
acquisitions and other general corporate purposes or ongoing needs
of our business; our actual economic iron ore reserves or
reductions in current mineral estimates, including whether any
mineralized material qualifies as a reserve; the outcome of any
contractual disputes with our customers, joint venture partners or
significant energy, material or service providers or any other
litigation or arbitration; problems or uncertainties with sales
volume or mix, productivity, transportation, environmental
liabilities, employee benefit costs and other risks of the steel
and mining industries; impacts of existing and increasing
governmental regulation and related costs and liabilities,
including failure to receive or maintain required operating and
environmental permits, approvals, modifications or other
authorization of, or from, any governmental or regulatory entity
and costs related to implementing improvements to ensure compliance
with regulatory changes; our ability to maintain appropriate
relations with unions and employees; the ability of our customers,
joint venture partners and third party service providers to meet
their obligations to us on a timely basis or at all; the events or
circumstances that could impair or adversely impact the viability
of a production plant or mine and the carrying value of associated
assets, as well as any resulting impairment charges; the
uncertainties associated with natural disasters, weather
conditions, unanticipated geological conditions, supply or price of
energy, equipment failures and other unexpected events; the
unpredictability and severity of catastrophic events, including
acts of terrorism or outbreak of war or hostilities, as well as
management’s responses to any of the aforementioned factors;
adverse changes in interest rates and tax laws; the potential
existence of significant deficiencies or material weakness in our
internal control over financial reporting; our ability to realize
the anticipated benefits of the Merger and to successfully
integrate the businesses of AK Steel into our existing businesses,
including uncertainties associated with maintaining relationships
with customers, vendors and employees, as well as realizing the
estimated future synergies; the possibility that the Merger may be
less accretive than expected, and may be dilutive, to our earnings
per share, whether as a result of adverse changes in market
conditions, volatility in the commodity prices for iron ore and/or
steel, adverse regulatory developments or otherwise; additional
debt we assumed or issued in connection with the Merger may
negatively impact our credit profile and limit our financial
flexibility; changes in the cost of raw materials and supplies;
supply chain disruptions or poor quality of raw materials or
supplies, including scrap, coal, coke and alloys; disruptions in,
or failures of, our information technology systems, including those
related to cybersecurity; unanticipated costs associated with
healthcare, pension and other postretirement benefits obligations;
and other risks described under the caption “Risk Factors” in
Cliffs’ and AK Steel’s Annual Reports on Form 10-K for the year
ended December 31, 2019 and other periodic reports filed with the
Securities and Exchange Commission.
Unless expressly stated otherwise, forward-looking statements
are based on the expectations and beliefs of the Cliffs management
team based on information currently available. Forward-looking
statements are subject to inherent risks and uncertainties and are
based on assumptions and estimates that are inherently affected by
the operations and business environment of Cliffs, including
economic, competitive, regulatory and operational risks, many of
which are beyond the control of Cliffs and which are difficult to
predict and may turn out to be wrong. The foregoing list of factors
should not be construed to be exhaustive. There is no assurance
that the actions, events or results of the forward-looking
statements will occur, or, if any of them do, when they will occur
or what effect they will have on the results of operations,
financial condition or cash flows of Cliffs. In view of these
uncertainties, Cliffs cautions that investors should not place
undue reliance on any forward-looking statements. Further, any
forward-looking statement speaks only as of the date on which it is
made, and, except as required by law, Cliffs undertakes no
obligation to update or revise any forward-looking statement to
reflect events or circumstances after the date on which it is made
or to reflect the occurrence of anticipated or unanticipated events
or circumstances.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200504005736/en/
MEDIA CONTACT: Patricia Persico Director, Corporate
Communications (216) 694-5316
INVESTOR CONTACT: Paul Finan Director, Investor Relations
(216) 694-6544
Cleveland Cliffs (NYSE:CLF)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cleveland Cliffs (NYSE:CLF)
Historical Stock Chart
From Apr 2023 to Apr 2024