By Adriano Marchese

Cleveland-Cliffs reported a loss in the second quarter as revenue fell, but the company expects to see greater benefit from greater protectionism in the steel sector, thanks to President Trump's tariffs.

Chairman and Chief Executive Lourenco Goncalves said Monday that they have started to see the positive impact that tariffs have had on domestic manufacturing, a trend he expects to continue.

"As a publicly traded America-based company centered on automotive, electrical steels, stainless and plate, Cleveland-Cliffs' assets, business and footprint are uniquely positioned to benefit from this new reality," Goncalves said.

The Cleveland, Ohio-based steel manufacturer reported revenue that fell to $4.93 billion from $5.09 billion. Analysts had expected a decline in the period, but more steeply to $4.86 billion.

Revenue from its steel-making segment fell to $4.77 billion from $4.92 billion, due to steel product sales volumes of 4.3 million net tons which were made up of 40% hot-rolled, 27% coated, 15% cold-rolled, 5% plate, 3% stainless and electrical, and 10% other, including slabs and rail.

Net loss of $483 million, or 97 cents a share, compared with a profit of $2 million, or nil a share, in the same quarter a year ago.

Adjusted loss, which strips out exceptional items and one-off costs, was 50 cents a share. According to FactSet, analysts were expecting a loss of 72 cents a share.

Goncalves noted that costs have been improving in the quarter, thanks to its recently launched optimization initiatives, a momentum that is expected to carry on into the next quarters.

Capital expenditures are now expected at $600 million, down from its previous expectation of $625 million, and selling, general and administrative expenses are now forecast to be around $575 million, from its previous expectation of $600 million.

"Domestic steel pricing remains strong, we have visibility into our cost reductions, and our order book remains healthy," Goncalves said.

Steel unit cost were reductions maintained at about $50 per net ton compared with 2024, Cleveland-Cliffs said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

July 21, 2025 06:39 ET (10:39 GMT)

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