October 11, 20213 yr Author Shared from the developments thread.... Cleveland-Cliffs to enter scrap metal business with $775 million acquisition Cleveland-Cliffs Inc. (NYSE: CLF) is entering the scrap business through an acquisition. The steel producer and iron ore miner on Monday morning, Oct. 11, announced it has agreed to buy Detroit-based Ferrous Processing and Trading Co. for $775 million. Cliffs said in a news release that Ferrous Processing “is among the largest processors and distributors of prime ferrous scrap in the United States,” representing about 15% of the domestic merchant prime scrap market, and that it processes about 3 million tons of scrap per year — about half of which is prime grade. Ferrous Processing operates 22 scrap processing facilities, with about 90% of revenues originating from its Midwest locations, primarily in Michigan and Ohio, Cliffs said in the release. For the trailing 12 months ended Aug. 31, Ferrous Processing generated EBITDA (earnings before interest, taxes, depreciation, and amortization) of about $100 million. Cliffs said Ferrous Processing “already enjoys an outsized position in automotive and industrial scrap,” which is expected to grow as a result of the acquisition. https://www.crainscleveland.com/manufacturing/cleveland-cliffs-enter-scrap-metal-business-775-million-acquisition "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
October 11, 20213 yr 2 hours ago, KJP said: Shared from the developments thread.... Cleveland-Cliffs to enter scrap metal business with $775 million acquisition https://www.crainscleveland.com/manufacturing/cleveland-cliffs-enter-scrap-metal-business-775-million-acquisition The price seemed steep to me at first; but, according to Moody's, Ferrous has about $100 million annual EBITDA. This isn't so bad, provided the newly anti-trust sensitive FTC allows it. Moody's also commented the purchase should have ne effect on CLF's credit rating https://www.moodys.com/research/Moodys-says-Cleveland-Cliffs-acquisition-of-Ferrous-Processing-and-Trading--PR_456104?cid=7QFRKQSZE021 Remember: It's the Year of the Snake
October 11, 20213 yr 2 hours ago, Dougal said: The price seemed steep to me at first; but, according to Moody's, Ferrous has about $100 million annual EBITDA. This isn't so bad, provided the newly anti-trust sensitive FTC allows it. Moody's also commented the purchase should have ne effect on CLF's credit rating https://www.moodys.com/research/Moodys-says-Cleveland-Cliffs-acquisition-of-Ferrous-Processing-and-Trading--PR_456104?cid=7QFRKQSZE021 We've got a little conglomerate building momentum in Cleveland, folks.
October 11, 20213 yr 2 hours ago, Dougal said: The price seemed steep to me at first; but, according to Moody's, Ferrous has about $100 million annual EBITDA. This isn't so bad, provided the newly anti-trust sensitive FTC allows it. Moody's also commented the purchase should have ne effect on CLF's credit rating https://www.moodys.com/research/Moodys-says-Cleveland-Cliffs-acquisition-of-Ferrous-Processing-and-Trading--PR_456104?cid=7QFRKQSZE021 7.5 x EBIDTA seems a bit high. But their people are much smarter than me.
October 11, 20213 yr With Cliffs entry into the scrap metal market it has the potential to make them a major customer of GrafTech just down the road in Brooklyn Heights. Hopefully they're able to benefit from this acquisition too.
October 11, 20213 yr 36 minutes ago, freefourur said: 7.5 x EBIDTA seems a bit high. But their people are much smarter than me. I think Moody's number is based on last year's scrap metal prices. Current No. 1 Steel prices are up 75% over last year. Today's ratio might be more like 5x. Edited October 11, 20213 yr by Dougal Remember: It's the Year of the Snake
October 15, 20213 yr Standard&Poors awarded the international title "Metals Company of the Year" to Cliffs at a ceremony in London. That's a nice nod to success. http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20211015:nBw2b4cz8a&default-theme=true Remember: It's the Year of the Snake
February 11, 20223 yr Cleveland-Cliffs reports record profits. https://www.cleveland.com/business/2022/02/cleveland-cliffs-reports-record-profits-sees-bright-future-if-automakers-ramp-up-production.html
February 11, 20223 yr Great news for this Cleveland company. I wonder if they will need more employees to handle the growth? Even if they don't build their own tower taking up more space in 200 Public Square would be a good thing too.
February 11, 20223 yr A few notes. It's revenue was 20.4 billion and profit was 3 billion which they said would have been higher if not for the slow down in the automotive industry. At 20.4 billion CC would have been 144th on the Fortune 500 last year. Also, it beat SHW out in revenue this year (SHW had 19.67 billion) making it the largest company headquartered downtown in terms of revenue. A company like this deserves it's own name on a building ;)
February 11, 20223 yr Gotta hand it to them, the big buying binge from the last few years has turned out to be great for Cliffs - record profits in a very challenging year. Not only do we have a big company HQ'd downtown, but with Cleveland in the name, their good publicity is our good publicity.
March 29, 20223 yr Cleveland Cavaliers partner with Cleveland-Cliffs for new jersey patch starting in 2022-23 season https://www.cleveland.com/cavs/2022/03/cleveland-cavaliers-partner-with-cleveland-cliffs-for-new-jersey-patch-starting-in-2022-23-season.html Replaces Goodyear who had a 5 year sponsorship agreement for the uniform patches. Also announced: Quote Cliffs also announced a $500,000 pledge of new funding to Boys and Girls Clubs throughout communities in which the company operates Edited March 29, 20223 yr by infrafreak
March 29, 20223 yr Maybe this partnership will involve more like Cliffs as a tenant in a new tower on the arena’s doorstep? We can only hope!
March 29, 20223 yr When will the new Fortune 500 list be released? I am curious to see where Cliffs will rank.
March 30, 20223 yr ‘21 revenues were 20.4 billion. That will launch them to around 150 ranking based off last years list. From CrainsCleveland: "I started believing in the Cavaliers when nobody was believing in the Cavaliers," Goncalves said. "I'm a proud fan of the Cavaliers, the same way I'm a proud leader of Cleveland-Cliffs. Being with you guys is my life. I believe that Cleveland and the Midwest will look back and see not only the resurgence of a superpower in Cleveland-Cliffs. We are already being recognized like that.” Again, based off this quote by Goncalves, he is an empire builder and wants his own building. Partnering with Gilbert’s real estate arm to get this done seems logical. I know his office is being renovated at 200 Public Square but for a company flush with cash I don’t think that would prevent pursuing their own building.
March 30, 20223 yr Author I hope so "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
April 22, 20223 yr 6 billion revenue beating expectations along with 801 million in profit. The rise of this company has been outstanding and Gonclaves says it will only grow once the automobile chip shortage ends. https://www.cleveland.com/business/2022/04/us-backed-supply-chain-helps-cleveland-cliffs-deliver-strong-quarter-ceo-argues-for-end-of-globalization.html
May 23, 20223 yr Cliffs ranks 171 on the Fortune 500 list. http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220523:nBw3rBhv9a&default-theme=true Remember: It's the Year of the Snake
May 24, 20223 yr Author 1 minute ago, DarkandStormy said: The 2022 list is out. Ohio does great, as always (#5 in the country) with 25. Only Texas, New York, California, and Illinois have more. Ohio 15. Cardinal Health 19. Marathon Petroleum 21. Kroger 47. Procter & Gamble 79. Progressive 80. Nationwide 171. Cleveland-Cliffs 175. Sherwin-Williams 209. Goodyear Tire & Rubber 219. American Electric Power 253. Parker-Hannifin 295. Andersons 343. FirstEnergy 367. Cincinnati Financial 372. Western & Southern Financial Group 391. Dana 408. Owens Corning 415. Fifth Third Bancorp 426. J.M. Smucker 435. Bath & Body Works 449. KeyCorp 454. American Financial Group 461. TravelCenters of America 470. Cintas 480. Victoria's Secret 501. O-I Glass 515. Big Lots 518. RPM International 521. Huntington Bancshares 561. Greif 607. Vertiv Holdings 616. Scotts Miracle-Gro 622. Avient 624. TransDigm Group 630. Welltower 670. Bread Financial Holdings 679. Timken 704. Diebold Nixdorf 722. M/I Homes 724. Mettler-Toledo International 725. Abercrombie & Fitch 748. Medical Mutual of Ohio 774. Franchise Group 792. Applied Industrial Technologies 793. Lincoln Electric Holdings 803. Designer Brands 806. Worthington Industries 818. Hyster-Yale Materials Handling 933. Joann 946. Nordson 948. Ohio National Mutual 955. Olympic Steel 962. E.W. Scripps 993. Chemed By Metro Columbus: 17 Cleveland: 15 Cincinnati: 10 Toledo: 4 Akron: 4 Canton-Massillon: 2 Findlay: 1 Wooster: 1 Source: https://fortune.com/fortune500/2022/search/?hqstate=OH 171. Cleveland-Cliffs 175. Sherwin-Williams When Lourenco Goncalves sees this, he's going to want his own HQ tower too. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 24, 20223 yr 5 hours ago, KJP said: 171. Cleveland-Cliffs 175. Sherwin-Williams When Lourenco Goncalves sees this, he's going to want his own HQ tower too. Of course. And it will have to be taller than SHW, at least 700'. Edited May 24, 20223 yr by LibertyBlvd
May 24, 20223 yr 3 minutes ago, LibertyBlvd said: Of course. And it will have to be taller than SHW. Honestly, the capital improvements to the steel plants are enough for me. I don't know how many cities in the country right now can say that they have cranes in the air to revamp an 80 year old steel mill, and that's pretty cool
May 24, 20223 yr 3 hours ago, YABO713 said: Honestly, the capital improvements to the steel plants are enough for me. I don't know how many cities in the country right now can say that they have cranes in the air to revamp an 80 year old steel mill, and that's pretty cool I must have missed this one and didn’t see anything with a quick google search. What type of improvements are they doing there?
May 24, 20223 yr 10 minutes ago, JB said: I must have missed this one and didn’t see anything with a quick google search. What type of improvements are they doing there? I'm not sure, but you can see it clearly from 176 and 490. I wish I knew the technical names, but in short, two of the taller (rusted) structures on the Cliffs Steelyard campus are being replaced with blue structures.
May 24, 20223 yr Author Cliffs is vague in describing its capital improvements to the Cleveland Works, Burns Harbor Works and Precision Partners, saying only that they are "minor growth projects" and, in total, represent about $600 million to $650 million in new investment. But I saw an article that said the improvements at Burns Harbor is a $100 million project. If that's a minor growth project, then as Virgil Sollozzo would say "Salud!" "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 24, 20223 yr 2 hours ago, YABO713 said: I'm not sure, but you can see it clearly from 176 and 490. I wish I knew the technical names, but in short, two of the taller (rusted) structures on the Cliffs Steelyard campus are being replaced with blue structures. the blue structures i saw online were either dust collectors or rebuilt blast furnaces. they were in india steel plants though, so not sure.
June 29, 20222 yr Author Seeking Alpha loves Cliffs and its CEO. Here's why... https://seekingalpha.com/article/4519802-cleveland-cliffs-is-the-baby-being-thrown-out-with-the-bathwater "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
January 6, 20232 yr Cliffs consolidating its HQ functions downtown Cliffs sells Richfield office building as it expands Cleveland HQ Quote Cleveland-Cliffs Inc., which is growing its downtown Cleveland headquarters, has unloaded an 82,000-square-foot office building in suburban Summit County. The publicly traded steelmaker inherited the property, at 4020 Kinross Lakes Parkway in Richfield Village, as part of its 2020 acquisition of ArcelorMittal USA. In late December, Cliffs sold the property to real estate brokers Rico Pietro and Jason Laver. https://www.crainscleveland.com/real-estate/cleveland-cliffs-sells-richfield-office-property-31-million-deal
January 6, 20232 yr If you don't have a Crain's subscription, here's the main takeaway... "A Cliffs spokeswoman did not respond to an inquiry about the sale. In recent years, though, the company has committed to almost doubling its footprint at the 200 Public Square skyscraper." Edited January 6, 20232 yr by Clefan98
January 6, 20232 yr Any mention of how many employees will be moving downtown? Maybe they will be needing a new building in the near future. 😉 Edited January 6, 20232 yr by LibertyBlvd
January 6, 20232 yr 3 hours ago, LibertyBlvd said: Any mention of how many employees will be moving downtown? Maybe they will be needing a new building in the near future. 😉 The article says Cliffs used "very little" of the space; it was something that came with the Arcelor Mittal purchase. It sounds as if there is enough room in 200 PS to absorb Cliffs' headquarters growth. I doubt they'll build anything new, but maybe 200 PS will get a new name. Remember: It's the Year of the Snake
January 7, 20232 yr 15 hours ago, Dougal said: The article says Cliffs used "very little" of the space; it was something that came with the Arcelor Mittal purchase. It sounds as if there is enough room in 200 PS to absorb Cliffs' headquarters growth. I doubt they'll build anything new, but maybe 200 PS will get a new name. I'm surprised it's not called the Huntington Building already, considering the sign. The Richfield headquarters was a holdover from the ISG days to begin with. When they sold out to Mittal, they didn't need to continue a lot of the corporate functions locally.
January 7, 20232 yr 6 hours ago, E Rocc said: I'm surprised it's not called the Huntington Building already, considering the sign. The Richfield headquarters was a holdover from the ISG days to begin with. When they sold out to Mittal, they didn't need to continue a lot of the corporate functions locally. Thanks for this historical context re ISG. Re the name of 200 PS, when I hear "Huntington Bldg" I immediately think of the NE corner of E. 9 and Euclid. If that name ever came back--and is not used for E9 and Euclid--I think a lot of people will be confused and go to the wrong address for many years.
January 7, 20232 yr 28 minutes ago, ProspectAve said: Thanks for this historical context re ISG. Re the name of 200 PS, when I hear "Huntington Bldg" I immediately think of the NE corner of E. 9 and Euclid. If that name ever came back--and is not used for E9 and Euclid--I think a lot of people will be confused and go to the wrong address for many years. The service ISG did for the Cleveland area economy is immeasurable, they brought that plant back from shutdown and up to a condition where it could be sold and run by one of the world's premier steel manufacturers. With CC now both headquartered and manufacturing here, Cleveland is once again at the forefront of an industry of global significance. Instead of being a historical footnote in same.
January 7, 20232 yr 2 hours ago, E Rocc said: The service ISG did for the Cleveland area economy is immeasurable, they brought that plant back from shutdown and up to a condition where it could be sold and run by one of the world's premier steel manufacturers. With CC now both headquartered and manufacturing here, Cleveland is once again at the forefront of an industry of global significance. Instead of being a historical footnote in same. Reading this I looked up the CEO and it sounds like from this interview earlier in the year, he is focused on shepherding the auto industry into the EV generation. It would be great for Cleveland to play a roll in this transformation.
July 27, 20231 yr Author "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
July 27, 20231 yr Cleveland-Cliffs is a real Cleveland success story but it seems to be a little underapreciated in terms of PR. Maybe that's because it's in an old school business segment and is not some new high tech company.
July 27, 20231 yr 10 minutes ago, cadmen said: Cleveland-Cliffs is a real Cleveland success story but it seems to be a little underapreciated in terms of PR. Maybe that's because it's in an old school business segment and is not some new high tech company. Cliffs is in a cyclical industry, which is not currently in favor on Wall Street. What the young MBA's don't realize is that ALL companies are cyclical; some cycles are just longer than others. 😉 Remember: It's the Year of the Snake
August 13, 20231 yr Cliffs offer to buy US Steel rejected. But would love to see this work out somehow. Would create a locally based giant.
August 13, 20231 yr 12 minutes ago, OldEnough said: Cliffs offer to buy US Steel rejected. But would love to see this work out somehow. Would create a locally based giant. As much as I love local businesses growing, the amount of market concentration this would create is pretty absurd. We have antitrust laws for a reason, lol.
August 13, 20231 yr 3 minutes ago, LlamaLawyer said: As much as I love local businesses growing, the amount of market concentration this would create is pretty absurd. We have antitrust laws for a reason, lol. Fair enough but I’d be selfish in this case.
August 13, 20231 yr CCF will end up with some part of USS, which was probably the goal all along. My hovercraft is full of eels
August 13, 20231 yr Cliffs trying to buy US Steel https://www.clevelandcliffs.com/news/news-releases/detail/600/cleveland-cliffs-proposes-to-acquire-u-s-steel
August 13, 20231 yr Cleveland-Cliffs offered to acquire U.S. Steel for $35/share in cash and stock. https://www.marketwatch.com/story/u-s-steel-rejects-7-3-billion-bid-from-cleveland-cliffs-as-it-seeks-strategic-alternatives-67b5bb02 Edited August 13, 20231 yr by Clefan98
August 14, 20231 yr I’m not used to a Cleveland company trying to buy up companies. I’m usually anti monopoly, but can give this a pass for hometown reasons. Especially if it means more jobs here.
August 14, 20231 yr 2 hours ago, Clefan98 said: Cleveland-Cliffs offered to acquire U.S. Steel for $35/share in cash and stock. https://www.marketwatch.com/story/u-s-steel-rejects-7-3-billion-bid-from-cleveland-cliffs-as-it-seeks-strategic-alternatives-67b5bb02 Would love a 1,000 foot tall Cliff's HQ in downtown Cleveland and all the jobs that come with... Hopefully they keep working on it.
August 14, 20231 yr https://www.google.com/amp/s/www.wtae.com/amp/article/us-steel-cleveland-cliff-purchase-proposal/44802901 PITTSBURGH — A Cleveland-based steel-mining company has offered to buy up Pittsburgh-based U.S. Steel, an offer U.S. Steel flatly rejected.
August 14, 20231 yr 8 hours ago, roman totale XVII said: CCF will end up with some part of USS, which was probably the goal all along. USS is trying to get into "electrical steel" which is currently unique to Cliffs in this country. Remember: It's the Year of the Snake
August 14, 20231 yr Author If Cliffs gets USS, or significant parts thereof, we may see a new office building in downtown Cleveland. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
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