Can Autos Keep This Steelmaker's Results Rising?
Just a few years ago Cleveland-Cliffs (NYSE: CLF) was a steel industry supplier, offering iron ore to steel makers. Through a series of acquisitions, however, it has transformed itself into one of the largest integrated steel mills in North America.
It was a timely transition, with the auto sector quickly becoming a key end customer. However, the auto exposure hasn't worked out as well as the company hoped so far, creating a headwind for the company. But management thinks the auto sector is about to be a very important tailwind.
During Cleveland-Cliffs' second-quarter 2022 earnings call, management discussed the company's business transition from steel industry supplier to integrated steel mill. The change started with the March 2020 consummation of the company's AK Steel acquisition. Not long after that, the auto sector, a major AK Steel end market, was hit by shutdowns related to the coronavirus pandemic.
Source Fool.com
