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Cleveland-Cliffs (CLF) Launches Electrical Steels for EV Market
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Cleveland-Cliffs Inc. (CLF - Free Report) announced on Dec 13 that it is launching a Motor-Max line of non-oriented electrical steels for high-frequency (“HF”) motors and generators. The launch will address the rising demand for non-oriented electrical steel (“NOES”) products and electrical steels.
MOTOR-MAX HF NOES are designed for high-speed motors, aircraft generators, electric vehicles (“EVs”) traction motors and other rotating machinery. MOTOR-MAX electrical steels will boost the overall performance and efficiency of EV traction motors, which are one of the most crucial components of electric vehicles.
As the sole manufacturer of automotive quality electrical steels in North America, Cleveland-Cliffs is at the forefront of this market. Automotive OEMs will have a solid source for their domestic production of EV motors on a steady supply of MOTOR-MAX electrical steels. Cleveland-Cliffs has the expertise and capacity to create high-quality electrical steels for unique, high-performance applications.
Cleveland-Cliffs’ grain-oriented electrical steels used in EV charging stations will have an important role to play in addressing the rising demand for charging station infrastructure across the country.
The company uses a cleaner blend of its high-quality direct-reduction iron and recycled steel scrap to produce MOTOR-MAX HF NOES and other electrical steel products. This approach generates lower greenhouse gas emissions than using carbon-intensive energy sources.
Ohio-based Cleveland-Cliffs is the largest producer of iron ore pellets and flat-rolled steel in North America. In the third quarter of 2022, the company reported adjusted earnings of 29 cents per share compared with $2.33 posted in third-quarter 2021. For the September-ended quarter, total revenues were $5.6 billion, down about 6% year over year. The bottom and top lines missed the Zacks Consensus Estimate of 45 cents per share and $5.7 billion, respectively.
Shipments to Cleveland-Cliffs’ automotive clients improved significantly in the quarter. However, the results were hurt by higher repair and maintenance expenses, reduced production volume, and higher costs in natural gas, electricity, scrap and alloys.
To reflect the third-quarter results, CLF expects the 2022 average selling price to be $1,370 per net ton, suggesting an average hot-rolled coil steel index price of $730 per net ton for the balance of the year.
Price Performance
Cleveland-Cliffs’ shares have lost 21.3% in the past year compared with a 1.5% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Cleveland-Cliffs currently carries a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for Sociedad’s 2022 earnings per share is $13.13, suggesting 540.5% growth from the year-ago reported figure. Earnings estimates have moved 1.5% north in the past 60 days. SQM has a trailing four-quarter earnings surprise of 37.4%, on average. Its shares have surged 79.9% in the past year.
The Zacks Consensus Estimate for Innospec’s current-year earnings is pegged at $6.26. The estimate indicates year-over-year earnings growth of 30.4%. Earnings estimates have been revised 5.6% upward in the past 60 days. IOSP has a trailing four-quarter earnings surprise of 25.6%, on average. Shares of IOSP have gained 19.8% in a year.
Reliance Steel expects earnings of $28.71 per share for the current year, indicating a year-over-year growth rate of 29.8%. The consensus estimate for RS’ earnings for the current year has been revised 0.06% upward in the past 60 days. It has a trailing four-quarter average surprise of 13.6% on average. RS has gained 31.1% in a year.
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Cleveland-Cliffs (CLF) Launches Electrical Steels for EV Market
Cleveland-Cliffs Inc. (CLF - Free Report) announced on Dec 13 that it is launching a Motor-Max line of non-oriented electrical steels for high-frequency (“HF”) motors and generators. The launch will address the rising demand for non-oriented electrical steel (“NOES”) products and electrical steels.
MOTOR-MAX HF NOES are designed for high-speed motors, aircraft generators, electric vehicles (“EVs”) traction motors and other rotating machinery. MOTOR-MAX electrical steels will boost the overall performance and efficiency of EV traction motors, which are one of the most crucial components of electric vehicles.
As the sole manufacturer of automotive quality electrical steels in North America, Cleveland-Cliffs is at the forefront of this market. Automotive OEMs will have a solid source for their domestic production of EV motors on a steady supply of MOTOR-MAX electrical steels. Cleveland-Cliffs has the expertise and capacity to create high-quality electrical steels for unique, high-performance applications.
Cleveland-Cliffs’ grain-oriented electrical steels used in EV charging stations will have an important role to play in addressing the rising demand for charging station infrastructure across the country.
The company uses a cleaner blend of its high-quality direct-reduction iron and recycled steel scrap to produce MOTOR-MAX HF NOES and other electrical steel products. This approach generates lower greenhouse gas emissions than using carbon-intensive energy sources.
Ohio-based Cleveland-Cliffs is the largest producer of iron ore pellets and flat-rolled steel in North America. In the third quarter of 2022, the company reported adjusted earnings of 29 cents per share compared with $2.33 posted in third-quarter 2021. For the September-ended quarter, total revenues were $5.6 billion, down about 6% year over year. The bottom and top lines missed the Zacks Consensus Estimate of 45 cents per share and $5.7 billion, respectively.
Shipments to Cleveland-Cliffs’ automotive clients improved significantly in the quarter. However, the results were hurt by higher repair and maintenance expenses, reduced production volume, and higher costs in natural gas, electricity, scrap and alloys.
To reflect the third-quarter results, CLF expects the 2022 average selling price to be $1,370 per net ton, suggesting an average hot-rolled coil steel index price of $730 per net ton for the balance of the year.
Price Performance
Cleveland-Cliffs’ shares have lost 21.3% in the past year compared with a 1.5% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Cleveland-Cliffs currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the basic materials space are Sociedad Quimica y Minera (SQM - Free Report) , Innospec (IOSP - Free Report) , and Reliance Steel (RS - Free Report) . While SQM flaunts a Zacks Rank #1 (Strong Buy) at present, ISOP and RS carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sociedad’s 2022 earnings per share is $13.13, suggesting 540.5% growth from the year-ago reported figure. Earnings estimates have moved 1.5% north in the past 60 days. SQM has a trailing four-quarter earnings surprise of 37.4%, on average. Its shares have surged 79.9% in the past year.
The Zacks Consensus Estimate for Innospec’s current-year earnings is pegged at $6.26. The estimate indicates year-over-year earnings growth of 30.4%. Earnings estimates have been revised 5.6% upward in the past 60 days. IOSP has a trailing four-quarter earnings surprise of 25.6%, on average. Shares of IOSP have gained 19.8% in a year.
Reliance Steel expects earnings of $28.71 per share for the current year, indicating a year-over-year growth rate of 29.8%. The consensus estimate for RS’ earnings for the current year has been revised 0.06% upward in the past 60 days. It has a trailing four-quarter average surprise of 13.6% on average. RS has gained 31.1% in a year.