American Steel Needs A Strong Foundation
Cleveland-Cliffs' latest earnings report confirms what many in the steel industry have long suspected: this company is seemingly not positioned to lead American steel into the future.
The company reported a staggering $434 million loss in the last quarter alone — compared to $139 million lost in the same period a year ago.
Cleveland Cliffs continues to demonstrate that its strategy is highly questionable in terms of its sustainabilty.
At a time when increasing domestic manufacturing has never been more important, American policymakers must look to companies poised to succeed, not those desperately striving to "lead from behind."
On its latest earnings call, Cliffs' leadership argued that trade policies under the Trump administration would soon lift the industry.
But unlike competitors who have managed to weather tough markets with discipline and foresight, Cliffs is hoping for policy shifts to bail them out of fundamental financial weaknesses.
Their revenue has dropped from $22 billion in 2023 to $19.2 billion in 2024, and despite years of acquisitions and government-supported projects, the company remains on shaky ground.
Goncalves' statements during the call only reinforced the issue.
He spoke of continued capital investments in Butler, Pennsylvania and Middletown, Ohio — projects which were significantly aided by Department of Energy grants under the Biden administration — while simultaneously trying to position Cliffs as the American alternative to Nippon Steel’s proposed U.S. Steel acquisition.
But what he failed to mention is how Cliffs' financial losses undermine its ability to truly compete in this industry. While U.S. Steel, despite all the turmoil, posted a loss of just $89 million, Cliffs lost exponentially beyond that.
Real growth in American steel will not come from companies that are constantly chasing mergers, government subsidies, and political favors.
It will come from companies that are financially sound, strategically focused, and committed to innovation.
The truth is that Cleveland-Cliffs, and companies like it, are not the future of American steel. Its current trajectory is unsustainable.
If it continues down this path, it risks not only its own collapse but also destabilizing an industry critical to America’s economic and national security.`
The focus should be on companies that are financially disciplined, committed to true innovation, and prepared to invest in steel’s future — not just in political rhetoric and acquisitions.
Diana London is a seasoned political strategist and commentator with over five years of experience on Capitol Hill. Currently a Newsmax columnist, Diana is President and Co-Founder of Ford & London Global Strategies, and Vice President of X Capital Investments. She also serves as CEO of The Secret Weapon Agency, specializing in crisis communications and public relations. She works on advancing conservative initiatives and empowering diverse communities as well as championing criminal justice reform. Read Diana London's Reports — More Here.
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