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Cleveland-Cliffs forecasts $3.5 billion in EBITDA this year
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Cleveland-Cliffs forecasts $3.5 billion in EBITDA this year

Cleveland-Cliffs turns profit of $41 million on $4 billion in revenue

Cleveland-Cliffs' offices at the Indiana Harbor steel mill in East Chicago are shown. 

Cleveland-Cliffs, one of the Calumet Region's largest industrial employers, forecasts it will pull in about $3.5 billion in earnings before interest, taxes, depreciation and amortization this year if prices hold up.

The Cleveland-based steelmaker, which bought ArcelorMittal USA and AK Steel last year, projects it will bring in $500 million in EBITDA in the first quarter and $1.2 billion in EBITDA in the second quarter of 2021. The projections assume hot-rolled coil prices in the United States will continue to average $975 per ton for the rest of the year.

Cleveland-Cliffs plans to report its first-quarter earnings on April 22.

Last year, the steelmaker pulled in $353 million in EBITDA but posted a loss of $81 million because of $186 million in costs related to acquisition, severance and inventory step-up. It posted a strong fourth quarter in which it completed its acquisition of ArcelorMittal USA, pulling in a profit of $74 million on $286 million in EBITDA.

The 174-year-old company went from being an iron ore miner to the largest flat-rolled steelmaker in North America by buying out customers AK Steel and ArcelorMittal USA. It now runs the steel mills in East Chicago, Burns Harbor, Gary, Riverdale and New Carlisle. 

See a day in the life of Portage Patrolman Brian Graves in the latest installment of Riding Shotgun with NWI Cops.

Video filmed by Kale Wilk and produced by Scotia White. Interview by Anna Ortiz.

The company plans to invest $500 million in capital projects at its facilities this year, including at Burns Harbor Works.

The publicly traded company employs 25,000 workers at its steel mills and iron ore mines, largely across the Midwest and South. Self-sufficient with raw materials, it's fully vertically integrated from iron ore mining to iron production, steelmaking, rolling and finishing.

Unlike predecessor ArcelorMittal USA, Cleveland-Cliffs is pursuing a U.S.-centric strategy that focuses on the automotive industry.

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Business Reporter

Joseph S. Pete is a Lisagor Award-winning business reporter who covers steel, industry, unions, the ports, retail, banking and more. The Indiana University grad has been with The Times since 2013 and blogs about craft beer, culture and the military.

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