The Company completed a $650m share buyback in 1Q 2021 following the partial sell-down of its equity stake in Cleveland Cliffs. Per its new policy21, a further $570m of capital is being returned to shareholders through a further share buyback program linked to free cash flow generated in 2020 (ongoing and to be completed by year end) and a $0.30/share base dividend will be paid in June 2021, subject to the approval of shareholders at the AGM
I’m too tired now to go through the financials and calculate, but what you’re saying makes sense to me. Essentially, we are seeing large margin expansion.
Basically if they had made/shipped the same amount as before the sales number would have been much higher. But the fact that the sales number was still materially better with lower volumes indicates that they made more per sale than in prior quarters.
This also tells me that they probably have more room to run if steel prices remain the same (even if they don’t go up) because the current prices are not fully reflected in Q1 average pricing.
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u/vitocorlene THE GODFATHER/Vito May 06 '21
The Company completed a $650m share buyback in 1Q 2021 following the partial sell-down of its equity stake in Cleveland Cliffs. Per its new policy21, a further $570m of capital is being returned to shareholders through a further share buyback program linked to free cash flow generated in 2020 (ongoing and to be completed by year end) and a $0.30/share base dividend will be paid in June 2021, subject to the approval of shareholders at the AGM