This is the sound of a CEO on tilt

Irving Hamilton
October 20, 2018

The chief executive of an iron-ore giant - claiming that a Goldman Sachs analyst gave him the shaft with a faulty profit estimate - went on a freaky tirade in a Friday conference call, warning, "You can run, but you can't hide". You are an embarrassment to your parents.

We are going to screw this guy so badly that I don't believe that they will be able to only resign.

"I have been waiting to get to this point for four years", CEO Lourenco Goncalves said of the dividend in a conference call with investors Friday morning.

"It will be bad no matter what, but it will be a lot worse if you're alone", Goncalves said.

The rant earned Goncalves an invitation to appear later on CNBC, but Cleveland-Cliffs shares sank almost 8 percent in afternoon trading.

In afternoon trading, the shares were down 88 USA cents, or 7.7 per cent, to $US10.60.

Goncalves's rant came after the mining company reported a third-quarter profit of almost $438 million, slightly below expectations. He was disappointed to learn that Korn apparently was not on the call.

Najib at court to support ex-deputy Zahid
The probe involved RM800,000 (S$265,000) belonging to the foundation that was used to pay off his credit card bills. Charging Mr Zahid would also raise fears among other party leaders that they could be next, he said.

"Matthew Korn, if you are in the call, it is still 10:42, why you don't ask a freaking question", Goncalves had said early in the call.

"Matthew Korn from Goldman Sachs, you can run, but you can't hide".

The iron-ore mining company said that excluding discontinued operations it earned 64 cents per share in the third quarter. Goncalves said that basic earnings of 67 cents a share was the correct measure to use.

Cleveland-Cliffs did not respond to a request for comment, while a Goldman Sachs spokesperson said in an email that the investment banking firm declined to comment.

The incident was reminiscent of Tesla CEO Elon Musk's scolding of analysts on a call in May, which sent the auto maker's stock down in after-hours trading. The stock price peaked above $100 in 2011, crashed to under $2 by the end of 2015, then rallied.

The company's third-quarter adjusted EBITDA - earnings before interest, tax, depreciation and amortization - was $250 million, up 66 percent over previous year.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER