First-quarter results are in from
Cliffs Natural Resources, based in Cleveland, but with its North American Iron Ore operations here in Marquette County.
Cliffs' chairman Joseph Carrabba says the results of the first quarter are typically slower due to the season, as the quarter ends March 31. Great Lakes shipping restrictions keep sales volumes low for much of the winter. However, this year showed major improvement over the first quarter of 2010.
Revenues were up 63 percent over last year at this time, at $1.2 billion compared to $728 million. Operating income was also up, $541 million. That's a 377 percent increase from the first quarter of 2010, when Cliffs' operating income was in the red rather than black.
The figure that matters, of course, is net income, which was also good, at $423 million this quarter, up from $77 million in the first quarter of 2010.
Carrabba says the increase was driven by higher pricing, and a favorable negotiated settlement with ArcelorMittal USA, Inc.
Another number coming up is also looking good for Cliffs; based on increased demand for iron ore, both in North America and worldwide, the company is projecting an increased iron ore sales volume outlook of 29 million tons.
One thing that may have helped Cliffs this quarter was the announcement it intends to acquire
Consolidated Thompson, a Canadian iron ore producer. The acquisition is part of Cliffs' overall strategy to broaden its resources base of raw materials.
"During the quarter, we achieved another significant milestone in our long-term strategy for growth and diversification. Our pending strategic acquisition of Consolidated Thompson will further our position among the top 10 largest iron ore producers in the world," says Carrabba.
Writer: Sam Eggleston
Source: Joseph Carrabba, Cliffs Natural Resources
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