COKING COALWHY DO WE CARE ABOUT CLF? COKING COAL.
Cleveland-Cliffs soars after new sales outlookWednesday July 9, 6:06 pm ETCleveland-Cliffs shares surge after company lifts 2008 sales outlook; JPMorgan ups estimatesNEW YORK (AP) -- Shares of Cleveland-CliffsInc. soared on Wednesday after the iron and coal miner raised itsoutlook due to higher steel prices and recent iron ore pricesettlements.
Late Tuesday, the Cleveland-based company said itexpects 2008 revenue from its North America segment to increase to $85per ton of iron from its previous estimate of $81 per ton. It also saidit expects prices in North American next year to rise 26 percent to anaverage of $107 per ton.
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Cleveland-Cliffs also raised its revenue guidance for its Asia-Pacific segment to $102 per ton of iron from $89 per ton in 2008.
Shares of Cleveland-Cliffs advanced $13.84, or 15.1 percent, to $105.78.
JPMorgananalyst Michael F. Gambardella raised his 2009 earnings estimate on thecompany following the new outlook. He also said shares are attractivelypriced after some recent weakness.
"We believe its share priceshould benefit from significant earnings growth over the next severalyears due to its leverage to rising iron ore and metallurgical coalprices, and as recent acquisitions ramp up to full capacity," he wrotein a note to investors.
Gambardella reiterated his "Overweight"rating on the stock. Shares of Cleveland-Cliffs have soared 82 percentsince the start of the year.