|  NEW YORK: Cliffs Natural Resources has reported a drop in first-quarter profit but earnings were much better than analysts had expected, sending the iron ore and metallurgical coal miner’s shares higher.
Revenue was just shy of expectations, dropping 6 per cent to $1.14 billion. Analysts had been expecting $1.20 billion, according to Thomson Reuters.
“We are headed in the right direction in 2013,” said Chief Executive Joseph Carrabba in a statement. “During the first quarter, we took deliberate measures to reduce our balance sheet leverage and improve our cash position.”
The Cleveland-based company raised $995 million in an equity offering announced in January, when it also slashed its dividend 76 per cent.
Cliffs nudged up its full-year sales forecast for the US iron ore segment to 21 million long tonnes, from 20 million long tonnes, and reaffirmed its previous outlook for other segments.
Cliffs said talks with the Ontario government on its Black Thor chromite project in Canada’s Ring of Fire mining district are still suspended, as they have been since January, when a new premier took office.
“Cliffs will not pursue approving the transition of the project to execution until key elements supporting economic viability are resolved,” it said, but added that it would continue its environmental assessment and consultations. Cliffs’ project may be key to the development of the Ring of Fire.
The company said sales at its US iron ore segment slipped in the first quarter because of the bankruptcy of one customer. But revenue per long ton rose 2 per cent from a year earlier. |