NEW YORK Cliffs Natural
Resources Inc. saw first-quarter profits plunge 71.5 percent
year on year on revenues that fell 5.9 percent, a decline due
largely to a 10-percent drop in global iron ore sales
The company reported
first-quarter net income of $107 million, compared with $375.8
million for the first quarter of 2012, on sales of $1.14
billion vs. $1.21 billion in the year-ago quarter.
The Cleveland-based company also
increased its full-year forecast for U.S. iron ore sales to 21
million tons from a previous 20 million tons due to increased
domestic demand for iron ore pellets.
Cliffs sold 3.1 million tons of
U.S. iron ore pellet in the first quarter of 2013, down 8.8
percent from 3.4 million tons in the year-ago period. The
company attributed that drop to lost sales volumes to RG Steel
LLC, which declared bankruptcy in May 2012 (
amm.com, May 31).
In addition, U.S. iron ore sales
volumes are typically lower in the first quarter than they are
at other times of the year due to seasonal shipping constraints
on the Great Lakes.
A version of this article was first
published in AMM sister publication Steel