Cleveland, Ohio, US-based metallurgical coal and iron ore pellet producer Cliffs Natural Resources Inc. (Cliffs) has reported a net income of $204.3 million in 2009, which is 61.96 percent lower as compared to 2008.
In its fourth quarter and full year financial report for the year 2009, Cliffs posted full year revenues of $2.34 billion, down 35 percent from the previous year, due to lower year-over-year demand and pricing for steelmaking raw materials caused by the global economic crisis and the recessionary environment in some of the company's markets.
Commenting on the results, Cliffs' chairman, president and CEO, Joseph A. Carrabba, said, "Despite an extremely challenging environment through most of 2009, Cliffs achieved strong financial and strategic performances, delivering respectable earnings and ending the year in a position of strength."
Meanwhile, in the last quarter of 2009, Cliffs' net income improved by 135 percent, reaching $108.2 million, while its revenues for the period in question amounted to $820.5 million, declining by 10.46 percent, both compared to the corresponding period of the previous year, as a result of lower year-over-year pricing, offset partially by strong cost-control efforts, in each of the company's business segments
In 2009, Cliffs' North American iron ore equity production volume reached 17.37 million metric tons, down 25.33 percent year on year, while its North American iron ore output in Q4 2009 declined by 13.21 percent year on year, totaling 6.1 million metric tons. The company's total North American coal production amounted to 1.58 million metric tons in 2009 and 661,340 metric tons in Q4 2009, decreasing by 50 percent and 21 percent respectively, compared to the corresponding periods of the previous year.
For 2010, Cliffs expects increases of 40 percent for world blast furnace iron ore pellet price settlements; increases of 35 percent and 30 percent respectively for Australian lump and fines benchmark price settlements, and North America hard coking coal prices of $138/mt FOB.