Cleveland, Ohio-based miner and iron ore pellet producer Cliffs Natural Resources Inc. has reported a net loss in the first quarter of 2009 due to weak demand for iron ore and coal by the global recession.
The company posted a net loss of $7.4 million in the first quarter of 2009, compared with the net profit of $16.7 million in the year-ago period. The company's consolidated revenue fell by six percent to $464.8 million in the first quarter of 2009, compared to the consolidated revenue of $494.4 million in the same quarter of 2008.
Commenting on the results, Joseph A. Carrabba, the chairman, president and CEO of Cliffs Natural Resources, said, "The value of our strategic efforts to diversify the enterprise in terms of geography, minerals and end-markets was evident in the first quarter of 2009. While our North American businesses are suffering from the dramatic drop in steel production in North America and Europe, our Asia Pacific businesses are performing quite well, given the difficult demand environment for steelmaking raw materials around the world."
In December, Cliffs said that it was cutting production at its six of its North American iron ore mines and one of its coal mines due to market conditions.
Cliffs also added that it could not predict 2009 revenue from its iron ore businesses and it was taking action to bring production in line with demand.