Cleveland-Cliffs reports second quarter earnings

Cleveland-Cliffs reports second quarter earnings

Cleveland, Ohio iron ore pellets producer Cleveland-Cliffs reported second quarter 2005 earnings soared 200 percent reflecting dramatically higher North American sales margins and the inclusion of earnings from Portman Limited. Total sales of iron ore and services including its Australia earnings were $424.5 million for the second quarter 2005, an increase over the $257.5 million seen for the same period in 2004. Year-to-date net sales or iron ore and services including its Australia earnings were reported as $643.7 million, a 35 percent increase from same period in 2004. Net income for the second quarter was reported as $99.6 million, or $3.58 per diluted share, compared to $32.8 million, or $1.21 per diluted share, for the second quarter 2004. Year-to-date 2005 net income was $120 million while year-to-date 2004 net income was $32.8. Cliffs’ chairman and CEO John Brinzo said, "The first half of 2005 has been a very busy period for Cliffs. In addition to realizing record production, revenues and earnings, we completed the largest acquisition in the Company's history and, on July 5th, paid down all of our related debt, making us, once again, debt free. The Board's decision earlier this month to double the cash dividend on our common shares is reflective of both our impressive financial results and encouraging business outlook." Commenting on Cliffs’ outlook, Mr. Brinzo said, "The year 2005 is on track to be another record period for Cliffs in terms of production, revenues and earnings. The Portman acquisition integration is moving ahead exceptionally well and we look forward to reporting our progress as the balance of the year unfolds." Cleveland-Cliffs Inc, is the largest producer of iron ore pellets in North America. It operates a total of six iron ore mines located in Michigan, Minnesota and Eastern Canada. The Company is majority owner of Portman Limited, the third-largest iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore.