Cleveland, Ohio-based Cliffs Natural Resources reported Thursday that for Q2 2013 ended June 30, 2013, consolidated revenues of $1.5 billion decreased $91 million, or 6 percent, from the prior year. The lower revenues were driven by an 11 percent decrease in global seaborne iron ore pricing to an average of $126 per ton for a 62 percent Fe fines product (CFR China).
Cliffs reported Q2 2013 net income attributable to Cliffs' common shareholders of $133 million, compared with $258 million in Q2 2012.
US Iron Ore segment pellet sales volume was 5.7 million tons, compared with 5.4 million tons in Q2 of 2012. The increase was primarily driven by higher customer demand and increased export sales related to pellet contracts that were previously supplied by Cliffs' Wabush Mine.
Eastern Canadian Iron Ore sales volume was 1.9 million tons, a decrease of 18 percent versus the prior year's quarter. At the end of Q2, Cliffs idled its Wabush pellet plant at Point Noire, which was previously announced on March 11, 2013. Going forward, the Company expects to produce only a concentrate product from Wabush's Scully Mine.
Q2 2013 Asia Pacific Iron Ore sales volume decreased 3 percent to 3 million tons, from 3.1 million tons in 2012's second quarter. The slight decrease was attributed to the absence of sales volume from Cliffs' Cockatoo Island operation, which ceased production for Cliffs during the third quarter of 2012.
For Q2 2013, North American Coal sales volume was 2.1 million tons, a 36 percent increase from the 1.5 million tons sold in the prior year's comparable quarter. The increase was driven by significantly higher sales volume from Cliffs' Oak Grove and Pinnacle mines.