NYSE-listed Cliffs Natural Resources increased fourth-quarter net income by 255% year-on-year, to $384-million, and said on Wednesday it has increased its forecast for iron-ore sales in 2011.
The Cleveland-based coal and iron-ore producer reported revenue for the quarter of $1,4-billion, a 74% increase compared with a year earlier, as the company benefited from higher sales volumes and prices, thanks to increased exposure to seaborne markets and rising global demand for steelmaking raw materials.
“Our impressive year-over-year earnings momentum is directly attributable to the strategic efforts to increase our business’ exposure to seaborne pricing over the past five years,” CEO Joseph Carrabba said.
Cliffs operates coal and iron-ore mines in the US and Australia, has iron-ore mines in Canada and also owns a 30% stake in the Amapa iron-ore project, in Brazil.
The company announced in January it had agreed to buy Canadian iron-ore producer Consolidated Thompson Iron Mines for C$4,9-billion, including net debt.
The acquisition will add Consolidated Thompson’s Bloom Lake operation in Quebec, further increasing Cliff’s exposure to the seaborne iron-ore market.
The company also said on Wednesday it now expects to sell about 28-million tons of iron-ore from its North American unit, compared with an earlier forecast of 27-million tons.
The increase reflects revenue for 600 000 t of iron-ore pellets produced in the fourth quarter but only recognised in the fourth quarter, as well as “ improved market conditions”.
North American coal sales are still forecast at 6,5-million tons, comprised of one-million tons of thermal coal, 1,5-million tons of high-volatile metallurgical coal and four- million tons of low-volatile metallurgical coal.
The company expects to sell nine-million tons of iron-ore from its Asia Pacific operations.
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