Cliffs posts Q2 loss on weaker commodity prices, volumes


Cliffs Natural Resources' (NYSE:CLF) Q2 loss is attributed to lower prices for iron ore and metallurgical coal as well as a decline in sales volumes, but earnings were better than analysts had expected.

Sales volumes at CLF's U.S. iron ore operations fell 24% Y/Y; Q2 iron ore pellet sales volume totaled 4.3M tons vs. 5.7M tons in the year-ago quarter, and revenues per ton were $106.80 vs. $110.32 in the year-ago quarter.

CLF says it lowered capital spending by $210M, or 77%, to $61M and improves cash cost/ton rates across all business segments.

Achieved record quarterly sales volume of 2M tons at the Bloom Lake mine, and lowers full-year cash cost/ton outlook for Bloom Lake.

CEO Gary Halverson says CLF continues to cut costs and reduce capital expenditure amid a "challenging business climate."

CLF -0.2% AH.

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Comments (7)
  • WPSPIKER
    , contributor
    Comments (1149) | Send Message
     
    Not as bad as I thought it might be, with the Great Lakes frozen over from Jan thru April moving freight was nearly impossible...

     

    M
    23 Jul 2014, 07:09 PM Reply Like
  • AlpaNN
    , contributor
    Comments (194) | Send Message
     
    I believe they are on right track. hope prices for iron ore and metallurgical coal start going up to make better profit for the company. any idea of dividend still going to continue or not
    23 Jul 2014, 07:28 PM Reply Like
  • Ryan Takach
    , contributor
    Comments (62) | Send Message
     
    Honestly I don't think anyone would be surprised if they cut the dividend. In past years they have typically announced the div between July 10th and 15th, so maybe they're not going to continue it.

     

    At this point I don't think a dividend cut would actually make the share price drop, it might actually be received positively by the market. Who knows. I'm so underwater on this thing I'm not even phased by the news anymore.
    23 Jul 2014, 07:44 PM Reply Like
  • red-bull
    , contributor
    Comments (113) | Send Message
     
    earning is not bad as market predicted, days before JPM Analyst thought Cliff will lost 2Q14 EPS estimates to ($0.34) from $0.19 will see how market react, clear pic will come after the proxy battle, Casablanca Capital has a upper hand to gain control of BOD, hope they will keep the Dividend
    23 Jul 2014, 11:09 PM Reply Like
  • chunghk
    , contributor
    Comments (345) | Send Message
     
    CLF-Casa imagined $53 stock price. Me think range $15-$17; sufferer erectile xxxfunction; Dropping pumped medication & injections; very momentary recovery, without iron ore price surging & Chinese reaction, doomed stay above range till yearend. Shorts upper hand. Thanks.
    24 Jul 2014, 12:11 AM Reply Like
  • wil3714
    , contributor
    Comments (2273) | Send Message
     
    Cost controls were very good this quarter and they can weather the storm on 77% reduction
    24 Jul 2014, 09:07 AM Reply Like
  • Discreet_Suffolk
    , contributor
    Comments (18) | Send Message
     
    Just picked up Cliff's Preferred.... CLV. +12% Dividend this should be the bottom...JMO
    24 Jul 2014, 09:53 AM Reply Like
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