Cliffs Natural Resources Inc.'s (CLF) third-quarter net income attributable to shareholders was $85.1 million, or $0.59 per share, down from $601.2 million, or $4.15 per share, in the third quarter of 2011. The decrease was primarily due to lower consolidated sales margin. Primarily driven by lower pricing, the Company has reduced its anticipated full-year income from continuing operations.
Consolidated revenues decreased 26% for the third quarter to $1.5 billion, from $2.1 billion in the same quarter last year. This was primarily driven by a 36% decrease in year-over-year pricing for seaborne iron ore. Reduced revenues, along with increased labor, mining, and maintenance expenses resulted in a 76% decrease in consolidated sales margin to $198 million, compared with the third quarter of 2011.
Analysts polled by Thomson Reuters expected the company to report earnings of $1.07 per share on revenues of $1.72 billion for the quarter. Analysts' estimates typically exclude special items.
Looking forward, Cliffs expects the U.S. economy to remain stable for the remainder of the year. The company anticipates moderate volatility in the pricing for seaborne iron ore and metallurgical coal products, driven by Asian and European end markets.
The company lowered its full-year expectation for Chinese crude steel production to approximately 715 million tons, from its previous expectation of 730 million tons. Also, due to the year-to-date average spot price for 62% Fe seaborne iron ore of $133 per ton, the company decreased its average full-year 2012 seaborne iron ore spot price expectation to approximately $128 per ton (C.F.R. China) from its previous expectation of $145 per ton.
The company maintained its full-year 2012 U.S. Iron Ore cash-cost-per-ton expectation of approximately $60 - $65, and depreciation, depletion and amortization expectation of approximately $4 per ton.
In 2013, the company expects to sell approximately 19 million - 20 million tons from its U.S. Iron Ore business. This expectation assumes a slightly lower year-over-year North American blast furnace utilization rate for 2013.
The company decreased its full-year 2012 cash flow from operations expectation to approximately $600 million, from its previous expectation of $1.3 billion.
The company maintained its previously disclosed 2012 capital expenditures budget of approximately $1 billion, comprised of approximately $300 million in sustaining capital and $700 million in growth and productivity-improvement capital.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.