Cliffs Natural Swings to Profit
BY Dow Jones & Company, Inc.
— 10:32 AM ET 04/28/2016
Cliffs Natural Resources Inc. ( CLF )
swung to an unexpected first-quarter profit due to refinancing related to the iron- ore miner's efforts to improve its balance sheet.
The Cleveland company also benefited from lower production and overhead costs and the company's revenue declines wasn't as bad as analysts had feared.
Shares, down 27% in the past 12 months, rose 10% to $4.76 in recent premarket trading.
Cliffs has been hurt by weak demand from steelmakers, which have been grappling with low prices amid a glut of supply and a high level of less expensive imports.
Cliffs, one of the country's biggest mining companies, has continued to streamline its operations with the hope that iron-ore prices will recover in time to stave off bankruptcy.
Chairman and Chief Executive Lourenco Goncalves said in prepared remarks on Thursday that the company's latest results "clearly demonstrate how far we have come on our turnaround."
Mr. Goncalves also stated the U.S. steel market "has started to show consistent signs of a real recovery, with a direct positive impact on our steel clients' order books" as well as improved demand for its iron-ore pellets.