Cliffs Natural Resources has steep 3Q profit fall

Cliffs Natural Resources posts drop in 3Q profit, revenue on reduced volume, iron ore pricing

• On 6:32 pm EDT, Thursday October 29, 2009

CLEVELAND, Ohio (AP) -- Cliffs Natural Resources Inc. said Thursday its third-quarter profit and revenue fell due to reduced volume in North American businesses and lower year-over-year iron ore pricing.

Net income of $58.8 million, or 45 cents per share, fell sharply from $174.9 million, or $1.67 per share in the same quarter last year.

Analysts surveyed by Thomson Reuters expected, on average, a loss of 7 cents per share.

Revenue for the quarter ended Sept. 30 was $666.4 million, down 44 percent from $1.11 billion in the year-ago period.

Analysts expected, on average, $634.6 million in revenue.

Joseph A. Carrabba, chairman, president and CEO, said demand from North American iron ore and metallurgical coal customers improved during the third quarter.

The company has begun to increase production at most facilities, he said. Sales volume expectations are increasing in North American iron ore and coal and Asia Pacific iron ore is "positioned for a record year" in tons shipped, he said.

Shares rose $1.70, or 5 percent, to close at $34.87.