Cliffs Natural Resources Reports 2015 Third Quarter Results

Cliffs Natural Resources (NYSE:CLF) announced its third quarter results, which showed consolidated revenues of $593 million, a 39 percent decrease from Q3 2014.
As quoted in the press release:

Third-quarter 2015 consolidated revenues of $593 million decreased 39 percent from the prior year’s third-quarter revenues of $980 million. Cost of goods sold decreased by 26 percent to $538 million compared to $724 million reported in the third quarter of 2014.
For the third quarter of 2015, the Company recorded net income of $6 million compared to a net loss of $6.9 billion recorded in the prior-year quarter. The Company recorded a net loss attributable to Cliffs’ common shareholders of $15 million, or $0.10 per diluted share, compared to a net loss attributable to Cliffs’ common shareholders of $5.9 billion, or $38.49 per diluted share recorded in the third quarter of 2014.
For the third quarter of 2015, adjusted EBITDA¹ was $60 million. Cliffs noted that this figure includes idle expenses of $33 millionrelated to previously announced production curtailments. Excluding these idle expenses primarily associated with the Empire and United Taconite mines, Cliffs’ adjusted EBITDA¹ would have been $93 million.

Lourenco Goncalves, chairman, president and CEO of Cliffs, commented:

Our performance this past quarter illustrates how far we have come in our turnaround story. We have been able to deliver significant cost reductions in all areas of the business through disciplined execution of the strategy instituted last year.” Mr. Goncalves added, “We expect the domestic steel market to improve in 2016 as trade actions reduce the pressure of imports and firm up steel pricing. Our solid cost position coupled with stronger demand from the mills should drive better profitability for Cliffs.

Click here to read the full Cliffs Natural Resources (NYSE:CLF) press release.