Cleveland Cliffs third quarter results show improvement over 2016

CLEVELAND — Revenue is up 26 percent for Cleveland-Cliffs Inc. as compared to this time last year, according to the company’s third quarter results revealed on Friday.

The company reported consolidated revenues of $698 million for the period ending on Sept. 30, an increase of 26 percent as compared to the prior year’s third-quarter revenues of $553 million, the release states.

Cost of goods sold increased by 15 percent to $538 million compared to $468 million reported in the third quarter of 2016.

The company recorded net income of $53 million in the third quarter, or $0.18 per diluted share. This included an $89 million, or $0.29 per diluted share, loss on extinguishment of debt, and a $32 million, or $0.11 per diluted share, gain from discontinued operations. This compares to a net loss of $28 million, or $0.12 per diluted share, recorded in the third quarter of 2016. The prior-year quarter’s net loss included an $18 million, or $0.09 per diluted share, loss on extinguishment of debt, and a $3 million, or $0.01 per diluted share, loss from discontinued operations.

For the third quarter of 2017, adjusted EBITDA1 was $154 million, a 149 percent increase compared to $62 million reported in the third quarter of 2016.

Cliffs Chief Executive Officer Lourenco Goncalves said company officials are pleased with the accomplishments year to date.

“We became a much more profitable company, substantially improved our debt profile and now pay a lot less in interest expense. With the third quarter numbers in the books we have already outperformed in three quarters of 2017 the entire 2016.” Goncalves said in a news release.

The company’s position was also improved, Goncalves said, with the acquisition of United Steel Corp.’s 15 percent interest in the Tilden Mine on Oct. 2.

Cliffs added 1.2 million long tons of annual pellet production capacity and 55 million long tons of proven and probable crude ore reserves.

“(We) now own 100 percent of all active and idled iron ore mining assets in the State of Michigan,” Goncalves said. “The acquisition will allow us to become a 20 million long ton pellet supplier in 2018.”

Lisa Bowers can be reached at 906-228-2500, ext. 242. Her email address is lbowers@miningjournal.net.