Secord-quarter revenues for the company were 5.7% down on last year at $US1.5 billion ($A1.6 billion), while net income attributable to common shareholders fell 48.4% year-on-year to $133.1 million.
Operating income was down 28% for the quarter to $262 million on a 40% lower consolidated sales margin of $268.
The declines were attributed to an 11% decrease in global seaborne iron ore pricing over the period to an average $126 per ton for 62% iron fines product.
The company also cited a 7.4% increase in the costs of goods sold and operating expenses to $1.2 billion.
Other factors influencing financial figures over the period included an effort to decrease year-on-year selling, general and administrative (SGA) and exploration expenses including a focus on less drilling and professional services for certain projects.
The company also noted a $68 million impairment charge related to its iron ore interests in Brazil and a $19 million non-cash gain related to offloading its Cockatoo Island operation in Western Australia.
Despite the absence of Cockatoo output during the period, iron ore production in the Asia-Pacific division was up slightly compared to the same quarter last year to 2.9 million tonnes.
Sales, however, were weaker for the region, with revenues from product sales down 9.5% year-on-year to $327 million and sales margins down 33.6% to $31.76 per tonne.
This was due to lower market pricing pushing down revenues and a 12% increase in cash costs to $63.65 per ton.
Cliffs said higher Australian costs was partially driven by the presence of more low-grade material sold.
Revenues for the company’s US iron ore division were down 24.4% year-on-year to $216.3 million while Canadian iron ore revenue slipped 29.6% to $213.9 million.
North American coal was the standout performer with a 36.3% hike in sales volumes versus last year at 2.1 million tons and a 17.5% lift in revenues to $245.9 million.
Non-executive chairman James Kirsch – who will take over for president and chief executive Joseph Carrabba at the end of the year – said the company would continue initiatives that lower its cost profile, increase productivity and sharpen its capital allocation strategy.
For the Australian iron ore division, favourable currency exchange rates are expected to lower of the company’s 2013 full-year cash cost expectation to $65-70 per ton, compared to the previous guidance of $70-75 per ton.
Cliffs reaffirmed its Asia-Pacific sales and production volumes for the full year at 11 million tons, begin half lump and half fine iron ores.
SGA expenses for the full year will be lowered from $230 million to $215 million and spending cuts have been planned for the company’s proposed chromite mine in Canada.
The capital expenditures budget for the year will be increased to $1 billion from the previous expectation of $800-850 million due to additional spending at Canada’s Bloom Lake hematite mine.
Shares in Cliffs were 8c higher in New York at $18.38.
