Revenues for the company, which focuses on both iron ore and coal, were up 84% in the period to a record $US1 billion, up from last year’s second-quarter result of $548 million.
Net income went up a staggering 211% to $270 million versus 2007’s comparable quarter of $86 million.
“The record sales and earnings generated during the quarter and first half reflect successful execution of Cliffs' ongoing strategy," said C-C president Joseph Carrabba, who cited the strong metallurgical coal and iron ore markets for its revenue jumps year over year.
“We continue to grow and expand in the areas that we have identified as integral to sustaining our leadership position in the North American mining sector and around the world.
“Moreover, we have recently made significant strides in reinforcing our platform to serve the faster growing international markets and to meet the robust demand for steelmaking materials in North America and globally."
The company said its operating income increased 253% to $409 million primarily from higher sales margins in iron ore and offset slightly by a negative margin of sales of $23 million in North American coal.
Officials said that decrease was a result of production “impediments” in the first half previously announced.
In C-C’s coal business, metallurgical sales volumes for the second period totalled 576,000 tons at an average realised price of $91.67.
Its cost per ton was $131.60, which the company said resulted from its longwall development at the Pinnacle mine as well as the operation’s slowed production after crews reached a fault in the panel.
The company has also experienced problems at its Oak Grove longwall. Development was extended during the quarter because of difficulties in acquiring the personnel and additional equipment needed to proceed. C-C said it expects cost per ton to decline “significantly” in the second half.
Looking ahead, C-C officials said its North American coal business will likely produce and sell about 4Mt of metallurgical coal this year, a 300,000t drop from its previous guidance, again due to personnel and equipment acquisition issues.
Average sales realisation will still be about $94, with cost per ton expected to be $3 over guidance at $89 due to its decreased production outlook.
