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UPDATE 1-Miner Cliffs' profit falls as prices drop
July 25, 2012 / 10:25 PM / 5 years ago

UPDATE 1-Miner Cliffs' profit falls as prices drop

July 25 (Reuters) - Iron ore and coal producer Cliffs Natural Resources Inc’s quarterly profit fell about 40 percent on lower prices and higher costs.

The company’s net profit for the second quarter fell to $258 million, or $1.81 per share, compared with $409 million, or $2.92 per share, a year earlier.

Revenue fell 10 percent to $1.6 billion, the Cleveland-based company said on Wednesday.

Prices of benchmark iron ore with 62 percent iron content .IO62-CNI=SI, which have fallen 10 percent in the April-June quarter, closed at $118.60 on Wednesday.

Sales margins fell 39 percent in the second quarter due to higher labor, mining, and maintenance costs, Cliffs said in a statement.

The company’s U.S. iron ore revenues per ton fell 13 percent to $119.51 in the second quarter on weak prices.

Cliffs shares closed at $41.15 on Wednesday on the New York Stock Exchange. The stock fell to a two-year low of $40.66 earlier. (Reporting by Divya Lad and Ankur Banerjee in Bangalore; Editing by Sriraj Kalluvila)

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