Cliffs Natural Resources’ Q3 2016 Earnings Preview: Cost Reduction Initiatives To Drive Improvement In Earnings
We expect Cliffs to report a significant improvement in its third quarter earnings results, driven by the success of the company’s cost reduction efforts. Lower maintenance and repair costs as a result of the company’s cost reduction initiatives, lower energy costs, the impact of workforce rationalization and the favorable impact of foreign exchange movements on the costs of the Asia Pacific iron ore operations (strengthening of the U.S. Dollar against the Australian Dollar), helped lower the company’s cash production costs in the first half of the year, as summarized in the table shown below. We expect the company to demonstrate similar cost performance in Q3 as well. Moreover, an improved iron ore pricing environment in Q3 this year will provide additional support to the company’s profits.
Have more questions about Cliffs Natural Resources? See the links below.
- What Is Cliffs Natural Resources’ Fundamental Value Based On 2015 Results?
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- How Has Cliffs Natural Resources’ Revenue Composition Changed Over The Last 5 Years?
- By What Percentage Did Cliffs Natural Resources’ Revenue & EBITDA Decline Over The Last 5 Years?
- By What Percentage Can Cliffs Natural Resources’ Revenue & EBITDA Change Over The Next 3 Years?
- How Will Cliffs Natural Resources’ Revenue Composition Change by 2020?
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