Cliffs Natural Resources’ Q3 Earnings Review: Company Maintains Focus On Cost And Debt Reduction

-12.05%
Downside
22.74
Market
20.00
Trefis
CLF: Cleveland-Cliffs logo
CLF
Cleveland-Cliffs

Cliffs Natural Resources reported only a slight improvement in its Q3 earnings, which was below market expectations. The impact of lower unit cash costs was partially offset by a change in the customer mix for the U.S. Iron Ore operations, which translated into a 4% decline in the division’s average realized sales price. [1] However, the Asia Pacific operations, which were characterized by stable customer contracts in Q3, reported a 10% year-over-year increase in realized prices, mirroring the increase in spot iron ore prices. [2] Despite experiencing varying realized price fluctuations, both the U.S. and Asia Pacific operations reported lower unit cash costs. Further improvements in iron ore prices are expected to be limited in the near term, due to a prevailing oversupply situation. In this context, cost and debt management will remain critical for ensuring that Cliffs successfully tackles a challenging business environment, which the company management is currently focused on. [1]

CLF Q3 2016 Earnings

Have more questions about Cliffs Natural Resources? See the links below.

Relevant Articles
  1. What’s New With Cleveland-Cliffs Stock?
  2. What’s Happening With Cleveland-Cliffs Stock?
  3. Why We Are Raising Our Price Estimate For Cleveland-Cliffs Despite A Weak Q4
  4. With Contracted Prices For 2023 Up, Is Cleveland-Cliffs Stock A Buy?
  5. Company Of The Day: Cleveland-Cliffs
  6. What To Expect From Cleveland-Cliffs Q3 Results?

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Cliffs Natural Resources

See More at Trefis | View Interactive Institutional Research (Powered by Trefis)

Get Trefis Technology

Notes:
  1. Cliffs Natural Resources’ Q3 2016 Earnings Transcript, Seeking Alpha [] []
  2. Cliffs Natural Resources’ Q3 2016 Earnings Release, SEC []