Cliffs Natural Resources’ Q3 Earnings Review: Company Maintains Focus On Cost And Debt Reduction
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]
Have more questions about Cliffs Natural Resources? See the links below.
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Notes:
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Notes:- Cliffs Natural Resources’ Q3 2016 Earnings Transcript, Seeking Alpha [↩] [↩]
- Cliffs Natural Resources’ Q3 2016 Earnings Release, SEC [↩]