Cliffs Natural Resources Inc. Reports Third-Quarter 2009 Earnings

http://www.businesswire.com/news/home/20091029006336/en

* Company Reports $666 Million in Revenue and Net Income of $0.45 Per Diluted
Share, Notes Significantly Improving Operations and Business Outlook
* North American Iron Ore Ships 5.5 Million Tons in Quarter, Increases Full-Year
Expected Sales Volume to 17.4 Million Tons
* Asia Pacific Iron Ore Ships 2.6 Million Tonnes in Quarter, Expects Record
Volume of 8.5 Million Tonnes in 2009
* Company Generates Nearly $155 Million in Cash from Operations During Quarter

CLEVELAND--(Business Wire)--
Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today reported
third-quarter results for the period ended Sept. 30, 2009. Consolidated revenues
in the quarter were $666.4 million, down 44% from $1.2 billion in the same
quarter last year. The decrease in revenues was driven by lower volume in
Cliffs` North American businesses and lower year-over-year pricing for iron ore.
While year-over-year comparables are down, Cliffs indicated that, during the
third quarter, the Company noted a marked improvement in business conditions and
an improved outlook compared with the first half of 2009.

Joseph A. Carrabba, Cliffs` chairman, president and chief executive officer,
said, "Throughout the third quarter, we saw steadily improving demand from our
North American iron ore and metallurgical coal customers. We have begun to
increase production at most of our facilities and will continue to monitor the
markets closely to meet demand. Sales volume expectations are increasing in
North American Iron Ore and North American Coal, and Asia Pacific Iron Ore
remains positioned for a record year in terms of tons shipped. Finally, I am
enthusiastic about our recently announced transaction to acquire our
joint-venture partners` interests in Wabush Mines, which will provide us
additional exposure to the seaborne iron ore market starting in 2010."

For the third quarter, operating income was $80.5 million, versus operating
income of $339.4 million last year. Operating income was lower due to reduced
sales volumes and price realizations. The Company indicated that lower
employment costs, including variable compensation, as well as disciplined
spending, helped it achieve a 32% decrease in selling, general and
administrative expenses to $28.4 million from $41.8 million in the third quarter
last year.

Net income attributable to Cliffs` shareholders in third-quarter 2009 was $58.8
million, or $0.45 per diluted share, compared with $174.9 million, or $1.61 per
diluted share, in the third quarter last year.

Nine-Month Results

For the first nine months of 2009, revenues decreased 43% to $1.5 billion from
$2.7 billion reported in the same period last year.

Operating income for the nine-month period of 2009 was $74.6 million, compared
with $791.6 million in the year-ago period.

Net income attributable to Cliffs` shareholders year-to-date was $96.9 million,
compared with $461.9 million in the same period last year. Diluted earnings per
share in the first nine months were $0.78, versus $4.34 in the first nine months
of 2008. Included in year-to-date net income is an income tax benefit of $14.6
million. This is reflective of a current year projected annual income tax rate
of 24%, offset by income from discreet items of $48 million. These discrete
items represent tax planning initiatives focused on maximizing deductions for
percentage depletion and optimizing the use of foreign tax credits.

North American Iron Ore

Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
2009 2008 2009 2008

North American Iron Ore Sales (Long Tons) - In Thousands 5,521 7,956 9,853 16,179

Sales Margin - In Millions
Revenues from product sales and services $ 428.2 $ 811.3 $ 879.3 $ 1,733.5
Cost of goods sold and operating expenses 338.7 552.0 771.2 1,137.0
Sales margin $ 89.5 $ 259.3 $ 108.1 $ 596.5

Sales Margin - Per Ton
Revenues from product sales and services* $ 79.06 $ 93.68 $ 83.20 $ 93.94
Cash cost** 58.50 58.89 66.55 54.69
Depreciation, depletion and amortization 4.35 2.20 5.68 2.37
Cost of goods sold and operating expenses* 62.85 61.09 72.23 57.06
Sales margin $ 16.21 $ 32.59 $ 10.97 $ 36.88

* Excludes revenues and expenses related to freight and reimbursements, which are offsetting and have no impact on operating results

**Cash cost per ton is defined as Cost of goods sold and operating expenses per ton less Depreciation, depletion and amortization per ton.

Third-quarter 2009 North American Iron Ore pellet sales volume was 5.5 million
tons, a 31% decrease from the 8.0 million tons sold in the third quarter of
2008. The decrease is attributed to lower demand for iron ore pellets. While
capacity utilization in the North American steel industry ramped from 49% in the
beginning of the third quarter to 59% at the end of the third quarter, the
current level of approximately 60% remains well below those achieved throughout
2008.

Revenue per ton in the quarter was $79.06, down 16% from $93.68 in the
comparable quarter in 2008. Revenue per ton was impacted by factors that
determine pricing under Cliffs` customer supply agreements, including
significantly lower hot band steel prices and price settlements for blast
furnace pellets. These settlements include one reported for iron ore pellets in
Eastern Canada in October 2009, as well as a previously reported settlement in
Brazil, that reflected a decrease of approximately 48% below 2008 prices. This
compared with an increase of approximately 87% in the prior year. The impact of
the decreases in pricing for hot band steel and iron ore blast furnace pellets
were partially offset by lag-year adjustments contained in supply agreements
that benefit Cliffs` pricing.

Cost per ton in North American Iron Ore was $62.85, up 3% from the year-ago
quarter driven exclusively by increases in depreciation, depletion and
amortization. However, cost per ton was down 26% sequentially from $84.39 per
ton in the second quarter of this year. The sequential decrease is the result of
volume-related leverage over fixed costs. In addition, fixed costs in the
business segment have benefited from organizational structure changes and
stringent cost containment implemented at Cliffs` iron ore mines in North
America throughout the year.

North American Iron Ore Production

(In millions) (1)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
2009 2008 2009 2008
Total North American Iron Ore Mine Production 4.6 9.2 13.5 27.2
Cliffs Natural Resources Production Share 4.3 6.2 11.1 17.6

(1) Long tons of pellets of 2,240 pounds

North American Coal

Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
2009 2008 2009 2008

North American Coal Sales (Short Tons) - In Thousands 343 894 1,126 2,468

Sales Margin - In Millions
Revenues from product sales and services $ 37.9 $ 102.6 $ 125.2 $ 258.0
Cost of goods sold and operating expenses 53.4 115.9 188.6 296.8
Sales margin $ (15.5 ) $ (13.3 ) $ (63.4 ) $ (38.8 )

Sales Margin - Per Ton
Revenues from product sales and services* $ 96.50 $ 100.34 $ 95.29 $ 90.52
Cash cost** 117.20 101.57 127.71 90.11
Depreciation, depletion and amortization 24.49 13.65 23.89 16.13
Cost of goods sold and operating expenses* 141.69 115.22 151.60 106.24
Sales margin $ (45.19 ) $ (14.88 ) $ (56.31 ) $ (15.72 )

* Excludes revenues and expenses related to freight, which are offsetting and have no impact on operating results

**Cash cost per ton is defined as Cost of goods sold and operating expenses per ton less Depreciation, depletion and amortization per ton.

For the third quarter of 2009, metallurgical coal sales volume was approximately
343,000 short tons, with average revenues per ton of $96.50. This compares with
approximately 894,000 short tons in 2008, with average revenues per ton of
$100.34. The lower sales volume is the result of market conditions impacting the
demand for steel in both the United States and Europe.

Cliffs` North American Coal business reported cost of goods sold of $141.69 per
ton. The cost-per-ton increase from $115.22 realized in the third quarter of
2008 is primarily the result of lower operating leverage over fixed costs at the
mines, as production had been scaled back due to weak demand for steelmaking raw
materials. Despite 62% lower sales volume, sales margin loss in North American
Coal for the quarter was $15.5 million, compared with a sales margin loss of
$13.3 million last year. The decline in volume that negatively impacted sales
margin during the quarter has been offset by numerous proactive actions taken
throughout 2009 to lower costs in North American Coal.

North American Coal Production

(In thousands) (1)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
2009 2008 2009 2008
Total North American Coal Mine Production 294 803 1,012 2,545

(1) Short tons of coal of 2,000 pounds

Asia Pacific Iron Ore

Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
2009 2008 2009 2008

Asia Pacific Iron Ore Sales (Tonnes) - In Thousands 2,636 2,150 6,391 6,054

Sales Margin - In Millions
Revenues from product sales and services $ 165.3 $ 232.7 $ 405.4 $ 618.4
Cost of goods sold and operating expenses 138.2 133.0 338.0 336.4
Sales margin $ 27.1 $ 99.7 $ 67.4 $ 282.0

Sales Margin - Per Tonne
Revenues from product sales and services $ 62.71 $ 108.23 $ 63.43 $ 102.15
Cash cost* 43.97 53.72 40.13 48.22
Depreciation, depletion and amortization 8.46 8.14 12.75 7.35
Cost of goods sold and operating expenses 52.43 61.86 52.88 55.57
Sales margin $ 10.28 $ 46.37 $ 10.55 $ 46.58

*Cash cost per tonne is defined as Cost of goods sold and operating expenses per tonne less Depreciation, depletion and amortization per tonne.

Third-quarter 2009 Asia Pacific Iron Ore sales volume increased 23% to 2.6
million tonnes, compared with 2.2 million tonnes in the 2008 third quarter.

Revenue per tonne for the third quarter decreased 42% to $62.71, compared with
$108.23 per tonne in last year`s third quarter. Cliffs` steelmaking customers in
Japan began to receive shipments of lump ore during the quarter, which impacted
sales mix and helped to partially offset lower pricing. Cliffs indicated it
continues to sell to customers in China under provisional pricing arrangements
that are consistent with the 2009 iron ore settlements for lump and fines
reached between producers and other Asia-based consumers.

Per-tonne cost of goods sold in Asia Pacific Iron Ore decreased 15% in the third
quarter of 2009 to $52.43 from $61.86 in the third quarter of 2008. On a cash
basis, costs decreased to $43.97 per tonne for the quarter. This was down 18%
from $53.72 per tonne in the previous year. Cash cost per tonne was positively
impacted by increased sales volumes and lower mining costs, due to a continued
focus on reducing inventory, as well as favorable exchange rate variances.

Third-quarter 2009 production in Asia Pacific Iron Ore of 2.3 million tonnes was
up 44% from the 1.6 million tonnes produced a year ago. The increase is
attributed to operating improvements achieved with deployment of additional
equipment for ore processing combined with benefits derived from past Asia
Pacific Iron Ore capital projects.

Asia Pacific Iron Ore Production

(In millions) (1)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
Mine 2009 2008 2009 2008
Koolyanobbing Complex 2.3 1.5 6.1 5.3
Cockatoo Island Joint Venture* -- 0.1 -- 0.4
Total Asia Pacific Iron Ore Production 2.3 1.6 6.1 5.7

(1) Tonnes of Lump or Fines of 2,205 pounds
*Reflects Cliffs Natural Resources Pty Ltd 50% share

Sonoma Coal

In the third quarter of 2009, Cliffs` share of sales volume for its 45% economic
interest in Sonoma Coal was 304,000 tonnes, compared with 327,000 tonnes in the
third quarter last year. Revenues generated from Sonoma Coal were $35.0 million,
with a sales margin of $2.5 million. This compares with third-quarter 2008
revenues and sales margin of $43.3 million and $19.5 million, respectively.
Sales margin in the third quarter of 2009 was primarily impacted by lower price
realizations and product mix.

Amapá Iron Ore Project Update

During the third quarter, Amapá produced approximately 425,000 tonnes. Equity
loss related to the project in the quarter was $19.9 million, which included
$2.5 million in unfavorable exchange rate variances as the Brazilian Real
strengthened to the U.S. Dollar. Cliffs now anticipates reporting approximately
$70 million to $75 million in equity losses related to the project for 2009.
Cliffs` total cash contributions for the year are expected to be approximately
$80 million, which includes $16 million in capital investments at Amapá.

Cliffs continues to work with its project partner, Anglo American, to improve
performance at the project, including the ongoing exploration of numerous
scenarios. Cliffs expects to update investors upon any definitive decisions
being reached.

Liquidity and Cash Flows

At quarter-end, Cliffs had $359.9 million of cash and cash equivalents, compared
with $179.0 million at Dec. 31, 2008. At both points in time, the Company had no
borrowings on its $600 million revolving credit facility. During the third
quarter Cliffs generated nearly $155 million in cash from operations, improving
the year-to-date use of cash from operating activities to $5.4 million. Major
uses of cash in the first nine months for investing activities include $95.8
million invested in property, plant and equipment and $66.0 million invested in
Amapá. Subsequent to quarter end, Cliffs announced its intent to acquire its
joint-venture partners` interests in Wabush Mines for $88 million.

Cliffs also indicated that it has recently closed an amendment to its credit
agreement providing the Company improved borrowing flexibility, more liberally
defined financial covenants and other benefits in exchange for a modest increase
in pricing. Cliffs currently has more than $900 million in available liquidity.

Outlook

The following table provides a summary of Cliffs` 2009 guidance for its various
businesses based on estimated settlements, with additional information on each
also described below:

Outlook Summary
North American North American Asia Pacific
Iron Ore Coal Iron Ore Sonoma Coal*
Current Previous Current Previous Current Previous Current Previous
Outlook Outlook Outlook Outlook Outlook Outlook Outlook Outlook
Sales volume (million tons/tonnes) 17.4 16 1.8 1.8 8.5 8.5 1.4 1.4

Revenue per ton/tonne $75 - $80 $75 - $80 $95 - $100 $100 $60 - $65 $60 - $65 $100 - $105 $100 - $105

Cost per ton/tonne $65 - $70 $70 - $80 $135 - $140 $150 - $160 $50 - $55 $45 - $55 $85 - $90 $75 - $85

*Cliffs Natural Resources' share

North American Iron Ore Outlook

As customer demand for iron ore pellets continues to increase, Cliffs is raising
its expectations for 2009 sales volume to 17.4 million tons. Cliffs also
indicated it expects to collect cash for an additional 2 million tons of "bill
and hold" sales in 2009 that are unlikely to meet revenue recognition
requirements.

The Company expects average revenue per ton in the North American Iron Ore
business segment to be approximately $75 to $80 in 2009.

Currently, the North American Iron Ore business segment is expected to produce
17 million tons in 2009. Cost per ton is now expected to be $65 to $70.

Cliffs said it expects to achieve sales volume of approximately 23 million tons
in 2010. This includes 2.5 million tons of incremental sales from the recently
announced Wabush Mines transaction assuming that transaction closes on or about
Dec. 31, 2009. Revenue per ton in 2010 will be dependent on many factors unknown
at this time. These include customer sales mix, changes in World Pellet Prices,
changes in producer price indices and changes in steel pricing (all adjustment
factors that determine Cliffs` pricing in North American Iron Ore). Cliffs also
indicated that most of its North American Iron Ore supply agreements include
contractual base-price and lag-year adjustments that could also impact pricing.

North American Coal Outlook

Cliffs expects 2009 sales volume for its North American Coal business segment to
be approximately 1.8 million short tons of coal at average revenue of
approximately $95 to $100 per ton.

Average North American Coal cost of sales per ton in 2009 is expected to be $135
to $140. The decrease from the previous expectation of $150 to $160 per ton is
the result of increasing leverage over fixed costs due to higher volume
expectations.

As the steelmaking markets in North America and Europe continue to show
strengthening signs of recovery, Cliffs expects 2010 production and sales volume
of approximately 3 million tons in its North American Coal business.

Asia Pacific Iron Ore Outlook

Asia Pacific Iron Ore 2009 sales volume is expected to be 8.5 million tonnes.
Production is expected to be 8.1 million tonnes. Assuming China-based steel
producers continue to accept current benchmark settlements reached between
Australian producers and other Asia-based consumers, Cliffs expects Asia Pacific
Iron Ore to achieve 2009 revenue per tonne of approximately $60 to $65, with
costs per tonne of approximately $50 to $55.

In 2010, Cliffs expects to produce and sell approximately 8.5 million tonnes
from its Asia Pacific Iron Ore business.

Sonoma Coal Outlook

Cliffs has a 45% economic interest in Sonoma Coal. Cliffs expects Sonoma Coal to
achieve total 2009 production of approximately 2.9 million tonnes and sales
volume of 3.1 million tonnes. The sales mix between thermal and metallurgical
grade coal is expected to be approximately 70%/30%, respectively. Revenue per
tonne is expected to be $100 to $105, with per-tonne costs at Sonoma of $85 to
$90, up from a previous expectation of $75 to $85. The increase is due to
changes in exchange rates and slightly lower volumes.

Production and sales volume at Sonoma Coal in 2010 is expected to total
approximately 3 million tonnes.

Other Expectations

Cliffs` current 2009 SG&A expense estimate is $120 million. For the full year,
Cliffs anticipates an operating tax rate of approximately 24%, which will be
offset by discrete items of approximately $50 million to $60 million. The
Company anticipates generating $250 million to $300 million in cash from
operations, with a 2009 capital expenditures estimate of $140 million.
Depreciation, depletion and amortization for the year is expected to be $230
million.

Cliffs will host a conference call to discuss its third-quarter 2009 results
tomorrow, Oct. 30, 2009, at 10 a.m. ET. The call will be broadcast live on
Cliffs` website: www.cliffsnaturalresources.com. A replay of the call will be
available on the website for 30 days.

To be added to Cliffs Natural Resources e-mail distribution list, please click
on the link below:

http://www.cpg-llc.com/clearsite/clf/emailoptin.html

About Cliffs Natural Resources Inc.

Cliffs Natural Resources (NYSE: CLF) (Paris: CLF) is an international mining and
natural resources company. We are the largest producer of iron ore pellets in
North America, a major supplier of direct-shipping lump and fines iron ore out
of Australia and a significant producer of metallurgical coal. With core values
of environmental and capital stewardship, our colleagues across the globe
endeavor to provide all stakeholders operating and financial transparency as
embodied in the Global Reporting Initiative (GRI) framework. Our Company is
organized through three geographic business units:

The North American business unit is comprised of six iron ore mines owned or
managed in Michigan, Minnesota and Eastern Canada, and two coking coal mining
complexes located in West Virginia and Alabama. The Asia Pacific business unit
is comprised of two iron ore mining complexes in Western Australia and a 45%
economic interest in a coking and thermal coal mine in Queensland, Australia.
The South American business unit includes a 30% interest in the Amapá Project,
an iron ore project in the state of Amapá in Brazil.

Over recent years, Cliffs has been executing a strategy designed to achieve
scale in the mining industry and focused on serving the world`s largest and
fastest growing steel markets.

News releases and other information on the Company are available on the Internet
at:
http://www.cliffsnaturalresources.com or
www.cliffsnaturalresources.com/Investors/Pages/default.aspx?b=1041&1=1

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995

This news release contains predictive statements that are intended to be made as
"forward-looking" within the safe harbor protections of the Private Securities
Litigation Reform Act of 1995. Although we believe that our forward-looking
statements are based on reasonable assumptions, such statements are subject to
risk and uncertainties.

Actual results may differ materially from such statements for a variety of
reasons, including: the impact of the global economic crisis on the North
American and global integrated steel industry; the length and extent of any
potential and current production curtailments at both our customers` facilities
and at our iron ore and coal mining operations; changes in the sales volumes or
mix; the impact of decreases in international prices for iron ore and/or
metallurgical/thermal coal resulting from the global economic crisis; the impact
of price-adjustment factors on our sales contracts; changes in demand for iron
ore pellets by North American integrated steel producers, or changes in Asian
iron ore demand due to changes in steel utilization rates, operational factors,
electric furnace production or imports into the United States and Canada of
semi-finished steel or pig iron; the impact of consolidation and rationalization
in the steel industry; availability of capital equipment and component parts;
availability of float capacity; the impact of the global economic crisis on the
availability and cost of capital, our ability to maintain adequate liquidity and
on our ability to access the capital markets; changes in the financial condition
of our partners and/or customers; rejection of major contracts and/or venture
agreements by customers and/or participants under provisions of the U.S.
Bankruptcy Code or similar statutes in other countries; events or circumstances
that could impair or adversely impact the viability of a mine and the carrying
value of associated assets; inability to achieve expected production levels;
reductions in current resource estimates; the investment performance of our
pension and other postretirement benefit plans, which could increase our plan
costs; impacts of increasing governmental regulation including failure to
receive or maintain required environmental permits; problems with productivity,
third-party contractors, labor disputes, weather conditions, fluctuations in ore
grade, tons mined, changes in cost factors including energy costs,
transportation, mine closure obligations and employee benefit costs; the ability
to identify, acquire and integrate strategic acquisition candidates; risks
associated with operations in multiple countries; and the effect of these
various risks on our future cash flows, debt levels, liquidity and financial
position.

Reference is also made to the detailed explanation of the many factors and risks
that may cause such predictive statements to turn out differently, set forth in
our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and previous news
releases filed with the Securities and Exchange Commission, which are publicly
available on Cliffs Natural Resources' website. The information contained in
this document speaks as of the date of this news release and may be superseded
by subsequent events.

 FINANCIAL TABLES FOLLOW 

CLIFFS NATURAL RESOURCES INC. AND SUBSIDIARIES
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS

(In Millions)
Three Months Ended Nine Months Ended

Sept. 30,
Sept. 30,
2009 2008 2009 2008
REVENUES FROM PRODUCT SALES AND SERVICES
Product $ 669.9 $ 1,110.8 $ 1,444.1 $ 2,444.4
Freight and venture partners' cost reimbursements (3.5 ) 78.9 77.4 248.4
666.4 1,189.7 1,521.5 2,692.8
COST OF GOODS SOLD AND OPERATING EXPENSES (563.2 ) (824.7 ) (1,387.6 ) (1,819.0 )
SALES MARGIN 103.2 365.0 133.9 873.8
OTHER OPERATING INCOME (EXPENSE)
Royalties and management fee revenue (0.2 ) 5.1 3.5 16.0
Selling, general and administrative expenses (28.4 ) (41.8 ) (83.6 ) (138.4 )
Casualty recoveries - 0.5 - 10.5
Gain on sale of assets 1.0 0.1 1.5 21.1
Miscellaneous - net 4.9 10.5 19.3 8.6
(22.7 ) (25.6 ) (59.3 ) (82.2 )
OPERATING INCOME 80.5 339.4 74.6 791.6
OTHER INCOME (EXPENSE)
Changes in fair value of foreign currency contracts, net 8.8 (94.3 ) 84.8 (94.3 )
Interest income 1.9 5.9 7.7 17.8
Interest expense (10.0 ) (10.7 ) (29.3 ) (27.7 )
Other non-operating income (expense) 0.2 3.3 (0.6 ) 3.4
0.9 (95.8 ) 62.6 (100.8 )
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY LOSS FROM VENTURES 81.4 243.6 137.2 690.8
INCOME TAX BENEFIT (EXPENSE) (1.9 ) (52.0 ) 14.6 (173.6 )
EQUITY LOSS FROM VENTURES (20.9 ) (13.1 ) (55.6 ) (26.2 )
NET INCOME 58.6 178.5 96.2 491.0
LESS: NET INCOME (LOSS) ATTRIBUTABLE TO
NONCONTROLLING INTEREST (0.2 ) 3.6 (0.7 ) 29.1
NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS 58.8 174.9 96.9 461.9
PREFERRED STOCK DIVIDENDS - - - (1.1 )
INCOME APPLICABLE TO COMMON SHARES $ 58.8 $ 174.9 $ 96.9 $ 460.8

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - BASIC $ 0.45 $ 1.67 $ 0.79 $ 4.72

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - DILUTED $ 0.45 $ 1.61 $ 0.78 $ 4.34

AVERAGE NUMBER OF SHARES
Basic 130.8 104.8 123.0 97.6
Diluted 131.7 108.7 123.8 106.4

CASH DIVIDENDS PER SHARE $ 0.04 $ 0.0875 $ 0.1675 $ 0.2625

CLIFFS NATURAL RESOURCES INC. AND SUBSIDIARIES
STATEMENTS OF CONDENSED CONSOLIDATED FINANCIAL POSITION

(In Millions)
Sept. 30, Dec. 31,
2009 2008
ASSETS (Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 359.9 $ 179.0
Accounts receivable 87.2 68.5
Inventories 292.3 265.4
Supplies and other inventories 102.9 101.2
Deferred and refundable income taxes 83.4 54.8
Other current assets 90.6 192.8
TOTAL CURRENT ASSETS 1,016.3 861.7

PROPERTY, PLANT AND EQUIPMENT, NET 2,556.3 2,456.1

OTHER ASSETS
Investments in ventures 318.5 305.3
Goodwill 73.0 2.0
Intangible assets, net 116.3 109.6
Deferred income taxes 214.7 251.2
Other non-current assets 216.1 125.2
TOTAL OTHER ASSETS 938.6 793.3
TOTAL ASSETS $ 4,511.2 $ 4,111.1

LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 171.5 $ 201.0
Accrued expenses 144.7 145.0
Taxes payable 40.8 144.8
Derivative liabilities 29.8 194.3
Other current liabilities 173.2 159.8
TOTAL CURRENT LIABILITIES 560.0 844.9
POSTEMPLOYMENT BENEFIT LIABILITIES 424.8 448.0
LONG-TERM DEBT 525.0 525.0
BELOW-MARKET SALES CONTRACTS 163.4 183.6
OTHER LIABILITIES 431.1 355.6
TOTAL LIABILITIES 2,104.3 2,357.1
3.25% REDEEMABLE CUMULATIVE CONVERTIBLE PERPETUAL
PREFERRED STOCK - ISSUED 172,500 SHARES
205 SHARES OUTSTANDING IN 2008 - 0.2

EQUITY
CLIFFS SHAREHOLDERS' EQUITY 2,405.7 1,750.5
NONCONTROLLING INTEREST 1.2 3.3
TOTAL EQUITY 2,406.9 1,753.8
TOTAL LIABILITIES AND EQUITY $ 4,511.2 $ 4,111.1

Cliffs Natural Resources Inc.
INVESTOR AND FINANCIAL MEDIA CONTACTS:
United States
Steve Baisden
Director, Investor Relations and Corporate Communications
216-694-5280
steve.baisden@cliffsnr.com
or
Christine Dresch
Manager - Corporate Communications
216-694-4052
christine.dresch@cliffsnr.com
or
MICHIGAN MEDIA CONTACT:
Dale Hemmila
District Manager, Public Affairs-Michigan
906-475-3870
or
MINNESOTA MEDIA CONTACT:
Maureen Talarico
District Manager, Public Affairs-Minnesota
218-279-6120
or
WEST VIRGINIA/ALABAMA MEDIA CONTACT:
James Kosowski
District Manager, Public Affairs-West Virginia and Alabama
304-256-5224

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