Oct 24 Cliffs Natural Resources Inc
reported an increase in third quarter profit on Thursday as the
miner reduced costs and iron ore prices rose.
The Cleveland-based company, which supplies steelmakers
around the world, said it expects China's steel production to
"remain a source of healthy demand."
"Looking forward, the company expects China to maintain its
healthy steelmaking pace, driven by broader economic growth and
the positive impact of domestic lending policy reforms," it said
in a statement.
Miners have been pushing to cut costs in a tough market.
Cliffs has cut spending on exploration, and suspended most work
on its Black Thor chromite project in Canada.
Cliffs said its cost of goods sold fell 11 percent in the
quarter, as expenses eased across its business segments.
Benchmark iron ore prices jumped 17 percent.
In the Asia-Pacific segment, revenue per tonne rose 28
percent to $108.88, thanks to improved market prices and
Gains were partly offset by Cliffs' small coal business,
hurt by lower prices and weather damage that cut production.
Net income attributable to common shareholders rose to $104.3
million, or 66 cents a share, from $85.1 million, or 59 cents, a
year earlier. Revenue rose slightly to $1.55 billion from $1.54
Shares of Cliffs rose 3.1 percent to $24.30 in aftermarket