UPDATE 1-Cleveland-Cliffs second quarter net surges

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HOUSTON, July 30 (Reuters) - Cleveland-Cliffs Inc (CLF.N) Inc said on Wednesday its second-quarter rose sharply, helped by higher margins in its iron ore business.

Cleveland-Cliffs, which earlier this month announced plans to acquire Alpha Natural Resources Inc (ANR.N), said it is receiving positive feedback about the proposed deal from the majority of its largest shareholders.

Cleveland-Cliffs said its net income rose to $270 million, or $2.57 per share, from $86 million, or 83 cents per share a year ago.

Excluding adjustments to first-quarter sales related to the timing of international pricing settlements of iron ore, the company earned $2.21 per share, above the analyst consensus estimate of $1.99 per share, according to Reuters Estimates.

Consolidated second-quarter revenue for the Cleveland, Ohio company rose 84 percent to a second-quarter record of $1 billion. The jump in revenue was the result of the strong market for iron ore and metallurgical coal.

For 2008, Cleveland-Cliffs said it expects to realize an average per-ton price of $90 for North American iron ore in 2008, up from its previous estimate of $85 per ton. (Reporting by Anna Driver in Houston; editing by Carol Bishopric)