This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cliffs Natural Resources Takes 4Q Loss On Charges

CLEVELAND (AP) â¿¿ Cliffs Natural Resources Inc. said Tuesday that it took a large loss in the fourth quarter after logging $2 billion in impairment charges.

The company said in January that it would take a $1 billion charge because it expects less production and greater costs from Consolidated Thompson Iron Mines, which it bought in 2011. It also said seaborne iron ore prices dropped during the quarter. On Tuesday Cliffs slashed its quarterly dividend and said it plans to sell more stock to pay back debt.

Cliffs shares fell $3.49, or 9.5 percent, to $33.12 in aftermarket trading.

Cliffs lost $1.62 billion, or $11.36 per share, in the fourth quarter. A year ago it reported net income of $185.4 million, or $1.30 per share. The company said it earned 62 cents per share in the latest period, excluding one-time charges.

Revenue fell 4 percent to $1.54 billion.

Analysts expected 51 cents per share and $1.54 billion in revenue, according to FactSet.

Part of the $1 billion charge is connected to Cliffs' expansion of the Bloom Lake Mine in Quebec, which has been slower than the company expected. Cliffs also took a charge of $541 million related to two deferred tax assets, $365 million in charges related to the sale of its stake in a Brazilian mining company and wrote down the value of a mine in Canada by $50 million.

The company pared its quarterly dividend to 15 cents from 62.5 cents, a 76 percent cut.

Cliffs also said it will sell 20 million depositary shares and 9 million shares of common stock to repay borrowing under its term loan facility. The underwriters of the offering will have options to buy another 3 million depositary shares and 1.4 million common shares to cover overallotments.

For all of 2012 Cliffs lost $899.4 million, or $6.32 per share. The company posted a profit of $1.62 billion, or $11.48 per share, in 2011. Revenue fell 11 percent, to $5.87 billion.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs