Iron ore majors ramp up supply even as China faces challenges
Iron ore is one of the year’s worst performing major commodities, slumping by almost a quarter as China’s property crisis drags on.
Despite a drop in net income in the fourth quarter, Cliffs Natural Resources (NYSE:CLF) is reporting a record profit of $1.6 billion, or $11.48 a share – a 59% increase from a year ago.
The Cleveland-based iron ore and coal producer said full-year revenues came in at $6.8 billion, which is a 45% increase over 2010. Cliffs, with a $9.8 billion market cap, completed a C$4.9 billion acquisition of Consolidated Thompson last year and doubled its dividend to 28 cents per share. However, the stock fell 50 cents today and is down 26% over the last 12 months.
Fourth-quarter profit was undercut by a $28 million impairment charge, the company said, even though revenues were up 17% compared to the same quarter of 2010.
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