Despite a challenging fourth quarter, Cliffs Natural Resources finished 2008 with a record profit of $515.8 million. That's 91 percent more than the company earned the prior year.
Cliffs owns and operates United Taconite Co. and Northshore Mining Co. on Minnesota's Iron Range. It also has partial ownership of Hibbing Taconite Co., a joint venture that it manages. Earlier this week, Cliffs announced plans to temporarily idle production at Hibtac and Northshore in light of softened steel demand.
Cliffs saw orders for iron ore pellets fall off in the fourth quarter of 2008, resulting in diminished earnings. The company reported profits of $53.9 million during the fourth quarter -- 43 percent less than it earned during the same quarter in 2007.
"Notwithstanding the high degree of uncertainty that developed in the last quarter of the year, Cliffs delivered strong financial performance in 2008 resulting from a highly favorable pricing environment for a majority of the year and exceptional execution by our commercial sales and operating teams," said Joseph Carrabba, Cliffs' chairman, president and CEO in a statement released today.
He said that while the company is optimistic that the economy will improve, it has taken "aggressive steps to manage our production, optimize inventory levels and position the company to maximize cash generation in 2009."
