Cleveland-Cliffs Reports Higher 1998 Earnings On Record Sales and Production Volume.CLEVELAND--(BUSINESS WIRE)--Jan. 21, 1999--Cleveland-Cliffs Inc (NYSE NYSE See: New York Stock Exchange :CLF CLF The ISO 4217 currency code for Chile Unidades de Fomento. ) today reported 1998 earnings of $57.4 million, or $5.06 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Earnings in 1997 were $54.9 million, or $4.80 per diluted share. Fourth quarter 1998 earnings were $19.9 million, or $s' President and Chief Executive Officer, John S. Brinzo, said, "1998 was a year of solid accomplishments, inrth America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. , and - improved wer interest expense. Partly offsetting were non-recurring 1997 Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. earnings and higher ferrous ferrous (fĕr`əs), iron in the +2 valence state. Containing or having to do with iron. The difference between ferrous and ferric is the number of valence electrons they contain (ferrous contains two and ferric contains three), which metalliron ore ore, metal-bearing mineral mass that can be profitably mined. Nearly all rock deposits contain some metallic minerals, but in many cases the concentration of metal is too low to justify mining the ore. pellets in December December: see month. , 1996, were $6.3 mmillion, or $4.25 per diluted share. The $rican sales volume. Cliffs' North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. iron ore pellet pel·let n. 1. A small pill; a pilule. 2. A small rod-shaped or ovoid mass, as of compressed steroid hormones, intended for subcutaneous implantation in body tissues to provide timed release over an extended period of time. sales were a record 12.1 million tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. , 16 percent higher than the 10.4 million tons sold in 1997, and 11 percent higher than the previous record of 11.0 million tons sold iciates Limited reduced iron See under Reduced. (Chem.) metallic iron obtained through deoxidation of an oxide of iron by exposure to a current of hydrogen or other reducing agent. When hydrogen is used the product is called also See also: Iron Reduce project. Other expenr Australian statutory tax rate and the increased benefit of depletion allowances depletion allowance In tax law, the deductions from gross income allowed investors in exhaustible commodities (such as minerals, oil, or gas) for the depletion of the deposits. . Cliffs-managed mines produced a record 40.3 million tons of iron ore pellets in 1__________________ Total Cliffs' Share Total Cliffs' Share _____ _____________ _____ _____________ Empire 8.1 1.8 8.4 1.9 H2.4 Wabush 6.0 1.3 teriorated sharply in the second half of 1998 duhe Company expects 1999 iron ore pellet sales volume will be lower than 1998 record sales. The Company's sales capacity, however, is largely committed to multi-year saleruction of the Cliffs and Associates Limited (CA Brinzo said, "Although the demand for iron ore pellets and ferrous metallics products is outside our control, we can control the impact on our operations by making sure that we are producing the highest quality products at the lowest pong (games) Pong - A computer game invented in 1972 by Atari's Nolan Bushnell. The game is a minimalist rendering of table tennis. Each of the two players are represented as a white slab, controllable by a knob, which deflects a bouncing ball. North American operations, 2. develop a significant ferrous metallics business, and oping a significant ferrous metallics business.n and sales volume and prices for iron ore and ferrous metallics which reflect forecasts of activity in the steel and iron ore industries. Actual production and sales volume and prices could differ significantly from current expectations could change due to construction delays, process difficulties, or market factors. Although the Company believes that the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are based on reasonab/www.businesswire.com/cnn/clf.htm. -0-
CLEVELAND-CLIFFS INC
STATEMENT OF CONSOLIDATED INCOME
Fourth Quarter Year
$115.6 $135.1 $444.1 $391.4
Royalties and management fees 12.9 13.1 49.7 47.5
438.9
Investment income (securities) 1.7 1.9 5.4 6.3
Recovery of excess closedown
provision - .7 - 5.0
Other income 2.3 2.8 4.7 5.9
_______ _______ ______ ______
TOTAL REVENUES 132.5 153.6 503.9 456.1
COSTS AND EXPENSES
Cost of goods sold and
operating expenses 100.1 119.3 398.0 354.9
Administrative, selling and
general expenses 5.7 4.5 18.7 17.1
Interest expense - .4 .4 2.6
Other expenses 5.6 3.8 15.0 8.9
_______ _______ ______ ______
TOTAL COSTS AND EXPENSES 111.4 128.0 432.1 383.5
_______ _______ ______ ______
INCOME BEFORE INCOME TAXES 21.1 25.6 71.8 72.6
INCOME TAXES 1.2 7.7 14.4 17.7
_______ _______ ______ ______
NET INCOME $ 19.9 $ 17.9 $ 57.4 $ 54.9
_______ _______ ______ ______
_______ _______ ______ ______
NET INCOME PER COMMON SHARE
Basic $ 1.77 $ 1.57 $ 5.10 $ 4.83
Diluted $ 1.76 $ 1.56 $ 5.06 $ 4.80
AVERAGE NUMBER OF SHARES
Basic 11.1 11.4 11.2 11.4
Diluted 11.3 11.5 11.3 11.5
CLEVELAND-CLIFFS INC
STATEMENT OF CONSOLIDATED CASH FLOWS
Fourth Quarter Year
______________ _____________
(In Millions, Brackets Indicate 1998 1997 1998 1997
Decrease in Cash)
__________________________________ ____ ____ ____ ____
OPERATING ACTIVITIES
Net income $ 19.9 $ 17.9 $ 57.4 $ 54.9
Depreciation and amortization:
Consolidated 1.4 1.5 7.8 6.7
Share of associated companies 3.1 3.1 12.5 12.2
Decrease in Savage River
closedown reserve - (1.4) - (17.5)
Provision for deferred income
taxes (2.5) 7.2 3.1 16.4
Tax credit (3.5) - (3.5) (5.6)
Other (.5) 4.2 (2.2) 7.2
______ ______ ______ ______
Total Before Changes in
Operating Assets and
Liabilities 17.9 32.5 75.1 74.3
Changes in operating assets and
liabilities 14.6 19.1 17.0 (32.0)
______ ______ ______ ______
NET CASH FROM OPERATING
ACTIVITIES 32.5 51.6 92.1 42.3
INVESTING ACTIVITIES
Purchase of property, plant and
equipment:
IES
Dividends (4.2) (3.7) (16.3) (14.8)
Repurchases of Common Shares - (3.2) (11.5) (4.9)
______ ______ ______ ______
NET CASH (USED B_____ ______ ______ ______
INCREASE (DECRE ______ ______ ______ ______
_________________________
Dec. 31 Sept. 30 Dec. 31
AS Other 17.8 146.0
134.0
INVESTMENTS IN ASSOCIATED COMPANIES 235.4 225.8 218.3
OTHER ASSETS
CURRENT LIABILITIES $ 89.2 $ 87.0 $ 91.8
LONG-TERM OBLIGATIONS 70.0 70.0 70.0
POSTEMPLOYMENT BENEFIT LIABILITIES 71 ______
______ _e Company's financial position and results. All
latest Annual
Report.
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