CLEVELAND-CLIFFS INC
STATEMENTS OF CONDENSED CONSOLIDATED FINANCIAL POSITION
| (In Millions) | |||||||||
| September 30 2006 |
December 31 2005 |
September 30 2005 | |||||||
| (unaudited) | (unaudited) | ||||||||
| ASSETS |
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| CURRENT ASSETS |
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| Cash and cash equivalents |
$ | 203.2 | $ | 192.8 | $ | 97.9 | |||
| Marketable securities |
3.7 | 9.9 | 5.0 | ||||||
| Trade accounts receivable - net |
73.3 | 53.7 | 72.3 | ||||||
| Receivables from associated companies |
33.6 | 5.4 | 47.0 | ||||||
| Product inventories |
199.9 | 119.1 | 152.4 | ||||||
| Work in process inventories |
47.8 | 56.7 | 38.9 | ||||||
| Supplies and other inventories |
69.3 | 70.5 | 58.5 | ||||||
| Deferred and refundable income taxes |
13.2 | 12.1 | 38.9 | ||||||
| Other |
60.4 | 115.8 | 100.6 | ||||||
| TOTAL CURRENT ASSETS |
704.4 | 636.0 | 611.5 | ||||||
| PROPERTIES - NET |
844.0 | 802.8 | 822.3 | ||||||
| LONG-TERM RECEIVABLES |
45.0 | 48.7 | 50.0 | ||||||
| PREPAID PENSIONS |
80.4 | 80.4 | 71.2 | ||||||
| DEFERRED INCOME TAXES |
55.2 | 66.5 | 23.8 | ||||||
| MARKETABLE SECURITIES |
22.2 | 10.6 | 1.4 | ||||||
| OTHER ASSETS |
97.9 | 101.7 | 98.5 | ||||||
| TOTAL ASSETS |
$ | 1,849.1 | $ | 1,746.7 | $ | 1,678.7 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
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| CURRENT LIABILITIES |
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| Accounts payable and accrued expenses |
$ | 370.7 | $ | 355.0 | $ | 303.5 | |||
| Revolving credit |
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| Payables to associated companies |
2.9 | 7.7 | 1.9 | ||||||
| TOTAL CURRENT LIABILITIES |
373.6 | 362.7 | 305.4 | ||||||
| PENSIONS, INCLUDING MINIMUM PENSION LIABILITY |
95.0 | 119.6 | 71.2 | ||||||
| OTHER POST-RETIREMENT BENEFITS |
67.3 | 85.2 | 99.7 | ||||||
| ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS |
91.5 | 87.3 | 85.3 | ||||||
| DEFERRED INCOME TAXES |
109.7 | 116.7 | 136.2 | ||||||
| OTHER LIABILITIES |
65.6 | 79.4 | 74.0 | ||||||
| TOTAL LIABILITIES |
802.7 | 850.9 | 771.8 | ||||||
| MINORITY INTEREST |
118.2 | 71.7 | 110.1 | ||||||
| 3.25% REDEEMABLE CUMULATIVE CONVERTIBLE PERPETUAL PREFERRED STOCK |
172.3 | 172.5 | 172.5 | ||||||
| SHAREHOLDERS’ EQUITY |
755.9 | 651.6 | 624.3 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 1,849.1 | $ | 1,746.7 | $ | 1,678.7 | |||
Notes to Unaudited Financial Statements
| 1. | On March 31, 2005, Cliffs initiated the acquisition in Portman Limited by purchasing approximately 68.7 percent of the outstanding shares of Portman. On April 19, 2005, Cliffs completed the acquisition of approximately 80.4 percent of Portman. As a result of this transaction, Portman became a consolidated subsidiary of Cliffs. The allocation of purchase price was completed in the first quarter of 2006. |
| 2. | In management’s opinion, the unaudited financial statements present fairly the Company’s financial position and results of operations. All financial information and footnote disclosures required by generally accepted accounting principles for complete financial statements have not been included. For further information, please refer to the Company’s latest Annual Report. |
CLEVELAND-CLIFFS INC
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED)
| Three Months Ended September 30 |
Nine Months Ended September 30 | |||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||
| NORTH AMERICA |
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| Iron Ore Sales (Tons) - In Thousands |
6,481 | 6,134 | 14,324 | 16,150 | ||||||||
| Sales Margin - In Millions |
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| Revenues from iron ore sales and services* |
$ | 419.2 | $ | 374.2 | $ | 931.4 | $ | 949.7 | ||||
| Cost of goods sold and operating expenses* |
310.7 | 254.7 | 675.6 | 670.5 | ||||||||
| Sales margin |
$ | 108.5 | $ | 119.5 | $ | 255.8 | $ | 279.2 | ||||
| Sales Margin - Per Ton |
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| Revenues from iron ore sales and services* |
$ | 64.66 | $ | 61.00 | $ | 65.02 | $ | 58.81 | ||||
| Cost of goods sold and operating expenses* |
47.94 | 41.52 | 47.16 | 41.52 | ||||||||
| Sales margin |
$ | 16.72 | $ | 19.48 | $ | 17.86 | $ | 17.29 | ||||
| __________ * Excludes revenues and expenses related to freight and venture partners’ cost reimbursements which are offsetting and have no impact on operating results. | ||||||||||||
| AUSTRALIA |
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| Iron Ore Sales (Tonnes) - In Thousands |
1,939 | 1,730 | 5,165 | 3,258 | ||||||||
| Sales Margin - In Millions |
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| Revenues from iron ore sales and services |
$ | 97.0 | $ | 77.6 | $ | 249.5 | $ | 145.4 | ||||
| Cost of goods sold and operating expenses |
73.0 | 66.7 | 188.7 | 113.6 | ||||||||
| Sales margin |
$ | 24.0 | $ | 10.9 | $ | 60.8 | $ | 31.8 | ||||
| Sales Margin - Per Tonne |
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| Revenues from iron ore sales and services |
$ | 50.06 | $ | 44.86 | $ | 48.31 | $ | 44.63 | ||||
| Cost of goods sold and operating expenses |
37.64 | 38.58 | 36.54 | 34.87 | ||||||||
| Sales margin |
$ | 12.42 | $ | 6.28 | $ | 11.77 | $ | 9.76 | ||||
| RECONCILIATION TO PORTMAN MARGIN |
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| Sales Margin - In Millions |
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| Cliffs’ sales margin per above |
$ | 24.0 | $ | 10.9 | $ | 60.8 | $ | 31.8 | ||||
| Cliffs’ purchase accounting adjustments |
10.2 | 19.1 | 29.6 | 26.6 | ||||||||
| Portman sales margin ($US) |
$ | 34.2 | $ | 30.0 | $ | 90.4 | $ | 58.4 | ||||
| Sales Margin - Per Tonne |
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| Cliffs’ sales margin per above |
$ | 12.47 | $ | 6.28 | $ | 11.77 | $ | 9.76 | ||||
| Cliffs’ purchase accounting adjustments |
5.26 | 11.04 | 5.73 | 8.16 | ||||||||
| Portman sales margin ($US) |
$ | 17.73 | $ | 17.32 | $ | 17.50 | $ | 17.92 | ||||