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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (13872)	5/5/2008 8:12:57 PM
From: Peter V	Read Replies (2) \| Respond to of 19257

EPS of .32 per share? Estimates were 1.00! Low estimates were .82! Year ago was .62. Unless I'm missing something, this is a HUGE miss. (one guy on Yahoo says the $55M yet to be recognized revenue would increase the EPS by 1.20, which would give them 1.52. You decide if he is correct) Revenue was on very low end, but may be helped by the $55M of yet to be recognized shipments (sounds like spin, but who knows) Cleveland-Cliffs Inc Reports First-Quarter 2008 Results Monday May 5, 7:38 pm ET -- Revenues Increase 52% to a Record $494 Million, with Net Income of $17 Million, or $0.32 Per Diluted Share -- Approximately $55 Million of Additional Revenue Recognition Projected from First-Quarter Shipments Based on Settlement of Iron Ore Benchmark Prices CLEVELAND--(BUSINESS WIRE)--Cleveland-Cliffs Inc (NYSE: CLF - News) today reported first-quarter results for the period ended March 31, 2008. Consolidated revenues rose 52% to a record $494.4 million from $325.5 million in the same quarter last year. The increase for the quarter was primarily driven by $94 million in sales generated by Cliffs’ North American Coal segment acquired in July 2007 and a $54 million increase in revenues from the Company’s North American Iron Ore segment. Joseph A. Carrabba, Cliffs’ chairman, president and chief executive officer, commented: “Cliffs’ strong revenue growth continued in the first quarter despite the fact that some benchmark prices referenced in our contracts have yet to settle. All indications are that these 2008 increases will result in record price levels. As such, we expect to recognize an additional $55 million of revenue in a future quarter relating to tons sold in the first quarter.” Operating income for the first quarter was comparable to last year at $42.6 million, versus $44.9 million. Operating income was impacted by higher selling, general and administrative expenses, including approximately $6 million attributable to the Company’s North American Coal segment acquired in July 2007, a charge of approximately $7 million in connection with a legal case and approximately $10 million in additional management infrastructure and corporate development activities in Latin America and Asia-Pacific. The impact on operating income if all iron ore price settlements had occurred and the related revenue had been recognized would have been approximately an additional $55 million, as costs associated with these sales volumes were accounted for in the first quarter. First-quarter 2008 net income was $16.7 million, or $0.32 per diluted share, down from $32.5 million, or $0.62 per diluted share, in 2007. Cliffs said net income was impacted by a $6.9 million equity loss related to its investment in the Amapá Iron Ore Project, as well as the previously mentioned impact from the unsettled iron ore benchmarks. In addition, the Company’s tax rate in the first quarter of 2008 was 34.5%, compared with 26.7% in the prior year. The higher rate for the first quarter of 2008 was primarily due to the mix of net income generated at geographies outside of the United States.