For the period ended June 30, the company reported record revenues of $US1.13 billion, up from $390.3 million during the corresponding period in 2009. Net income swelled to $260.7 million from $45.2 million in last year’s comparable quarter.

 

Operating income for the second quarter was $365.8 million, compared with a loss of $17.3 million in the same quarter last year.

 

Cliffs officials cited improved market fundamentals for the upswing across all of its business arms.

 

Specifically, the North American Coal unit soared, recording second-quarter sales volumes of 719,000 short tons, an increase of 149% from the 289,000t sold in 2009.

 

The company said increased coke production in the US, as well as Europe, rose along with higher steelmaking rates.

 

“We believe the impressive results delivered in the second quarter mark a milestone for our company,” Cliffs president Joseph Carrabba said.

 

“Each of our segments generated strong year-over-year profits, including a shift to profitability in North American Coal.

 

“The actions taken in recent years under our strategy to grow as a diversified mining company are contributing significant momentum to our earnings and cash generation potential.”

 

He also noted that the producer’s recent acquisitions of INR Energy and Spider Resources for coal and ore, respectively, would help it gain a greater foothold in those high-growth markets.

 

Looking ahead, specifically within its North American Coal segment, Cliffs said it was maintaining its sales and production volumes estimations of 3.4Mt for 2010.

 

At present, about 80% of that volume is priced and contracted and another 10% is awaiting pricing.

 

The remainder of its estimated production will be sold spot, mostly during the fourth quarter.

 

Assuming current market prices, the producer expects revenue of $140-145/t FOB mine.

 

The company also spoke about the anticipated impact of the high-volatile metallurgical and thermal coal operations it recently purchased from INR.

 

“These assets are expected to increase Cliffs' total production capacity to over 7 million tons in 2011,” the producer said, noting that the transaction is expected to close Friday.

 

“Given the timing of closing, the company expects the contribution from INR's operations to have a minimal impact on full year consolidated results.”