TORONTO (miningweekly.com) – Cleveland-based Cliffs Natural Resources earned $45,5-million in the second quarter, compared with $270,2-million a year earlier, after weak demand for its bulk commodities hurt sales.

Earnings were positively affected by $79,3-million pretax of positive mark-to-market adjustments related to currency hedging, along with an income tax benefit of $17,6-million, the company said.

Cliffs produces coal and iron-ore from its operations in the US and Canada, but has curtailed output of both steelmaking ingredients, after the global financial crisis prompted sharp cutbacks by steel producers.

Revenue in the second quarter fell 61% year-on-year, to $390,3-million, driven by lower volume across business segments, combined with lower pricing in iron-ore.

"Cliffs continues to manage its businesses through the economic downturn and position the company for a resurgence in steel demand in the US and Europe,” said CEO Joseph Carrabba.

“We have begun to see signs of stabilisation in the North American steelmaking industry and continue to balance production with current demand, with the second quarter likely marking a low point in production for 2009.”

Cliffs said earlier this month it expected that about one-million tons of contracted iron-ore pellet sales would be deferred from this year to the first quarter of 2010.

The company reported an operating loss for the second quarter of $17,3-million, compared with an operating income of $409,4-million a year ago.

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