Cleveland, Ohio-based Cliffs Natural Resources reported late Wednesday Q1 2013 net income of $97 million, down significantly from $376 million in Q1 2012. Consolidated sales margin decreased 18 percent in Q1 to $238 million, from $292 million in the same quarter last year. Global seaborne iron ore pricing for a 62 percent Fe fines product (CFR China), a significant factor in the company's profitability, remained relatively flat, averaging $148 per ton, an increase of 3 percent over Q1 2012.
Q1 2013 US Iron Ore pellet sales volume was 3.1 million tons, compared with 3.4 million tons in Q1 of 2012. The decrease was primarily driven by lower year-over-year volume to one customer due to its bankruptcy in May of 2012. Cliffs also indicated first-quarter US Iron Ore sales volume is historically lower compared with other periods due to seasonal shipping constraints on the Great Lakes.
Meanwhile, Q1 2013 Eastern Canadian Iron Ore sales volume was 1.9 million tons, relatively flat with the prior year's comparable quarter. The sales volume mix included 1.5 million tons of iron ore concentrate and approximately 400,000 tons of iron ore pellets. As previously disclosed on March 11, 2013, Cliffs announced its intention to idle the Wabush Pointe Noire Pellet Plant by the end of this year's Q2. Subsequent to idling the pellet plant, the company expects to only produce a concentrate product from Wabush's Scully Mine.
For Q1 2013, North American Coal sales volume was 1.8 million tons, a 27 percent increase from the 1.4 million tons sold in the prior year's comparable quarter. North American Coal's Q1 2013 revenues per ton were down 9 percent to $110.35, versus $121.61 in Q1 2012. The decrease was primarily driven by lower year-over-year spot pricing for metallurgical coal products.
