Exhibit 99(a)
Statements of Consolidated Operations
Cleveland-Cliffs Inc and Consolidated Subsidiaries
| Year Ended December 31 (In Millions, Except Per Share Amounts) | ||||||||||||
| 2006 | 2005 | 2004 | ||||||||||
REVENUES FROM PRODUCT SALES AND SERVICES | ||||||||||||
Iron Ore | $ | 1,735.5 | $ | 1,512.2 | $ | 995.0 | ||||||
Freight and venture partners’ cost reimbursements | 252.6 | 227.3 | 208.1 | |||||||||
| 1,988.1 | 1,739.5 | 1,203.1 | ||||||||||
COST OF GOODS SOLD AND OPERATING EXPENSES | (1,552.3 | ) | (1,350.5 | ) | (1,053.6 | ) | ||||||
SALES MARGIN | 435.8 | 389.0 | 149.5 | |||||||||
OTHER OPERATING INCOME (EXPENSE) | ||||||||||||
Royalties and management fee revenue | 11.7 | 13.1 | 11.3 | |||||||||
Casualty insurance recoveries | 12.3 | |||||||||||
Administrative, selling and general expenses | (54.6 | ) | (47.9 | ) | (33.1 | ) | ||||||
Impairment of mining assets | (5.8 | ) | ||||||||||
Customer bankruptcy recoveries (exposures) | 4.0 | 2.0 | (1.6 | ) | ||||||||
Miscellaneous — net | (9.4 | ) | (12.0 | ) | (2.7 | ) | ||||||
| (48.3 | ) | (32.5 | ) | (31.9 | ) | |||||||
OPERATING INCOME | 387.5 | 356.5 | 117.6 | |||||||||
OTHER INCOME (EXPENSE) | ||||||||||||
Gain on sale of ISG common stock | 152.7 | |||||||||||
Gain on sale of assets | 9.1 | 9.5 | ||||||||||
Interest income | 17.2 | 13.9 | 11.5 | |||||||||
Interest expense | (3.6 | ) | (4.5 | ) | (.8 | ) | ||||||
Other — net | (.6 | ) | (7.3 | ) | 4.2 | |||||||
| 22.1 | 11.6 | 167.6 | ||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND MINORITY INTEREST | 409.6 | 368.1 | 285.2 | |||||||||
INCOME TAX CREDIT (EXPENSE) | (99.0 | ) | (84.8 | ) | 35.0 | |||||||
MINORITY INTEREST (net of tax $7.3 million in 2006 and $5.4 million in 2005) | (17.1 | ) | (10.1 | ) | ||||||||
INCOME FROM CONTINUING OPERATIONS | 293.5 | 273.2 | 320.2 | |||||||||
INCOME (LOSS) FROM DISCONTINUED OPERATIONS | .3 | (.8 | ) | 3.4 | ||||||||
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE | 293.8 | 272.4 | 323.6 | |||||||||
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (net of tax $2.8 million) | 5.2 | |||||||||||
NET INCOME | 293.8 | 277.6 | 323.6 | |||||||||
PREFERRED STOCK DIVIDENDS | (5.6 | ) | (5.6 | ) | (5.3 | ) | ||||||
INCOME APPLICABLE TO COMMON SHARES | $ | 288.2 | $ | 272.0 | $ | 318.3 | ||||||
EARNINGS PER COMMON SHARE — BASIC | ||||||||||||
Continuing operations | $ | 6.84 | $ | 6.16 | $ | 7.39 | ||||||
Discontinued operations | .01 | (.02 | ) | .08 | ||||||||
Cumulative effect of accounting changes | .12 | |||||||||||
EARNINGS PER COMMON SHARE — BASIC | $ | 6.85 | $ | 6.26 | $ | 7.47 | ||||||
EARNINGS PER COMMON SHARE — DILUTED | ||||||||||||
Continuing operations | $ | 5.45 | $ | 4.92 | $ | 5.84 | ||||||
Discontinued operations | .01 | (.02 | ) | .06 | ||||||||
Cumulative effect of accounting changes | .09 | |||||||||||
EARNINGS PER COMMON SHARE — DILUTED | $ | 5.46 | $ | 4.99 | $ | 5.90 | ||||||
AVERAGE NUMBER OF SHARES (In thousands) | ||||||||||||
Basic | 42,072 | 43,456 | 42,616 | |||||||||
Diluted | 53,827 | 55,673 | 54,845 | |||||||||
