Exhibit 99(a)
Statements of Consolidated Operations
Cleveland-Cliffs Inc and Consolidated Subsidiaries
| Year Ended December 31 (In Millions, Except Per Share Amounts) |
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| 2006 | 2005 | 2004 | ||||||||||
| REVENUES FROM PRODUCT SALES AND SERVICES |
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| 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) |
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| 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) |
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| 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 |
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| 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 |
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| 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) |
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| Basic |
42,072 | 43,456 | 42,616 | |||||||||
| Diluted |
53,827 | 55,673 | 54,845 | |||||||||