Cliffs Natural Resources appoints a new CEO as the battle for control of the company heats up.
CLEVELAND, Ohio -- The board of directors of mining company Cliffs Natural Resources late Thursday appointed Gary Halverson, its president and chief financial officer, to the position of president and chief executive officer.
Minutes later the company released its financial results for the last three months of 2013 and a full-year summary.
The report shows that for the full year the company's bottom line profits were $414 million, or $2.37 per share, on total sales revenues of $5.7 billion. In 2012, the company recorded a net loss of $899 million, or $6.32 on total sales of about $5.9 billion.
For the last three months of 2013, Cliffs recorded net profits of $30.5 million, or 20 cents per share, on total revenues of $1.5 billion. In the fourth quarter of 2012, the company lost $1.6 billion, or $11.36 per share, on sale revenues of $1.5 billion.
The company's top executives will discuss the results and take questions at a 10 a.m. Friday public teleconference with analysts -- available live and later recorded on its website.
The board's decision to appoint Halverson was the company's latest chess move in an escalating battle to defend itself against Casablanca Capital, a hedge fund that recently acquired 5.2 percent of Cliff's shares.
Casablanca got off the first shot more than two weeks ago when it issued a public suggestion that Cliffs split its U.S. and international operations into two separate companies. The demand set off a debate among analysts about the risks involved, with no clear consensus of opinion.
One reason for the suggested split is that Cliffs has been spending hundreds of millions of dollars to develop a Canadian iron ore mine it purchased -- just as the highly competitive international iron ore markets have slumped.
Cliffs on Tuesday announced that it would slash its 2014 capital budget -- money used for development rather than operations -- by more than half its 2013 spending levels. Much of that money had been aimed at a mine in Quebec. The company also announced it would idle another mine in Newfoundland and Labrador, laying off about 500 workers.
Casablanca said that was a step in the right direction but not enough to restore confidence in the stock. It pushed for its original plan of dividing the company in two. Cliff's share price Thursday closed at $21.90 on the New York Stock Exchange. A year ago, the share price was $29.29.
When Cliff's management rejected the idea of splitting the company, Casablanca earlier this week said it would offer its own man to fill the vacant CEO position -- Lourenco Goncalves, former CEO of service center chain Metals USA. Casablanaca also said it would campaign to replace Cliffs' board of directors by offering its own slate at the company's annual shareholder meeting this spring.
James Kirsch, Cliffs' chairman of the board, said of Halverson's appointment, "We are confident that Gary is the right candidate to lead Cliffs given his proven experience with international and long-term mining operations and understanding of the global commodities industry."
Halverson joined Cliffs last year. He has experience in gold, copper, and nickel mining industries.