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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): August 1, 1999
CLEVELAND-CLIFFS INC
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(Exact name of registrant as specified in its charter)
OHIO 1-8944 34-1464672
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1100 Superior Avenue, Cleveland, Ohio 44114
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (216-694-5700)
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
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Cleveland-Cliffs Inc has published News Releases as follows:
(1) On August 1, 1999 Cleveland-Cliffs Inc published a
News Release with respect to labor contract
settlements; and
(2) On August 2, 1999 Cleveland-Cliffs Inc published a
News Release with respect to production cutbacks.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
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(a) FINANCIAL STATEMENTS OF BUSINESS ACQUIRED: None
(b) PRO FORMA FINANCIAL INFORMATION: None
(c) EXHIBITS:
EXHIBIT
NUMBER EXHIBIT
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99(a) Cleveland-Cliffs Inc News Release Filed
published on August 1, 1999, with Herewith
respect to labor contract settlements
99(b) Cleveland-Cliffs Inc News Release Filed
published on August 2, 1999, with Herewith
respect to production cutbacks
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
CLEVELAND-CLIFFS INC
By: /s/ C. B. Bezik
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Name: C. B. Bezik
Title: Senior Vice President-Finance
Dated: August 6, 1999
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INDEX TO EXHIBITS
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EXHIBIT
NUMBER EXHIBIT
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99(a) Cleveland-Cliffs Inc News Release Filed
published on August 1, 1999, with Herewith
respect to labor contract settlements
99(b) Cleveland-Cliffs Inc News Release Filed
published on August 2, 1999, with Herewith
respect to production cutbacks
3
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Exhibit 99(a)
[logo]Cliffs NEWS RELEASE
- ------------ NEWS RELEASE
NEWS RELEASE
RELEASE DATE 8/1/99
CONTACT David L. Gardner
Director-Public Relations
TELEPHONE 216/694-5407
CLEVELAND, OH --- Cleveland-Cliffs Inc (NYSE-CLF) announced today that
tentative contract settlements have been reached with the United Steelworkers
Union, representing hourly employees at three iron ore mines in Minnesota and
Michigan, managed by Cliffs subsidiaries.
Contracts at Hibbing Taconite in northern Minnesota and Empire and
Tilden Mines in the Upper Peninsula of Michigan were set to expire on August 1.
Approximately 2,500 employees are covered by the contracts.
Company officials said no details of the settlements would be released
publicly until union members have ratified the contracts. The company did say,
however, that the economic provisions of the contracts are in line with patterns
established in earlier steel industry agreements. The company and union have
signed a contract extension agreement to permit adequate time for the
ratification process.
John Brinzo, Cliffs' president and chief executive officer, said, "We
are pleased that a settlement has been reached. I am hopeful these contracts
usher in a new era of labor/management cooperation that will allow our mines to
significantly improve their positions in today's highly competitive
marketplace."
Cleveland-Cliffs Inc, 18th Floor 1100 Superior Avenue, Cleveland, Ohio
44114-2589
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Cleveland-Cliffs is the largest supplier of iron ore products to the
North American steel industry and is developing a significant ferrous metallics
business. Subsidiaries of the Company manage six iron ore mines in North America
and hold equity interests in five of the mines. Cliffs has a major iron ore
reserve position in the United States, is a substantial iron ore merchant and is
beginning production of hot briquetted iron at a joint venture plant in Trinidad
and Tobago.
CONTACTS: Cleveland-Cliffs Inc
Media: David L. Gardner, 216/694-5407
Financial Community: Fred B. Rice, 800/214-0739 or
216/694-5459
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Exhibit 99(b)
[logo]Cliffs NEWS RELEASE
- ------------ NEWS RELEASE
NEWS RELEASE
RELEASE DATE 8/2/99
CONTACT David L. Gardner
Director-Public Relations
TELEPHONE 216/694-5407
CLEVELAND-CLIFFS ANNOUNCES PRODUCTION CUTBACKS
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CLEVELAND, OH --- Cleveland-Cliffs Inc (NYSE - CLF) announced today
it will shut down three of its managed mines for varying lengths of time as a
result of the continuing depressed market conditions for iron ore pellets.
Current plans call for the Empire Mine in Michigan and Hibbing Taconite
in Minnesota to be closed for six weeks, while the Tilden Mine in Michigan is
scheduled for an approximate 10-week shutdown. Subsidiaries of Cleveland-Cliffs
are minority owners and managers of the three mines. Cliffs-managed Wabush Mine
in eastern Canada is currently in a five-week shutdown.
The shutdown at the Tilden Mine in Michigan will begin this week due to
mechanical problems that have developed in both of the mine's pelletizing
furnaces, which have already been shutdown. Summer employees of the mine are
being laid off, beginning on night shift today. The remainder of the mine will
be closed by Friday. Approximately 775 employees will be affected by the
closure.
The specific schedules for the six-week shutdowns at Hibbing Taconite
and Empire Mine will be announced soon. Approximately 1675 employees will be
affected by shutdowns at these two mines.
John S. Brinzo, Cliffs' president and chief executive officer, said,
"We have mentioned publicly on several occasions since the beginning of this
year that low iron ore consumption levels by our steel company customers were
causing a huge upsurge in iron ore pellet inventories at our mines.
Unfortunately, the slight improvement in the North American steel business in
recent weeks has done little to correct the inventory problem. Therefore, we
have no alternative but to cut back production and reduce pellet stockpiles."
Cleveland-Cliffs Inc, 18th Floor 1100 Superior Avenue, Cleveland, Ohio
44114-2589
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Brinzo said further that steelmakers face the continuing challenge of
competing against high levels of unfairly traded steel imports. "The latest
import levels in June demonstrate that the steel crisis is far from over," he
said.
In addition to finished steel imports, the Company said a blast furnace
outage at one major customer resulting from a tragic explosion, and increasing
levels of unfairly traded semi-finished steel slab imports have also contributed
to reductions in pellet demand. Slab use by steelmakers is particularly
troubling to iron ore producers since it has a direct impact on pellet
consumption, the Company said.
The Company has revised its sales forecast for the year down to 9
million tons versus record sales of 12.1 million tons in 1998. That will be the
lowest level of sales since the company acquired its newest mine, Northshore, in
1994.
Cutbacks in production at Cliffs-managed mines will reduce output for
the year by approximately 2.7 million tons, including reductions at Cliffs'
wholly owned Northshore Mine. Northshore has taken down a small pellet furnace
between July 22 and November 24 and tentatively plans to shutter the entire
plant from October 30 to November 24.
Cleveland-Cliffs is the largest supplier of iron ore products to the
North American steel industry and is developing a significant ferrous metallics
business. Subsidiaries of the Company manage six iron ore mines in North America
and hold equity interests in five of the mines. Cliffs has a major iron ore
reserve position in the United States, is a substantial iron ore merchant, and
is beginning production of hot briquetted iron at a joint venture plant in
Trinidad and Tobago.
This news release contains forward-looking statements regarding iron
ore pellet sales and production volume which could differ significantly from
current expectations due to inherent risks such as lower demand for steel, iron
ore, higher steel imports, processing difficulties, or other factors. Although
the Company believes that its forward-looking statements are based on reasonable
assumptions, such statements are subject to risks and uncertainties, which could
cause actual results to differ materially.
CONTACTS:
Media: David L. Gardner (216)694-5407
Financial Community: Fred B. Rice (800)214-0739 or (216)694-5459
To obtain faxed copies of Cleveland-Cliffs Inc news releases, dial
(800)778-3888. News releases and other information on the Company area
available on the Internet at http://www.Cleveland-Cliffs.com
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