Cliffs Natural Resources Inc. today provided a 2008 sales volume update for its North American iron ore business.
Cliffs said it has received cash payment for nearly 24 million tons of iron ore sales in 2008 though under accounting guidance for "bill and hold" sales, revenue recognition for approximately 1.2 million tons will be deferred until the product is delivered in 2009. This is due to the timing of shipping schedules with certain customers.
Cliffs said the accounting would have no impact on cash generated from operations, but pre-tax earnings in 2008 would be lower by approximately $50 million.
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