Exhibit 13(e) STATEMENT OF CONSOLIDATED CASH FLOWS Cleveland-CLiffs Inc and Consolidated Subsidiaries
(In Millions, Brackets indicate Cash Decrease) Year Ended December 31 -------------------------------------- 1997 1996 1995 - ----------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net income. . . . . . . . . . . . . . . . . . . . . . . . . . $ 54.9 $61.0 $ 57.8 Adjustments to reconcile net income to net cash from operations: Depreciation and amortization: Consolidated . . . . . . . . . . . . . . . . . . . . . . . 6.7 6.6 6.1 Share of associated companies . . . . . . . . . . . . . . 12.2 11.0 10.7 Provision for deferred income taxes . . . . . . . . . . . . 16.4 10.9 5,5 Tax credit . . . . . . . . . . . . . . . . . . . . . . . . (5.6) -- (12.2) Increase (decrease) in capacity rationalization reserve . . (13.8) (1.1) .5 Increases to environmental reserve . . . . . . . . . . . . 1.2 2.4 13.2 Extraordinary loss on debt extinguishment . . . . . . . . . -- -- 4.8 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 (1.2) (1.7) ------ ----- ------ Total before changes in operating assets and liabilities 74.3 89.6 84.7 Changes in operating assets and liabilities: Marketable securities . . . . . . . . . . . . . . . . . . -- (4.0) -- Inventories and prepaid expenses . . . . . . . . . . . . . (13.3) 11.3 (15.7) Receivables . . . . . . . . . . . . . . . . . . . . . . . (3.2) (8.4) 3.9 Payables and accrued expenses. . . . . . . . . . . . . . . (15.5) (.9) (6.8) ------ ----- ------ Total changes in operating assets and liabilities . . . . (32.0) (2.0) (18.6) ------ ----- ------ Net cash from operating activities . . . . . . . . . . . 42.3 87.6 66.1 INVESTING ACTIVITIES Purchase of property, plant and equipment: Consolidated . . . . . . . . . . . . . . . . . . . . . . . (14.1) (16.5) (16.6) Share of associated companies . . . . . . . . . . . . . . (47.8) (20.2) (5.9) Purchase of Wabush interest . . . . . . . . . . . . . . . (15.0) -- -- Sale of long-term investments . . . . . . . . . . . . . . . .8 4.0 8.8 Sale of marketable securities . . . . . . . . . . . . . . . 4.0 -- -- Other . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 .4 (4.4) ------ ----- ------ Net cash (used by) investing activities . . . . . . . . (72.0) (32.3) (18.1) FINANCING ACTIVITIES Dividends . . . . . . . . . . . . . . . . . . . . . . . . . (14.8) (15.1) (15.5) Repurchases of Common Share . . . . . . . . . . . . . . . . (4.9) (19.5) (10.8) Principal payments on long-term debt: Consolidated . . . . . . . . . . . . . . . . . . . . . . . -- -- (75.0) Share of associated companies . . . . . . . . . . . . . . -- (3.9) (4.3) Debt prepayment fees . . . . . . . . . . . . . . . . . . . . -- -- (4.8) Proceeds from long-term debt . . . . . . . . . . . . . . . . -- -- 70.0 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . -- -- .4 ------ ----- ------ Net cash (used by) financing activities . . . . . . . . (19.7) (38.5) (40.0) EFFECT OF EXCHANGE RATE CHANGES ON CASH . . . . . . . . . . . (.1) (.2) (.6) ------ ----- ------ INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . . (49.5) 16.6 7.4 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR . . . . . . . 165.4 148.8 141.4 ------ ----- ------ CASH AND CASH EQUIVALENTS AT END OF YEAR . . . . . . . . . . $115.9 $165.4 $148.8 ====== ====== ====== Taxes paid on income . . . . . . . . . . . . . . . . . . . . $ 17.1 $ 20.6 $ 29.0 Interest paid on debt obligations . . . . . . . . . . . . . . $ 4.9 $ 4.9 $ 7.2
See notes to consolidated financial statements. 43