STATEMENT OF CONSOLIDATED CASH FLOWS Exhibit 13(e) Cleveland-Cliffs Inc and Consolidated Subsidiaries
(In Millions, Brackets Indicate Cash Decrease) Year Ended December 31 ----------------------------------- 1998 1997 1996 - --------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net income $ 57.4 $ 54.9 $ 61.0 Adjustments to reconcile net income to net cash from operations: Depreciation and amortization: Consolidated 7.8 6.7 6.6 Share of associated companies 12.5 12.2 11.0 Provision for deferred income taxes 3.1 16.4 10.9 Tax credit (3.5) (5.6) Decrease in Savage River closedown reserve (13.8) (1.1) Other (2.2) 3.5 1.2 -------- -------- -------- Total before changes in operating assets and liabilities 75.1 74.3 89.6 Changes in operating assets and liabilities: Marketable securities (4.0) Inventories and prepaid expenses 2.3 (13.3) 11.3 Receivables 13.4 (3.2) (8.4) Payables and accrued expenses 1.3 (15.5) (.9) -------- -------- -------- Total changes in operating assets and liabilities 17.0 (32.0) (2.0) -------- -------- -------- Net cash from operating activities 92.1 42.3 87.6 INVESTING ACTIVITIES Purchase of property, plant and equipment: Consolidated (24.5) (14.1) (16.5) Share of associated companies (7.2) (5.5) (6.1) Investment in Cliffs and Associates Limited (19.7) (42.3) (14.1) Purchase of Wabush interest (15.0) Other 1.5 4.9 4.4 -------- -------- -------- Net cash (used by) investing activities (49.9) (72.0) (32.3) FINANCING ACTIVITIES Dividends (16.3) (14.8) (15.1) Repurchases of Common Shares (11.5) (4.9) (19.5) Principal payment on long-term debt of associated companies (3.9) -------- -------- -------- Net cash (used by) financing activities (27.8) (19.7) (38.5) EFFECT OF EXCHANGE RATE CHANGES ON CASH (.1) (.2) -------- -------- -------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 14.4 (49.5) 16.6 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 115.9 165.4 148.8 -------- -------- -------- CASH AND CASH EQUIVALENTS AT END OF YEAR $ 130.3 $ 115.9 $ 165.4 ======== ======== ======== Taxes paid on income $ 12.5 $ 17.1 $ 20.6 Interest paid on debt obligations $ 4.9 $ 4.9 $ 4.9
See notes to consolidated financial statements. 41