China Fire & Security Group Inc.'s (CFSG) reported its third quarter results yesterday. The company posted earnings of 27 cents per share, in line with the Zacks Consensus Estimate. Quarterly EPS was up 17.4% year over year, primarily driven by higher revenues. Revenue in the quarter was $24.8 million, up about 48.2% from the year-ago revenue of $16.7 million. The company benefited from higher sales of system contracting projects and products during the period. The company recognized revenues from 205 total solution, product sales and maintenance contracts in the reported quarter as compared to 163 contracts in the third quarter of 2008. The company’s gross profit increased 41.9% on higher revenues. However, the gross margin was down 250 basis points at 56.4% due to a lower percentage of self-manufactured proprietary products sold through product sales contracts during the period. CFSG reiterated its full-year revenue guidance ...

Cliffs Natural Resources (CLF), the largest producer of iron ore pellets in the U.S., recorded third-quarter 2009 profits of 45 cents, significantly lower than last year’s earnings of $1.61 per share, on weak iron volumes and prices. However, reported earnings were in contrast to the Zacks Consensus Estimate of a loss of 6 cents. Consistent with weaker year-over-year global demand for iron ore -- the steelmaking raw material -- revenues in the quarter tumbled 44% to $666.4 million. Performance by Segments North American Iron Ore: Sales in the segment slipped 47% to $428.2 million on a 31% decline in volumes to 5.5 million tons. Iron ore production halved to 4.6 million tons in the quarter. Demand for iron ore pellets remained weak year over year despite steel demand picking up in the last quarter. Capacity utilization in the North American steel industry ramped from 49% in ...

Yesterday, oil refiner and marketer Sunoco Inc. (SUN) announced certain strategic actions to improve the company’s performance and competitiveness in a cost-effective manner, as it struggles to cope with the bearish refining margin environment. Sunoco said that it would indefinitely idle a New Jersey refinery, furlough 400 workers and cut its dividend in half. The company hopes that these measures will save $320 million annually, though this would also lead to $475–$550 million in largely non-cash financial charges over the next few quarters. Sunoco has decided to shut down its 145,000 barrels-per-day Eagle Point refinery in Westville, NJ, until market conditions improve. In the meantime, the company will shift production from Eagle Point to its refineries in Philadelphia and Marcus Hook, PA, and may use the idled refinery to produce alternative fuels. The Philadelphia and Marcus Hook facilities will up their utilization rates to make up ...

Five Ways To Profit From The Commodity Nobody Likes

Tony Daltorio, Investment U Research

Forget Superman… the real man of steel is Lakshmi Mittal, chairman of the world’s biggest steelmaker, Arcelor Mittal ADR (NYSE: MT).

Mittal has built an empire – and a personal fortune – by being optimistic when it comes to the global steel industry. And he still maintains that confidence today, recently going on record to say that global demand could rise by more than 10% in 2010.

Meanwhile, many of his peers in the industry sport trembling lower lips over their present and future.

Believe it or not, that ongoing debate matters to everybody, not just those investing directly in the commodity. Steel demand feeds into a huge range of sectors, so much so that many regard it as an important bellwether of industrial trends.

The Half-Empty, Steel Glass

Other than

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China Armco Metals is a leading distributor of imported metal ore with a plan of action to launch a new state of the art scrap metal facility in their home country. With their unique business structure, China Armco has caught the attention of Toro Research which issued a speculative buy on the company.

According to the Toro Research Report, the recommendation was based primarily on China Armco’s revenue performance for the first half of 2009 as it relates to current market trends in the commodity industry and the company’s expanding growth. Within the Toro Report, China Metals received a rating of 8.5 out of 10, which is a strong rating for the young company. With this kind of research and positive news being generated, China Metals may become a global power before too long.

While the revenue performance in the first half of 2009 played a critical role in the report,

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China Fire & Security Group (CFSG) is a leading provider of industrial fire protection systems in China. The company's strong position in the industry has enabled it to win a high percentage of its bids, which is around 60-70% of bids in the iron and steel industry.

Though the company has been primarily serving the iron and steel industry, it is now looking at expanding into other industrial sectors such as transportation, marines, nuclear energy and petrochemical. China's industrial fire protection market is expected to grow 11% annually until 2011.

As a leading player in the market, we believe CFSG is well-positioned to capitalize on the growth potential. We are upgrading our rating on the stock from Neutral to Outperform.Zacks Investment Research

China Fire & Security Group (CFSG) is a leading provider of industrial fire protection systems. The company’s China-based rivals tend to focus on low-end and technically less sophisticated products which are low-grade and unsuitable for large projects.

The market for the design and installation of fire safety systems is served by numerous small firms. Of these, China Fire has emerged as the largest in the past five years. The company’s leading position in the domestic industry helped it to win a high percentage of bids, which is around 60%-70% of bids in the iron and steel industry.

China Fire is benefiting also from the Chinese iron and steel industry's Revitalization Scheme, which promotes production control, encourages industry consolidations and emphasizes the development of new technologies. This stimulus plan provides financial subsidies and loan discounts to leading iron and steel companies, allowing larger and more advanced steel producers to

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International mining and natural resources company Cliffs Natural Resources Inc. (CLF) is expecting increased production and sales volume in its North American Business Unit, which includes its North American Iron Ore and North American Coal business segments.

Cliffs expects the North American Iron Ore business segment to recognize sales volume of about 16 million tons in 2009, higher than the previous guidance of 13 million to 14 million tons. North American Iron Ore equity production volume in 2009 is expected to be 17 million tons, up from a prior projection of 15 million tons.

Cliffs also raised its 2009 expected sales volume for its North American Coal business segment to about 1.8 million short tons from a previous expectation of 1.5 million tons. North American Coal production volume is expected to be 1.8 million tons, up from a previous expectation of 1.3 million tons. Cliffs operates coal mines in West Virginia

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Walter Energy Inc. (WLT) recently posted a shocking profit and shares are at a critical level.

Company Description

Walter Energy produces and exports coal for the steel industry. In addition the company supplies coal bed methane gas, industrial and steam coal, and metallurgical coke. On a side note they also have a home building and financing segment that is classified as discontinued operations.

A Surprise Profit

On Jul 22 Walter Energy reported second quarter results that included income of just over $11 million, or 21 cents per shares. This is down sharply year-over-year but crushed expectations of a 4 cent loss.

This was the company's fourth consecutive earnings surprise.

Improving Conditions

"The Company delivered a solid second quarter despite difficult market conditions," said Walter Energy Vice Chairman and Chief Financial Officer Victor P. Patrick. "Our shipments improved dramatically in June after a lull in April and May and we are

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China is pressing Rio Tinto PLC (NYSE ADR: RTP) hard for a sharp reduction in the prices the company charges for its iron ore. But mining companies like Rio, who have had their bottom lines eviscerated by a slump in commodities prices, may have a hard time acquiescing.

China’s 470 million ton demand for steel is considerably lower than the country’s annual production capacity of 660 million tons, and to that effect, China announced a three-year ban on new mills The New York Times reported.

“Disorderly competition” has pushed up iron ore prices, caused a glut of production capacity and resulted in “serious losses,” said China’s Information Minister Li Yizhong. “My ministry will not approve any expansion-related projects in the iron and steel industry. I would like to call on the whole industry, all iron and steel producers, not to construct any new projects

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