Cliffs Natural Resources Inc. swung to a modest third-quarter profit as the iron-ore miner benefited from its cost-cutting efforts and a gain related to debt extinguishment that helped offset slumping demand.

Shares rose 9.9% to $2.90 in recent premarket trading.

The Cleveland-based firm, one of the country's biggest mining companies, has continued to streamline its operations with the hope that iron-ore prices will recover in time to stave off bankruptcy.

Chief Executive Lourenco Goncalves said in prepared remarks Thursday that the company expects the domestic steel market will improve next year as trade actions reduce pressure from imports and help firm up steel prices.

Cliffs on Thursday lowered its 2015 capital spending plan to between $85 million and $95 million, from its previous view for between $100 million and $125 million. The company also reduced its 2015 overhead outlook by $10 million and now projects $110 million, mostly driven by reduced head count and spending on external services.

For the latest quarter, Cliffs reported that its overhead costs declined 55% from a year earlier. The company noted that while part of the decline was attributable to higher costs in the year-earlier period stemming from a proxy contest and other items, overhead costs also benefited from lower staff costs and spending for outside services.

Overall, Cliffs reported a profit of $10.6 million, compared with a year-earlier loss of $5.9 billion. On a per-share basis, which reflects preferred dividend impacts, the per-share loss was 10 cents, compared with a per-share loss of $38.49 a year earlier. Excluding a debt-extinguishment gain, year-earlier asset write-downs and other items, the per-share loss from continuing operations was 35 cents, compared with a year-earlier profit of 51 cents.

Revenue slumped 39% to $593 million.

Analysts polled by Thomson Reuters expected per-share loss of 23 cents and revenue of $592 million.

Write to Tess Stynes at tess.stynes@wsj.com

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(END) Dow Jones Newswires

October 29, 2015 09:15 ET (13:15 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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