Walter Industries Reports More Income For Quarter

Jul. 27–TAMPA — Walter Industries Inc. reported stronger second quarter earnings Tuesday based on higher prices of coal shipments that offset losses in its homebuilding segment.

Tampa-based Walter Industries reported income of $41.5 million or 87 cents per share for the quarter ended June 30 compared with earnings of $8.3 million or 20 cents a share for the year-ago period.

Second quarter revenue was $441.2 million, a 16 percent increase, compared with $61.3 million for the second quarter 2004.

“Our second quarter performance reflects record operating profits [$43.9 million] by our Natural Resources segment,” Chairman and Chief Executive Don DeFosset said. “Although [$14 million] losses at our Homebuilding unit worsened in the second quarter, our backlog is growing and our expectation for a return to a break-even run rate in the fourth quarter remains intact.”

Walter predicted third-quarter earnings to range between 45 and 53 cents.

It reduced the upper end of its per-share annual earnings forecast range to $2.50 to $2.80, down from $2.50 to $3.10.

The company said its coal mine No. 5 at Brookwood, Ala., is likely to remain idle for the rest of the year.

Excess water entered the mine during the second quarter, resulting in a costs of $3.6 million.

An additional $20 million in costs is expected the remainder of the year, the company said.

Jim Walter Resources sold 1.83 million tons of coal at an average price of $73.29 per ton in the second quarter, compared with 1.85 million tons at $41.47 a ton during the year-ago period.

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