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Walter Industries' Earnings Nearly Triple In 3rd Quarter

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By RUSSELL RAY | The Tampa Tribune

Published: July 29, 2008

TAMPA - Walter Industries Inc., a leading coal producer, said today that earnings nearly tripled in the second quarter, driven primarily by skyrocketing coal prices.

The news lifted the stock more than 9 percent this morning.

The company reported net income of $50.8 million, or 94 cents a share, up from $18.1 million, or 34 cents a share, in the same quarter of 2007.

"These results have set the table for what we expect to be the most profitable year in Walter Industries' history," Chairman Michael T. Tokarz said.

The Tampa-based company recorded $370 million in sales and revenue in the second quarter, up 24.8 percent compared with the same quarter of 2007.

Walter Industries is a leading provider of metallurgical coal, which is used to make steel. The company produced 3 million tons of metallurgical coal during the first half of 2008, putting it on pace to produce an estimated 7 million tons this year.

Operating income from ongoing operations was $82.3 million, up from $33 million in the second quarter of 2007.

The company said it still plans to spin off its financing and homebuilding businesses by year's end. In June, the company raised more than $280 million after offering 3.2 million shares of common stock. The proceeds were used to pay down debt.

The company was trading up $7.99, to $94.27, just before noon.

Reporter Russell Ray can be reached at (813) 259-7870 or rray@tampatrib.com.

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