Walter Industries Increases Earnings Estimates; Halts Sale Process for JW Aluminum
TAMPA, Fla., July 2 /PRNewswire/ -- Walter Industries, Inc. (NYSE: WLT - news) announced today that it is revising upward its range of earnings estimates for the second quarter ending June 30, 2001. The new estimated EPS range is 29 to 32 cents, or more than 23 percent higher than prior guidance.
``The company's performance thus far for the second quarter has exceeded our expectations due to continued productivity improvements in all of our businesses and improved results in our homebuilding and financing business,'' said President and Chief Executive Officer Don DeFosset. ``The Company will provide more information on its results during our conference call and quarterly news release in the latter part of July.''
Meanwhile, the Company announced that it has halted the sale process for its JW Aluminum operating subsidiary. JW Aluminum had been the subject of a potential divestiture during the past several months.
``As previously indicated, our goal for the JW Aluminum Company divestiture was to attain a price reflecting the fair value of the business,'' said Mr. DeFosset. ``The softness in the economy generally, and the aluminum industry in particular, together with tighter credit markets, hampered our ability to obtain an acceptable offer. JW Aluminum is a solid operation with a proven track record of growth and profitability. We believe JW Aluminum is worth considerably more than what was offered and Walter Industries will continue to invest in this business.''
JW Aluminum, based in Mount Holly, SC, is a leading producer of ``fin stock,'' a product used in heating and air conditioning units, and produces telecommunications cable wrap. JW Aluminum also makes foil and sheet products used in such applications as lithoplate for newspapers and in various building products such as sidings and gutters. In the twelve-month period ended December 31, 2000, JW Aluminum sold approximately 210 million pounds of aluminum products.
``This action in no way alters our resolve to simplify the Company's business mix and unlock value for our shareholders,'' Mr. DeFosset said. ``As we have consistently stated, our Homebuilding and Financing operations and U.S. Pipe subsidiary form the foundation of Walter Industries' operating structure going forward.'' |
