Walter Industries Reports Revised First Quarter Earnings Outlook
TAMPA, Fla., Sept. 9 /PRNewswire/ -- Walter Industries, Inc. (NYSE: WLT) said today that it has revised its earnings expectations for its fiscal 1999 first quarter ended August 31, 1998. As a result of lower-than-expected earnings at its coal operations, the Company anticipates that first quarter diluted earnings per share will be in the range of $0.17 to $0.18. This compares with earnings per share of $0.22 in the fiscal 1998 first quarter before a non-recurring gain of $0.04 per share.
First quarter operating income from each of the Company's other business segments is expected to compare favorably with the prior year, the Company reported.
The shortfall in earnings from coal mining is due to unanticipated geological occurrences in two of the Company's four underground mines during the final days of the quarter, which negatively impacted operating income by approximately $7 million. The problems arose from unusually heavy concentrations of rock in the coal seams at both mines, impeding production and increasing costs.
"Geological variations are part of everyday life in coal mining; in this case, however, the conditions were unusually severe and occurred in a very concentrated period of time," said Kenneth E. Hyatt, Walter Industries' Chairman and Chief Executive Officer. "Regrettably, this shortfall in earnings from the coal operations will likely overshadow the very positive contributions of our other business segments, which are maintaining their solid earnings momentum."
"Based on our current outlook, we expect the Company's results in subsequent quarters to resume positive year-over-year comparisons and generate earnings basically in line with Wall Street expectations for the remaining nine months of the fiscal year," Hyatt said.
Walter Industries, Inc., based in Tampa, Florida, is a diversified, multi-subsidiary company with major interests in homebuilding/financing and industrial operations. Walter Industries and its subsidiaries employ 8,000 worldwide and generate more than $1.8 billion in revenues annually. |
