Walter Industries Retains Salomon Smith Barney to Pursue Strategic Alternatives for Its Coal Operations; Related Restructuring Actions In Fiscal Third Quarter.TAMPA, Fla.--(BUSINESS WIRE)--March 1, 1999--Walter Industries, Inc. (NYSE NYSE See: New York Stock Exchange : WLT WLT Washtenaw Land Trust WLT Weakest Link Theory WLT Winning Lottery Ticket WLT Work Leader Training WLT Weapons Load Training WLT Windows Live Toolbar ) announced today that it has retained the investment banking firm of Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. Inc. to pursue strategic alternatives for Jim Walter Resources, its coal mining and methane gas subsidiary. The Company also announced the following related actions, which are effective with its fiscal third quarter ended February 28, 1999: -- Jim Walter Resources will be classified as a discontinued operation for financial reporting purposes. Its businesses comprise substantially all of the Company's Natural Resources segment, which generated revenues of $362.2 million and operating income of $38.4 million in its last full fiscal year. -- Jim Walter Resources will cease production at one of its four Alabama-based coal mines, Blue Creek Mine No. 3, as part of a strategic reorganization of the mine operations to increase their future profitability. The mine shutdown process commences today and will result in a pre-tax charge of approximately $53 million against third quarter earnings. -- The Company will realize a $25 million pre-tax gain from a reduction in Jim Walter Resources' postretirement benefit liabilities. This positive adjustment is the result of a recent actuarial analysis Actuarial Analysis The analysis of an investment's risk done by an actuary. Notes: A highly educated actuary will use statistics and historical data in an attempt to measure the risk of a particular investment. See also: Actuary, Life Insurance, Risk, Risk Averse of Jim Walter Resources' medical claims experience, reductions to its workforce and the decision to close Mine No. 3. "These actions should significantly enhance the ongoing profitability of Jim Walter Resources. Nevertheless, we have previously identified the coal operations as non-strategic to the long-term growth and direction of our Company, and we are taking definitive steps toward its disposition," said Kenneth E. Hyatt, Walter Industries' Chairman and Chief Executive Officer. "Today's announcement, combined with the recent divestiture of our window components business and current program to divest our Vestal vestal (vĕs`təl), in Roman religion, priestess of Vesta. The vestals were first two, then four, then six in number. While still little girls, they were chosen from prominent Roman families to serve for 30 (originally 5) years, during which Manufacturing subsidiary, underscores our commitment to a more concentrated focus on our four core businesses - homebuilding and financing, pipe manufacturing, specialty industrial products and energy services," Hyatt said. The Company expects to announce results for its fiscal third quarter and nine months after the close of market trading on March 22. Preliminary estimates indicate that operating and net income from the Company's continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , excluding Jim Walter Resources, will be materially higher than the comparable prior year periods. However, Jim Walter Resources incurred an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the third quarter -- principally due to problems at its No. 3 Mine -- that will negatively impact the Company's overall earnings comparisons with the prior year. Note to Editor: Jim Walter Resources (JWR JWR Jewish World Review JWR Just Within Reach JWR Johnny Walker Red (whiskey) JWR James Wegg Review (website) JWR Joint War Room ) operates four deep-shaft coal mines along Alabama's Blue Creek coal seam Noun 1. coal seam - a seam of coal seam, bed - a stratum of ore or coal thick enough to be mined with profit; "he worked in the coal beds" coalface - the part of a coal seam that is being cut with an annual rated capacity of approximately 10 million tons. JWR also operates a methane gas recovery operation, with 480 degasification wells in active production. JWR employs approximately 2,100, including 450 at its No. 3 Mine. Walter Industries, Inc., based in Tampa, Florida “Tampa” redirects here. For other uses, see Tampa (disambiguation). Tampa is a United States city in Hillsborough County, on the west coast of Florida. It serves as the county seat for Hillsborough County.GR6. , 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. The preceding includes forward-looking statements which involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are market demand, competition, interest rate fluctuations, weather and other risk factors listed from time to time in the Company's SEC reports. |
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