logo
Share SHARE
FONT-SIZE Plus   Neg

Walter Energy Posts Q4 Loss, Revenue Drops 32%; Stock Falls - Update

Metallurgical coal producer Walter Energy Inc. (WLT: Quote, WLT.TO) Wednesday reported a net loss for the fourth quarter, compared to a profit last year, amid a sharp decline in revenues as a result of reduced demand and pricing for met coal. The stock fell nearly 6 percent in after-market trading.

The quarterly loss was $71.0 million or $1.13 per share, compared to net income of $80.3 million or $1.28 per share for the year-ago quarter.

The latest results included impairment and restructuring charges of $6.8 million, mainly due to a reduction in spending at the Aberpergwm mine in the U.K. Results for the quarter also included a $71 million tax benefit.

Excluding items, net loss for the fourth quarter was $66.4 million. On average, 21 analysts polled by Thomson Reuters expected a loss of $0.89 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues declined to $478.78 million from $703.01 million a year ago. Analysts expected revenues of $511.31 million.

Revenue from U.S. Operations fell to $325.84 million from $481.01 million, while Canadian and U.K. Operations generated $152.41 million, lower than the $221.50 revenue brought in last year.

The realized price of met coal declined 39 percent to about $149 per MT compared with the fourth quarter of 2011.

Production of met coal rose to 2.5 million metric tons or MMTs from 2.3 MMTs produced in the fourth quarter of 2011. Walter Energy sold 10.4 MMTs of met coal, up 19 percent from 2011.

WLT, which closed down 8 percent at $36.76 on Wednesday, fell 5.9 percent to $34.60 in the extended trade.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
American Airlines Group said pilots at its subsidiaries American Airlines and US Airways, represented by Allied Pilots Association, have approved a new five-year contract which provides immediate pay raises of 23 percent and subsequent annual raises of three percent for the next five years. LEGO Group, TT Games and Warner Bros. Interactive Entertainment have announced their 2015 slate of video games, including LEGO Jurassic World, LEGO Marvel's Avengers, and as well as new hand-held and mobile titles. Social-networking giant Facebook, Inc. is said to be testing their new 'Place Tips' feature for iOS users that will rival a similar service being provided by Yelp or Foursquare. The feature will provide the user relevant content about their location as long as they are there through pop ups on their news feed page of Facebook.
comments powered by Disqus
Follow RTT