Boston, MA 08/13/2013 (wallstreetpr) – Coal miner Walter Energy, Inc. (NYSE:WLT) registered a significant loss during the 2nd quarterly period as feeble coal rates impacted the income. The company stated that it was directed to lift up $250 million from asset sales by the next 9 month period. On a call with market experts and capitalists, CFO Bill Harvey stated that the company is eyeing to divest assets or set up JVs. The well known mining firm stated, during the month of March, that it would look at the sale of non-core assets.
Much of the company’s production is metallurgical coal, utilized to build steel, and feebleness in the international steel zone has hit its outcomes hard. The firm bagged a proxy clash against a minor investor, British hedge fund Audley Capital Advisors LLP during the month of April. It stated that the costs linked with that clash hit earnings. Coal miner Walter Energy, Inc., which during the month of June pulled a proposed credit refinancing, stated on July 23 that it would cut down its dividend to 1 cent per share as compared to 12.5 cents a share. It also bettered an April 2011 credit contract for the 5th time.
The firm, which has functions in the North American market and UK, cut down its capital spending objective to $150 million for 2013. In the month of May, it slashed the sum to $170 million as compared to $220 million. The second-quarter net loss remained at $34.5 million as against earnings of $31.9 million posted during the same period of 2012. Revenue dropped 35 percent to $441.5 million.
Walter Energy, Inc. (NYSE:WLT) Shares Drop 10 Percent after Slashing Dividend
The scrip of Walter Energy, Inc. (NYSE:WLT) declined more than 10 percent on Wednesday after the coal miner cut down its dividend to 1 cent per share as compared to the previous 12.5 cents per share, citing the harsh market for metallurgical coal and a battered credit facility.
