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UPDATE: Walter Energy Misses Q4 Views, Shares Tumble


Shares of Walter Energy Inc. (NYSE: WLT) declined more than 8% in pre-market trading after the company reported a wider-than-expected loss for the fourth quarter.

The Birmingham, Alabama-based company reported a quarterly loss of $128.1 million, or $1.83 per share, versus a year-ago loss of $174.3 million, or $2.79 per share. Excluding one-time items, the company's adjusted loss widened to $1.97 per share from $1.02 per share.

Its revenue shrank 39.5% to $285.6 million. However, analysts were estimating a loss of $1.59 per share on revenue of $326.55 million.

Its EBITDA for the quarter was a loss of $15.0 million, versus EBITDA of $59.9 million. Adjusted EBITDA was a loss of $24.3 million, compared to adjusted EBITDA of $59.2 million, in the year-ago quarter.

Met coal sales volumes declined to 2.0 MMTs from 2.9 MMTs, while HCC sales volumes fell to 1.8 MMTs from 2.4 MMTs in 2013. Low-vol PCI sales volumes declined 0.4 MMTs to 0.2 MMTs.

Met coal production declined to 1.8 MMTs in the quarter from 3.2 MMTs.

"For the full year 2014, we aggressively reduced costs -- both in operational and administrative areas -- all while improving production efficiency at our mines; opportunistically restructured our balance sheet to enhance liquidity and provide additional financial flexibility; and ensured that our emphasis on safety remained paramount," said Walt Scheller, Chief Executive Officer. "As 2015 unfolds, we will maintain our focus on improving safety, increasing productivity and reducing costs."

Walter Energy shares fell 8.26% to $1.00 in pre-market trading.


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