This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Walter Energy Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: WLT

Walter J. Scheller

Thanks, Paul. Good morning, everyone, and thank you for joining us. I'd like to begin today with a brief report on safety which always comes first at Walter Energy. U.S. operations reduced the total recordable injury rate by 34% in the second quarter, and our Canadian operation's recordable injury rate was reduced by 26% compared with the year ago. Across the entire Walter community, we strive to ensure a safety culture for our employees and the communities in which we operate.

Turning now to our results. Second quarter met production of 2.91 million metric tons was within 50,000 tons of first quarter's 2.96 million metric tons record production. This represents a 17% increase from the 2.49 million tons produced in the second quarter of 2011. This strong production puts Walter on solid footing to accomplish our 2012 met coal production target of 11.5 million to 13 million metric tons.

Second quarter met coal sales of 2.84 million metric tons increased 20% over first quarter 2012. Mike Madden and his team has been globally marketing our suite of met coal products creating new opportunities and meeting our customers' needs even in a difficult macro environment.

It is also noteworthy to recognize that the strong production was accomplished for 2 mines having less than normal production during the quarter. First, Mine No. 4, was off-line for the majority of the second quarter. The extended longwall move was successfully accomplished just as the scheduled miner's vacation began. For the year, Mine No. 4 is on plan to meet its production target of about 2 million metric tons. Second, the Brule Mine in Northeast British Columbia currently operated by an on-site contractor had higher mining waste removal in the second quarter which negatively impacted its productivity and cost. As you know, Walter is focused on reducing cost. In the second quarter, the consolidated cash cost of hard coking coal decreased slightly to $115 per metric ton. In the U.S., Underground cash cost totaled $107 per metric ton from $110 in the first quarter. For perspective, cost were $119 per metric ton in the fourth quarter last year. Clearly, our Underground operations are making progress for reaching our cost coal of $100 per ton by the year end. And I should remind everyone, that Walter's Underground operations represent the majority of our production and cash flow.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs