By early afternoon, shares had taken off 4.8% to $10.41, after dropping more than 1% a day earlier.
In a conference call, management said weak coal demand could impede restructuring actions which are expected to raise $250 million in asset sales. The company currently has cash and cash equivalents equal to around 90% of market value.
The Birmingham, Ala.-based business previously expected asset sales to close in April but is now forecasting for the majority to take place in the second half of 2014.In the three months to December, the company reported a net loss of 55 cents a share, narrower than a loss of 84 cents a share forecast by analysts polled by Thomson Reuters. Revenue of $472 million fell 1.4% from a year earlier and missed estimates by $5.44 million. Also See: Walter Energy Reports Fourth Quarter TheStreet Ratings team rates WALTER ENERGY INC as a Sell with a ratings score of D. The team has this to say about their recommendation: "We rate WALTER ENERGY INC (WLT) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk."
- You can view the full analysis from the report here: WLT Ratings Report