BIRMINGHAM, AL, Jun 28, 2012 (MARKETWIRE via COMTEX) --Walter Energy Inc. (NYSE: WLT) (TSX: WLT), the world's leading,
publicly traded "pure-play" producer of metallurgical (met) coal for
the global steel industry, today provided an outlook on second
quarter performance and reaffirmed full-year met coal production
guidance.
"Second quarter met coal production is expected to be solid and
in-line with our 2012 guidance," said Walt Scheller, Chief Executive
Officer. "Second quarter met coal sales volume is expected to
increase over the prior quarter. However, revenues and income will be
adversely affected by lower second quarter pricing across the
industry and we anticipate approximately flat sequential quarterly
costs per ton."
Production Outlook
Walter Energy expects met coal production to be approximately 2.8
million metric tons (MMTs) for the second quarter of 2012, up more
than 10 percent from 2.5 million MMTs in the second quarter 2011.
Full-year 2012 met coal production is expected to be between 11.5 and
13 MMTs, with approximately 75% of annual production being
high-margin hard coking coal (HCC) and 25% pulverized coal injection
(PCI).
Sales Volume, Price and Earnings Outlook
Second quarter 2012 met coal sales volume is also expected to be
approximately 2.8 MMTs, up from 2.4 MMTs in first quarter 2012.
Reflecting current trends in global coal markets, Walter Energy's met
coal prices for the second quarter 2012 will likely average about
$200 per MT for HCC and $160 per MT for low-vol PCI, inclusive of the
impact of previously priced carryover tons from past quarters. This
will represent a decline of approximately 12% for HCC and an
approximate 15% decline for low-vol PCI coal from the first quarter
2012. Costs per ton sold are expected to approximate those for the
first quarter 2012. The adverse effect of reduced pricing is expected
to be partially offset by certain favorable non-operating gains.
About Walter Energy
Walter Energy is the world's leading, publicly traded "pure-play"
metallurgical coal producer for the global steel industry with
strategic access to high-growth steel markets in Asia, South America
and Europe. The Company also produces thermal coal, anthracite,
metallurgical coke and coal bed methane gas. Walter Energy employs
approximately 4,400 employees and contractors with operations in the
United States, Canada and United Kingdom. For more information about
Walter Energy, please visit www.walterenergy.com.
Safe Harbor Statement
Except for historical information contained herein, the statements in
this release are forward-looking and made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and may involve a number of risks and uncertainties. Forward-looking
statements are based on information available to management at the
time, and they involve judgments and estimates. Forward-looking
statements include expressions such as "believe," "anticipate,"
"expect," "estimate," "intend," "may," "plan," "predict," "will," and
similar terms and expressions. These forward-looking statements are
made based on expectations and beliefs concerning future events
affecting us and are subject to various risks, uncertainties and
factors relating to our operations and business environment, all of
which are difficult to predict and many of which are beyond our
control, that could cause our actual results to differ materially
from those matters expressed in or implied by these forward-looking
statements. The following factors are among those that may cause
actual results to differ materially from our forward-looking
statements: the market demand for coal, coke and natural gas as well
as changes in pricing and costs; the availability of raw material,
labor, equipment and transportation; changes in weather and geologic
conditions; changes in extraction costs, pricing and assumptions and
projections concerning reserves in our mining operations; changes in
customer orders; pricing actions by our competitors, customers,
suppliers and contractors; changes in governmental policies and laws,
including with respect to safety enhancements and environmental
initiatives; availability and costs of credit, surety bonds and
letters of credit; and changes in general economic conditions.
Forward-looking statements made by us in this release, or elsewhere,
speak only as of the date on which the statements were made. See also
the "Risk Factors" in our 2011 Annual Report on Form 10-K and
subsequent filings with the SEC, which are currently available on our
website at www.walterenergy.com. New risks and uncertainties arise
from time to time, and it is impossible for us to predict these
events or how they may affect us or our anticipated results. We have
no duty to, and do not intend to, update or revise the
forward-looking statements in this release, except as may be required
by law. In light of these risks and uncertainties, readers should
keep in mind that any forward-looking statement made in this press
release may not occur. All data presented herein is as of the date of
this release unless otherwise noted.
Investor Relations Contact:
Paul Blalock
Vice President, Investor Relations
205.745.2627
paul.blalock@walterenergy.com
SOURCE: Walter Energy
mailto:paul.blalock@walterenergy.com
