Walter Industries, Inc. Announces 400,000 Ton Per Year Expansion of Surface Mining Operations and Doubles Quarterly Dividend to $0.10 Per Share

Walter Industries, Inc. Announces 400,000 Ton Per Year Expansion of Surface Mining Operations and Doubles Quarterly Dividend to $0.10 Per Share

Walter Industries, Inc., a leading producer and exporter of U.S. metallurgical coal for the global steel industry, announced today that its Board of Directors has approved a plan to expand the Company’s United Land subsidiary’s surface mining operations by opening a new coal mine with 0.4 million tons of annual capacity.

The Board also approved a 100 percent increase to its regular quarterly dividend rate – to $0.10 per common share.

“The decision to develop United Land’s new mine illustrates our commitment to reinvest our strong cash flow into organic opportunities to grow our business,” said Company Chairman Michael T. Tokarz. “At the same time, the increase in our dividend rate reflects our confidence in the continued strength of the cash flows from Walter Industries’ core Natural Resources businesses. Both of these initiatives reward our shareholders for their confidence in us.”

Surface Mining Expansion

United Land’s new mine – to be known as Flat Top Mine – is a 600-acre surface coal mine with reserves of approximately 2.3 million tons of steam and industrial coal on land owned by the Company. Development of the mine will begin immediately and, because permits are already in place, coal is expected to be available for sale by May 2009 and is expected to be accretive to earnings in its first year of operation. United Land will invest approximately $30 million to develop the mine, which will employ approximately 50 people, and will be located in Jefferson County, Ala., 11 miles northwest of Birmingham.

Dividend Payment

The dividend increase is Walter Industries’ second such increase in the last 18 months. The Company last announced a dividend increase on Feb. 7, 2007, when it increased the dividend from $0.04 to $0.05 per common share. The $0.10 per share dividend is payable on Sept. 12, 2008 to shareholders of record at the close of business on Aug. 8, 2008.

About Walter Industries

Walter Industries, Inc., based in Tampa, Fla., is a leading producer and exporter of metallurgical coal for the global steel industry and also produces steam coal, coal bed methane gas, furnace and foundry coke and other related products. The Company also operates a mortgage financing and affordable homebuilding business. The Company has annual revenues of approximately $1.2 billion and employs approximately 2,500 people. For more information about Walter Industries, please visit the Company Web site at www.walterind.com .

Share this post