TAMPA, Fla., Feb. 28 /PRNewswire-FirstCall/ -- Walter Industries, Inc. today announced executive changes to prepare for a strategic realignment of its businesses. As previously announced, the Company has submitted an S-1 filing to the Securities and Exchange Commission for an initial public offering (IPO) of the Company's Water Products Business (Mueller, Anvil and U.S. Pipe). The Company intends to spin off the Water Products Business approximately six months after the IPO by distributing its stock to the Company's shareholders. In its evaluation of strategic alternatives, the board and management team have also begun and will continue an analysis of the potential spin-off of the Homebuilding and Financing business to Walter Industries shareholders.
In light of these strategic considerations, the Company is pleased to announce the following immediate and future changes in its organizational structure:
* Gregory E. Hyland, Chairman, President and Chief Executive Office of Walter Industries, will continue in his role with Walter Industries until the spin-off of the Water Products Business. At that time he will lead the Water Products Business as Chairman, President and CEO. William F. Ohrt, Chief Financial Officer of Walter Industries, will remain in his current role with the Company.
* Effective immediately, Mark O'Brien, currently an independent member of Walter Industries' board of directors, will become Chairman and CEO of the Company's Homes Business (consisting of its Homebuilding and Financing segments). In this new role, Mr. O'Brien will report to Mr. Hyland. O'Brien has had a long and distinguished career in the homebuilding industry. Prior to his retirement in 2003, he was Chief Executive Officer of Pulte Homes, Inc., where he served in various capacities for 21 years. As a result of his assumption of these executive responsibilities, Mr. O'Brien will become a non- independent director of Walter Industries. Charles Cauthen, President of the Homebuilding segment, and Joseph Troy, in his role as President of the Financing segment, will report directly to Mr. O'Brien. Mr. Troy will continue to report to Mr. Hyland in his investor relations and mergers and acquisitions roles.
* George Richmond, currently President and Chief Operating Officer of Walter Industries' Natural Resources segment, has been given the title Chief Executive Officer - Jim Walter Resources and will continue to report to Gregory Hyland.
* After the spin-off of the Water Products Business, Michael Tokarz, a member of Walter Industries' Board of Directors, will become non-executive Chairman of Walter Industries. Also at that time Victor Patrick, currently General Counsel, will become an executive officer and Vice Chairman of Walter Industries. Messrs. O'Brien, Richmond and Patrick will report to Mr. Tokarz.
"I am pleased with the progress that is being made in evaluating strategic alternatives and in taking action to enhance value for our shareholders," said Mr. Hyland. "The immediate and future organizational changes announced today provide each of our businesses with experienced and accomplished executives to provide leadership and continuity as we carry on our transformation and value creation program."
Walter Industries, Inc. is a diversified company with annual revenues of approximately $3.0 billion. The Company is a leader in water infrastructure, flow control and water transmission products, with respected brand names such as Mueller, U.S. Pipe, James Jones, Henry Pratt and Anvil. The Company is also a significant producer of high-quality metallurgical coal and natural gas for worldwide markets and is a leader in affordable homebuilding and financing. Based in Tampa, Fla., the Company employs approximately 10,000 people. For more information about Walter Industries, please visit the Company Web site at http://www.walterind.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. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, among others, changes in customers' demand for the Company's products, changes in raw material, labor, equipment and transportation costs and availability, geologic and weather conditions, changes in extraction costs and pricing in the Company's mining operations, changes in customer orders, pricing actions by the Company's competitors, changes in law, the collection of approximately $14 million of receivables associated with a working capital adjustment arising from the sale of a subsidiary in 2003, potential changes in the mortgage-backed capital markets, and general changes in economic conditions. Those risks also include the timing of and ability to execute on the initial public offering and spin-off of the Company's Water Products business and any other strategic action that may be pursued. Risks associated with forward-looking statements are more fully described in the Company's and Mueller's filings with the Securities and Exchange Commission. The Company assumes no duty to update its forward-looking statements as of any future date.
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