Walter Restructures Homebuilding Biz

Walter Industries Inc., Tampa, Fla., has announced a major restructuring of JWH Holding Co., the company's financing and homebuilding business. Walter Industries said it has closed or will close 36 underperforming Jim Walter Homes sales centers as part of the restructuring, and it is reducing its financing and homebuilding work force by approximately 25%. The closure of the sales centers is expected to significantly improve the company's operational and financial outlook. As a result of the restructuring, the business expects to offset the impact of lower sales volumes with annualized reductions in operating expenses in the range of $26-28 million, with a significant portion recognized in 2008.