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Why Walter Energy is down 17 Percent Wednesday

Shares of Walter Energy (NYSE: WLT) are down 17 percent in afternoon trading Wednesday after the company cut its divided.

Reuters reports that the company slashed its dividend from 12.5 cents per share to 1 cent citing tough market conditions. The company said that the drastic cut will give it more financial flexibility as it continues working with creditors.

Walter Energy is a $737 million company that produces and exports metallurgical coal for the steel industry. As the price of steel has fallen, the company has seen profits fall. The stock is down more than 63 percent in the past six months.

The stock is down 17 percent on three times its normal volume.

[stock-tools exchange="NYSE" symbol="WLT" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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