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Walter Energy, Inc. Message Board

  • tiptoe60 tiptoe60 Dec 2, 2003 3:06 PM Flag

    Earnings estimate cut to a loss

    and no one is posting any comments. Seems odd.

    Is there more to the story? How is SAP affecting homebuilding operations? I notice 2 quarters in a row now that delays in completions are impacting earnings. Is this because of SAP or some other factors.

    Just curious. In today's world there is always more to the story it seems.

    IMHO

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    • Don may lose his job due to SAP(imho). The last three years have been record sales in housing nationwide. WLT has lost money in housing this quarter because of SAP, last quarter was not good either. Last July, Don D said that HBG was ready for SAP it had been tested out. My experience was SAP was bad, we were told not to ask certain questions, and were ridiculed for challenging the teachers.

      Sorry Don you F'd up, you trusted SAP.

    • No, you don't get it. sap does not and will not work in a soft manufacturing industry such as the "built on your lot home building industry". For your information, the way houses are built is called stick building. Materials are delivered to the building site, and PEOPLE that are not nuclear scientists look at a set of plans, and try to nail these pieces of lumber together in a way that keeps the wind and rain and snow out of the inside of the house. If somebody misses a measurement, or a pipe is off or something else, the whole thing changes. sap can't adapt to the inevitable changes that are by nature the way it works in building HOUSES. If we were manufacturing water pumps for a '96 chevy impala, we would have precise controls over the process. Not in HOUSE BUILDING. There are ways to streamline the construction process and optimize profits, but sap will not do it in HOME BUILDING. WALK A TOP PLATE, CUT A RAFTER, SCHEDULE AN ELECTRICIAN, OR A DRYWALL CREW, AND COME AND TALK TO ME. Try to build a deck when home boy on the next street came to the job site at 3 am the prior morning and "borrowed" 30ea. 2x6x12 treated to build his new deck and the boss wants to know, "how cum u caan't close dat mutha f<(&#a by the 30th", ( alabama boy ) and feel the pain. You can say " I don't have the material to finish the job boss. sap says tuff cow feces. Wake up It is not going to work. No matter how many fingers are pointed to lack of training, or dummmies keying in the job, or WHATEVER, sap does not fit house building. O.K. pour some money into your pocket, Mr. sap trainer -- IT STILL IS GOING TO CRASH.

    • My sense (and this is my opinion only) is that WLT will be in bankruptcy again because of SAP.

      The economy is turning up (and fast) and WLT is projecting more losses. With their mountain of debt related to the loan portfolio and its shaky performance, along with losses in the other divisions, then obtaining more debt to keep funding operations will get harder and harder.

      Old releases that you don't hear about anymore (which I assume means they are not doing well):
      JWH is getting into subdivision development.
      JWH is setting up Walter Mortgage.
      JWH is building spec homes.
      JWH is going to build 10,000 homes per year.

      Not being sarcastic, but can you tell me one new venture that has worked out for them? I know that they are declaring victory with SAP but with these new losses, it is premature at best.

      IMHO

    • You guys don't get it! This company has come a long way in trying to catch up with technology and has shown the no guts no glory approach. They have gone all out and put their careers on the line in an attempt to make things better. The only flaw in the plan was they didn't run off the dogs that refuse, or don't have the snap to change. They are not spending the money it takes to hire qualified people to run SAP, and get the appropriate training. Web-X doesn't cut it! Hat's off to the effort, but if they don't spend the money on training and salaries.....it will crumbling around them!

    • Tough to discern the earnings loss. Core operations seem O-K, not great. Year-end figures and disclosure should be more telling. Maybe more announcements?

      Homebuilding due mostly to implementation of SAP system, which is difficult but extremely necessary for all companies that convert. Pipe a little bit surprising, tyring to find out.

      the board is most likely silent due to lack of sophistication on the part of those usually involved and they do not understand the current situation at the moment.

      • 1 Reply to cerberussxxxx
      • The HBG has limited itself to 10 models per company in order to initiate the SAP program.
        They even have display models on their overpriced parks which they are not even allowed to build! SAP was not designed for the type of business that the HBG is supposed to be doing. Just imagine yourself visiting with one of their salesmen and you ask if you can make minor changes to the floorplan, and he exclaims, "No! Our SAP program will no let us do that."

        I know what I would tell him. What would you do, buy an expensive commodity where the seller tells you to take it or leave it?

        Very simply in order to assist you in discerning WLT's current earnings loss with respect to the the HBG, just call Centex, Horton or some of the more profitable homebuilders and ask the if they use SAP.

 
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