UPDATE 1-Walter cuts jobs, closes stores; names CFO

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Feb 19 (Reuters) - Diversified company Walter Industries Inc (WLT.N: Quote, Profile, Research) posted a quarterly profit that beat expectations, and said it closed some stores and cut 25 percent of its financing and homebuilding workforce, due to challenges posed by the current housing crisis.

The company said it has or will immediately close 36 Jim Walter Homes sales centers, which provide homebuilding services and mortgage financing.

The company said it expects to record a restructuring charge of $6 million to $8 million, with most of it seen in the first quarter of 2008.

Walter named its vice chairman and general counsel, Victor Patrick, to the additional role of chief financial officer, replacing Joseph Troy who will focus on the company's plans to separate its financing and homebuilding business from the core natural resources and energy business.

The company also reported quarterly net income from continuing operations of $40 million, or 76 cents a share, compared with $28.5 million, or 55 cents a share a year back. Excluding items, it earned about about 54 cents a share for the latest fourth quarter.

Net sales were $312.3 million compared with $308.2 million a year ago.

Analysts on average were expecting earnings of 49 cents a share, before special items, on revenue of $307 million, according to Reuters Estimates.

Shares of the company closed at $46.41 Tuesday on the New York Stock Exchange. (Reporting by Varsha Tickoo in Bangalore; Editing by Jarshad Kakkrakandy)