Walter Industries Inc. said its first quarter profit dropped steeply 98 percent to $499,000 or 1 cent a share from $29.6 million or 56 cents a share last year.

Shares of Walter Industries fell 2.38 percent to $67.71 in the New York stock Exchange on Thursday Composite trading.

The results include a $28 million or 35 cents a share of Pre-tax charges at Non-Core Financing & Homebuilding Businesses.

These charges were related to an interest rate hedge loss, the previously announced restructuring of Jim Walter Homes and an additional discount arising from Homebuilding's transfer of installment notes receivable to Financing the company reported.