Waste Management Inc. has reported better-than-expected fourth-quarter earnings, but said a flat economic outlook has forced it to become more conservative about 2003 guidance. The company reported fourth-quarter earnings per share of $0.39, better than the $0.34 expected by a consensus of analysts polled by Thomson First Call. But the company said it expects to come in on the low side of the range of $ 1.40 to $1.50 for 2003 earnings per share projected by the analysts. In 2002, the company reported net earnings of $1.33. In the first quarter, the company will reduce employees by 700, taking a one-time severance charge of $20 million. Waste Management also said it expects to end 2003 with $900 million to $1 billion of free cash.