Weekly News Bulletin: Mar. 11-17, 2008


A New Flow Control Battle in Pennsylvania

Another flow control battle is shaping up in Pennsylvania. Two industry trade groups are going to court to stop the Delaware County Solid Waste Authority from imposing a new flow control ordinance which mandates waste be taken to certain disposal facilities. The Pennsylvania Waste Industries Association and the National Solid Wastes Management Association argue that the ordinance violates constitutional protections of free trade. They say it also conflicts with a 2007 U.S. Supreme Court decision because the disposal and processing facilities at the heart of the Delaware County case are part of a waste system that is "predominately" private and not public. The high court argued that government "public" ownership created a public benefit that outweighed any imposition on commerce...Read More »



House Subcommittee Plans E-Waste Hearings in Spring

The House Subcommittee on Environment and Hazardous Materials is planning a hearing on electronics waste this spring. However, proponents of the legislation are concerned that the issue may be losing momentum since the subcommittee's chairman Albert Wynn, D-Md, who lost the Democratic primary, may not have the clout to do much. Compounding the difficulty is a relatively short congressional calendar this year. The next subcommittee chairman could have a different agenda. At issue is resolving the longstanding differences over financing for e-waste recycling between TV makers and computer manufacturers...Read More »



BFI Canada Earnings Off Despite Gain in Fourth Quarter Revenues

BFI Canada, which includes IESI Corp., reported fourth quarter and year-end revenues that increased 25% and 19% to $251.0 million and $917.4 million respectively. EBITDA grew by 25% in the fourth quarter. Acquisition costs and other expenses including losses on foreign currency transactions caused a decline in net income. Among highlights of the quarter was the acquisition of Winters Bros. Waste Systems, Inc. of Long Island, NY, approval to expand the Seneca Meadows landfill, renewal of the Calgary landfill operating permits, and certain favorable debt restructurings...Read More »



Methane Gas Going into Diapers

The Three Rivers Solid Waste Authority (TRSWA) recently began shipping landfill gas from its landfill in Jackson, SC through a 15.8-mile pipeline to a Kimberly-Clark Corp. manufacturing facility in Beech Island. There it will be combusted to produce steam which powers the production of well-known brands such as Kleenex facial tissue, Huggies diapers and Pull-Ups training pants. The $13 million project which is currently being tested is expected to be fully operational by April 1. Illinois-based Siemens Building Technologies Inc. partnered in the project by building and designing the gas collection facility and pipeline. Kimberly-Clark has signed a 15-year purchase agreement with TRSWA which caps the price of gas at $6.5 per million BTUs while it guarantees a price of at least $4.5 per million BTU's. At current prices, Kimberly-Clark could save as much as $500,000 per year...Read More »



Allied Waste to Build New Customer Service Center in Indiana

Allied Waste Industries plans to open a customer support center at an idled manufacturing facility in Morocco, Ind. It will eventually employ 350 people by 2014 and service customers in 17 states. It is significant in that it represents a growing industry trend towards consolidated and streamlined operations. Allied's archrival Waste Management has deployed similar operations. Allied has two other customer service centers. For the Morocco operation, Allied won $1.8 million in performance-based tax credits from the Indiana Economic Development Corporation which will also contribute to county infrastructure improvements...Read More »



Waste Industries Profits Lower on Fees to Go Private

Waste Industries USA Inc. said fourth-quarter earnings fell 5%, hurt by charges related to its plan to go private. The company earned $5.1 million, or $0.36 per share, compared with $5.4 million, or $0.38 per share, in the year-ago quarter. Revenue rose 4% to $84.7 million from $81.1 million in the prior-year period...Read More »



Casella Waste Fiscal Third Quarter Off on Reorganization Charges

Casella Waste Systems said its third-quarter net loss widened to $4.6 million, or $0.18 per share, versus $1.75 million, or $0.07 per share, in the year-earlier quarter. Non-recurring management reorganization charges during the quarter cost $1.2 million, or $0.03 per share. The company also blamed disappointing results from its GreenFiber unit related to the slowdown in the housing market. Despite its losses, revenues for the quarter were up by 9.8% to $141.4 million from $128.8 million a year earlier. The company also raised its outlook for 2008 earnings before interest, taxes, depreciation and amortization to a range of $118 million to $122 million from an earlier estimate of $114 million to $118 million. Chairman and CEO John Casella expects recent management changes to bring more focus to operational efficiencies and to broaden new business opportunities...Read More »



WASTEC Gets ANSI to Approve New Waste Equipment Standards

The Waste Equipment Technology Association said that five new waste industry standards have been approved by the American National Standards Institute. The standards cover equipment technology and operations and apply to stationary compactors, bailing equipment and facilities processing commingled recyclables. Gary Satterfield, executive VP for WASTEC said the standards are important because they establish high standards of safety, providing crucial guidelines and requirements in design as well as the installation, operation and maintenance of the equipment...Read More »



Waste Connections to Deploy DriveCam Driver Safety System

Waste Connections plans to deploy a behavior-based risk mitigation solution called DriveCam across its business lines in all four of its regions. The company recently completed a one-year test run of the DriveCam solution in a select group of vehicles, realizing a marked increase in driver safety and exoneration of drivers who were not at fault in collisions. "DriveCam has presented a cutting-edge solution to help us improve the overall safety performance of our fleet and reduce claims costs associated with risky driving," said Ken Rose, senior vice president, Waste Connections Inc. "Results and feedback from our management team and drivers have been overwhelmingly positive."...Read More »



Industrial Services of America Optimistic for 2007 and 2008

Industrial Services of America said that it expects to report fiscal 2007 earnings of $0.71 per share on revenue of about $77 million. The results include settlement costs of $0.047 per share for the resolution of a legal matter in the fourth quarter and $0.036 per share related to a management employment contract. The Louisville, Ky.-based waste management company also forecast first-quarter per-share earnings of $0.28 to $0.30 per share and said it plans to continue its share buyback program...Read More »


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