Weekly News Bulletin: Nov. 5-11, 2008


Who Will Head EPA in Obama's Administration?

With the election decided, many wonder who will be tapped by the President-elect to run the EPA. The choice will likely be someone with credentials on climate change and clean energy which were hallmark issues of the campaign. Among those considered to be on Obama's shortlist are lawyer and activist Robert F. Kennedy, Jr., Mary Nichols, currently the head of California's Air Resources Board, Kathleen McGinty, the former head of the Pennsylvania EPA, and Lisa Jackson, who recently left the New Jersey environment commission to work for Gov. John Corzine who is said to be helping with the EPA transition. One issue the transition team will likely engage even before the next president takes office is an already controversial EPA effort to revise its air quality standards for nitrogen dioxide (NO2), which the agency is expected to release before the Jan. 21 inauguration...Read More »



Waste Management's Third Quarter Profit Up by 12%

Waste Management Inc. said third quarter profit increased 12 percent, helped by pricing, fuel surcharges and recycling revenue that was up by 17 percent. However, higher prices and the economic downturn caused a volume decline of about 3.2 percent. This was actually less of a decline than in the first two quarters. Net income totaled $310 million, or 63 cents per share, up from $278 million, or 54 cents per share, a year earlier. Revenue climbed 3.6 percent $3.52 billion. So far, for many of the big waste companies, price increases have more than offset volume declines. But, higher costs have discouraged price wars over market share among the players in a more consolidated market with slightly tighter capacity than in the past. The company recently withdrew its $6.73 billion bid to acquire smaller rival Republic Services Inc. However, it may be in the market for any asset divestitures required of the Allied-Republic merger...Read More »



Allied Waste Reports 68% Jump in Third Quarter Profit

Allied Waste pulled off a five-fold increase in profit for its third quarter, up 68%, on higher pricing, that pushed net income to $113 million of $0.26 per share, up from $66.9 million or $0.15 per share in the corresponding period last year. Profits fattened as the company continued pricing initiatives, maintaining surcharges while fuel costs decreased. Revenue grew by 3.2% to $1.61 billion from a year ago. Both Allied and Republic reiterate that their merger plans remain on track with an expected completion in mid-December. The combined entity will keep the Republic name, have annual revenue of about $9 billion, have a more vertically integrated platform of collection, processing and disposal assets to serve its 13 million customers in 40 states...Read More »



Republic Posts 32% Gain in Third Quarter Income

Republic Services reported a third quarter revenue increase of 3.4 percent despite a drop in volume resulting from the economic downturn. Existing pricing initiatives offset these effects to produce revenue of $834 million up from $806 million in last year's third quarter. Net income rose a robust 32% to $88.7 million, or 48 cents per share, versus net income of $67 million, or 35 cents per share, for the comparable period last year. The company also said its planned merger with Allied Waste Industries is on target and will be voted on at their upcoming shareholder meetings next month. Earlier, Republic announced it had agreed to settle shareholder lawsuits that challenged its acquisition of rival Allied Waste and its rejection of a deal with Waste Management...Read More »



Environmentalists Seek Air Quality Talks on Landfill NSPS

The Environmental Defense Fund (EDF) issued an ultimatum to the US EPA to convene talks to update its landfill new source performance standard (NSPS), specifically to address emissions of methane, or face a lawsuit. EDF charges that NSPS has not been updated in over eight years, longer than the review requirements outlined in the Clean Air Act. "[W]e hope that litigation is not necessary, and respectfully request and welcome the opportunity to work -- jointly -- with EPA, municipal leaders, the waste management industry, clean energy entrepreneurs and other interested parties in complying with these legal imperatives by forging collaborative commonsense solutions that will simultaneously benefit local air quality, the global environment, economic growth, and America's energy security," EDF says in the notice. They cite a September Climate Change Science Program report that finds reductions in pollutants such as methane would simultaneously limit harmful climate change and improve airquality...Read More »



Casella Reports Robust Business; Mitigating Fluctuations with Risk Management

Casella announced that business is strong evidenced by revenues that for the first two months of the quarter were up 7.6 percent compared with last year. Landfill volumes are increasing despite the economic downturn helped by strength of collection operations. According to chairman and CEO John Casella, "We are executing well against factors that we can control. Our efforts during the past 18 months to improve the efficiency of our business and enhance asset mix through the divesture of under-performing assets have positioned us to perform at a level of stability even in a weak economic environment."...Read More »



Clean Harbors Posts 13% Increase in Third Quarter Profit

Clean Harbors reported a 13 percent increase in third quarter profit on an 11 percent increase in revenue - this despite disruptions due to hurricanes and flooding. Net income rose to $14.6 million, or $0.61 per share, which includes $0.11 per share charge related to the early extinguishment of $50 million in debt. This was up from $12.9 million, or $0.63 per share, last year. A lower per share figure reflects a higher number of shares outstanding this year. Despite economic conditions, revenue grew robustly to $273.2 million from $245.5 million last year. The company is expecting between 8 percent and 10 percent revenue growth for the year...Read More »



WCA Waste Corp. Posts Narrower Third Quarter Loss

WCA Waste Corp. said its net loss for the third quarter narrowed from last year's on revenue that increased 9 percent to a quarterly record of $52.8 million. Increased fuel costs reduced margins by 3.1 percent of revenue. Profits would have been positive if not for an unfortunate interest rate swap. Company chairman Tom Fatjo said "Factored in the revenue growth was an increase in pricing of 4%, fuel surcharge of 4%, acquisition contribution of 5.8% and a decline in volume of 4.8%."...Read More »



Waste Connections Completes LeMay Acquisition

Waste Connections, Inc. completed its acquisition of Harold LeMay Enterprises, Inc., said to be the largest privately-owned solid waste services company in the Pacific Northwest. Waste Connections also acquired from Harold LeMay affiliates the remaining interests in Pierce County Recycling, Composting and Disposal, LLC and Pierce County Landfill Management, Inc. that it id not already own. Both entities had previously been majority owned subsidiaries of Waste Connections...Read More »



Allied Waste Invests $2 mil. In Single Stream Buffalo NY Facility

Allied Waste said it had begun work on a $2 million upgrade of its Buffalo Recyclery to make it into a single stream processing facility. The facility is expected to process over 350 tons of material daily once operational in the first quarter of 2009. With single-stream capabilities, intermingled recyclables are delivered directly to the site. The recyclables are automatically conveyed through the facility, where handling systems using screens, air, vibration, magnets, optical sorters and other mechanical processes are used to separate the materials. Allied has 53 recycling centers around the country which collectively process 1.5 million tons annually...Read More »



Industrial Services of America: Third Quarter Revenue up 61%

Industrial Services of America, Inc. reported third-quarter net income of $1.28 million or $0.36 per share, compared to $0.38 million or $0.11 per share in the third quarter of 2007. Total revenue increased 61% to $28.8 million from $17.9 million in the prior year quarter. Non-ferrous shipment volumes increased 42.2% over the third quarter of 2007, and ferrous shipment volumes rose 2.4% over the same period...Read More »



Perma-Fix Net Loss Narrows in Third Quarter

Perma-Fix Environmental Services, Inc. reported third-quarter net loss that narrowed to $341 thousand or $0.01 per share from a net loss of $1.95 million or $0.04 per share last year. Losses from continuing operations also decreased to $276 thousand from $403 thousand a year ago. Revenue declined to $15.99 million from $16.3 million in the comparable period a year earlier. Separately, the company said it will retain its industrial segment facilities in south Georgia and Florida as these have been deemed to be "relatively self sufficient with positive cash flow."...Read More »



EnergySolutions to Announce Third Quarter Results on Nov. 11

EnergySolutions, Inc. said it will announce third quarter financial results at the close of the market on November 11 and host a conference call the following day at 10 a.m. (Eastern) to discuss those results...Read More »



AERT, Inc. Names New CFO

AERT, Inc., which makes green building products, has appointed J. R. Brian Hanna as its Chief Financial Officer. He brings 28 years of experience to his new post. Previously, he was CFO of Brass Eagle Inc. where he helped in the successful spin-out of JT Sports, a leader in the sporting goods/paintball industry...Read More »


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