S&P See Positive Waste Industry Outlook, At Last

Date: May 29, 2010

Source: News Room

Standard & Poor's (S&P) has adopted an optimistic view of the waste management and environmental services industry. The rating agency said that it expects steadily improving collection volume, especially towards the end of the year that along with strong cash generation, pricing initiatives and cost control efforts will boost the profitability of waste and environmental services companies. Haulers are expected to continue to shed underperforming assets and acquire accretive niche businesses and "tuck-ins", while raising prices to drive top-line growth. Enhanced customer service should stem lost business to higher pricing. Acquisitions will be driven by a more difficult environment for smaller haulers in the soft economy and relatively low acquisition multiples. Even though construction and demolition (C&D) volume will remain weak near term, it should improve sequentially with any economic recovery. Commodity recycling prices too should rebound further, especially from their record lows of early 2009.

To learn more about S&P's reports, visit: sandp.ecnext.com/coms2/page_industry?referid=4890.

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