Waste Management, Inc. (Houston, TX) unveiled an ambitious restructuring plan that aims to improve performance and cut costs by reducing staff, consolidating geographic groups and flattening its corporate structure. The plans calls for the reduction of roughly 700 staff (1.5% of its 44,300 employees) by eliminating a management layer at the group level, which divides the company's US operations into four regions, and by consolidating the number of "areas" managing the core collection, disposal, and recycling businesses from 22 to 17.
The company says its goal is to focus more intensely on yield management, operational efficiency and customer service. Helping to lead the charge is James E. Trevathan who has been promoted to EVP and chief operating officer. He had been EVP of Growth, Innovation and Field Support. Similarly, Jeff M. Harris, previously head of the Midwest Group, and John J. Morris, Chief Strategy Officer, have each been appointed to the role of SVP, Field Operations to oversee the 17 consolidated operating areas...Read More »
Waste Management, Inc. (Houston, TX) reported second quarter revenue and adjusted earnings that expanded with core business growth and despite lower prices garnered for recycled commodities. Reported earnings included $32 million in asset impairments and restructuring charges. Excluding these items, net income would have been $240 million or $0.52 per share. As it was, net income fell to $208 million or $0.45 per share from $237 million or $0.50 per share in the year-ago quarter. Revenues for the quarter rose 3.3% to $3.46 billion from $3.35 billion in the same quarter last year. Revenue benefited from core price increases, net of rollbacks, of 2.8%. Working against it were average recycled commodity prices that declined 20 percent over the year, translating into a $0.03 per share hit on earnings. Waste-to-energy operations were also down to the tune of $0.03 per share...Read More »
Republic Services, Inc. (Phoenix, AZ) posted second quarter earnings that beat expectations and despite a slight drop in revenue as a result of lower recycled commodity prices and lower fuel surcharges. The company recorded profit of $149.2 million, or $0.40 per share up from $46.5 million or $0.12 per share last year. But these numbers include expenses related to paying down debt that weighed more heavily on last year's numbers. Excluding these charges, earnings would have been $218.4 million, or $0.59 per share compared to $184.9 million or $0.49 per share in the year-ago quarter. The extinguishment of debt cost the company $199.5 million in the year-ago quarter and just $110.3 million in the second quarter this year. Revenue in the quarter fell 1.2 percent to $2,060.6 million commensurate with a 1.3% drop in volumes, a 1% decline in recycled commodity prices, and 0.1% decline in fuel surcharges on lower gas prices. These were offset by good news in the form of core price increases of 0.6% and recent acquisitions. "We are on track to exceed the earnings guidance that we provided in April due to the settlement of Allied's 2004 - 2008 tax years. The business is operating within our expectations," said CEO Donald W. Slager. The company raised its profit guidance for the year to $1.91 to $1.93 per share, up from the $1.86 to $1.90 per share guidance issued last April...Read More »
Maintaining its momentum, Stericycle, Inc. (Lake Forest, IL), the largest medical waste management firm in North America, posted double digit second quarter revenue and income gains helped by recent acquisitions. Revenue for the quarter, which increased by 14.3 percent to $468.9 million, included $36.6 million from recent acquisitions. That helped push net income up 22 percent to $67.6 million, or $0.78 per share from $55.5 million, or $0.63 per share, in the same period a year ago. Excluding acquisition expenses and other unusual items, net income would have been $0.81 per share compared to $0.69 per share a year ago. During the second quarter, Stericycle made eight acquisitions-three in the United States, three in Spain, one in the United Kingdom, and one in Argentina. The company's divestiture of U.K.-based Ecowaste, ordered by the U.K. Competition Commission, is expected to be completed by the end of the third quarter. Looking ahead for the year, the company sees earnings of between $3.26 and $3.29 per share on revenue in the range of $1.856 billion to $1.9 billion...Read More »
Doyon Utilities, LLC (Fairbanks, AK) celebrated the opening of Alaska's first landfill gas-to-energy project which will convert gas from the Anchorage Regional Landfill to energy that will power the nearby Elmendorf-Richardson Army and Air Force Base. The 6.5 megawatt project will meet half of the base's energy needs and goes a long way toward helping them to meet their obligations under an executive order that requires all federal agencies to draw at least 7.5 percent of their energy from renewable sources beginning next year. Doyon will own and operate the facility and will buy the gas for at least the next 20 years, with an option for an extension to 40 years, under an agreement with the municipality. It is expected to yield $30 million in savings over the life of the project...Read More »
Clean Energy Fuels Corp. (Seal Beach, CA), announced its latest in a string of natural gas fueling stations that span the country, including those designed for refuse vehicles. Calling its latest effort "The Road to Natural Gas," the company is detailing recently signed agreements with transportation authorities, private and municipal refuse haulers, taxi fleets, and trucking companies. A big part of that effort began with Clean Energy's agreement in Oct. 2010 with Pilot Travel Centers LLC, which operates over 550 truck travel centers in 43 states and 6 Canadian provinces, to build own and operate CNG/LNG fueling facilities.
Clean Energy was co-founded by legendary Texas oilman and corporate raider T. Boone Pickens as Pickens Fuel Corp in 1997 and reincorporated as Clean Energy four years later...Read More »
US Ecology, Inc. (Boise, ID) said second quarter profits rose 36 percent to $6.4 million, or $0.35 per share from $4.7 million, or $0.26 per share last year. Revenue rose to $40.0 million, up from $39.5 million in the same quarter last year. A 21 percent increase in volumes was offset by a 6 percent decline in pricing resulting from changes in its service mix. "Continued growth in our Base Business drove waste volumes at our disposal operations, allowing us to benefit from the strong, inherent operating leverage in the business," said company CFO Jeff Feeler. "Our Texas facility, serving the Gulf coast oil, gas and industrial market, was particularly strong during the quarter, although all of our facilities performed at or above our expectations."...Read More »