The 1Q Results Are In

Waste Management reports decline in first-quarter revenue; others show rise.

Houston-based Waste Management reported a net income of $155 million on revenues of $2.8 billion in the first quarter of this year. Both figures represent a decline from first-quarter 2008, when the firm posted a net income of $241 million on revenues of $3.3 billion.

Waste Management says that only 4.7 percent of the decline in revenue “comes from operational impacts to the solid waste collection and disposal business. The balance of the decline is due to commodity impacts related to recycling materials, fuel and energy, and non-operational items including foreign currency translation and one fewer work day during the first quarter of 2009.”

“The majority of our business relates to commercial and residential sources and is generally recession resistant …,” said Waste Management CEO David Steiner in a press release. “The fourth-quarter volume declines that we saw in our more economically sensitive industrial collection, landfill transfer and recycling business continued into 2009. We expect volumes in these economically sensitive lines of business to remain soft in 2009 and, as a result, we continue to focus on cost and pricing discipline and driving continued efficiency throughout our organization.”

Phoenix-based Republic Services has reported a net income of $113.4 million on revenues of $2.1 billion for the first quarter of 2009. The company recorded a net income of $76.1 million on revenues of $779.2 million of the same period in 2008. However, the 2008 figures do not include statistics for Allied Waste Industries, which merged with Republic in December of last year.

“During the first quarter, we continued to see positive results regarding the merger of Republic and Allied,” said James E. O'Connor, chairman and CEO of Republic Services, in a press release. “Thus far, we have captured more than $75 million in annual run-rate synergy savings. We are well on our way, and remain confident in our commitment to secure a total annual savings of at least $150 million by the end of 2010.”

Toronto-based BFI Canada reported a net income of $12.3 million on revenues of $278.8 million for the first quarter of 2009 (all amounts are in Canadian dollars). Both figures compare favorably to first-quarter 2008, when the firm reported a net income of $10.5 million on revenues of $244.3 million.

“We are very pleased with our strong performance in the first quarter, the result of year-over-year improvement in profitability, margins and free cash flow,” said Keith Carrigan, vice chairman and CEO of BFI Canada, in a press release. “These milestones were achieved in spite of a difficult economic environment. EBITDA increased 16.7 percent over the same period last year, while free cash flow grew 22.5 percent.”

Covanta Holding Corp., a Fairfield, N.J.-based owner and operator of waste-to-energy (WTE) facilities, reported a net income of $2.5 million on revenues of $358.8 million for the first quarter of this year. Both figures represent a decline from the same period in 2008, when the firm reported a net income of $15.8 million on revenues of $388.9 million.

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TAGS: Financials