Declines in waste volumes and recycling prices along with other challenges caused Republic Services Inc. to record lower net income for its fourth quarter and year.
For the period ended Dec. 31 the Phoenix-based Republic said in a news release net income for the final quarter dropped 33.5 percent to $127 million, compared with $191 million in the year-ago period. Revenue inched up 0.2 percent to $2.03 billion in the fourth quarter.
For the year, the waste and recycling company said net income fell 2.9 percent to $572.1 million compared with $588.9 million in 2011. Revenue for 2012 slipped 0.9 percent to $8.12 billion.
For the year modest increases in core pricing and fuel recovery fees and acquisitions were more than offset by waste volumes and recycling commodity prices.
“We faced a number of challenges in 2012,” said Donald Slager, Republic president and CEO. “However, we responded by remaining committed to our long-term strategy, which allowed us to achieve adjusted free cash flow in line with our expectation.”
Slager said for 2013 guidance, Republic expects adjusted diluted earnings per share in the range of $1.86 to $1.91, and a revenue increase in the range 2 to 2.5 percent.