Waste Management’s Net Income Drops 21 Percent in Quarter

Waste Management’s Net Income Drops 21 Percent in Quarter

Waste Management Inc. net earnings plummeted in the third quarter, hurt by lower commodity prices and charges from an organizational restructuring, a labor dispute and from investments.

The Houston-based Waste Management reported that net income for the period ended Sept. 30 dropped 21.3 percent to $214 million, or 46 cents per diluted share, compared with $272 million, or 58 cents per diluted share, for the year-ago quarter.

Revenue slipped 1.7 percent to $3.46 billion compared with $3.52 billion for the 2011 period, according to a news release.

A decline in commodity price declines in the company’s recycling and waste-to-energy prices resulted in a revenue decrease of $176 million and a 10-cent reduction for earnings per share in the quarter.

Waste Management said net income would have totaled $285 million, down $10 million from 2011, if not for charges of $32 million for the restructuring and union dispute, and $39 million from impairments of investments.

The company said it is lowering its earnings guidance for the year because it expects an additional 7-cent reduction per share in earnings from what was previously predicted because of lower commodity pricing. Waste Management now is setting its guidance range at $2.08 to $2.13 per diluted share for the year.




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