Waste Management Inc.’s net income climbed 11.5 percent in its third quarter, buoyed in part by stronger pricing and higher recycling volume.
For the quarter ended Sept. 30 net income reached $272 million, or 58 cents per diluted share, compared to $244 million, or 51 cents per diluted share, for the third quarter of 2010. Revenues for the most recent period increased 8.9 percent to $3.52 billion compared to $3.24 billion for the year-ago period.
Adjusting for one-time items, including Waste Management’s purchase of Oakleaf, net income would have totaled $295 million for the 2011 third quarter compared to $264 million in 2010.
"We are happy with our progress in the quarter, which resulted in expansion of both our revenue and net income year-over-year,” said David Steiner, chief executive officer, in a news release. “Our revenue grew for the seventh consecutive quarter and our net income grew more than 11 percent year-over-year, primarily driven by our pricing programs, higher commodity prices and recycling volumes, acquisitions and fuel surcharges. In addition, we saw a $28 million benefit from our cost reduction initiatives."
Steiner continued, "The integration of Oakleaf into our company is progressing as expected.“
For the nine-month period, Waste Management’s net income increased 3.4 percent to $695 million, compared to $672 million a year ago. Revenue rose 6.9 percent to $9.97 billion compared to $9.33 billion a year earlier.
"We achieved our targets in the third quarter through cost controls and our continued pricing discipline, and we will remain focused on these priorities,” Steiner concluded. “We continue to expect full year adjusted earnings of between $2.14 and $2.18 per diluted share, and we expect our free cash flow to be about $1.25 billion for the year.”