Hazardous and solid waste firm Clean Harbors Inc. posted higher net earnings in its fourth quarter, but a loss for the year because of economic challenges in the energy-related sector.
For the quarter ended Dec. 31 net income for the Norwell, Mass.-based Clean Harbors rose 2.2 percent to $27.4 million, or 46 cents per diluted share, compared with $26.8 million, or 44 cents per diluted share, in the year-ago quarter.
Revenue dropped 3.9 percent to $845 million compared with $879.4 million in 2013, according to a news release.
“We concluded 2014 with a strong fourth-quarter performance, particularly in light of numerous headwinds affecting the energy markets,” said Alan McKim, Clean Harbors chairman and CEO.
For the year, Clean Harbors posted a net loss of $28.3 million, or 47 cents per diluted share, compared with net profits of $95.6 million, or $1.57 per diluted share, a year earlier. The 2014 results included an impairment charge of $123.4 million.
Revenue declined 31.3 percent to $3.4 billion from $3.51 billion.
“In 2014, we encountered several headwinds that included declining Canadian currency, a slowdown in the Oil Sands, a drop in base oil prices and turbulence in the energy markets. We took aggressive action and responded decisively to each of these issues by implementing a $75 million cost reduction plan, creating a regional sales structure, introducing our Zero-Pay and Charge-for-Oil initiative toward year-end and conducting a strategic review of our portfolio that resulted in a planned carve-out of our Oil and Gas Field Services business,” McKim said.
He said going into 2015 the company has operational and sales momentum but still faces headwinds in several segments. Clean Harbors reiterated its previously announced guidance for earnings before interest, taxes, depreciation and amortization (EBITDA) in the range of $530 million to $570 million.