Clean Harbors Inc. reported lower net income for its second quarter and first half, hurt by a weak performance in its recycling and oil markets.
The Norwell, Mass.-based waste and recycling company said for the period ended June 30 net income fell 2.2 percent to $22.9 million, or 38 cents per diluted share, compared with $23.4 million a year earlier. Revenue however jumped 64.5 percent to $860.5 million compared with $523.1 million in the 2012 period, according to a news release.
For the first half, net earnings dropped 39.7 percent to $33.4 million, or 55 cents per diluted share, compared with $55.4 million, or $1.04 per diluted share, a year earlier.
Revenue climbed 57.3 percent to $1.72 billion compared with $1.1 billion in 2012.
Clean Harbors’ second-quarter net income includes approximately $6.8 million in pre-tax integration and severance costs. The 2013 results also reflect the December 2012 acquisition of Safety-Kleen.
“We delivered disappointing results for the second quarter as we experienced challenging conditions and weakness within our oil re-refining and recycling segment and oil and gas field services segment,” said Alan McKim, chairman and CEO.
While the company expects a stronger second half, it has lowered its guidance for the year. Clean Harbors now expects revenue in the range of $3.5 billion to $3.55 billion, compared with its previous revenue guidance of $3.62 billion to $3.67 billion. It expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the range of $535 million to $545 million, compared with its previous guidance of $605 million to $620 million.