Waste Management Inc. reported lower net earnings and revenue for its third quarter, hurt by restructuring charges and divestiture revenue loss.
The Houston-based Waste Management said for the period ended Sept. 30 that net income fell 7.2 percent to $270 million, or 58 cents per diluted share, compared with $291 million, or 62 cents per diluted share, in the year-ago period.
Revenue slipped 0.6 percent to $3.6 billion from $3.62 billion in 2013, according to a news release. The company sold its Wheelabrator Technologies Inc. waste-to-energy subsidiary during the quarter.
Net income in the 2014 period included an after-tax charge of about $66 million related primarily to its restructuring.
For the first nine months, net profits declined 7.1 percent to $708 million, or $1.52 per diluted share, compared with $703 million, or $1.50 per share, a year earlier. Revenue increased 0.7 percent to $10.6 billion from $10.5 billion in the 2013 period.
“Once again, our strong yield and cost controls delivered growth in our traditional solid waste business,” said David Steiner, Waste Management president and CEO. “In the third quarter we took another important step to expand our operating margins by reducing our corporate overhead costs. That action continued the alignment of our corporate leadership and staff with the needs of our field operations.”
He said the company expects to save more than $100 million annually when the moves are fully implemented in 2015.
“We have seen three successive strong quarters in 2014, and we expect that strength to continue into the fourth quarter,” Steiner said. “We are confident that we can meet the analysts’ fourth quarter consensus of (60 cents) of adjusted earnings per diluted share.”