June 10, 2014
Waste-to-energy and recycling firm Covanta Holding Corp. is implementing several cost-saving initiatives that should net the firm $30 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 2015.
Specifically, Covanta plans to reduce the costs of goods and services through new strategic procurement practices and a multi-year effort to increase labor efficiency during maintenance outages.
Second, it will reduce staff by improving process efficiency and implementing best practices, such as by upgrading existing information technology (IT) systems to streamline processes, and centralizing and reorganizing certain overhead functions.
“I'm confident these changes will deliver the targeted savings next year and we'll seek to increase the savings over time," said Anthony Orlando, Covanta president and CEO.
The costs of implementing the initiatives will generally offset the initial savings in 2014.
Covanta also will increase its quarterly cash dividend to 25 cents per share, beginning in the third quarter.
In addition, the company said it resumed an effort to construct a waste-to-energy project in Dublin, following a favorable ruling by the European Commission.