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Waste-to-Energy Firm Covanta Implementing Cost Savings ProgramsWaste-to-Energy Firm Covanta Implementing Cost Savings Programs

Allan Gerlat

June 10, 2014

1 Min Read
Waste-to-Energy Firm Covanta Implementing Cost Savings Programs

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.

The Morristown, N.J.-based Covanta said in a news release that the initiatives are aimed at improving process efficiency and reducing ongoing expenses across its business.

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.


About the Author(s)

Allan Gerlat

News Editor, Waste360

Allan Gerlat joined the Waste360 staff in September 2011 as news editor. He was the editor of Waste & Recycling News for the first 16 years of its history, and under his guidance the publication won 27 national and regional awards.

Before Waste & Recycling News, Allan worked at another Crain Communications publication, Rubber & Plastics News, which covers rubber product manufacturing. He began with the publication as associate editor and eventually became managing editor, a position he held for nine years.

Allan is a graduate of Ohio University, where he earned a BS in journalism. He is based in Sagamore Hills, in northeast Ohio.

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