Covanta Posts Net Income Decline for Third Quarter

Allan Gerlat, News Editor

October 18, 2012

1 Min Read
Covanta Posts Net Income Decline for Third Quarter

Waste-to-energy firm Covanta Holding Corp. reported a sharp decline in net income for its third quarter and year to date, hurt by weakening prices and other factors.

The Morristown, N.J.-based Covanta said net income for the quarter ended Sept. 30 fell 38.6 percent to $27 million, compared with $44 million a year earlier.

Revenue for the latest period slipped 4.6 percent to $412 million, compared with $432 million in 2011, according to a news release.

Specifically, Covanta said revenue was hurt by lower construction revenues, a decline in metal prices, reduced debt service revenue and waste contract transitions.

For the first nine months, net earnings dropped 83.4 percent to $33 million compared with $199 million a year earlier. Revenue slipped 0.5 percent to $1.21 billion from $1.22 billion a year earlier.

The company narrowed its guidance for the year to $500 million to $515 million in earnings before interest, tax, depreciation and amortization (EBITDA). Previously the high end of the guidance was $530 million.

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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