Supreme Court Decision Likely to Send Ripples across $52 Billion Waste Industry
In a much anticipated decision, the Supreme Court ruled this week that local governments can compel private waste haulers to use municipal owned facilities. In the case of United Haulers Association v. Oneida-Herkimer Solid Waste Management Authority (05-1345), the justices voted 6-3 to uphold its "flow control" laws that are used to assure a steady revenue stream into publicly financed waste facilities. The decision is likely to send ripples throughout the $52 billion waste industry as other cash strapped municipalities may soon follow suit. The biggest beneficiaries though are likely to be recycling programs and new disposal and waste-to-energy technologies...Read More »
Waste Management First Quarter Earnings Beats the Odds Makers
Waste Management announced first quarter net income that rose 19%, besting most analysts' estimates, to $222 million, or $0.42 per share, from $186 million, or $0.34 per share last year. CEO David Steiner is shedding smaller, residential clients and raising prices to focus on more profitable markets. The strategy has helped the company boost operating income on collections 16% despite a decline in volumes of 5.2%. The company raised its profit expectation for 2007 to between $2.03 and $2.07 per share...Read More »
Allied Waste Posts 15% Net Gain in First Quarter 2007
Allied Waste Industries said that first quarter profits increased by 15% to $30.5 million, or $0.08 per share, from $26.5 million, or $0.08 per share last year. Those profits would have been higher, $0.14 per share, were it not for $26.7 million in debt refinancing costs incurred during the quarter. Revenues for the quarter grew by 2% to $1.46 billion from $1.42 billion last year. The company said higher prices and lower costs despite reduced volumes contributed to its gains in the quarter and that productivity initiatives helped keep operating costs comparable with last year...Read More »
Republic Loses Ground in First Quarter Although Revenues Are Up
Republic Services had a tough first quarter owing mostly to a $22 million, or $0.07 per share, pre-tax charge related to problems with the company's Countywide Recycling and Disposal Facility in Stark County, Ohio. However, revenues rose nearly 4% $765.6 million, bolstered by a 5.8% increase in pricing. Net income for the three months ended March 31, 2007, was $53.9 million, or $0.28 per diluted share, compared to $64.6 million, or $0.31 per diluted share last year...Read More »
Veolia Acquires Germany's Second Largest Waste Firm SULO Group
Veolia Environnement SA plans to buy Germany's second largest waste company Sulo Group from Blackstone Group LP and Apax Partners Worldwide Ltd. for 500 million euros ($679.7 million). Veolia will also assume 950 million euros of debt that it plans to refinance. According to Henri Proglio, chairman and CEO of Veolia, "This acquisition strengthens our position by making us a major player in the country's waste-management market.'' The purchase still requires antitrust approval. Blackstone and Apax bought Sulo in January 2004 for about 500 million euros and later combined it with Cleanaway Deutschland AG which they acquired for 570 million euros. Veolia will now derive 44% of its revenues from France, 10% from Germany, 10% from the US, and 9% from the UK. 18% will come from the rest of Europe and the remaining 9% from the rest of the World...Read More »
New Jersey State Inspectors Shut Down Three Rail Transfer Stations
New Jersey state inspectors shut down three rail site transfer stations owned by the New York, Susquehanna & Western Railway Corp. Rail company lawyers were quick to file an appeal with a state administrative law judge to overturn the orders. The incident represents the latest skirmish in the larger battle between the railroads and state officials and the waste industry about whether rail sites can be exempt from the same environmental and health regulations that apply to all other waste processing and disposal facilities. The argument centers on whether the federal laws that regulate the railroads preempt state and local laws that apply to everyone else...Read More »
Covanta Takes Small Hit in First Quarter Profits; 8% Revenue Increase
Covanta Holding Corp. reported that net income for its first quarter, ended March 31, dropped to a loss of $17.9 million, or ($0.12) per share, owing to a pre-tax charge of $32 million related to a previously-announced recapitalization plan and fire at the Company's SEMASS facility. Excluding these costs diluted earnings per share would have been $0.08 in the first quarter of 2007 which is comparable to $0.08 in the prior year. Revenues for the period grew by 8% to $330 million, up from $305 million last year...Read More »
Stericycle Inc. Reports Strong First Quarter, Net Up by 25%
Lake Forest-based medical waste management company Stericycle Inc. reported a 25% increase in net income to $29.4 million in the quarter ended March 31 from $23.5 million in 2006. First-quarter revenue was $211 million, up 18% from the year-earlier revenue of $179.2 million. Furthermore, Stericycle expects six recent acquisitions to help its second-quarter results...Read More »
SPSA must raise its Rates to $100 per ton
The Southeastern Public Service Authority (SPSA) which has endured lawsuits from member cities and various travails related to its finances finally adopted its largest price increase in its 30-year history. Beginning on July 1, the authority will charge its six cities and county members $100 per ton for disposal, up from $75 currently and $57 last year. Even then, its troubles are not over. Further cuts are needed and there is little room to do so when 41% of SPSA's annual budget is consumed by debt repayments...Read More »
Allied Waste Partners to Develop Landfill Gas-to-Energy at Jefferson City
Allied Waste Industries along with partners that include the state of Missouri, Columbia Water & Light, and Ameresco, a Framingham, Mass., energy services company, plan to develop a methane gas-to-energy plant on Allied's Jefferson City Landfill about 10 miles east of that city. It is expected to produce about 3.2 megawatts of electricity, or the annual power needs of about 2,000 homes. Ameresco will build, own and operate the plant...Read More »
A Good First Quarter for Industrial Services of America
Louisville, KY-based Industrial Services of America reported a 23% gain in first quarter revenues to $17.9 million from $14.5 million last year. Net income increased to $793 thousand, or $0.22 per share, from $419.5 thousand, or $0.12 per share last year...Read More »
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