Weekly News Bulletin: Aug. 6-12, 2007

 

Waste Management Reports Drop in Second Quarter Profits

Waste Management reported a 20% drop in second-quarter profits from a year ago, when a tax-audit settlement lifted results, but earnings beat Wall Street forecasts. The company consequently raised its full-year guidance. Net income for the quarter ended June 30 was $338 million, or $0.64 per share, versus a profit of $417 million, or $0.76 per a share, in the year-ago period. Revenue for the quarter was off slightly to $3.36 billion from $3.41 billion a year ago. The company raised its full-year earnings guidance to a range of $2.07 to $2.11 a share, excluding special items, up from a previous guidance of $2.03 to $2.07 a share...Read More »

 

 

Allied Waste Posts Stronger than Expected Second Quarter

Allied Waste Industries reported that second-quarter profits almost tripled based on its ability to successfully raise prices. Profits from continuing operations rose to $91.7 million, or 21 cents a share, up from $36.5 million, or 7 cents a share, a year ago. The most recent quarter included a 2-cent per-share tax related gain. Sales rose 2.3% to $1.56 billion, up from $1.52 billion last year. Analysts, on average, expected earnings of 18 cents per share on revenue of $1.59 billion...Read More »

 

 

Allied Waste to Sell Certain Assets to Veolia ES Solid Waste for $86 Million

Allied Waste Industries agreed to sell certain solid waste landfill and collection assets to Veolia ES Solid Waste Inc. for $86 million. The operations are located in Indiana, Illinois, Kentucky and Georgia are comprised of six hauling companies, two transfer stations and five landfills that are expected to generate about $54 million in revenue in 2007. "We see opportunities to more effectively invest this capital in support of our goals of driving profitable growth and increased returns on our investments and to our shareholders," said President and Chief Operating Officer Donald Slager...Read More »

 

 

North Carolina Legislature Passes Tough New Landfill Laws

The North Carolina state Senate and House have tentatively approved more stringent regulation of landfills. The bill includes a proposed $2-per-ton surcharge, increases setback requirements to protect waterways, requires increased financial assurances by companies wanting to build facilities, and requires computer manufacturers to recycle computers sold in the state. The overhaul of current laws stems from concerns that private regional landfills proposed in the rural eastern and Piedmont counties would turn the state into one of the nation's top five importers of waste...Read More »

 

 

Oakleaf Waste Receives Large Capital Investment from New Mountain Capital

Hartford, Connecticut based-Oakleaf Waste Management is to receive a substantial infusion of new capital with which it hopes to expand its workforce and national presence. The capital comes from a $655 million deal whereby investor Charterhouse Group agreed to sell its stake to New Mountain Capital of New York. Oakleaf provides one-stop waste procurement and auditing services to customers with multiple market service needs. Oakleaf also provides "valet waste services" to customers such as apartment complexes and shopping centers. Oakleaf's strategy has paid off with 30% growth in revenues in each of the past two years putting it in position to soon cross the $500 million mark...Read More »

 

 

Waste Industries Turns in Positive Second Quarter

Waste Industries USA beat analysts' expectations by producing second quarter revenues that rose 4.3 percent to $86.1million, compared to $82.6 million for the quarter ended June 30, 2006. Three acquisitions during the second quarter contributed to those gains, but also the company was able to raise prices by an average of 3.5 percent. Meanwhile, net income slipped 10 percent to $6.1 million or 43 cents per share mainly because last year's results included a one-time gain of $2.3 million from the sale of landfill operations in Jacksonville, Florida. The company forecast 2007 revenues to be $340-$342 million...Read More »

 

 

WCA Waste Corp. Reports 20% Revenue Gain in Second Quarter

WCA Waste Corp. reported very positive second quarter results in which revenues grew by 20.9% to $46.2 million from $38.2 million in last year's corresponding quarter. Net income was off slightly but still ahead of analysts' expectations, reaching $2.6 million, or 10 cents per share. That compared with net income of $3.8 million, or 23 cents per share last year. Analysts were expecting 9 cents per share. Acquisitions drove 15% of the 21% in revenue growth with 6% coming from price and volume increases...Read More »

 

 

US Renewables Group Raises $475 Million to Invest in Renewables

US Renewables Holdings closed on a $475 million in capital commitments to its most recent private equity fund, USRG Power & Biofuels Fund II, LP. The fund's investments will focus on renewable power generation, including biomass, geothermal, solar and other projects, and clean fuels, including ethanol and biodiesel projects...Read More »

 

 

Veolia Buys Central Missouri Waste Firm

Veolia Environmental recently purchased Boonville-Missouri based Otis & Sons Trash Disposal, Inc. Although terms of the deal were not disclosed, Veolia hopes that the acquisition will leverage its presence in central Missouri and plans to augment waste volumes going to its Maple Hill Landfill there. Veolia continues to pursue acquisition candidates across North America to expand its service areas and enhance existing services...Read More »

 

 

Alter Nrg Corp. To Invest in World's Largest Plasma Gasification Project

Canadian company-Alter Nrg Corp. has entered into a joint venture with Atlanta-based Jacoby Energy Development, Inc., parent company of Geoplasma, LLC, to develop large scale, environmentally friendly North American waste to energy projects. Alter will own 49% and contribute exclusive use of its proprietary Westinghouse Plasma Gasification Technology to the Venture to which Jacoby Energy will contribute the first $15 million in operating capital. Alter also has the option to invest up to 25% in Jacoby Energy's St. Lucie, Florida WTE project...Read More »

 

 

Metal Management Buys Indiana-based Universal Recycling, Inc.

Metal Management, Inc., one of the nation's largest full service scrap metal recyclers, recently purchased Indiana-based Universal Recycling, Inc. Terms of the transaction were not disclosed. Universal is a full service scrap processing firm, which through its three operating facilities in Gary, Chesterton, and La Porte, Indiana, handles about 80,000 tons of ferrous metals and 5,000 tons of nonferrous metals each year...Read More »

 

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