WM reports revenue grew with increased volume
Waste Management, Inc. revealed financial results for its quarter ended March 31, 2012. Revenues for the first quarter of 2012 were $3.29 billion compared with $3.10 billion for the same 2011 period. Net income for the quarter was $171 million, or $0.37 per diluted share, compared with $186 million, or $0.39 per diluted share, for the first quarter of 2011. Results in the first quarter of 2012 included approximately $3 million of after-tax costs from a combination of restructuring charges and integration costs associated with the acquired Oakleaf operations. Excluding these items, net income would have been $174 million, or $0.38 per diluted share.
David P. Steiner, president and chief executive officer of Waste Management, commented, “Our revenue grew for the ninth consecutive quarter. We achieved positive internal revenue growth from volume for the first time since 2006, and we also saw continued benefits from our cost reduction initiatives.
“We achieved solid performance in the first quarter of 2012 despite the expected impact of the headwinds we discussed in our fourth quarter 2011 earnings release. We had a $0.03 per diluted share headwind from lower commodity prices at our recycling operations as well as a $0.02 per diluted share headwind from waste-to-energy operations. We also had a negative $0.01 per diluted share effect from higher fuel prices. With our core solid waste business growing revenue and earnings, we overcame those headwinds to produce a solid start to our year.”
Key highlights for the first quarter 2012 include:
- Revenue increased by 6.2 percent, or $192 million, with $131 million of the growth coming from acquired Oakleaf operations.
- Internal revenue growth from yield for collection and disposal operations was 0.9 percent. Adjusting for contract changes related to the company’s South Florida waste-to-energy plants, internal revenue growth from yield for collection and disposal operations was 1.2 percent.
- Average recycling commodity prices were approximately 20 percent lower in the first quarter of 2012 compared with the prior year period. This unfavorable year-over-year change negatively impacted earnings per diluted share by $0.03 in the first quarter of 2012.
- Increased fuel costs negatively impacted the quarter by $0.01 due to 9.5 percent higher diesel prices compared to prior year quarter.