Second quarter profits up 22% at Allied Waste

Allied Waste Industries, Inc. reported financial results for its second quarter and six months ended June 30, 2008.

For the quarter, income from continuing operations increased 22% to $111.4 million, or $0.25 per share, inclusive of net charges of $0.02 per share, primarily associated with merger-related costs. On an adjusted basis, 2008 second quarter earnings per share were $0.27, an increase of 29% over prior earnings of $0.21 per share.

Total revenue for the second quarter was a record $1.58 billion, an increase of $35 million, or 2.2%, over $1.55 billion in the second quarter 2007. Higher revenue for the quarter benefited from a 6.9% increase in average price, of which 280 basis points were associated with the company’s fuel recovery fee, partially offset by a 4.8% decrease in volumes. Lower volumes for the quarter primarily reflect the impact of U.S. economic conditions.

For the six-month period ended June 30, 2008, Allied Waste’s revenues were $3.07 billion, as strong pricing drove a $74.4 million increase over the prior year. Operating income for the period increased 6.7% to $543.8 million, inclusive of $32.8 million of merger-related costs, losses from divestitures and asset impairments. Income from continuing operations was $184.0 million for the first half of 2008, compared with $125.3 million for the first half of 2007. Diluted income from continuing operations increased to $0.42 per share, compared with $0.29 per share in the prior year.