Waste Management posts decline in second quarter earnings
Company posts higher revenue and increased cash from operations
Waste Management, Inc. announced financial results for
its second quarter ended June 30, 2008. Revenue for the
second quarter of 2008 was $3.49 billion compared with
$3.36 billion in the year ago period, an increase of
3.9%. Net income for the quarter was $318 million, or
$0.64 per diluted share, compared with $338 million,
or $0.64 per diluted share, in the prior year period.
The Company noted several items that impacted the results
in the 2007 and 2008 second quarters. Results in the
second quarter of 2008 included a net $0.01 per diluted
share benefit from income tax items. Results in the second
quarter of 2007 included a combined benefit of $0.08
per diluted share, consisting of $0.05 per diluted share
from income tax items and $0.03 per diluted share from
divestitures of under-performing operations.
Excluding those items, earnings would have been $311
million, or $0.63 per diluted share, in the second quarter
of 2008 compared with $296 million, or $0.56 per diluted
share, in the second quarter of 2007. This is a 12.5%
increase in adjusted earnings per diluted share.
Income from operations as a percent of revenue was 18.1%
in the second quarter of 2008. This is a 20 basis point
improvement compared with the second quarter of 2007,
as adjusted for the items noted above.
For the six months ended June 30, 2008, Waste Management
reported operating revenue of $6.76 billion, compared
with $6.55 billion for the same period last year. Net
income was $559 million, or $1.13 per diluted share,
for the six months ended June 30, 2008, compared with
$576 million and $1.09 per diluted share, respectively,
for the same period in 2007.
Acquisitions contributed 1.0% to higher revenue in the
quarter, while divestitures caused a 0.8% decline in
revenue in the quarter.
Operating expenses were 62.5% of revenue, up from 62.3%
of revenue in the same period in 2007. Excluding the
impacts of higher diesel fuel prices and higher recycling
commodity prices on both operating expenses and revenue,
operating expenses were 61.0% of revenue in the second
quarter of 2008, or a 130 basis point improvement compared
with the prior year period.