WM reports profitable fourth quarter in 2015
WM reports profitable fourth quarter in 2015
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Houston-based Waste Management Inc. (WM) has announced fourth quarter 2015 revenue of $3.25 billion, earning net income of $273 million, or 61 cents per share. Those figures are down from net income of $590 million, or $1.28 share, in the fourth quarter of 2014.
The company says its fourth quarter 2015 results “have been adjusted to exclude approximately 10 cents per diluted share of net after-tax charges primarily related to the impairment of certain assets as a result of the pronounced decrease in oil and gas prices.”
Those net charges continue to stem from the divestiture of some of WM’s waste-to-energy investments and related assets in late 2014.
The company cited low secondary commodity prices as a reason for declining revenue within its recycling operations. Average recycling commodity prices were approximately 18.6 percent lower in the fourth quarter of 2015 compared with the prior year period, says WM. Its recycling volumes declined by 1.6 percent in the fourth quarter. “Despite these declines, earnings per diluted share from the company’s recycling operations were flat when compared to the prior year period as a result of operational improvements in the company’s recycling business,” the company states in the comments accompanying its earnings statement.
For the full year 2015, WM reported revenue of $13 billion, compared to $14 billion in 2014. Earnings per diluted share were $1.65 for the full year 2015, compared with $2.79 for the full year 2014.
“In 2015 we maintained our commitment to core price, disciplined growth and cost controls,” says David P. Steiner, president and CEO of WM. “The continued improvement in these areas is reflected in our key operating metrics in our fourth quarter and full year results.”
WM says it expects internal revenue growth from its solid waste business “to be positive in 2016,” but it retains a cautious outlook for recycling. “The company does not expect a recovery in lower margin recycling or non-solid waste volumes,” WM says in its comments, adding, “Recycling operations are expected to have no year-over-year impact on earnings per diluted share in 2016.”
“In 2016 we expect to continue the progress that we made in 2015 by continuing to execute on our pricing, disciplined growth, and cost control strategies, while integrating recently acquired businesses,” says Steiner. “We commend our field and corporate staff teams for the great results in 2015. Their focus and execution has positioned our company well for continued growth in 2016 and beyond.”
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Source: Recycling Today
WM reports profitable fourth quarter in 2015
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