Waste Connections 1Q Profit Slides

FOLSOM, Calif. (AP) — Trash hauler Waste Connections Inc. on Tuesday said its first-quarter profit fell 2 percent as increased operating expenses outpaced higher revenue.

Net income declined to $22 million, or 27 cents per share, from $22.5 million, or 33 cents per share, a year ago. The company had 18.6 percent more shares outstanding in the latest quarter.

Revenue grew 5 percent to $262.7 million from $250.3 million, in the year-ago period.

Analysts were expecting a profit of 30 cents per share on revenue of $264.2 million, according to a poll by Thomson Reuters.

The company's cost of operations climbed 4 percent to $154.7 million, while its selling, general and administrative expenses grew 20 percent to $32.5 million.

Waste Connections said it was pleased with the results though it said the weak economy took its toll on revenue. Looking ahead, Chairman and Chief Executive Ronald J. Mittelstaedt said he was encouraged the pace of volume deceleration appears to be slowing "such that we may be close to finding bottom."

Shares of Waste Connections fell 29 cents to close at $26.25.