Waste Management 3Q Seen Hit By Falling Volumes

HOUSTON (AP) — Waste Management Inc., the nation's No. 1 waste hauler, reports earnings for the third quarter before the market opens Thursday. The following is a summary of key developments and analyst opinion for the period.

OVERVIEW: Waste Management has been hit by the recession as businesses cut costs by disposing of trash less frequently. It also has been affected by another recent problem: falling natural gas prices that have pulled down electricity prices.

The company's Wheelabrator Technologies plants convert municipal solid waste into electric power, which are commanding lower prices.

Waste Management said in early September it expects earnings to be reduced by about 4 cents per share in the second half of 2009 due to continued weakness in energy prices at some Wheelabrator plants. Earlier, the recession began taking a toll on Waste Management as business customers cut back on garbage removal and less construction site debris hauled away due to declining construction.

Waste Management also has been hurt by a deterioration in the market for recycled materials as some paper manufacturers use fewer recycled materials in their pulping process.