Waste Management 3rd-quarter Profit Sinks

STEPHEN SINGER

Waste Management Inc., the nation's largest trash hauler, said Thursday that third-quarter profit sank, despite rising prices for recycled commodities and cost-cutting.

The recession has hit the Houston company as businesses cut costs by disposing of trash less frequently and prices for paper and other commodities fell, battering its recycling business. However, the Houston company said its trash hauling operations were "recession-resistant," posting only a slight dip for the quarter.

Net income was $277 million, or 56 cents per share, down 11 percent from $310 million, or 63 cents per share, in the third quarter of 2008. The latest quarter's results included a benefit of 2 cents per share from certain income tax adjustments and charges related to restructuring, Waste Management said.

Revenue slid 14 percent to $3.02 billion from $3.53 billion.

Analysts, on average, expected earnings of 53 cents per share on revenue of $3.07 billion, according to a Thomson Reuters survey. Analyst estimates typically exclude one-time items.

Waste Management CEO David P. Steiner said recycling commodity prices increased each month in the third quarter and have risen more than 80 percent from low points in January.