Waste Management, Inc. (NYSE: WM) today announced financial results for its quarter ended September 30, 2012. Revenues for the third quarter of 2012 were $3.46 billion compared with $3.52 billion for the same 2011 period. The Company was negatively impacted by a decline in recycling commodity prices, which decreased revenues by $176 million. Net income (a) for the quarter was $214 million, or $0.46 per diluted share, compared with $272 million, or $0.58 per diluted share, for the third quarter of 2011.
Net income would have been $285 million, or $0.61 per diluted share, in the third quarter of 2012 compared with $295 million, or $0.63 per diluted share, in the third quarter of 2011 (b), if not for the following after-tax charges:
- $32 million, or $0.07 per diluted share, related to the previously announced organizational restructuring and a labor union dispute; and
- $39 million, or $0.08 per diluted share, from impairments of investments in unconsolidated entities and related assets.
David P. Steiner, President and Chief Executive Officer of Waste Management, commented, “The third quarter saw some good and improving trends. We saw improvement in both our internal revenue growth from collection and disposal yield and work-day adjusted volumes. Collection and disposal yield improved sequentially for the first time in six quarters, and we saw positive internal revenue growth from both yield and volume in our MSW, C&D and special waste landfill operations. Our overall income from operations margin, as adjusted, improved by 30 basis points despite a significant decline in commodity prices. (b)
“Commodity price declines in our recycling and waste-to-energy operations led to a $0.10 year-over-year earnings per share negative impact in the third quarter. We anticipate another $0.04 per share of headwinds in the fourth quarter. So, the total headwinds for the second half of the year related to commodities are estimated to be $0.14 per diluted share, or $0.07 higher than we previously anticipated at the end of the second quarter. I am pleased that we were able to produce strong quarterly results in the face of these headwinds.”