Covanta Holding Cuts '09 Earnings Estimate

FAIRFIELD, N.J. (AP) — Covanta Holding Corp. on Monday lowered its 2009 earnings outlook to reflect the impact of a new offering of convertible notes due to new accounting rules.

The operator of facilities that turn waste into electricity lowered its 2009 outlook to between 65 cents per share to 80 cents per share, compared with an earlier estimate between 75 cents per share and 90 cents per share. The company maintains its previously estimated operating cash flow in the range between $325 million and $375 million and adjusted EBITDA between $500 million and $540 million.

Covanta adjusted its earnings outlook based on plans to issue a new offering of convertible notes, which will require the company to recognize additional non-cash interest expense under accounting rules. ...