Summary
Waste Management, Inc. (WM) reported its third-quarter and year-to-date results for the period ending September 30, 2009. The company experienced a decline in total revenues compared to the prior year, largely attributed to challenging economic conditions impacting waste volumes, lower commodity prices (especially for recyclables), and reduced natural gas prices affecting their energy businesses. Despite these headwinds, WM demonstrated resilience through a continued focus on pricing strategies, which yielded positive revenue growth in collection and disposal services, and stringent cost control measures, including benefits from a January 2009 restructuring. Financially, the company maintained solid operational income and generated substantial free cash flow, enabling it to resume share repurchases in the third quarter and continue its dividend payments. While the macroeconomic environment posed challenges, WM expressed optimism regarding the stabilization of volumes and the recovery of recyclable commodity prices, anticipating these trends to support improved performance in the fourth quarter and beyond. The company also highlighted its strategic investment in Shanghai Environment Group as part of its expansion in waste-to-energy services.
Financial Highlights
47 data points| Revenue | $3.02B |
| SG&A Expenses | $339.00M |
| Operating Expenses | $2.50B |
| Operating Income | $525.00M |
| Net Income | $277.00M |
| EPS (Basic) | $0.56 |
| EPS (Diluted) | $0.56 |
| Shares Outstanding (Basic) | 492.20M |
| Shares Outstanding (Diluted) | 494.60M |
Key Highlights
- 1Total revenues for the nine months ended September 30, 2009, decreased by 14.5% to $8.785 billion compared to $10.280 billion in the prior year period.
- 2Income from operations for the nine months ended September 30, 2009, was $1.431 billion, a decrease from $1.775 billion in the same period of 2008.
- 3Net income attributable to Waste Management, Inc. for the nine months ended September 30, 2009, was $679 million, or $1.37 per diluted share, down from $869 million, or $1.75 per diluted share, in the prior year.
- 4Free cash flow for the nine months ended September 30, 2009, was $839 million, compared to $1.207 billion in the prior year.
- 5The company recognized $46 million in restructuring charges for the nine months ended September 30, 2009, primarily related to employee severance and benefit costs due to organizational streamlining.
- 6Waste Management announced an agreement to purchase a 40% equity investment in Shanghai Environment Group for approximately $140 million, signaling international expansion in waste-to-energy.
- 7Operating expenses decreased significantly due to lower volumes, reduced commodity prices, and lower fuel costs, with operating expenses as a percentage of revenue improving from 63.0% to 61.4% in the third quarter.