8-KRegulation FDExhibits & Filings

WASTE MANAGEMENT INC 8-K Report, Regulation FD Disclosure (Nov 26, 2008)

Filed November 26, 2008For Securities:WM

Summary

Waste Management, Inc. (WM) filed an 8-K on November 25, 2008, to disclose updated expectations regarding the impact of deteriorating recycling commodity markets on its fourth quarter 2008 earnings per diluted share. Initially, in an October 30, 2008 press release, the company projected a negative impact of up to $0.03 per share. However, due to continued market weakness through November, WM now anticipates a negative impact ranging from $0.04 to $0.08 per share. The company indicated that the extent of this impact is contingent upon the stabilization or further decline of recycling commodity prices in December. This information was shared in preparation for a presentation at the 2008 Friedman Billings Ramsey Capital Markets Fall Investor Conference. Investors should note that this filing contains forward-looking statements, and actual results could differ materially.

Key Highlights

  • 1Waste Management (WM) is updating its Q4 2008 earnings per diluted share (EPS) guidance due to worsening recycling commodity markets.
  • 2The expected negative impact on Q4 2008 EPS has increased to a range of $0.04 to $0.08 per share, up from the previously guided $0.03.
  • 3The primary driver for the increased negative impact is the continued deterioration of recycling commodity prices, which have fallen 30-60% year-over-year.
  • 4The company's final Q4 EPS impact depends on recycling commodity price movements during December.
  • 5This information is being disclosed in advance of a management presentation at the 2008 Friedman Billings Ramsey Capital Markets Fall Investor Conference on December 2, 2008.
  • 6A presentation slide deck, providing further details, is furnished as an exhibit to this filing.

Frequently Asked Questions

The main reason is the continued and significant deterioration in the recycling commodity markets. Prices for these commodities have decreased substantially compared to the prior year, negatively impacting the company's expected earnings.

The company now expects the negative impact on its fourth quarter 2008 earnings per diluted share to be between $0.04 and $0.08 per share, an increase from the previously stated estimate of up to $0.03 per share.

Management is scheduled to present at the 2008 Friedman Billings Ramsey Capital Markets Fall Investor Conference on December 2, 2008, and a webcast will be available on WM's Investor Relations website. A presentation slide deck is also being furnished with this filing.

The company forecasts continued weakness in the recycling commodity markets and states that the actual extent of the negative impact will depend primarily on whether prices stabilize or continue to deteriorate during December.