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WASTE MANAGEMENT, INC. ANNOUNCES PER SHARE GAIN FROM INTERNATIONAL OFFERING, NET OF SPECIAL CHARGES; ADOPTS FINANCIAL ACCOUNTING STATEMENTS

WASTE MANAGEMENT, INC. ANNOUNCES PER SHARE GAIN FROM INTERNATIONAL OFFERING, NET OF SPECIAL CHARGES; ADOPTS FINANCIAL ACCOUNTING STATEMENTS
 OAK BROOK, Ill., June 29 /PRNewswire/ -- Waste Management, Inc. (NYSE: WMX) today announced that it will record in the second quarter a gain related to the April 1992 initial public offering of shares by Waste Management International plc and special charges primarily relating to the company's medical waste business and to two of its Chemical Waste Management, Inc. subsidiary's incinerators. At the same time, the company announced that it will record one-time charges relating to the early adoption of two new financial accounting standards, Financial Accounting Statements No. 106 and 109.
 The company expects that as a result of these items (excluding adoption of the new accounting standards), its earnings for the second quarter will be increased by approximately $.23 per share.
 The company anticipates that earnings for the quarter ending June 30, 1992, excluding the impact of the items discussed above, will be in the range of $0.43 to $0.45 per share. These results represent an increase of 10 percent to 15 percent over earnings of $0.39 per share reported for the year-ago period, which amount excludes a $.03 per share gain realized on the June 1991 sale of Wheelabrator Technologies' French abrasives business. The company also stated that the weak economy continues to impact both its hazardous and non-hazardous waste service businesses.
 As a result of the Waste Management International offering, Waste Management expects to record a non-taxable gain of approximately $240 million, before minority interest. This amount includes similar gains being recognized by Chemical Waste Management, Inc. and Wheelabrator Technologies Inc., both of which are majority-owned subsidiaries of Waste Management, Inc. Waste Management International owns substantially all of the waste service operations outside of North America previously owned by Waste Management, Inc., and is currently 56 percent owned by Waste Management, Inc., 12 percent owned by each of Chemical Waste Management, Inc. and Wheelabrator Technologies Inc. and 20 percent owned by public stockholders.
 The company will record a special charge of approximately $96 million on an aftertax basis, primarily related to a revaluation of the company's medical waste business and to charges relating to two Chemical Waste Management incinerators.
 The company said that its decision to revalue its medical waste business followed the completion of a comprehensive study of this business during the second quarter. The study, performed by an independent consultant, was commissioned by Wheelabrator Technologies in connection with its decision in May whether to exercise its option to purchase Waste Management's medical waste business. Waste Management subsequently agreed to extend Wheelabrator's purchase option for five years in connection with an agreement by Wheelabrator to operate these facilities on a cost-plus contract basis.
 Koenig said a second quarter charge also will be recorded for hazardous waste incinerators in Chicago and Tijuana, Mexico. Last week, the Company's Chemical Waste Management subsidiary entered into an agreement with the Illinois Environmental Protection Agency providing for the payment of a $3-million settlement related to operations at its Chicago facility and the facility's continued suspension of operations until it is awarded a new operating permit. The charge includes anticipated amounts related to ongoing facility maintenance, severance pay for laid-off personnel, unaccrued penalties imposed under the most recent consent agreement and other miscellaneous costs.
 Additionally, Chemical Waste Management revised its plans for a mobile hazardous waste incinerator in Tijuana following a decision in April by Mexican environmental authorities requiring relocation of the unit, Koenig said. Although operation of the incinerator unit was never commenced, funds had been expended to develop the necessary infrastructure and to prepare for trial burns. The second quarter charge includes these costs. Koenig said the Mexican environmental authorities have indicated they will assist the company in relocating the unit to a more acceptable site.
 The company also announced it would record one-time after-tax charges of $71 million related to its early adoption, effective Jan. 1, 1992, of two new accounting standards: Financial Accounting Statement No. 109, Accounting for Income Taxes, and Financial Accounting Statement No. 106, Employer's Accounting for Postretirement Benefits Other Than Pensions.
 The adoption of FAS No. 109 will result in a one-time cumulative charge of $34 million, or $.07 per share. This standard requires a change in the method of accounting for income taxes to an asset and liability approach.
 The adoption of FAS No. 106 will result in a one-time cumulative after-tax charge of $37 million, or $.07 per share. This standard requires accounting for certain postretirement benefits other than pensions on an accrual basis. Previously, such expenses were accounted for on a cash basis.
 The adoption of these standards is not expected to have a material adverse impact on the future results of operations. In accordance with generally accepted accounting principles, these charges will not impact second quarter results but will be reflected in the earnings for the six-month period ending June 30, 1992. These charges include the Company's share of Wheelabrator Technologies' and Chemical Waste Management's charges for adoption of these standards.
 Waste Management, Inc. is the world's leading environmental services company. Based in Oak Brook, Ill., the company operates through subsidiaries and affiliates throughout the United States, Canada and 20 countries overseas.
 -0- 6/29/92
 /CONTACT: James E. Koenig, 708-572-8822 (investors), or William J. Plunkett, 708-572-8898, both for Waste Management/
 (WMX) CO: Waste Management Inc. ST: Illinois IN: SU: OFR


SH -- NY012 -- 4539 06/29/92 09:09 EDT
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Publication:PR Newswire
Date:Jun 29, 1992
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