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WASTE MANAGEMENT REPORTS RESULTS FOR SECOND QUARTER AND FIRST SIX MONTHS

WASTE MANAGEMENT REPORTS RESULTS FOR SECOND QUARTER AND FIRST SIX MONTHS
 OAK BROOK, Ill., July 16 /PRNewswire/ -- Waste Management, Inc. (NYSE: WMX) today reported second quarter net income and revenue.
 Net income for the three months ended June 30, 1992 increased to $329,530,000, or $0.66 per share, from $206,941,000, or $0.42 per share, in the quarter a year earlier. Revenue rose 16 percent to $2,175,179,000 from $1,880,822,000 a year earlier.
 As announced by the company on June 29, Waste Management second quarter earnings were increased by $0.23 per share due to the combined effect of a nontaxable gain from the April 1992 initial public offering of shares by its Waste Management International plc subsidiary and special charges recorded during the quarter primarily relating to the revaluation of the Company's medical waste business and to two of its Chemical Waste Management, Inc. subsidiary's incinerators.
 Earnings for the second quarter of 1991 included an approximately $.03 per share gain relating to the sale by the Company's Wheelabrator Technologies Inc. subsidiary of its French abrasives business. Excluding the impacts of these unusual items of income and expense from 1992 and 1991, Waste Management net income for the second quarter rose 11 percent to $213,792,000, or $0.43 per share, from $192,983,000, or $0.39 per share, a year earlier.
 For the six months ended June 30, 1992, net income rose to $450,485,000, or $0.91 per share, compared with $372,594,000, or $0.76 per share, a year earlier. These six-month comparative results are also impacted by the company's early adoption, effective Jan. 1, 1992, of two new accounting standards, the combined effect of which was to decrease earnings per share of the first six months of 1992 by $71,139,000, or $0.14 per share. Excluding the impacts of these accounting changes and of the other unusual items of income and expense discussed above, net income for the six months was up 13 percent to $405,886,000, or $0.82 per share, from $358,636,000, or $0.73 per share, in the year-earlier period. The six-month 1991 results also include the $0.03 per share gain from Wheelabrator's sale of its French abrasives business. Revenues of $4,195,257,000 were 16 percent higher than the $3,625,637,000 reported in the first six months of 1991.
 "The poor e," said Dean L. Buntrock, chairman and chief executive officer. "The economy's effect on our customers' businesses has, in turn, affected the overall volume of waste we manage as well as our ability to obtain price increases at anticipated rates. As we begin the third quarter, we have not seen any signs in our North American businesses that the economy is improving.
 "We are, however, continuing to grow all of our businesses despite the recession, but the rate of growth we have achieved historically has been lessened by the poor economy. We have continued to manage our costs, maintain our productivity, and we are very optimistic about our business. An improvement in the North American economy should strongly benefit Waste Management."
 As a result of the Waste Management International plc offering, Waste Management recorded a nontaxable gain of approximately $240 million, before minority interest. Waste Management International owns substantially all of the waste service operations outside of North America previously owned by Waste Management, Inc. It is owned 56 perce.uPby Waste Management, Inc., and 12 percent owned by each of Chemical Waste Management and Wheelabrator Technologies Inc. and 20 percent owned by the public.
 The company recorded in the second quarter a special charge of approximately $96 million on an after-tax basis primarily related to the revaluation of the company's medical waste business and to two Chemical Waste Management incinerators in Chicago and Tijuana, Mexico.
 The decision to revalue the company's medical waste business followed the completion of a study of this business during the quarter. The study by an independent consultant was commissioned by Wheelabrator Technologies in connection with its decision whether to exercise its option to purchase this business. Waste Management subsequently extended the purchase option five years in connection with an agreement by Wheelabrator to operate these facilities on a cost-plus basis.
 The Chemical Waste Management charges relate to an agreement with the Illinois Environmental Protection Agency concerning the company's Chicago incinerator that includes a $3-million settlement payment and the continued suspension of operations at the facility until it is awarded a new operating permit. The charge relates to facility maintenance, severance pay for laid-off personnel, unaccrued penalties under the agreement and other miscellaneous costs. Chemical Waste Management revised its plans for a mobile hazardous waste incinerator in Tijuana following a decision in April by the Mexican government requiring the unit's relocation. Although the facility was never operated, funds had been expended to develop site infrastructure and to prepare for trial burns.
 The company on June 29 also announced it would record onetime after- tax charges of approximately $71 million related to the 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 resulted in a onetime, cumulative charge of $34,560,000, or $0.07 per share; the adoption of FAS No. 106 resulted in a onetime cumulative after-tax charge of $36,579,000, or $0.07 per share.
 The adoption of these standards is not expected to have a material adverse impact on future results of operations. In accordance with generally accepted accounting principles, these charges did not impact second quarter results but are reflected in the earnings for the six month period ended 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.
 WASTE MANAGEMENT, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 FOR THE THREE MONTHS ENDED JUNE 30, 1991 AND 1992
 (Unaudited) (000s omitted except per share amounts)
 1991 (a) 1992
 REVENUE $1,880,822 $2,175,179
 Operating expenses $1,270,151 $1,487,155
 Special charges -- 159,700
 Selling and administrative expenses 225,348 262,680
 Goodwill amortization 15,094 19,357
 Gains from stock transactions
 of subsidiaries (7,449) (240,000)
 Gains from exchange of Exchangeable LYONs (671) (24)
 Interest expense 43,632 53,574
 Interest income (15,800) (16,614)
 Minority interest and
 sundry expense, net 309 39,557
 Income before income taxes $ 350,208 $ 409,794
 Provision for income taxes 143,267 80,264
 NET INCOME $ 206,941 $ 329,530
 AVERAGE COMMON AND COMMON
 EQUIVALENT SHARES OUTSTANDING 492,591 496,838
 EARNINGS (LOSS) PER COMMON AND
 COMMON EQUIVALENT SHARE $0.42 $0.66
 (a) Certain items have been restated to conform to 1992 classifications.
 WASTE MANAGEMENT, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 FOR THE SIX MONTHS ENDED JUNE 30, 1991 AND 1992
 (Unaudited) (000s omitted except per share amounts)
 1991 (a) 1992
 REVENUE $3,625,637 $4,195,257
 Operating expenses $2,486,474 $2,895,505
 Special charges -- 159,700
 Selling and administrative expenses 447,859 504,560
 Goodwill amortization 32,017 36,811
 Gains from stock transactions
 of subsidiaries (13,105) (263,489)
 Gains from exchange of
 Exchangeable LYONs (15,379) (191)
 Interest expense 81,332 110,863
 Interest income (33,198) (33,455)
 Minority interest and sundry
 expense, net 15,240 52,923
 Income before income taxes and
 cumulative effect of accounting
 changes $ 624,397 $ 732,030
 Provision for income taxes 251,803 210,406
 Income before cumulative effect
 of accounting changes $ 372,594 $ 521,624
 Cumulative effect of accounting changes,
 net of minority interest in portion
 relating to subsidiaries --
 Postretirement benefits, net of tax -- (36,579)
 Income taxes -- (34,560)
 NET INCOME $ 372,594 $ 450,485
 AVERAGE COMMON AND COMMON
 EQUIVALENT SHARES OUTSTANDING 492,082 496,634
 EARNINGS (LOSS) PER COMMON AND
 COMMON EQUIVALENT SHARE
 Before cumulative effect of
 accounting changes $0.76 $1.05
 Cumulative effect of accounting changes --
 Postretirement benefits -- (.07)
 Income taxes -- (.07)
 Net income $0.76 $0.91
 (a) Certain items have been restated to conform to 1992 classifications.
 -0- 7/16/92
 /CONTACT: analyst, James E. Koenig, 708-572-8822, or media, William J. Plunkett, 708-572-8898, both for Waste Management/
 (WMX) CO: Waste Management Inc. ST: Illinois IN: SU: ERN


KD -- NY028 -- 9945 07/16/92 10:30 EDT
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Date:Jul 16, 1992
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