WASHINGTON (dpa-AFX) - Waste Management, Inc. (WM) reported Thursday a decline first-quarter profit, below Wall Street estimates, even as revenues increased on volume growth. The company also backed its fiscal 2012 earnings forecast.
For its first quarter, net income declined to $171 million or $0.37 per share from prior year's $186 million or $0.39 per share. The latest quarter results included approximately $3 million costs from a combination of restructuring charges and integration costs associated with the acquired Oakleaf operations.
Excluding these items, net income would have been $174 million or $0.38 per share. On average, nine analysts polled by Thomson Reuters expected earnings of $0.40 per share for the quarter. Such estimates typically exclude special items.
Operating revenues grew 6.2 percent to $3.30 billion from $3.10 billion a year ago, mainly driven by the acquisition of Oakleaf operations, and came in above Wall Street analysts' consensus of $3.21 billion.
President and Chief Executive Officer David Steiner said, 'Our revenue grew for the ninth consecutive quarter. We achieved positive internal revenue growth from volume for the first time since 2006, and we also saw continued benefits from our cost reduction initiatives.'
For fiscal 2012, Waste Management continues to forecast adjusted earnings per share between $2.22 and $2.30. Analysts expect the company to earn $2.24 per share for the year.
The company said it anticipates seeing benefits from improved pricing, a seasonal pick-up in volumes, procurement and other savings, and the full integration of the acquired Oakleaf operations.
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