waste management inc (WM) Key Developments
Waste Management Opens New Renewable Natural Gas Facility
Nov 12 14
Waste Management announced the opening of a unique Renewable Natural Gas Facility creating pipeline-ready natural gas from the landfill gas produced at its Milam Landfill in Fairmont City, Illinois. The Milam Renewable Natural Gas Facility is designed to process approximately 3,500 standard cubic feet per minute (SCFM) of incoming landfill gas. This is as much gas as it takes to fuel about 200 Waste Management CNG collection trucks each day, and represents more than 5% of the natural gas that is used in Waste Management's entire CNG fleet per day. Waste Management of Illinois currently has more than 100 CNG trucks in its fleet displacing about one million gallons per year of diesel fuel. The existing Milam Landfill-Gas-to-Energy facility produces 2.4 megawatts of renewable energy. The output from this power plant is now directly connected to the new Renewable Natural Gas Facility, providing the power needed to run the new facility. The Renewable Natural Gas Facility also reduces the site's emissions. Since the gas is treated, rather than burned onsite, Waste Management anticipates a 60% reduction in emissions of carbon monoxide, nitrogen oxides, and particulate matter. The $19 million Renewable Gas Facility was partially funded by a $2.4 million grant from the Illinois Department of Commerce and Economic Opportunity and the Illinois Energy Office. Construction of the facility provided the equivalent of 17 union jobs over a ten-month period, and three operational jobs. The Milam Renewable Natural Gas Facility is the company's third plant to convert landfill gas to natural gas. In California, Waste Management collaborated in the plant to convert landfill gas to ultra-low-carbon liquefied natural gas (LNG). With greenhouse gas emissions associated with this fuel, more than 80% lower than those of diesel, this is the cleanest fuel available for heavy-duty trucks. The facility produces up to 13,000 gallons of LNG per day and helps to power the company's fleet in California. In Ohio, Waste Management processes about 3,000 SCFM of landfill gas and delivers it to a natural gas pipeline.
Waste Management, Inc. Declares Quarterly Cash Dividend, Payable December 19, 2014
Nov 10 14
Waste Management, Inc. announced the declaration of a quarterly cash dividend of $0.375 per share payable December 19, 2014 to stockholders of record on December 5, 2014.
Waste Management Cuts 650 Corporate Jobs
Oct 30 14
Waste Management announced that it has cut 650 corporate jobs- mostly in Houston, through buyouts offered in August. Part of the restructuring has been aimed at returning to the company's core business of waste collection and disposal. By cutting costs and gaining business in energy-relate waste, the company hopes to return to growth, which has been hampered by the slow recovery in the national housing market and challenges in recycling.
Waste Management Seeks Acquisitions
Oct 30 14
Waste Management, Inc. (NYSE:WM) is looking for acquisition opportunities. Waste Management has sold Wheelabrator Technologies Inc. The proceeds of acquisition of Wheelabrator may be used for other acquisitions or possibly a stock repurchase.
Waste Management, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Earnings Guidance for the Fourth Quarter and Full Year 2014
Oct 29 14
Waste Management, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported operating revenues of $3,602 million compared to $3,621 million a year ago. Income from operations was $546 million compared to $577 million a year ago. Income before income taxes was $414 million compared to $452 million a year ago. Net income attributable to the company was $270 million or $0.58 per diluted share compared to $291 million or $0.62 per diluted share a year ago. Net income and diluted EPS, as adjusted was $336 million and $0.72 compared to $306 million and $0.65 respectively. Earnings were negatively affected by $0.01 per diluted share from the accounting impact of a decrease in the 10-year risk free interest rate, which is used to calculate the present value of remediation liabilities. Free cash flow was $418 million, a decrease of $34 million compared to the third quarter of 2013. The difference was driven by an increase of $58 million in cash taxes due mostly to the expiration of bonus depreciation and the repatriation of earnings from the divestiture of operations in Puerto Rico.
For the nine months, the company reported operating revenues of $10,559 million compared to $10,483 million a year ago. Income from operations was $1,547 million compared to $1,489 million a year ago. Income before income taxes was $1,152 million compared to $1,097 million a year ago. Net income attributable to the company was $708 million or $1.52 per diluted share compared to $703 million or $1.50 per diluted share a year ago. Net cash provided by operating activities was $1,811 million compared to $1,858 million a year ago. Capital expenditures were $781 million compared to $824 million a year ago.
The company provided earnings guidance for the fourth quarter and full year 2014. For the quarter, The company expects tax rate to be approximately 35%. The company expects that can meet or exceed the analyst consensus of $0.60 of adjusted earnings per diluted share.
For the full year 2014, the company expects net cash provided by operating activities of $2,550 million and capital expenditures of $1,300 million. A $0.60 fourth quarter would lead to full year adjusted earnings per diluted share of $2.41, $0.06 above the high end of previous range.