North America’s largest trash handler Waste Management Inc, reported 44 percent increase in the fourth quarter profit due to high prices for recycled material and cost cutting efforts.
Net sales of company recorded decline of 3.3% to $3.01 billion from $3.11 billion in the prior-year quarter. Lower Volumes had a negative impact of 6.4% on the company’s revenue growth in the quarter. Net income of the company recorded an increase from 4218 million from $315 million over a period due to increase in the level of and price of recycling commodities.
The higher commodity prices contributed almost 4 cents to per share profit to the bottom-line.
According to Chief Executive Officer David Steiner “We remain committed to our goals of growing earnings, expanding our operating margins, increasing our return on invested capital, generating strong free cash flow and returning cash to our shareholders.”
For the year 2010 company expects earnings in the range of $2.09-$2.13 per share and internal revenue growth in the range of 2.5% to 3%.
The company raised its dividend for the year to $1.26 per share or about 8.6 percent.