Waste warning over profits
Wednesday 08 February 1995
Edwin Falkman, chief executive, said shareholders should not expect more than 5 per cent growth in earnings. "Our focus for the year ahead will be on organic growth, cost control and improving the return on investment in our existing capital base and ourpeople."
Pre-tax profits in the three months to 31 December were down from £40.5m to £39.7m. Turnover was 283m, compared with £250m in the same quarter last year. Profits for the year were £165.2m, against £150.9m on turnover up 18.5 per cent from £941.4m to £1.1bn.
Waste Management, the London-quoted arm of WMX of the US, said France remains a problem, economically and competitively.
Mr Falkman said volumes at landfills were hit by the weak economy and delays in opening new sites.
And in Italy, Mr Falkman said the group had "struggled in a politically uncertain environment''. The signing of less profitable contracts for municipal business and rising labour costs had hit the business. But an agreement with the unions on staff cuts and productivity improvements should ease the situation, Mr Falkman said. The Italian division was also adding recycling and sorting facilities to its operations which should broaden the business. "Our Italian management team is addressing these issues,"he said.
He said the group's businesses in other markets performed in line with expectations last year, but performance this year depended on resolving difficulties in France and Italy.
Approved capital expenditure this year of £120m will generate positive cash flow of around £50m, he said. "We believe this strategy will improve shareholder value in the long term and enable Waste Management International to consolidate its position for future expansion." Waste Management's earnings for the quarter were up from 6.9p to 7p.
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
Shock poll shows voters believe Ukip is to the left of the Tories
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
New era of cheap oil 'will destroy green revolution'
Ukip founder Alan Sked and Nigel Farage 'begged Enoch Powell to stand as a candidate'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
iJobs Money & Business
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...
$125 - $175 per annum: Carlton Senior Appointments: Senior Wealth Manager In...
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...