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WM Faces Larger-than-expected Recycling Headwind in Q3 2019

October 24, 2019

Via: Waste360

Houston-based Waste Management, Inc. (WM) reported revenues of $3.97 billion for the third quarter of 2019, which is up from $3.82 billion for the same 2018 period. Despite this positive, the company experienced a larger-than-expected recycling headwind that resulted in a revenue decline of $86 million.

According to John Morris, chief operating officer for Waste Management, the $86 million decline was partially due to the fact that the company’s blended average commodity price in Q3 2019 was just under $40 per ton, a decline of 40 percent compared to last year and a further 8 percent decline from the 10-year low reached in Q2 2019. “Despite this precipitous drop, the steps we’re taking to improve the recycling business held year-over-year decline to operating EBITDA to $7 million and EPS decline to about $0.01,” he said.

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