By Phil Boeyen, ShareChat Business News Editor
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Thursday 13th September 2001 |
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In August the company said it expected profit would be in line with last year's $14.3 million result, but it has now had a chance to review results in July and August and projections to year end.
"This review identified a continuing softening of earnings in response to an Auckland commercial market that shows no sign of lifting for the remainder of the year," the company says.
WAM is also pointing the finger at a competitive environment in Auckland that has been notable for what it claims are "illegal marketing tactics by a new entrant".
"The company has responded aggressively in the market place which resulted in injunctions being recently heard in the High Court.
"The judgement which Waste Management has now received and considered lays down a clear ruling that has had the immediate effect of stabilising the market for the first time in over a year."
WAM says collection and disposal operations in regions outside Auckland continue to trade at budget levels and the Redvale site and Australian operations are also trading in line with expectations.
"Looking forward, the Australian market initiatives are on track and there is evidence of further interesting investment opportunities.
"The Auckland economy is set to show more life in 2002 and there will be earnings contributions from new projects coming on stream in particular in the Waikato and Bay of Plenty areas."
The company is hopeful of a return to growth next year.
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