By NZPA
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Thursday 8th August 2002 |
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The Auckland-based waste collection and treatment company declared a dividend of 2.5 cents per share, payable on September 6.
Waste Management flagged the profit result to the market last month, saying it expected first half earnings to slightly exceed the $6.7 million profit recorded in the same period a year earlier.
Shares in the company were steady this morning at $3.12 against a year high of $3.30 and a low of $2.70.
Today's result was based on total operating revenues of $78 million, up on last year's $68.8 million figure.
Earnings per share climbed to 7.1 cents from 6.9 cents.
Waste Management attributed today's result to a recovering performance in the Auckland market and a strong contribution from the firm's Australian operations.
The company was hit hard in Auckland last year by the entry of Australian company e-Waste, owned by JJ Richards.
An increase in disposal prices at the Redvale Landfill and newly signed contracts with e-Waste and the North Shore City Council had helped ease that pressure, Waste Management said, and would continue to have a positive impact in the second half.
Across the Tasman, last month's purchase of Melbourne-based All Waste would also contribute to the bottom line. Its operations will be integrated with Waste Management's Hines business, resulting in increased volumes and lower average costs, Waste Management said.
The company's smaller branches around New Zealand, in Tauranga, Thames and East Waikato all showed improved operating margins during the period.
For the full year, directors forecast a 10 percent increase in after tax profit to $14.5 million.
"This year has started well. Volumes are holding up and we are seeing no sign of a slow down at this time. The second half this year will benefit from our recent acquisitions, the Hamilton City collection contracts coming on stream and the positive impact of landfill price increases," company chairman Alton Jamieson said.
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