Countywide affects owner's bottom line
The Canton Repository
PIKE TWP - Odor, fire and other environmental problems at the Countywide Recycling & Disposal Facility in Pike Township had a large impact on the first quarter profits of its parent, Republic Services.
The company released its first-quarter earnings report after stock markets closed Thursday. It reported profits of $53.9 million, or 28 cents per diluted share of Republic stock, a 17 percent drop from earnings in the first quarter of 2006. Analysts surveyed by Thomson Financial had been expecting 34 cents a share, The Associated Press reported.
Republic said the results included taking a one-time charge of $22 million, or about 7 cents a share in the first quarter, to pay for the compliance of Ohio Environmental Protection Agency orders to address the problems at Countywide. The cost becomes $13.5 million, after tax deductions are factored in.
Republic Services spokesman Will Flower pointed out that Countywide is only one of Republic's more than 320 waste facilities nationwide.
"There's not a more important project in the organization today than taking care of that landfill (Countywide)," he said. "But from a financial standpoint, it's not material to our earnings."
Investors apparently agreed. Shares of Republic's stock rose 2.6 percent in value Friday.
PIKE TWP - Odor, fire and other environmental problems at the Countywide Recycling & Disposal Facility in Pike Township had a large impact on the first quarter profits of its parent, Republic Services.
The company released its first-quarter earnings report after stock markets closed Thursday. It reported profits of $53.9 million, or 28 cents per diluted share of Republic stock, a 17 percent drop from earnings in the first quarter of 2006. Analysts surveyed by Thomson Financial had been expecting 34 cents a share, The Associated Press reported.
Republic said the results included taking a one-time charge of $22 million, or about 7 cents a share in the first quarter, to pay for the compliance of Ohio Environmental Protection Agency orders to address the problems at Countywide. The cost becomes $13.5 million, after tax deductions are factored in.
Republic Services spokesman Will Flower pointed out that Countywide is only one of Republic's more than 320 waste facilities nationwide.
"There's not a more important project in the organization today than taking care of that landfill (Countywide)," he said. "But from a financial standpoint, it's not material to our earnings."
Investors apparently agreed. Shares of Republic's stock rose 2.6 percent in value Friday.
