Sponsored Links 
Waste Mgmt. Adds to Recycling Biz
Print
ShareIntegrated waste management company Waste Management Inc. (WM - Analyst Report) increased its presence in the organics recycling business through the acquisition of a majority equity interest in Garick LLC. The acquisition will boost the processing capacity of Waste Management’s organic recycling business by one million ton.
Based in North America, Garick LLC is a distributor, processor and recycler of sustainable natural resource products. Garick diverts and beneficially reuses organic waste streams and creates organic mulches, soils, and other sustainable products, supplying customers with a complete range of products in bags, bales or bulk.
The investments in Garick LLC will help Waste Management develop its composting and bagging facilities throughout North America. This will also enable the company to cater to its residential, commercial and industrial customers who are looking to convert their organic wastes into products such as compost, mulch and organic soil amendment.
In an effort to expand its organic recycling business, Waste Management has been steadily investing in different companies. In August 2009, the company invested in Terrabon LLC to generate renewable transportation fuels from organic waste via a unique MixAlco technology. In January 2010, the company invested in Harvest Power to expand its organics processing facilities across North America and to develop innovative anaerobic digestion technology to accelerate the decomposition of organic materials that may produce renewable energy.
The continuous investments by the company in organic services will help it tap the growing demands in the composite services market, which is growing at a 20% annual clip.
The adjusted earnings of Waste Management at the end of second-quarter 2010 were 54 cents per share compared with 52 cents per share in the year-ago comparable period. The Zacks Consensus Estimates for third quarter fiscal 2010, fiscal year 2010 and fiscal year 2011 are 59 cents, $2.10 and $2.38 per share, respectively.
Waste Management currently retains a Zacks #3 Rank (short-term Hold rating). We presently maintain a Neutral rating on the stock for the long term.
Based in Houston, Texas, Waste Management is a provider of comprehensive waste management services in North America. The company is also a leading developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the United States.
Read the full analyst report on WM
Loading Stories...
-74.92