(RTTNews) - Integrated waste services provider Waste Management, Inc. (WM: News ) reported Thursday a 10.6% year-over-year decline in profit for the third quarter, as falling revenues on lower volumes offset higher prices and cost cutting actions.

Adjusted earnings per share for the quarter declined 14.3%, but topped analysts' expectations by a penny. The company also reaffirmed its earnings forecast for fiscal 2009.

In a statement, chief executive officer, David Steiner said, "The third quarter once again shows the strength of our strategy to maintain pricing while reducing costs. Our collection and disposal pricing remained strong, with internal revenue growth from yield of 2.9%. Recycling commodity prices increased each month in the third quarter, and have increased over 80% from the lows reached in January of 2009."

The company noted that the company-wide restructuring announced in February produced cost savings consistent with the prior quarter, and it expect to exceed the original forecast of annualized savings of $120 million.

Third Quarter Results

The Houston, Texas-based company reported net income of $277 million or $0.56 per share for the third quarter, lower than $310 million or $0.63 per share in the year-ago quarter.
The results for the latest quarter include $0.02 per share of the combined effects of charges related to the restructuring announced in February 2009, and a net benefit related to income tax audit settlements.

Excluding items, Waste Management's adjusted net income for the quarter declined to $265 million or $0.54 per share from $312 million or $0.63 per share in the prior-year quarter. On average, 10 analysts polled by Thomson Reuters expected the company to earn $0.53 per share for the third quarter. Analysts' estimate typically excludes one-time items.

Operating revenues for the quarter declined to $3.02 billion from $3.53 billion in the same quarter last year, and narrowly missed eight Wall Street analysts' consensus estimate of $3.07 billion.

The decline in quarterly operating revenues include a decline of $189 million due to lower recycling revenues and electricity sales prices, $108 million was related to the decline in fuel surcharge revenue as crude oil prices declined, and $10 million was due to foreign currency translation.

Internal revenue growth from yield from collection and disposal operations was 2.9%, while internal revenue growth from volume was negative 8.9%.

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