(RTTNews) - Wednesday, environmental services provider Clean Harbors, Inc. (CLH: News ), reported a decline in first-quarter profit as revenues declined sharply from last year, attributed primarily to the economic slowdown. The company also lowered its revenue growth target for the full year 2009, given the first quarter results and continuing economic uncertainty.

The Norwell, Massachusetts-based company reported first quarter net income of $5.0 million or $0.21 per share, compared to $8.9 million or $0.43 per share in the year-ago quarter.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.42 per share for the quarter. Analysts' estimates typically exclude special items.

Income from operations for the quarter plunged to $10.7 million from $20.0 million a year before.

First-quarter revenues declined to $206.3 million from $242.5 million in the corresponding period last year.

Analysts expected the company to report revenues of $233.14 million for the first quarter.
Commenting on the results, Alan McKim, Chairman and Chief Executive Officer said, "While we were anticipating a slow start to 2009, the challenging economic climate throughout North America resulted in a substantial slowdown in certain industries we service, such as chemicals and manufacturing, where some customers temporarily closed plants in an attempt to lower costs."

The company said revenues were also negatively impacted by the continued weakness of the Canadian dollar and a reduction in fuel surcharges. Persistent unfavorable weather conditions during the quarter severely hindered revenue opportunities in both Technical and Site Services segments, Clean Harbors added.

Looking ahead to fiscal year 2009, the company now expects revenue, exclusive of acquisitions, to be flat to slightly down compared with 2008. Previously, the company expected revenue growth in the range of 3% to 4%.

"While we remain encouraged about our prospects for the full year, our performance in the first quarter, combined with the ongoing economic uncertainty, have led us to adjust our 2009 guidance," said McKim.

CLH is currently trading at $54.90, up $5.09 or 10.22%, on the NYSE.

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by RTT Staff Writer

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