Dive Brief:
- Houston, TX-based Waste Management has reported strong 2016 Q2 earnings: Revenues were $3.43 billion compared to $3.32 billion for the same period in 2015, while net income was $287 million, up from $274 million for the same period in 2015.
- The company also exceeded its revenue, earnings, and margin targets once again. Total revenue was up by 3.3% due to increased volume and yield in collections and acquisitions.
- James Fish, Jr. was appointed as Waste Management's new president by the board of directors. Fish is currently the company's chief financial officer and will retain that position until the company fills the role.
Dive Insight:
Waste Management attributed cost control as a factor in these new numbers, as well as the fact that commercial collection volumes were positive for the first time since 2005. Waste Management's expansion strategy of growing within existing markets has proven successful with the acquisition of multiple companies this spring. In another interesting development, the company reported that recycling commodity prices were up 2.3% from last year but volumes were down by 2.9% which led to $5 million in lower revenues.
As Waste Management continues to maintain its position as the top operation in the industry, the board's choice of Fish was billed as a way to ensure that success continues. Fish, 54, has been with the company since 2001 and served in a number of capacities during that time. He has an MBA in finance from the University of Chicago and is also a certified public accountant.
"The Board of Directors and I have a strong and ongoing focus on succession planning, and the next logical step in that process is for Jim to be appointed president," said Steiner in a statement. "He is a talented leader with tremendous knowledge of and expertise in all aspects of our business and has an impressive track record of delivering results and driving shareholder value."
As president, Fish will continue to hold responsibility for the company's financial affairs and oversee the information technology group along with several other growth areas.
