Solid Waste & Recycling

Feature

Hot Sector News (October 01, 2000)

Kafus Environmental was removed from the index following the announcement of the resignation of several directors and a cash crunch, which could affect the company's ongoing operations.Kafus will be r...


Kafus Environmental was removed from the index following the announcement of the resignation of several directors and a cash crunch, which could affect the company’s ongoing operations.

Kafus will be replaced in the index by Vivendi Environnement SA, of Paris France, which listed in July on the Paris Bourse. Since its IPO, Vivendi has made several major announcements of new contracts in their waste management operations. In September, the company received a 15-year US$450-million contract to provide waste treatment and management services to the city of Alexandria, Egypt. Vivendi also received a seven-year US$767-million contract to provide energy and waste management services to Novartis AG.

Vivendi announced strong financial results for the first half of 2000. Revenues rose 41 per cent to 12.1-billion euros, while net income rose 170 per cent to 104-million euros versus 38.5-million euros. While most of this growth was attributable to the recent acquisitions of US Filter and Superior Services, the company noted that internal sales growth for the period was 12.8 per cent.

Waste Recycling Group, plc of Doncaster, United Kingdom, also announced strong results with revenues of 86.8-million pounds in the first half of 2000, and a 42 per cent increase in pre-tax profits to 11.4-million pounds. The internal growth for the period exceeded 25 per cent.

The City of Toronto announced that it has negotiated a long-term waste management contract with Republic Services of Canada and Rail*Cycle*North. The contract will run for an initial period of five years and could generate up to CDN$400-million over 22 years.

Solid Waste Index

Solid Waste Index Symbol Exchange $Jan98 $July00 $Sept00 %Index %Change Shares $OrigValu $CurValu
Allied Waste Industries Inc. AW N.Y 20.38 10.5 9.81 10 -6.57 37 750 361
Capital Environmental Res CERI NASDAQ 11.00 3.19 3.88 10 21.63 68 750 264
Casella Waste Systems Inc. CWST NASDAQ 24.75 12.31 10.13 10 -17.71 30 750 306
Imco Recycling Inc. IMR N.Y 16.75 5.38 6 5 11.52 22 375 134
Marsulex Inc. MLX T.O 6.00 3.4 2.96 5 -12.94 63 375 185

Republic Services Inc. RSG N.Y 24 16.31 13.13 10 -19.50 31 750 410

Safety-Kleen Corp. SK N.Y 15.75 0.22 0.17 10 -22.73 48 750 8

Vivendi Environnement (Euro) VIE Paris 34 33.65 42 10 24.81 22 750 926

Waste Connections Inc. WCNX NASDAQ 12 19 25.63 10 34.89 63 750 1601

Waste Recycling Group plc WRC London 3.25 4.04 4.29 10 6.19 231 750 988

Waste Management Inc. WMI N.Y 23.75 18.44 17.44 10 -5.42 32 750 550

Total 100 $7,500 $5,736

(Note: numbers rounded, * denotes weighting change)

Statistics

Starting Point Jan 98 July 00 Sept 00 Percentage Return
Solid Waste Index 7500 5272 5736 8.08%
DOW 7322 10733 10650 -0.77%
TSE Composite 6700 10842 10377 -4.29%

Technical analysis: The Waste Index is calculated on a bimonthly basis. In order to maintain consistency and to meet the publishing deadline, it’s calculated on the last Friday of the second month of the given time period. The graph is plotted on a biweekly basis and the final point on the graph represents the closing values for the three indices Friday Sept. 29. The index was started at a value of 7500 points so that its magnitude is in the same range as the DOW and the TSE. It’s made up of a proportional representation of the firms listed, broken down by the itemized percentages. Share quotes ignore currency.


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