One to Watch
Houston, Texas-based Gundle/SLT Environmental is a producer of geosynthetic lining products and services. Products include geomembranes, geonets, geocomposites, geosynthetic clay lines, and concrete liners and barriers used to cap landfills. The company’s products are also used to contain water, gases and other solid and liquid waste in ponds, reservoirs, sewers and more for the waste management, mining, water treatment and aqua-culture industries. The company has manufacturing capacity of 300 million pounds of material, through facilities located in the United States, Germany, the United Kingdom, Egypt and Thailand.
Earlier this year, Gundle/SLT purchased competitor Serrot International Inc. for US$30-million from Waste Management Inc. This move has added significantly to Gundle’s results. For the third quarter, Gundle announced revenues of US$93.9-million versus US$57.3-million in the same quarter last year. Net income was $8.8-million or $0.79 per share versus US$2.7-million or US$0.25 per share last year. Gundle also reported a US$4.1-million or US$0.36 per share gain on the Serrot acquisition. Management also increased its 2002 revenue guidance to US$290-million from US$280-million. Backlog increased to US$61-million versus US$44-million last year.
Hot Sector News
Clean Harbors Inc. of Braintree, Massachusetts reported 3Q revenues increased to US$83.3-million versus US$61.6-million. The company lost US$8.5-million or US$0.72 per share versus a profit of US$404,000 or $0.03 per share in the same quarter last year. Clean Harbors also reported a US$24.1-million or US$1.99 per share loss related to restructuring after the Safety-Kleen acquisition earlier this year. Management issued guidance for the fourth quarter of US$175-US$180 million in revenues, EPS of US$0.16 to US$0.21. For 2003, management announced it expects to generate US$730 to US$750-million, and EPS of US$2.00 to US$2.06.
BFI Canada Income Fund reported 3Q revenues of $39.8-million, ahead of its forecast of $37.4-million. Net income was $1.6-million, or $0.06 per unit versus a forecast loss of $0.4 million or $0.02 per unit. Free cash flow available for distributions was $8.9-million or $0.34 per unit versus actual distributions of $8-million or $0.30 per unit.
Waste Connections Inc. of Folsom, California agreed to purchase waste collection and transfer operations in Eastern Tennessee from Allied Waste Industries for US$50-million, net of tax. Revenues for the third quarter rose 36.7 per cent to US$133.5-million. Net income was US$10.2-million or US$0.38 per share, down from US$15.1-million or US$0.55 per share in the same quarter last year.
IMCO Recycling Inc. of Irving, Texas reported 3Q revenues rose 8 per cent to US$180.8-million. Net income was US$2.4-million or US$0.17 per share versus US$155,000 or US$0.01 per share. For the fourth quarter, management announced EPS guidance of US$0.08 to $0.10 per share due to traditional holiday shutdowns and lower specialty alloy margins.
Vivendi Environnement (VE) of Paris, France announced a number of developments this fall. VE’s parent, Vivendi Universal, has agreed to sell 82.4 million shares of VE or 20.4 per cent of the company to a group of institutions, including AGF Group AXA, BNP Paribas, Credit Lyonnais, Societe Generale, and others for EUR26.5 per share. The institutions have call options to acquire another 82.4 million shares, the rest of Vivendi’s holding for EUR26.50 per share until December 23, 2004.
These articles are based on public sources deemed to be accurate. These articles are designed for information purposes and are not intended as a recommendation of the companies discussed. Individuals looking to invest in this sector should consult an investment advisor before proceeding.