Shares in Clean Harbors Inc. of Norwell plunged by more than 9 percent Wednesday after the environmental services company reported a drop in earnings and less-than-expected demand for services from its newly acquired Canadian business Eveready Inc.
Shares in Clean Harbors Inc. plunged by more than 9 percent Wednesday after the Norwell environmental services company reported a drop in earnings and less-than-expected demand for its newly acquired Canadian business Eveready Inc.
Clean Harbors’ revenue rose 39 percent for the quarter that ended Dec. 31, to $347 million, largely because of the Eveready acquisition last summer, but Clean Harbors’ net income fell to $13.9 million, down 22 percent from the same quarter in 2008.
The company’s stock price dropped 9.1 percent Wednesday, to $53.49 a share, after the earnings report became public.
Clean Harbors CEO Alan McKim said the company reached the low end of its projected range for quarterly revenue but fell short of its earnings target for the quarter.
McKim said the revenues within the company’s energy and industrial services – primarily operations acquired in the Eveready purchase – fell short of expectations in several areas. McKim said the company ramped up Eveready staffing levels in anticipation of a seasonally strong fourth quarter, but customer demand didn’t materialize as quickly as anticipated for those services.
He said there were still several strong points in the quarter, including a rebound in landfill volumes and small upticks in the company’s storage and disposal facilities and its wastewater treatment business.
McKim said he remains optimistic about the prospects of the Eveready acquisition, and Clean Harbors is looking to open offices across Eastern Canada and in the United States this year. The company reiterated its previously stated guidance for 2010 revenue of at least $1.4 billion, excluding revenue from any future acquisitions, compared with nearly $1.1 billion in 2009.
The Patriot Ledger