US Covanta posts higher adjusted EPS for Q2 2011

Jul 21, 2011 - US waste-to-energy firm Covanta Holding (NYSE:CVA) reported adjusted earnings per share (EPS) of USD 0.14 (EUR 0.10) for the second quarter of 2011, compared to USD 0.11 a year before, and reaffirmed its full-year guidance.

The improved result was due to the smaller number of shares outstanding thanks to a share buyback programme, higher operating income and lower effective tax rate, the company said.

Covanta confirmed its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) estimate for 2011 at USD 480 million-520 million. Adjusted EPS is projected at USD 0.40-0.55.

Adjusted EBITDA for the second quarter came in at USD 123 million, nearly flat on the year. Growth in the core business and a drop in development spending were more than offset by increased scheduled maintenance activity and a decline in debt service revenue.

Revenue grew by 5% year-on-year to USD 411 million, mainly as a result of higher construction revenues.

For the first half of 2011, Covanta posted adjusted EPS of USD 0.03 compared to zero a year back. Adjusted EBITDA grew to USD 194 million from USD 191 million. Revenue went up by 4% to USD 788 million.

(USD 1.0 = EUR 0.701)

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