Progressive Waste Solutions Ltd. said its struggling operations in the Northeast United States led to a net loss for its fourth quarter and year.
The Vaughan, Ontario-based solid waste company reported a net loss of $296.2 million, or $2.48 per weighted average diluted share, for the fourth quarter ended Dec. 31. In the 2010 fourth quarter Progressive had a net profit of $21.7 million, the company said in a news release.
The company took an impairment loss in the 2011 fourth quarter of $360.6 million resulting from a re-evaluation of the U.S. Northeast unit’s fair value, which was determined to be lower because of deteriorating economic conditions and strong competition in the market.
Revenue for the quarter rose 6.4 percent to $457.2 million compared with $429.9 million in the year-ago period. Adjusted net income totaled $38 million compared with $27.2 million a year earlier.
For the year, Progressive had a net loss of $196.1 million compared with a profit of $82.1 million in 2010. Revenue increased 28.7 percent to $1.84 billion compared with $1.43 billion in 2010.
For 2012, Progressive said it expects earnings before interest, taxes and amortization (EBITA) to be between $535 million and $550 million. Revenue is projected to rise 2.2 percent to 3.8 percent to $1.88 billion to $1.91 billion.