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Shredder boosts energy firm Covanta’s revenue

February 11, 2012 - 02:50 GMT Location: New York

KEYWORDS: ferrous scrap , nonferrous scrap , shredder , Covanta Holding , Tony Orlando , Sanjiv Khattri

Strong metal prices and higher metal recovery following the acquisition of a large shredder in Florida contributed to a 30-percent increase in fourth-quarter revenue for Covanta Holding Corp.

"This was driven by three things," Covanta president and chief executive officer Tony Orlando said during an earnings conference call. "The biggest factor was strong market pricing, but we also added revenue by recovering more metal and acquiring the (Dade County, Fla.) shredder, which improves our pricing. We invested a little less than $10 million to buy the shredder, which will pay for itself in three years. Combined, the actions we took contributed 30 percent of the metal revenue increase."

The company, which converts solid waste into energy, generated metal revenue of $19 million in the fourth quarter and $20 million in the third quarter. Across all its sectors, Covanta’s fourth-quarter revenue rose 2.6 percent to $430 million from $419 million in the same period...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.

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