HOUSTON--(BUSINESS WIRE)--March 23, 2000
Waste Management, Inc., (NYSE:WMI) the nation's leading waste services company, today announced that it will implement a fuel surcharge in order to respond to the substantial increase in the cost of diesel fuel across the country.
The Company said the surcharge, to be implemented beginning April 1, will be based on an established formula derived from information published by the Energy Information Administration of the U.S. Department of Energy. The surcharge in April will be based on data from the department on the last business day of February as compared to 1999. The price of Low Sulfur No. 2 diesel fuel has risen from an average 51.8 cents in 1999 to an average of 86.09 cents on February 29, 2000, an increase of 66.2 percent.
Waste Management operates a fleet of more than 27,000 vehicles in North America. The Company said that, based on current diesel fuel prices, its fuel costs may rise by more than $100 million this year. The Company said it is in the process of communicating notice of the surcharge to customers in North America.
The surcharge formula will use the 1999 average price of diesel fuel as a basis to compute the surcharge. The surcharge will be calculated using Spot Prices for Low Sulfur No. 2 Diesel fuel as published by the Energy Information Administration of the U.S. Department of Energy. The surcharge will be adjusted monthly to reflect Department of Energy diesel fuel prices for the last business day of the month, and will be eliminated if fuel prices drop below the 1999 average of 51.8 cents. The Company indicated that surcharges appearing on customer bills will reflect fuel prices based on the average price on the last business day of the month preceding bill preparation.
Waste Management said it will follow the terms of its municipal, commercial, industrial and residential contracts with dumpster rental prices respect to the approval and implementation of fuel price increases.
Waste Management, Inc. is its industry's leading provider of comprehensive waste management services. Based in Houston, the Company serves municipal, commercial, industrial and residential customers throughout the United States, and in Canada, Puerto Rico and Mexico.
Certain statements provided in this release include statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties, any one of home depot dumpster rental which could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include or relate to, among other things, the effect of competition on the Company's ability to maintain margins on existing or acquired operations, including the Company's ability to successfully implement its fuel surcharge initiative.
Additional information regarding these and/or other factors that could materially affect future results and the accuracy of the forward-looking statements contained herein may be found in Part I, Item 1 of the Company's Annual Report on Form 10-K for the year ended December 31, 1998 and in Part I, Item 2 of the Company's Quarterly Report on Form 10-Q/A for the three months ended September 30, 1999.