Jeremy L. Dillon
RW Monitor
5/15/2015
Waste Control Specialists suffered an operating loss of $2.9 million in the first quarter of 2015, but WCS parent company Valhi Inc. expects the company to improve operating results for the rest of the year, the company announced late last week. Valhi blamed the operating loss on delayed disposal shipments in the first quarter that resulted from a winter weather event, but with shipping containers and license amendments in place, the company is predicting improved result in 2015. “With the receipt of our recent license amendments and new shipping containers now in service we believe we are positioned to take full advantage of our disposal facilities going forward,” Valhi said in a Securities and Exchange Commission filing. “We recognized an operating loss in the first quarter of 2015 primarily due to delayed disposal shipments including shipments from generator sites which were adversely impacted by the severe winter weather which limited the ability of some generators to ship waste. We currently expect our Waste Management Segment to report improved operating results in 2015 as compared to 2014.”
Following a successful end of 2014, Valhi believes WCS will continue its positive results in 2015. But as it has said in the past, Valhi maintained that should that change it is open to strategic alternatives, such as considering a sale of WCS. “We believe WCS can become a viable, profitable operation; however, we do not know if we will be successful in improving WCS’ cash flows,” the company said. “We have in the past, and we may in the future, consider strategic alternatives with respect to WCS. We could report a loss in any such strategic transaction.”
