Republic Services Launches Realignment of Operations
16 January 2016 - 9:26AM
Dow Jones News
By Ezequiel Minaya
Republic Services Inc. said Friday it has launched a realignment
of operations that will include the folding of 100 call centers
into three "customer resource centers," the company said in press
release.
The realignment will incur a charge of about $35 million, or 6
cents a share, during 2016, the waste-management and recycling
company said. The moves in total are expected to eventually
contribute about $35 million in annual cost savings.
The restructuring of the call centers will take place over two
years. Republic said it also has realigned its field support
function by combining "two organizational layers into one," which
includes the elimination of its three regions, the folding of its
20 areas into 10 and the "streamlining of select roles at its
Phoenix Headquarters."
The company said it intends to create 10 area offices with
"enhanced team of operators and functional support roles." The
company didn't say if its moves would slash jobs.
For the quarter ended Sept. 30, Republic earned $215 million, or
61 cents a share, up from $185.8 million, or 52 cents a share, a
year earlier. Earnings excluding items were 53 cents. Revenue
increased 3.4% to $2.34 billion.
Analysts expected earnings of 53 cents a share on revenue of
$2.35 billion.
The company has expanded productivity efforts including use of
natural gas and automated trucks with a single operator.
In February, Republic bought Tervita LLC, a waste-services
company for oil and natural-gas producers.
Write to Ezequiel Minaya at Ezequiel.Minaya@wsj.com
(END) Dow Jones Newswires
January 15, 2016 17:11 ET (22:11 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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