November 2, 2011 / 12:58 PM / 7 years ago

UPDATE 3-Clean Harbors targets buys to meet demand

* Q3 rev up 14 pct

* Ups 2011 rev view to $1.92-$1.94 bln from $1.84-$1.88 bln

* Sees 2012 rev at $2.15-$2.2 bln, above est $2.11 bln (Adds conference call details; updates shares)

Nov 2 (Reuters) - Clean Harbors Inc forecast a robust 2012 as a pick-up in offshore drilling drives demand for clean-up activities, and the waste management services company plans to bulk up its business with acquisitions.

Clean Harbors shares were trading up 5 percent at $58.42 on Wednesday morning. They touched a high of 8 percent at $59.33 earlier in a session, while the S&P environment services sub-index was up 1.2 percent.

“We have a number of excellent candidates in our pipeline, and we will continue to be selective as we target accretive opportunities,” Chief Executive Alan McKim said.

Clean Harbor expects its recent acquisitions, including those of Peak Energy Services and Destiny Resource Services, to aid growth at its oil and gas field services business in 2012.

The business, which doubled revenue in the third quarter, is expected to grow in 2012 as demand for emergency response activities increases.

Disasters like last year’s Gulf of Mexico oil spill, the floods in Mississippi and the oil spill from the ruptured pipeline in Montana on Yellowstone River have increased the demand for waste management services.

The company, which said in August it was scouting for private equity-funded firms, has more than 50 waste management facilities in North America.

The company plans to cut $15-$20 million in costs in 2012. It will look at reducing labor and fuel costs, especially.


Clean Harbors forecast 2012 revenue at $2.15-$2.2 billion, above analysts’ estimates of $2.11 billion, according to Thomson Reuters I/B/E/S.

The company raised its 2011 revenue outlook to $1.92-$1.94 billion from its previous estimate of $1.84-$1.88 billion.

Analysts were expecting 2011 revenue of $1.87 billion.

July-September net profit fell to $37.1 million, or 70 cents a share, above 52 cents that analysts’ predicted. Revenue rose 14 percent to $556.1 million. (Reporting by Vaishnavi Bala in Bangalore; Editing by Joyjeet Das and Don Sebastian)

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