Slower start for Waste Management

Retiring chairman, Alton Jamieson, gave the operating update at the company's annual meeting on Thursday.

Mr Jamieson says the directors have been encouraged to see some improvement in business activity this year and the impact of the America's Cup in Auckland over the next year should also be positive for the company.

"New opportunities and process improvements are expected to produce a sound result for our first full year of business in Australia. Further Australian acquisition and business development opportunities are also being pursued.

"Management's primary focus for 2002 is on improving the quality of earnings from our core businesses in New Zealand and Australia, to grow shareholder value."

The company recorded an annual profit for the year ended December 2001 of $13.08 million, nearly 9% lower than the previous year. Competition in the Auckland market and the loss of the important Auckland City Council waste contract were partly responsible for the lower return.

Mr Jamieson told shareholders that 2001 was a difficult year for the company in the Auckland market and that, because of the size of its Auckland business, the increased returns from our other divisions could not compensate for the impact on the bottom line.

However he says the company's successful entry into the Australian market was a pleasing highlight for the year, and the acquisitions there have performed in accordance with expectations.

"We are in the process of utilizing our in house expertise to add value to our Australian acquisitions and we are encouraged by the initial results and believe that there are good growth prospects."

Thursday's annual meeting is the last one that Mr Jamieson will preside over after being with the company for 20 years, 11 of those as chairman. He will be replaced by Jim Syme.

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