Trash hauler’s stock plunges

Monday, Aug. 30, 1999 | 11:26 a.m.

FORT LAUDERDALE, Fla. -- Republic Services Inc.'s shares fell 33 percent this morning after the No. 4 U.S. trash hauler warned 1999 earnings will be less than analysts' estimates because some newly acquired companies aren't performing well.

Republic said its per-share profit will be $1.17 to $1.19 this year, below the $1.25 average estimate of analysts polled by First Call Corp.

Republic Services owns Republic Silver State Disposal in Las Vegas. Shares of the Fort Lauderdale-based company fell 5 7/16 to 11 1/16 in late morning trading of 7.4 million shares, or more than nine times the three-month daily average volume.

Republic said it's having difficulty bringing certain acquired units, especially those purchased from Waste Management Inc., "up to quality and performance standards."

"Companies have come up with rosy forecasts to help justify the prices they're paying for assets," said Melville Cody, a Sanders Morris Mundy analyst who rates Republic shares a "buy." "Then what happens is they can't make them."

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