WMX Reports Huge Loss, Plans to Divest $1.5 Billion in Assets

WMX Technologies Inc., reporting a fourth-quarter loss of more than $460 million, said Tuesday that it planned to divest $1.5 billion in assets over the next two years and cut 3,000 jobs, including 1,200 this year.

The announcement disappointed investors, who sent the company’s stock plunging $3.125 to close at $33 on New York Stock Exchange.

Under fire from dissatisfied shareholders for months, WMX said its restructuring was geared toward meeting several long-standing demands of investors.

A share buyback, sale of non-core assets and certain management changes had been on the agendas of several activist shareholders, including George Soros’ hedge-fund group and Lens Inc., a shareholder group in Washington.

WMX--which also announced it was changing its name back to Waste Management Inc. as it refocuses solely on waste-management services--said it was reorganizing its management, buying back shares and cutting capital spending as it tries to get its balance sheet in order.

“We will add value by concentrating on the basics of the waste-management services business,” the nation’s largest garbage hauling and handling company said in a statement.

The company said it took a $680-million charge in the fourth quarter, when it lost $461.3 million, or 95 cents a share. That compared with a profit of $49.7 million, or 10 cents a share, a year ago.

Revenues edged up to $2.33 billion from $2.25 billion in the period.

The company, based in Oak Brook, Ill., also predicted that its revenues this year would not improve over last year’s.

At a Glance:

Sprint Corp.’s fourth-quarter profit rose 4.6% as the company posted the strongest annual volume growth among the top three long-distance phone companies in seven years. The nation’s No. 3 long-distance company said net income was $245.3 million, or 57 cents per share, compared with a net loss of $343.2 million, or 98 cents, in the year-ago quarter. The results fell short of Wall Street estimates of 69 cents per share.

Ameron International Corp. said it earned $4.61 million, or $1.16 per share, compared with earnings of $3.76 million, or 95 cents, in the year-ago quarter.

Cisco Systems Inc. said second-quarter profit rose 68%, slightly exceeding Wall Street estimates, although the pace of earnings and revenue growth slowed. Cisco reported profit from operations of $351.9 million, or 51 cents a share, compared with net income of $209.7 million, or 31 cents, in the year-earlier period.

Chiron Corp. said fourth-quarter earnings fell 13% to $15.3 million, or 9 cents a share, down from $17.6 million, or 10 cents, in the year-earlier period.

Ryder System’s fourth-quarter profit fell 48% to $29.2 million, or 36 cents a share, from net income of $56.4 million, or 71 cents, a year earlier.

Imation Corp. said its fourth-quarter profit from operations was $11.4 million, or 28 cents a share. That’s up from a pro-forma $800,000, or 2 cents, in the year-earlier quarter, before the maker of data storage and imaging products was spun off from Minnesota Mining & Manufacturing Co. in July.

Colgate-Palmolive Co. said fourth-quarter earnings rose 48% to $181.7 million, or $1.20 a share, up from $122.5 million, or 80 cents, a year ago.

Gannett Co. said fourth-quarter profit from continuing operations rose 32% to $196.1 million, or $1.39 a share, up from $148.4 million, or $1.06, in the same period a year ago.

W.R. Grace & Co.’s fourth-quarter earnings rose 2% to $66.9 million, or 82 cents a share, from $65.6 million, or 67 cents, a year earlier.

Dow Corning Corp. said fourth-quarter profit rose 55% to $61.4 million from $39.6 million a year earlier.

American General Corp. reported fourth-quarter net income rose to $68 million, or 33 cents a share, from $9 million, or 5 cents.

Xylan Corp. said net income rose to $5.03 million, or 11 cents a share, from $437,000, or 1 cent, in the year-earlier quarter.