Republic Services Launches Realignment of Operations

   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 [e-mail]

(END) Dow Jones Newswires

January 15, 2016 17:11 ET (22:11 GMT)

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