Waste Management 2008 Annual Report Download - page 4

2008 was a year of continuing strength and
progress for our company. More than ever,
we proved ourselves to be a company that
our customers, employees, shareholders, and
communities can count on to serve their needs
and protect the environment.
It’s satisfying to be able to say this in light of
the year’s dramatic economic downturn, which
promises to present continuing challenges.
Like most businesses and individuals throughout
North America, we expect to face hurdles,
make sacrifices, and tighten budgets in the
coming year.
However, we have built a foundation of financial
and operational strength to sustain our company
through the inevitable changes in economic
seasons. We are solidly positioned to make the
adjustments that the times demand and to
continue to pursue our long-range goals.
The majority of our business, which relates to
providing essential services to commercial and
residential customers, is resistant to downturns
in the economy. This held true throughout 2008,
as internal revenue growth from volume in
those lines remained consistent. However,
we saw further volume declines in our more
economically sensitive businesses of industrial
collection, transfer, and recycling. Recycling
commodity revenues were affected by steep
market price declines and reduced volumes as a
result of much lower demand. We expect these
challenges to continue in 2009.
Given the weak economy, it is more important than
ever for us to maintain our disciplined approach to
pricing and cost control. We have learned from our
customers that the demand for higher quality
services is strong, which allows us to maintain our
pricing leadership. Already, we have restructured
our field operations through consolidation, reducing
the number of market area operations from 45 to
25 and eliminating duplicative functions. We have
realigned our corporate staff to more efficiently
support the new field operations and expect these
combined actions to provide annualized savings of
more than $100 million.
We also see customers increasingly turning to
us for assistance with their sustainability practices
and with reducing costs. As the leading company
in our industry, we are committed to helping our
company—as well as our customers and our
communities—thrive and prosper through business
practices that reflect social responsibility and
environmental excellence.
In late 2007, we set out four goals for sustainable
growth that benefit not only the environment, but
also our business as we continue to provide
solutions for critical future needs. Here is a
report on our progress:
We pledged by the year 2020 to lower our
emissions and increase our fuel efficiency
by 15 percent. We are working with engine
manufacturers to achieve this goal. The
21,000 vehicles in our fleet provide a pressing
incentive to lower fuel costs and protect the
environment. In 2008, we began field-testing
the first hybrid waste collection truck and a first-
generation hybrid dozer for use at our landfills.
To our Shareholders, Customers, Employees, and Communities:
22008 ANNUAL REPORT