Clean Harbors Inc., which provides environmental and hazardous waste management, said today that its second-quarter earnings dipped 2 percent due in part to an increase in the company's provision for income taxes.
For the three months ended June 30, the company reported net income of $11.1 million, or 54 cents per share, compared with net income of $11.3 million, or 55 cents per share, in the year-ago period.
Net income was affected by an increase in the company's provision for income taxes, which was $8.7 million for the second quarter of 2007 versus $3.5 million in the corresponding quarter of last year, the company said. The effective tax rate for the quarter was 44 percent compared with 23 percent in the same period last year.
The provision for income taxes includes $1.4 million, or 7 cents per share, related to the company's first-quarter 2007 adoption of Financial Accounting Interpretation No. 48, or FIN 48, a new tax rule that affects how companies account for uncertain tax positions.
Analysts polled by Thomson Financial, on average, estimated earnings per share of 55 cents on sales of $231.1 million. The estimate reflects the adoption of FIN 48.
Revenue for the quarter increased 20 percent to $238.7 million from $199.6 million the same period last year.
Shares rose 35 cents to $51.35 in morning trading. (AP)