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Registration No. 333-01327
Filed Pursuant to Rules 424(b)(3) and (c)
Prospectus Supplement dated October 10, 1997 to
Prospectus dated August 12, 1997
On October 10, 1997, Waste Management, Inc. (the "Company") announced that
its results of operations for the quarter ending September 30, 1997 would be
below analysts' expectations. The Company announced that its earnings per share
from continuing operations for such period are expected to be between $.38 and
$.40, as compared to analysts' expectations of $.44 (mean of estimates as
reported by I/B/E/S Analysts Earnings Estimates) and as compared to $.49 per
share in the year-earlier quarter. The Company stated that earnings for the
third quarter of 1996 were benefited by certain non-recurring items including
gains on sales of divested operations, income from settlement of claims against
insurance carriers, and lower depreciation and casualty claim expense in the
quarter.
Since joining the Company in July 1997 as its Chairman and Chief Executive
Officer, Ronald T. LeMay has initiated studies of the Company's operations,
assets and investments. In early September, Mr. LeMay initiated a comprehensive
study of the Company's waste management services operations including
identification of possible non-operating alternatives for certain businesses and
alternatives to the Company's current North American solid waste operating
model. In addition, the Company said that Mr. LeMay has authorized an analysis
of the Company's North American operating assets and investments to determine
whether they are appropriately valued in light of current market conditions and
the Company's changing operational strategies.
Depending on the outcome of these reviews, which are expected to be completed
during the fourth quarter, the Company said that it might record a charge to
income that could be material to its results of operations for the year.
Because of the potential for such a charge and the results of the operational
review to impact anticipated earnings for 1998, the Company stated that it was
no longer in a position to provide stockholders with guidance as to its earnings
per share goals for the balance of 1997 and 1998.
Except for historical data, the information in this prospectus supplement
constitutes forward-looking statements. Forward-looking statements are
inherently uncertain and subject to risks and the statements should be viewed
with caution. Actual results or experience could differ materially from the
forward-looking statements as a result of many factors, including the ability of
the Company to meet anticipated price increase and new business sales goals,
fluctuation in recyclable commodity prices, adverse weather conditions, slowing
of the overall economy, increased interest costs arising from a change in the
Company's leverage, failure of the Company's plans to produce the cost savings
anticipated by the Company, the timing and magnitude of capital expenditures,
inability to obtain or retain permits necessary to operate disposal or other
facilities or otherwise complete project development activities, inability to
complete contemplated dispositions of Company businesses and assets at
anticipated prices and terms, and the timing and cost of the Company's stock
repurchases.
