SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
August 30, 1995
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Date of Report (Date of earliest event reported)
SAFETY-KLEEN CORP.
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(Exact name of registrant as specified in its charter)
WISCONSIN
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(State or other jurisdiction of incorporation)
1-8513 39-6090019
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(Commission File Number) (IRS Employer Identification No.)
1000 N. RANDALL ROAD, ELGIN, ILLINOIS 60123-7857
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (708) 697-8460
Item 5. Other Events
The Company issued the following press release on August 30, 1995:
FOR RELEASE: IMMEDIATELY CONTACT: ROBERT W. WILLMSCHEN
(708) 468-2002
LAURENCE M. RUDNICK
(708) 468-2408
SAFETY-KLEEN SAYS EARNINGS IN THIRD INTERIM PERIOD WILL BE ADVERSELY AFFECTED BY
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HIGH WASTE PROCESSING AND DISPOSAL COSTS.
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ELGIN, IL, August 30, 1995 -- Safety-Kleen Corp. said today that net earnings
for its third interim reporting period ending September 4, 1995 will be
adversely affected by high waste processing and disposal costs, including the
costs for disposal of waste-derived fuel. The Company expects earnings per share
for the third interim period to be in the range of $0.17 to $0.19. The Company
earned $0.21 per share in the comparable period of 1994.
"The largest contributing factor to the earnings decline is the unusually high
costs for disposal of waste-derived fuels which the Company has incurred as a
result of unscheduled fuel burning outages at cement kilns used as the primary
outlets for such fuels," said John G. Johnson, Jr., the Company's CEO. "The
Company exclusively manages the waste-derived fuels programs at four cement
plants in the United States. Three of these plants were unable to burn normal
volumes of waste-derived fuel during the third interim period due to unscheduled
fuel burning outages." Johnson said, "The largest plant, which accounts for
approximately 45 percent of the collective capacity of the four plants, had the
greatest impact. That plant in the current period is projected to burn less than
half the amount of waste-derived fuel that it burned in the third interim period
of 1994."
The Company announced earlier this year that it had renegotiated and extended
its long-term exclusive supply arrangements with two cement plants and had
entered into arrangements to take over the waste-derived fuels programs at two
additional cement plants. The Company said that while it expects that these
arrangements will increase flexibility and make costs more predictable and
consistent over the long term, the highly unusual combination of three plants
with a high level of unscheduled fuel burning outages substantially increased
costs in the third quarter.
The Company said that while unscheduled fuel burning outages at cement plants is
unpredictable, it would expect an improvement in operating costs for these
plants in the fourth quarter.
In addition to the higher kiln costs, the Company has also been adversely
impacted by continued higher operating costs at its processing plants.
Safety-Kleen Corp. is the world's largest recycler of automotive and industrial
hazardous and non-hazardous fluids. Safety-Kleen's common stock is traded on the
New York Stock Exchange under the trading symbol SK.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SAFETY-KLEEN CORP.
Date: August 31, 1995 By: /s/ Robert Willmschen
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Robert Willmschen
Senior Vice President Finance,
and Secretary-Chief Financial Officer