HARSCO CORPORATION REPORTS THIRD QUARTER 2014 RESULTS
November 6, 2014
Camp Hill, PA (November 6, 2014) . . . Harsco Corporation (NYSE:HSC) today reported third quarter 2014 results. Excluding special items, adjusted diluted earnings per share from continuing operations in the third quarter of 2014 were $0.32. This compares with $0.20 in the third quarter of 2013, which included results from the Company’s Infrastructure segment that was divested during the fourth quarter of 2013. Adjusted operating income for the third quarter of 2014 excluding special items was $49 million, above the prior guidance range of $43 million to $48 million provided by the Company, while adjusted earnings per share excluding special items of $0.32 exceeded the guidance range of $0.26 to $0.31 per share.
On a U.S. GAAP (“GAAP”) basis, third quarter 2014 diluted earnings per share from continuing operations were $0.30, which included Project Orion severance costs, asset impairments and Brazil labor claim reserves. This compares with GAAP diluted loss per share of $2.89 in the third quarter of 2013, which included an impairment as well as costs related to the then-pending Infrastructure segment sale. The Company’s third quarter 2014 earnings also included income of $5 million ($0.04 per share after tax) from the Brand Energy joint venture.
“The third quarter was a bit stronger than expected due to a favorable mix of spare parts and contract services in our Rail business,” said President and CEO Nick Grasberger. “This performance builds on the solid financial results we reported earlier in the year. We remain pleased with the progress being made across our businesses. The Metals & Minerals division continues to execute successfully against its key initiatives outlined in Project Orion last spring. Industrial backlogs have surpassed prior record levels, and a growing international presence is boosting the Rail business.
“We expect adjusted operating income for the second half of 2014 to increase at a double-digit rate compared to the second half of last year even though we have reduced our Outlook for the fourth quarter due to delays in asset sales, the timing of a few large Rail orders, foreign exchange effects and the impacts of the ongoing repositioning of our Metals & Minerals business. As we look forward to 2015, we expect a moderate double-digit increase in adjusted operating income and adjusted earnings per share, together with notable improvements in free cash flow and ROIC.”
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