HARSCO CORPORATION REPORTS FIRST QUARTER 2015 RESULTS
May 6, 2015
· Q1 2015 Operating Income Above Guidance Despite Strong Headwinds as a Result of Favorable Sales Mix and Foreign Exchange Gain in Rail
· Credit Agreement Amended at Favorable Terms
· Project Orion Progressing as Planned; 75 percent of Organizational Changes Complete and One-half of Underperforming Sites are now Finalized
· 2015 Operating Income Outlook Reduced to Range of $145 million to $160 million due Largely to Macro-Economic Changes in Foreign Exchange Rates and Commodity Demand; Free Cash Flow Guidance Unchanged at $75 million to $100 million
Camp Hill, PA (May 6, 2015) . . . Harsco Corporation (NYSE:HSC) today reported first quarter 2015 results. Diluted earnings per share from continuing operations in the first quarter of 2015 were $0.20. This result compares with $0.16 in the first quarter of 2014 excluding special items. On a U.S. GAAP (“GAAP”) basis, first quarter 2014 diluted earnings per share from continuing operations were $0.13.
Operating income for the first quarter of 2015 was $39 million, which was above the guidance range of $27 million to $32 million provided by the Company. Also, the Company’s first quarter 2015 earnings included equity income of approximately $4 million ($0.03 per share after tax) from the Brand Energy joint venture, which was impacted by inter-company foreign currency (“FX”) losses.
“We are pleased with our first quarter operating results,” said President and CEO Nick Grasberger. “Our results reflect continued strength of Rail and success in effectively managing through ongoing energy market challenges in Industrial. During the quarter, we also realized incremental benefits from our improvement plan in Metals & Minerals. However, the external pressures on this segment intensified through the first quarter. These challenges, which include the strengthening U.S. dollar, falling commodity prices and weak steel demand, lead us to reset our expectations for the year.”
“Our revised 2015 outlook continues to indicate stable-to-improving key financial metrics such as free cash flow, ROIC and EBITDA-Capex. This fact illustrates our considerable internal progress net of the external headwinds. We continue to execute against strategic priorities and opportunities outlined over a year ago. Metals & Minerals is focused on delivering the efficiency and structural benefits under Project Orion, while Industrial is investing in manufacturing capabilities and new products to strengthen our market position. Lastly in Rail, we are poised to begin delivering under our sizable contract with SBB and we are very encouraged by the major contract opportunities which position this business for further growth. Overall, we remain confident these initiatives will balance our portfolio, support our dividend and help us toward delivering our financial targets.”
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