Harsco Remakes Infrastructure - Analyst Blog
June 13 2011 - 2:45AM
Zacks
Harsco Corporation (HSC) recently agreed to
sell non-core operations of the Infrastructure segment to the U.K.
based Wernick Group, an independent hirer and manufacturer of
modular and portable buildings. The financial terms of the
transactions were not disclosed.
These non-core operations include Rovacabin and Eventlink,
related to accommodation and event services businesses in the U.K.
Management stated that the divesture will enable the Infrastructure
segment to concentrate more on core operations comprising
construction, civil works and industrial maintenance, and also help
in trimming down the cost base to ensure future earnings
growth.
Last year, Harsco chalked out a restructuring plan for the
Infrastructure segment and these divestures indicate the completion
of the restructuring program. The company estimates incurring $85
million to $90 million in the fourth quarter of fiscal 2010.
Harsco planned to reduce 30% of its branches and offices and 800
employees located in North America, Europe, the Middle East, Africa
and Latin America. Management expected additional savings of $40
million in fiscal 2011 and annual savings of $60 million from
fiscal 2012.
For the first quarter of fiscal 2011, Harsco's Infrastructure
segment generated revenues of $262 million, up 4% from the
year-earlier quarter. The segment reported a negative operating
margin of 6.7% compared with the negative operating margin of 7.7%
in the year-earlier quarter.
Management expects uncertainties and challenges in major end
markets of the Infrastructure segment. The company believes that it
will be well positioned to project prospects of the Infrastructure
segment for fiscal 2011 at the end of the second quarter of fiscal
2011.
Based in Pennsylvania, Harsco Corporation is a diversified,
multinational provider of market- leading industrial services and
engineered products to a variety of industries that are fundamental
to the world’s economic growth and progress. The company directly
competes with ThermoGenesis Corp. (KOOL) and
SPX Corporation (SPW).
HARSCO CORP (HSC): Free Stock Analysis Report
THERMOGENESIS (KOOL): Free Stock Analysis Report
SPX CORP (SPW): Free Stock Analysis Report
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