HSC In line, Revisits Guidance - Analyst Blog
October 28 2011 - 12:00PM
Zacks
Harsco Corporation (HSC) posted an EPS of 40
cents from continuing operations in the third quarter of fiscal
2011 compared with 26 cents in the year-earlier quarter, in
line with the Zacks Consensus Estimate of 40 cents per share.
Revenues
Sales for the quarter came in at $856 million, up 14% from $752
million in the year-earlier quarter. The favorable movement in
foreign currency translation increased sales by $28 million in the
third quarter of 2011 compared with the year-earlier
quarter.
On a segmental basis, Metals & Minerals generated revenues
of $400 million, up 8% from $369 million in the year-earlier
quarter. Revenue from Infrastructure segment was $282 million, up
11% from $254 million in the year-earlier quarter.
The Rail segment generated revenues of $87 million, up 24% from
the year-earlier quarter. Revenues from the Industrial segment were
$86 million, up 46% from the year-earlier quarter.
In terms of business mix, Service revenues were $683 million, up
from $628 million in the year-earlier quarter. Product
revenues improved from $125 million in the year-earlier quarter to
$173 million.
Margins
Harsco reported total costs and expenses from continuing
operations at $805 million, up from $708 million in the year-ago
period. Operating income from continuing operations was recorded at
$51 million, up from $44 million in the year-ago quarter. Operating
margins remained more or less in line at 6% compared with 5.9% in
the year-earlier quarter.
Balance Sheet and Cash Flow
Harsco ended the quarter with cash and cash equivalents of
$106.3 million, down from $330.3 million at the end of the previous
quarter. As of September 30, 2011, long-term debt was recorded at
$856 million, up from $850 million as of December 31, 2010.
During the third quarter of fiscal 2011, net cash provided by
operating activities was recorded at $123 million compared with
$110 million in the third quarter of the prior year. Purchases of
property, plant and equipment were recorded at $74 million, up from
$55 million in the year-ago period.
Guidance
The company’s adjusted full-year 2011 guidance range from $1.35
– $1.45 to $1.30 – $1.35 and expects earnings per share from
continuing operations (excluding the restructuring charge) in the
range of $0.28 to $0.33 for the fourth quarter of 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.
We have a Zacks #4 Rank, which translates into a short-term Sell
rating.
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