Harsco Reaffirms Confidence in Company's 5-Year Growth Plan at Annual Analysts Conference
December 09 2011 - 8:02AM
Company Provides Initial EPS
Guidance for 2012, Up 23% Over 2011 Mid-Point,
Excluding Restructuring Charges Company Also
Announces Plans for Stock Repurchases
Addressing the investment community at the Company's Annual
Analysts Conference in New York City, Harsco Corporation (NYSE:HSC)
Chairman, President and Chief Executive Officer Salvatore D.
Fazzolari today reaffirmed the Company's confidence in its key
growth strategies and ongoing business transformation.
Mr. Fazzolari told analysts that the Company is well-positioned
for earnings growth and improved Economic Value Added (EVA)
performance in 2012, excluding restructuring charges, having made
measurable progress in its objectives for a significantly lower
cost structure and increased operating leverage in its businesses.
Mr. Fazzolari noted also that the Company achieved a record year in
new contract awards and strategic alliances during 2011.
Joining Mr. Fazzolari in detailing the Company's growth
expectations and strategies were Galdino Claro, Executive VP and
Group CEO, Harsco Metals & Minerals; Ivor Harrington, Executive
VP and Group CEO, Harsco Infrastructure; Scott Jacoby, VP and Group
President, Harsco Rail; Scott Gerson, VP and Group President,
Harsco Industrial; Stephen Schnoor, Senior VP, CFO and Treasurer;
and Eugene Truett, VP-Investor Relations and Credit.
Reviewing the ongoing transformation of its Harsco
Infrastructure and Harsco Metals & Minerals business groups and
anticipated headwinds from the European economy and expected higher
pension costs, the Company announced it would be taking a 2011/2012
restructuring charge of approximately $200 million pre-tax
beginning in the fourth quarter of 2011 and continuing into 2012.
Approximately $112 million of the charge will be non-cash. The
restructuring actions include further streamlining its European
presence to align with market conditions, exiting under-performing
locations and rationalizing its worldwide asset base. The 2012
savings are expected to be approximately $36 million, with full
annualized savings estimated in the area of $65 million beginning
in 2013.
Mr. Schnoor provided the Company's initial guidance for 2012
earnings from continuing operations in the range of $1.55 to $1.70
per diluted share, excluding restructuring charges, which at the
midpoint of $1.62 represents a 23 percent improvement from the
Company's previously-announced 2011 EPS guidance of $1.30 to
$1.35.
In addition, Mr. Fazzolari announced the Company's intent to
begin the repurchase of an undetermined number of shares of the
Company's common stock under its previously approved two million
share repurchase authorization, which remains in effect until
January 31, 2013. The Company said the repurchases will be made in
open market transactions at times and amounts as management deems
appropriate depending on market conditions, and that any repurchase
may commence or be discontinued at any time.
A webcast of the meeting, including the synchronized
presentation slides, can be accessed through the Harsco Corporation
website at www.harsco.com.
Forward Looking Statements
This news release contains forward-looking statements based on
management's current expectations, estimates and projections.
All statements that address expectations or projections about
the future, including statements about the Company's strategy for
growth, product development, market position, expected expenditures
and financial results are forward-looking statements. Some of
the forward-looking statements may be identified by words like
"may," "could," "believes," "expects," "anticipates," "plans,"
"intends," "projects," "indicates," and similar expressions.
These statements are not guarantees of future performance and
involve a number of risks, uncertainties and assumptions.
Many factors, including those discussed more fully elsewhere
in this release and in documents filed with the Securities and
Exchange Commission ("SEC") by Harsco, particularly its latest
annual report on Form 10-K and quarterly report on Form 10-Q, as
well as others, could cause results to differ materially from those
stated. These factors include, but are not limited to, changes in
the worldwide business environment in which the Company operates,
including general economic conditions; changes in currency exchange
rates, interest rates, commodity and fuel costs and capital costs;
changes in the performance of the stock and bond markets that could
affect, among other things, the valuation of the assets in the
Company's pension plans and the accounting for pension assets,
liabilities and expenses; changes in governmental laws and
regulations, including environmental, tax and import tariff
standards; market and competitive changes, including pricing
pressures, market demand and acceptance for new products, services,
and technologies; unforeseen business disruptions in one or more of
the many countries in which the Company operates due to political
instability, civil disobedience, armed hostilities, public health
issues or other calamities; the seasonal nature of the business;
the Company's ability to successfully enter into new contracts and
complete new acquisitions or joint ventures in the timeframe
contemplated or at all; the integration of the Company's strategic
acquisitions; the amount and timing of repurchases of the
Company's common stock, if any; the recent global financial
and credit crisis and economic conditions generally, which could
result in the Company's customers curtailing development projects,
construction, production and capital expenditures, which, in turn,
could reduce the demand for the Company's products and services
and, accordingly, the Company's sales, margins and profitability;
the outcome of any disputes with customers; the financial condition
of the Company's customers, including the ability of customers
(especially those that may be highly leveraged and those with
inadequate liquidity) to maintain their credit availability; the
Company's ability to successfully implement cost-reduction
initiatives and receive the expected benefits of cost reduction and
restructuring initiatives, including the achievement of expected
cost savings in the expected timeframe; risk and uncertainty
associated with intangible assets, and other risk factors listed
from time to time in the Company's SEC reports. The Company
undertakes no duty to update forward-looking statements.
About Harsco
Harsco Corporation is a diversified global company serving major
industries that are fundamental to worldwide infrastructure
development and economic growth. Harsco's common stock is a
component of the S&P MidCap 400 Index and the Russell 1000
Index. Additional information can be found at
www.harsco.com.
CONTACT: Investor Contact
Eugene M. Truett
717.975.5677
etruett@harsco.com
Media Contact
Kenneth D. Julian
717.730.3683
kjulian@harsco.com
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