Harsco Receives Railway Contracts - Analyst Blog
March 08 2012 - 5:00AM
Zacks
Harsco Corporation (HSC) has received
international contract awards of more than $25 million to provide
railway track equipment, parts and maintenance services. These
shall cater to customers in the U.S., Canada and Australia.
Harsco Rail shall process these orders by early 2013. The
primary products it shall deal with here include a wide range of
equipment such as Mark VI ballast tampers, ballast regulators and
track stabilizers, developed primarily for track surfacing
operations.
The company recently reported financial results for its fourth
quarter of 2011. Here, the Rail segment of the company declared
revenues of $72 million, rising 18% year over year. Strong sales
figures of equipment and parts were the primary reasons for this
approbatory performance.
Traditionally, the company is expected to have a soft
performance in the first quarter of 2012. Contract awards should be
filling up order books for Harsco Rail this year too, like that of
the last.
Harsco’s goodwill has remained unblemished; creditors have never
been apprehensive about catering to its credit needs. Not long ago,
Harsco was allowed to renew an unsecured 5-year back-up credit
facility of $525 million on account of a 3-year back up facility
due for expiry this year.
W.W. Grainger, Inc. (GWW) recently announced
financial results for its December quarter of 2011, whereby it
recorded revenues of $2.08 billion during the quarter, which
increased almost 14% annually. It would be intriguing to see how
Harsco grapples with its competitive threats which include other
players too like TMS International Corporation
(TMS) and Hudson Technologies, Inc. (HDSN).
At present we have a Neutral recommendation on Harsco. The stock
currently carries a Zacks #3 Rank, which translates into a
short-term rating of Hold.
GRAINGER W W (GWW): Free Stock Analysis Report
HARSCO CORP (HSC): Free Stock Analysis Report
TMS INTL CP-A (TMS): Free Stock Analysis Report
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