Harsco Corporation
(
HSC
), a world-renowned supplier of industrial services and engineered
products, recently declared winning of three prime international
task orders with a total value of over $85 million under its Harsco
Rail group. The awards, prestigious as these are, also ossify
Harsco's position towards becoming a strong service provider to the
rail industry.
Per the first order, the company through its rail grinder deal
with Italy will be engaged in providing construction and track
maintenance support services for laying of new metro track in
Milan. The company is designing the railway parts in its Harsco
Rail U.S. production facilities and these are scheduled to deliver
by 2014 and 2015. In addition, the company will also offer contract
grinding services and in-country maintenance support services.
Harsco has received its second order from India to improve its
railway track by installing the latest equipment. The company will
be providing additional Harsco P-811 Track Renewal Trains (TRTs) to
Indian Railways to augment the efficiency of its railway track and
ensure more safety.
Finally, the company has also been awarded a multi-year contract
extension in UK. The contract pertains to continuing the fleet
operation of its Stoneblowers on behalf of Network Rail by
mid-2015.
Management was quite excited regarding these wins by stating
that these are the outcomes of Harsco's long-lasting reputation,
which helped it in expanding its businesses globally. The Rail
segment generated revenues of $80 million in the second quarter of
2012, up 2.6% from the year-ago quarter and 17.6% sequentially. The
annual hike was attributable to ameliorated order booking, improved
bidding activity and equipment revenue growth occurring during the
quarter.
Harsco's perennial contract wins have become highly laudable
with time. Earlier this week, the company's Metals & Minerals
group declared extending its association with Tata Steel UK through
a multi-year agreement. The company will continue offering various
types of its services such as metal recovery, scrap management,
briquetting, slab handling, coke crushing and machine scarfing in
the facilities of Scunthorpe and Port Talbot. Under the contract,
Tata Steel Strip will collaborate with Long's businesses.
The company should always remain cautious of its peers in the
industry it belongs to. Big players to take note of in this regard
include
ThermoGenesis Corp.
(
KOOL
) and
SPX Corporation
(
SPW
).
The current Zacks Consensus Estimates for the third quarter of
2012 and for 2012 are 37 cents per share and $1.24 per share,
respectively. The company currently retains a Zacks #3 Rank, which
translates into a short-term 'Hold' rating. We also have a
long-term 'Neutral' recommendation on the company's stock.
HARSCO CORP (HSC): Free Stock Analysis Report
THERMOGENESIS (KOOL): Free Stock Analysis
Report
SPX CORP (SPW): Free Stock Analysis Report
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