On Tuesday,
Harsco Corporation
(
HSC
) declared that it has won railway track maintenance equipment
orders from South Korea, China and the UK. Valued at over $20
million, these orders are expected to be ready for delivery by the
beginning of 2014.
The South Korean order came from Sampyo Engineering &
Construction, part of Sampyo Group. The rail grinder equipment
desired by the company shall cater to the track maintenance of the
Korea Train Express Line connecting Osong, Gwangju and Mokpo. This
new line is due for completion in 2015.
The Chinese order was from Ningbo Rail Transit Group Co. Ltd. to
provide its first 30-stone grinders which would ameliorate the
operational efficiency and output of the machines. This contract
marks the entry of Harsco in Ningbo, the sea-port city of the
Chinese Zhejiang province.
Orders pouring in from the UK are not a new venture as the
company has been dealing with the United Kingdom for ten years now.
These grinder orders are nothing but an extension of their previous
ties to proliferate the supply of railway maintenance equipment
across the entire region.
The global reputation and unblemished goodwill of Harsco helped
it earn several multi-million dollar contracts over time. The last
one was awarded by Alfa Acclai Group during the second week of
March this year to provide steel mill services worth $55
million.
Harsco's Rail segment has posted healthy results in the last
quarter of 2011. While revenues surged 38% year over year to reach
$82 million, operating margin increased to around 23% from 16% in
the prior-year period.
The company averred that the strong results were primarily
attributable to better shipment orders and high volume sales during
the quarter. In addition, the various restructuring activities
implemented by Harsco coupled with order wins make the company
upbeat about yet another robust upcoming quarter in 2012.
However, Harsco's competitors are no less progressive when it
comes to achieving contract wins. On March 1, 2012,
TMS International Corp.
(
TMS
) declared that it has been awarded two steel mill service
contracts of nearly $179 million.
We continue to maintain a long-term 'Neutral' recommendation on
Harsco. Also, the company carries a Zacks #3 Rank, which translates
into a short-term rating of 'Hold'.
HARSCO CORP (
HSC
): Free Stock Analysis Report
TMS INTL CP-A (
TMS
): Free Stock Analysis Report
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