Earlier this week,
) declared the winning of a prime contract for providing rental
scaffolding and formwork system supplies to the major expansion
project at the Minera Donya Ines de Collahuasi SCM mine located in
Chile. The award, prestigious as it is, also ossifies Harsco's
position towards becoming a strong service provider to the mining
According to the agreement, Harsco will seamlessly deploy its
engineered forming systems along with its scaffolding solutions to
the copper manufacturing site. This will facilitate pouring
cast-in-place concrete of around 13,000 cubic yards along with
other construction crew management services such as work-at-height
Management appeared ebullient not only on winning this momentous
contract but for other reasons too. This venture shall provide
Harsco with the opportunity to solidify ties in the mining sector
which till date has not been one of its niche industries to deal
in. Thus, the award shall allow for market proliferation and open
up new avenues for major business expansion across industries.
We observed a poor performance from Harsco's Infrastructure segment
in its first quarter results of 2012 which were reported by the
company on May 2, 2012. Demand trend deteriorated heavily to post a
9% annual decline in revenues reaching $238 million at the end of
the quarter. Hopefully the situation would ameliorate now with the
recent turn of events in this segment.
The company should always remain cautious of peers in the industry
it pertains to. Big players to take note of in this regard include
Hudson Technologies, Inc.
TMS International Corporation
The current Zacks Consensus Estimates for the second quarter of
2012 and for fiscal 2012 are 35 cents per share and $1.35 per
share, respectively. Harsco currently retains a Zacks #5 Rank,
which translates into a short-term 'Strong Sell' rating. We also
have an 'Underperform' recommendation on the company's stock.
(HDSN): ETF Research Reports
HARSCO CORP (HSC): Free Stock Analysis Report
SCANSOURCE INC (SCSC): Free Stock Analysis
TMS INTL CP-A (TMS): Free Stock Analysis Report
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