Recently announced, Zeeland Refinery N.V. renewed its contract
) with an award of nearly $30 million pertaining to a total time
period of five years. Harsco will provide its 24/7 onsite access
and insulation services to the oil refinery plant.
As per the agreement, Harsco shall cater to mainly offering its
plant repair and insulation management solutions. However, it's
scaffolding solution services shall also provide for flexible work
environments along with the regular insulation controlling
Management expressed its alacrity on the venture by stating that
Harsco has earned a reputation for developing quite a safe working
environment at such plants with its credible supplier status. This
renowned goodwill of the firm evidently leads to the interminable
spree of prestigious contract wins and extensions.
It is, however, noteworthy that the company's Infrastructure
segment failed to impress us with its performance in the first
quarter of 2012. Bearing onuses from the weakened UK economy, sales
dropped 9% annually and slid to $238 million at the end of the
quarter. Operating margin also deteriorated heavily due to the
weakened European market. We can, nevertheless, be hopeful of a
better upcoming quarter for the segment with the panegyrics of such
contract wins highlighting the present scenario.
Various restructuring activities are being undertaken by
management to ameliorate yields. Moreover, several product
innovation strategies and market expansion advances allow the
company to be perspicacious of a strong performance from the
Infrastructure segment in its upcoming second quarter of 2012.
Harsco, however, should be wary of some big players in the
industry it pertains to. Ominous rivals in this regard include
W.W. Grainger, Inc.
TMS International Corporation
The company currently retains a Zacks #4 Rank, which translates
into a short-term 'Sell' rating. We also have an 'Underperform'
recommendation on the company's stock.
(ARGKF): ETF Research Reports
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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