posted GAAP loss per share of $3.27 in the fourth quarter versus
a loss of $1.14 in the year ago quarter. Adjusted earnings per
share (EPS) were 30 cents in the quarter compared with 36 cents
in the year-ago quarter. Adjusted EPS missed the Zacks Consensus
Estimate by 3.2%.
For 2012, GAAP loss per share was $3.15 per share versus a
loss of 12 cents per share. Adjusted (EPS) was $1.19 compared
with $1.31 in the year ago quarter. Adjusted EPS missed the Zacks
Consensus Estimate by 1.7%.
Revenues in the quarter amounted to $766 million, down 3.3%
year over year. Reported revenues were ahead of the Zacks
Consensus Estimate of $745 million. The year-over-year decline in
revenues was due to the termination of agreements in the Metals
& Minerals segment and discontinuation of Infrastructure
segment's operations in various countries. The foreign currency
translation also reduced sales in the reported quarter. In
addition, revenue was also adversely impacted by the weak metals
and commercial construction markets.
For 2012, revenues were $3.0 billion down 7.8% compared with
$3.3 billion in the year ago period.
On a segmental basis, Metals & Minerals generated revenues
of $334 million in the quarter, down 10.2% from the year-earlier
quarter. The year-over-year drop in the segment's sales was
attributed to the closing of certain under performing agreements,
foreign currency translation and lower volume owing to the
clouded metal market.
Revenues from the Infrastructure segment came in at $235
million, down 11.5% from the year-earlier quarter, primarily
owing to the closing of operations in several countries and
foreign currency translation. Additionally, the weak commercial
construction markets and soft end-market for industrial
maintenance services in the North America and Europe regions also
impacted the segment's sales during the quarter.
The Rail segment generated revenues of $113 million versus $72
million the year-ago quarter. The hike was attributable to high
equipment delivery in China, offset by lower volume for
replacement parts and contract services.
Revenues from the Industrial segment were $84 million, up 1.5%
year over year, driven by strong energy markets.
In terms of business mix, Service revenues were $571.6 million
versus $640.7 million in the year-earlier quarter. Product
revenues improved to $194.7 million from $151.9 million in the
GAAP operating loss was $247 million in the reported quarter
versus a loss of $57 million in the year-ago quarter hurt by
lower results in Metals & Minerals and the unfavorable impact
of the foreign currency translation. Adjusted operating income
margin increased 50 basis points to 6.1%.
Balance Sheet and Cash Flow
Harsco ended Dec 31, 2012 with cash and cash equivalents of $
95.2 million, down from $121.1 in the year-ago period. As of Dec
31, 2012, long-term debt stood at $957.4 million, increasing from
$853.8 million in the year-ago period.
As of Dec 31, 2012, net cash provided by operating activities
was recorded at $198.8 million compared with $298.7 million in
the year-ago period
Management expects earnings per share from continuing
operations to range from break even to 5 cents per share in the
first quarter of 2013.
Metals & Minerals' revenue in the first quarter is
expected to be approximately 6% to 8% lower than the prior-year
quarter. Management expects steel production to decrease going
forward based on the clouded economic conditions. Going forward,
the company forecasts continued volatility in its end markets and
Harsco anticipates that its Rail business will witness a
decline in its operating performance in the coming quarter on the
back of unfavorable equipment delivery, while the company's
Industrial segment and infrastructure revenues are likely to be
in line with the year-ago quarter.
Headquartered in Penn, Harsco Corporation is a diversified,
multinational provider of market-leading industrial services and
engineered products. However, the company operates in an
intensely competitive landscape that includes big players such as
Companhia Siderurgica Nacional
). Harsco Corp currently has a Zacks Rank #4 (Sell). One of its
Commercials Metals Company
) carries a Zacks Rank #2 (Buy).
COMMERCIAL METL (CMC): Free Stock Analysis
HARSCO CORP (HSC): Free Stock Analysis Report
(PKS): ETF Research Reports
CIA SIDERUR-ADR (SID): Free Stock Analysis
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