Harsco Profits Sink On Weak Construction Market

HARRISBURG (AP) — Industrial service provider Harsco Corp. reported a steep drop in profit for the first quarter Thursday as the global financial crisis continued to erode construction projects and push steel production to historic lows.

Citing those difficulties, along with unfavorable currency exchange rates, the company slashed its full-year earnings guidance, sending shares lower in afternoon trading.

The company reported a first-quarter profit of $18.6 million, or 25 cents per share, down from $57 million, or 67 cents per share, in the same period last year. Revenue sank to $697 million from $988 million.

Analysts polled by Thomson Reuters were looking for 19 cents per share on revenue of $786 million.

The company said the strengthening dollar lowered income by $14 million, or 13 cents per share, during the period.

Based on difficult headwinds facing the company, management lowered its 2009 earnings guidance to between $1.90 and $2.10 per share, compared with a range between $2.80 and $3.