Harsco Profits Sink On Weak Construction Market

Chief Executive Salvatore Fazzolari said the reduction was necessary in light of the exchange rates, unprecedented weakness in the steel market and the credit freeze.

"It is difficult to see any short-term improvement in these drivers of our business," said Fazzolari. "It now appears that the entire year will be extremely challenging."

Fazzolari said the company will try and increase its cost-saving measures for the year to $100 million from $50 million.

For the second quarter the company expects earnings per share between 40 cents and 50 cents. That is well below the 58 cents per share expected by analysts polled by Thomson Reuters.

Harsco's shares fell 69 cents, or 2.6 percent, to $26.14 in afternoon trading.