Company Records $265 Million Non-Cash Goodwill Impairment Charge Related to Infrastructure Segment Adjusted Operating Income Increases 5 Percent
CAMP HILL, Pa., Feb. 14, 2013 (GLOBE NEWSWIRE) -- Diversified global industrial company Harsco Corporation (NYSE:HSC) today reported fourth quarter 2012 results. Including a $3.29 per share non-cash goodwill impairment charge, fourth quarter 2012 U.S. GAAP ("GAAP") diluted loss per share from continuing operations was $3.27, compared with a loss of $1.14 in the fourth quarter of 2011. Excluding special items, adjusted diluted earnings per share from continuing operations were $0.30 in the fourth quarter of 2012, compared with $0.36 in the fourth quarter of 2011. (See Table 1 for a description of the special items and a reconciliation of GAAP and adjusted results).
CEO Comment"We are encouraged that, despite further deterioration in the metals markets in the quarter, we grew adjusted operating income 5 percent and delivered adjusted earnings per share at the mid-point of our guidance," said Harsco President and CEO Patrick Decker. "As we move forward, we expect to see continued volatility in our end markets and certain geographies. As a result, we will heighten our focus on the elements of our business we can control. Improving cash flow and cash returns through disciplined capital allocation and increased operational efficiency will remain a key priority." Consolidated Fourth Quarter Operating Results Total revenues were $766 million in the fourth quarter of 2012, compared with $793 million in the prior-year quarter. During the past year the Company took several actions to increase long-term returns and invest capital more effectively. Two of these were exiting underperforming contracts in Metals & Minerals and, as part of the previously announced restructuring plan, ceasing underperforming operations in certain countries in Infrastructure, which together accounted for nearly $30 million of the year-over-year revenue decline. This revenue performance also reflects an acceleration of equipment deliveries per customers' schedules in Rail, which was partially offset by lower volume in the metals and commercial construction markets. Foreign currency translation negatively impacted revenues by $8 million in the quarter.