This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Harsco Corporation Reports Fourth Quarter 2012 Results

Including a $265 million, non-cash goodwill impairment charge, GAAP operating loss from continuing operations was $247 million in the fourth quarter of 2012. This compares with a loss of $57 million in the prior-year quarter. Excluding special items, adjusted operating income from continuing operations increased 5 percent to $46 million in the quarter. Adjusted operating income margin increased 50 basis points to 6.1 percent. This performance primarily reflects the timing of equipment deliveries in Rail and benefits from the Company's cost reduction strategies. These factors were partially offset by lower results in Metals & Minerals. Foreign currency translation negatively impacted operating income by $2 million in the quarter.

Non-Cash Goodwill Impairment Charge

The Company recorded a $265 million, non-cash goodwill impairment charge related to the Infrastructure segment in the fourth quarter of 2012 as part of its annual goodwill impairment testing. While the business has demonstrated improved operating performance in the face of a prolonged market recovery, particularly in Europe, it was determined that a goodwill impairment charge was required at this time.

     
Table 1—Special Items Fourth Quarter Year
  2012 2011 2012 2011
GAAP diluted EPS from continuing operations  ($3.27)  ($1.14)  ($3.15)  ($0.12)
         
Goodwill impairment (a) 3.29   3.29  
Restructuring charges (b)  0.22  1.05  1.06  1.05
Charges to exit Metals contract (c) 0.07   0.07  
Gains associated with exited countries (d)      (0.10)  
Non-cash tax charge (e)   0.45   0.45
Former CEO separation expense (f)      0.04  
Gains on pension curtailment (g)      (0.02)  
One-time Rail benefit (h)        (0.07)
Adjusted diluted EPS from continuing operations $0.30 (i)  $0.36 $1.19  $1.31
 
(a) Non-cash goodwill impairment charge in Infrastructure (4Q 2012 $265.0 million pre-tax).
(b) Charges resulting from the Company's previously announced restructuring plans in Infrastructure (4Q 2012 $16.9 million pre-tax; 12 Months 2012 $88.6 million pre-tax; 4Q 2011 and 12 Months 2011 $87.6 million pre‑tax) and Metals & Minerals (4Q 2012 $4.0 million pre-tax; 12 Months 2012 $5.5 million pre-tax; 4Q and 12 Months 2011 $12.8 million pre-tax).
(c) Charges as a result of exiting an underperforming contract in Metals & Minerals (4Q 2012 $7.6 million pre-tax).
(d) Non-cash gains related to the closure of certain European operations in Infrastructure (12 Months 2012 $10.9 million pre-tax).
(e) Non-cash tax charge against U.K. deferred tax assets (4Q 2011 $36.8 million after-tax).
(f) Separation expense for former CEO (1Q 2012 $4.1 million pre-tax).
(g) Pension curtailment gain in Metals & Minerals (1Q 2012 $1.7 million pre-tax).
(h) Reduction of estimated costs related to the first phase of Rail's large China order (2Q 2011 $8.0 million pre‑tax).
(i) Does not total due to rounding.

Consolidated 2012 Results

Including the $3.29 per share goodwill impairment charge, GAAP diluted loss per share from continuing operations was $3.15 for the full year 2012, compared with a loss of $0.12 in 2011. Excluding special items, adjusted diluted earnings per share from continuing operations were $1.19 in 2012, compared with $1.31 in 2011, as noted above in Table 1.

2 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs