Previous Statements by HSC
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These statements relate to the future of our business, our operations, our results, economic expectations and other aspects relating to and affecting our business. What we say today is based on our best information available; it is possible that the results could differ from what we tell you today.We've listed in our SEC statements reasons and risk factors that affect our businesses and these could be the reasons for any difference that could occur. We invite you to review the SEC filings at your convenience. I would like to remind you that replays of this call and related information are available on our website. Please take the time to access this information at your convenience. Sal? Salvatore Fazzolari Thanks Gene. I will commence this morning with some brief comments and return the call over to Steve so he can give you some further color on the second quarter performance and then of course I will comment on the outlook and take your questions. So let’s start with a few opening comments. We continue to be pleased with the overall performance of our operations. In addition to achieving results above the upper hand of our previous guidance for the quarter our results as noted in the press release also benefited by an additional $8 million or $0.07 per share from the reduction of estimated cost related to the first phase of our large rail to the Ministry of Rail in China. I may add that the performance of our rail group on this first phase of the order has been truly exemplary. Also we were pleased with our overall revenue growth of 11%, which benefited from international footprint and the positive effects of foreign currency translation. We completed the first half of 2011 on a positive note and for the second time this year I’m pleased to say we have incrementally raised our earnings guidance.
I’m very pleased with the landmark agreement that we announced this morning after almost three years of a tremendous effort by the Harsco team we signed a 25-year environmental solutions contract with China’s TISCO, which marks the largest single contract in Harsco’s history. TISCO who is also our joint venture partner is one of the world’s premier and largest and best managed steel companies. A combination of this important relationship establishes a major new platform for our continuing global advancement as a knowledge based environmental solutions company. We are truly honored to join with TISCO as long-term partners on such a far reaching and environmentally beneficial enterprise.There are two phases to this agreement the first phase and the most immediate is the metal recovery portion of the contract that is estimated in excess of $500 million over 25-year period. This first phase paves the way for the second phase where the joint venture company will commercialize slag co-products in China for a range of projected agricultural and industrial uses. I will now turn the call over to Steve our CFO who will give you more details on our performance for the second quarter. Steve? Stephen Schnoor Thank you, Sal and good morning everyone. As reported in this morning’s press release we recorded earnings per share from continuing operations of $0.47 for the second quarter. The results exceeded second quarter 2010 earnings per share of $0.40 by 18%. Harsco Infrastructure and Harsco Rail improved upon prior year earnings while Harsco Industrials earnings approximated last year’s results. As expected Harsco Metals and Minerals operating income was below prior year results principally due to asset gains recorded in the second quarter of last year. Overall, results for the quarter included a change of estimated costs for completion of the first phase of the Ministry of Railways China rail order as Sal just mentioned. We do not anticipate any further significant changes in estimated cost as the first phase of the China Rail order is not completed. Read the rest of this transcript for free on seekingalpha.com