Previous Statements by HSC
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On this page you will see our safe harbor statement. I just want to make sure some special important information regarding forward looking statements and estimates that we will be presenting today. Little bit of our overview of Harsco Corporation. We are a $3.3 billion industrial services business, serving over 50 countries globally. We operate through four business groups, four business segments, the largest of which is the metals and minerals segment.The metals and minerals segment is the largest outsourced supplier service provider to the global metals industries. And we do that in over 30 countries. We’d like to say our services are focused on reducing the environmental impact of the waste streams produced by the metals industries. We do that in several ways. Waste streams such as slag produced by the steel making process contain metallics which we recover, so it’s a resource recovery. The remaining slag components we convert into beneficial use products such as fertilizer, aggregates for road building, as well as concrete. We also – we are in the environmental solutions and we also provide other services such as logistics and material handling such as scrap management as well. We operate in about 160 mill sites throughout the globe. There are a total of about 600 mill sites in the globe. About 400 of those 600 are considered our target market. Within the 160 mill sites that we operate we are about 40% penetration with our services. So as you can see, between the number of mill sites in our targeted market, as well as service penetration within our current mill sites, we have substantial market opportunity for growth. This business, metals and minerals business also includes the minerals side of the business which in addition to resource recovery from stainless steel mills, also produces other beneficial products from waste streams such as roofing granules and aggregates, not aggregates, but abrasives for use in the infrastructure refurbishment industry.
Second largest group the Harsco infrastructure group, this service is the global civil infrastructure industry as well as the industrial maintenance industry, and non-residential construction. Once again global, throughout the globe, we provide highly engineered hybrid forming. We provide scaffolding, shoring, which is a form of concrete forming as well but also services such as erection and dismantling services, project management and most importantly, upfront engineering for the major complex civil infrastructure projects.The third group is our rail group. Rail group, we provide comprehensive line of rail equipment, rail track and maintenance equipment throughout the globe. And we also provide repair parts for that equipment as well as services throughout the globe. Industrial group is energy focused group providing air-cooled heat exchangers to the natural gas industry as an example. Grating, industrial grating provided for such applications as offshore drilling platforms, and lastly, we provide industrial boilers and heaters to the non-residential construction industry and to commercial and educational institutions. All these products as you can see are related to the global infrastructure. So you can see as we maintain the global infrastructure and help grow the global infrastructure, so as population grows for example, our services and products will be in greater demand. Little bit more about the metals and minerals business, as most of you probably know right now the end market conditions are somewhat challenging. But we are doing a lot to improve this business. Some evidence of the improvements can be seen in the operating margins which we achieved in second quarter which were 8.7%, higher than they were last year, and the highest actually since the third quarter of 2010. So we are getting some leverage from lot of the actions we have taken over the last two or three years. But some of those ongoing strategies that helped us with the improved margins include exiting lower return contracts whereby we are not making what we consider as satisfactory returns, and focusing more on environmental solution type projects which should give us the higher returns. Read the rest of this transcript for free on seekingalpha.com