Harsco Corporation - Shareholder/Analyst Call

Harsco Corporation (HSC)

September 13, 2012 2:00 pm ET


Jim Jacobson - Director of Investor Relations

Henry W. Knueppel - Independent, Non-Executive Chairman of The Board

Patrick K. Decker - Chief Executive Officer and President


Brett L. Linzey - KeyBanc Capital Markets Inc., Research Division

R. Scott Graham - Jefferies & Company, Inc., Research Division

Glenn Wortman - Sidoti & Company, LLC

Timothy P. Hayes - Davenport & Company, LLC, Research Division



Good afternoon. My name is Melissa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Harsco's Corporation Introduction of its new CEO Conference Call. [Operator Instructions] After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Mr. Jim Jacobson, Director of Investor Relations, you may begin your conference.

Jim Jacobson

Thank you, Melissa, and good afternoon to everyone. I'd like to welcome everyone to our conference call to introduce Harsco's new President and Chief Executive Officer, Patrick Decker. Also joining us on this call is Henry Knueppel, Harsco's nonexecutive Chairman, who served as interim CEO for the past several months. We have a few brief prepared remarks, and then we will open the call to your questions. In total, we expect this call to last approximately 30 minutes.

As we do at the beginning of all of our calls, let me take care of a couple of administrative items. First, this call may include statements that are forward-looking within the meaning of federal securities laws. These statements may relate to the future of our business, our operations, results, economic expectations and other aspects pertaining to and affecting our businesses. Our statements today are based on our best information available at this time. It is possible our results could differ materially from those forward-looking statements. We have described the risk factors that may affect our businesses and results in certain of our SEC filings. We encourage you to review these documents. And lastly, this call is being webcast, and a replay of this call will be available on our website.

Now I'll turn the call to Henry.

Henry W. Knueppel

Thank you, Jim. It is with genuinely a great deal of pleasure that we introduce Patrick Decker as our new President and CEO and a member of the Board of Directors. Patrick is an incredibly strong business leader. Throughout the extensive interview process, we were thoroughly impressed with his leadership, his background and his accomplishments. And we could not be more excited than to have him join Harsco and our board.

Patrick comes to Harsco from Tyco International, where he led the Flow Control business for the last 5 years. The Flow Control business was one of Tyco's -- was Tyco's second-largest segment, generating approximately $3.6 billion in sales in 2011. Patrick led a very successful transformation of that business through a difficult economic period, and he and his team were able to create a substantial amount of value. Tyco's Flow Control business was set to be spun off as a standalone public company, and Patrick was slated to be its CEO.

When Pentair made its offer to acquire the Flow Control business, it was our good fortune in that Patrick became available to lead Harsco. In a few minutes, Patrick will discuss his background in more detail.

Now let me just briefly discuss the hiring process. The hiring process followed what are considered industry best practices. The search was led by Heidrick & Struggles, and specifically by their CEO search leaders. Heidrick presented us with outstanding candidates and in the end Patrick stood out, and he did so for many reasons. I'll cover only a couple of the main points.

First and simply stated, Patrick is a great fit. He came across on every attribute that we were looking for as being very strong, very capable and very ready. In particular, Patrick's strong leadership, his outstanding and demonstrated operational track record and his extensive global experience and his financial expertise were a very strong match for Harsco and set him apart.

Secondly, he has great integrity, energy and passion for improving businesses. In his role at Tyco, he inherited a segment that had a lot of disparate businesses which had been acquired over the years. He led the integration of those businesses into a coherent operating group that outperformed the market, and he did that by using the same kind of initiatives that we are undertaking.

I can assure you that he is dedicated to continuous improvement, people engagement and building business talent. So despite the challenges in our global end markets, we believe the future is extremely bright for Harsco, and we are extremely pleased and excited to have Patrick on board.

With that, I'll turn the call over to Patrick.

Patrick K. Decker

Thank you, Henry. I can truly say I'm honored and humbled by the opportunity the Board of Directors has given me to lead Harsco, and I'm very confident and excited about the opportunities we have to create additional and sustainable value in this company.

I'll discuss my background, the factors that attracted me to Harsco and my thoughts on our key focus areas, and then we'll be happy to take your questions. Let me start with my background. I grew up in Southern Indiana, and I graduated from Indiana University with a degree in accounting and finance. I started my career with Pricewaterhouse, then I spent roughly 12 years with Bristol-Myers Squibb. Eight of those years were spent living and working in operations in Latin America and Asia. And I can say that during that time, I came to better appreciate the unique opportunities and challenges of building successful businesses in many of the fast-growing and developing markets in the world. I also came to better appreciate the importance of having alignment around global strategy at all levels of the company, making sure you have the right resources and measurements in place and making sure you have the best team and people on the field to win in those important markets.

Read the rest of this transcript for free on seekingalpha.com

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