Total revenues were $3.0 billion in 2012, compared with $3.3 billion in 2011. Exiting underperforming contracts in Metals & Minerals and ceasing operations in certain countries in Infrastructure accounted for $68 million and $61 million, respectively, of the year-over-year revenue decline. Foreign currency translation negatively impacted revenues by $123 million in 2012. This revenue performance also reflects lower volumes due to soft end markets in metals and commercial construction. In Rail, revenues grew 17 percent primarily due to the volume of equipment deliveries under the large order with the China Ministry of Railways, which is now nearing completion. Industrial revenues increased 15 percent, driven by strong energy markets early in 2012.

Including the $265 million non-cash goodwill impairment charge, GAAP operating loss from continuing operations was $175 million in 2012, compared with operating income from continuing operations of $88 million in 2011. Excluding special items, adjusted operating income from continuing operations increased 2 percent to $184 million in 2012 from $180 million in 2011. Adjusted operating income margin increased 50 basis points to 6.0 percent in 2012. This performance primarily reflects the benefits from the Company's cost reduction strategies and strong results in the Industrial and Rail groups. Foreign currency translation negatively impacted operating income by $10 million in 2012.

Fourth Quarter Business Review

Harsco Metals & Minerals

Revenues were $334 million in the fourth quarter of 2012, compared with $372 million in the prior-year quarter. Exiting certain underperforming contracts accounted for $15 million of the year-over-year revenue decline. This revenue performance also reflects lower volumes due to further softening in the global metals industry. Foreign currency translation negatively impacted revenues by $6 million in the quarter.

Excluding $4 million in restructuring charges and $8 million in charges as a result of exiting an underperforming contract, Metals & Minerals' adjusted operating income was $18 million in the fourth quarter of 2012. In the prior-year quarter, adjusted operating income was $28 million, which excluded $13 million in restructuring charges. Adjusted operating margin decreased 220 basis points to 5.2 percent in the quarter. This performance primarily reflects lower customer steel production.

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