Engineered products maker Harsco Corp.'s (HSC), Thursday reported a surge in fourth quarter earnings, helped by lower expenses and the absence of a substantial charge recorded in the prior year quarter. Revenues for the quarter declined, hurt by weak sales from all its segments. The company reaffirmed its full year 2010 forecast, and provided first quarter earnings forecast.
Fourth-quarter net income attributable to company's common shareholders rose to $39.40 million or $0.49 per share from $13.74 million or $0.17 per share in the same quarter a year ago.
The prior year quarter included a restructuring charge of $0.28 per share, excluding which 2008 earnings would have been $0.46 per share.
Income from continuing operations was $41.78 million or $0.50 per share, compared to $13.71 million or $0.17 per share in the year-ago quarter.
On average, seven analysts polled by Thomson Reuters expected earnings of $0.44 per share for the quarter. Analysts' estimate typically excludes one-time items.
Total revenues dropped 8% to $772.49 million from $835.55 million in the year-ago quarter, missing Street estimates of $774.72 million.
Service revenues decreased to $651.12 million from $666.71 million, while product revenues dropped to $121.37 million from $168.84 million in the corresponding quarter last year.
Metal sales of Harsco increased 7% to $312 million, rail sales dropped slightly to $75 million from $79 million, and sales of Harso Minerals and Harso Industrial dropped to $99 million from $126 million in the year-earlier quarter.
Total costs and expenses were $717.79 million, down from $802.65 million in the corresponding quarter last year.
Harsco noted that even though foreign currency translation increased sales by about $54 million in the fourth quarter, a meaningful impact was not made on operating income. Operating income from continuing operations increased to $54.70 million from $32.90 million in the same quarter a year ago.
For full year 2009, net income attributable to Harsco common shareholders decreased to $118.78 million or $1.47 per share from $240.95 million or $2.87 per share a year ago. Income from continuing operations for year was $140.83 million or $1.66 per share. Total revenues declined to $2.99 billion from $3.97 billion in the prior year. The Street currently expects earnings of $1.73 per share on revenues of $2.99 billion for the year.
Looking ahead to the first quarter of 2010, Harsco anticipates earnings from continuing operations to be in a range of $0.05 to $0.10 per share. The Street currently expects earnings of $0.24 per share for the quarter.
The first quarter outlook includes around $8.0 million or $0.08 per share in restructuring costs to accelerate cost reduction initiatives in the Harsco Infrastructure Segment.
For full year 2010, the company maintained its earnings forecast in a range of $2.00 to $2.10 per share. The Street currently expect earnings of $2.07 per share for the year.
Seven analysts estimate earnings per share of $2.07 for the year.
The company also expects free cash flow in 2010 to again be in the area of $250 million.
HSC closed Wednesday's regular trading at $30.94, down $0.36 or 1.15%, on a volume of 0.82 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.