Harsco Reaffirms Confidence in Company's 5-Year Growth Plan at Annual Analysts Conference

Published on Friday, 09 December 2011 08:12 Written by TradersHuddle Staff

Company Provides Initial EPS Guidance for 2012, Up 23% Over 2011 Mid-Point, Excluding Restructuring Charges

Company Also Announces Plans for Stock Repurchases

CAMP HILL, Pa., Dec. 9, 2011 (GLOBE NEWSWIRE) -- Addressing the investment community at the Company's Annual Analysts Conference in New York City, Harsco Corporation (NYSE:HSC) Chairman, President and Chief Executive Officer Salvatore D. Fazzolari today reaffirmed the Company's confidence in its key growth strategies and ongoing business transformation.

Mr. Fazzolari told analysts that the Company is well-positioned for earnings growth and improved Economic Value Added (EVA) performance in 2012, excluding restructuring charges, having made measurable progress in its objectives for a significantly lower cost structure and increased operating leverage in its businesses. Mr. Fazzolari noted also that the Company achieved a record year in new contract awards and strategic alliances during 2011.

Joining Mr. Fazzolari in detailing the Company's growth expectations and strategies were Galdino Claro, Executive VP and Group CEO, Harsco Metals & Minerals; Ivor Harrington, Executive VP and Group CEO, Harsco Infrastructure; Scott Jacoby, VP and Group President, Harsco Rail; Scott Gerson, VP and Group President, Harsco Industrial; Stephen Schnoor, Senior VP, CFO and Treasurer; and Eugene Truett, VP-Investor Relations and Credit.

Reviewing the ongoing transformation of its Harsco Infrastructure and Harsco Metals & Minerals business groups and anticipated headwinds from the European economy and expected higher pension costs, the Company announced it would be taking a 2011/2012 restructuring charge of approximately $200 million pre-tax beginning in the fourth quarter of 2011 and continuing into 2012. Approximately $112 million of the charge will be non-cash. The restructuring actions include further streamlining its European presence to align with market conditions, exiting under-performing locations and rationalizing its worldwide asset base. The 2012 savings are expected to be approximately $36 million, with full annualized savings estimated in the area of $65 million beginning in 2013.

Mr. Schnoor provided the Company's initial guidance for 2012 earnings from continuing operations in the range of $1.55 to $1.70 per diluted share, excluding restructuring charges, which at the midpoint of $1.62 represents a 23 percent improvement from the Company's previously-announced 2011 EPS guidance of $1.30 to $1.35.

In addition, Mr. Fazzolari announced the Company's intent to begin the repurchase of an undetermined number of shares of the Company's common stock under its previously approved two million share repurchase authorization, which remains in effect until January 31, 2013. The Company said the repurchases will be made in open market transactions at times and amounts as management deems appropriate depending on market conditions, and that any repurchase may commence or be discontinued at any time.

A webcast of the meeting, including the synchronized presentation slides, can be accessed through the Harsco Corporation website at www.harsco.com.

Forward Looking Statements

This news release contains forward-looking statements based on management's current expectations, estimates and projections.  All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements.  Some of the forward-looking statements may be identified by words like "may," "could," "believes," "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions.  These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions.  Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission ("SEC") by Harsco, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the worldwide business environment in which the Company operates, including general economic conditions; changes in currency exchange rates, interest rates, commodity and fuel costs and capital costs; changes in the performance of the stock and bond markets that could affect, among other things, the valuation of the assets in the Company's pension plans and the accounting for pension assets, liabilities and expenses; changes in governmental laws and regulations, including environmental, tax and import tariff standards; market and competitive changes, including pricing pressures, market demand and acceptance for new products, services, and technologies; unforeseen business disruptions in one or more of the many countries in which the Company operates due to political instability, civil disobedience, armed hostilities, public health issues or other calamities; the seasonal nature of the business; the Company's ability to successfully enter into new contracts and complete new acquisitions or joint ventures in the timeframe contemplated or at all; the integration of the Company's strategic acquisitions;  the amount and timing of repurchases of the Company's common stock, if any;  the recent global financial and credit crisis and economic conditions generally, which could result in the Company's customers curtailing development projects, construction, production and capital expenditures, which, in turn, could reduce the demand for the Company's products and services and, accordingly, the Company's sales, margins and profitability; the outcome of any disputes with customers; the financial condition of the Company's customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability; the Company's ability to successfully implement cost-reduction initiatives and receive the expected benefits of cost reduction and restructuring initiatives, including the achievement of expected cost savings in the expected timeframe; risk and uncertainty associated with intangible assets, and other risk factors listed from time to time in the Company's SEC reports.  The Company undertakes no duty to update forward-looking statements.

About Harsco

Harsco Corporation is a diversified global company serving major industries that are fundamental to worldwide infrastructure development and economic growth. Harsco's common stock is a component of the S&P MidCap 400 Index and the Russell 1000 Index. Additional information can be found at www.harsco.com.

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