Worldwide industrial solutions company Harsco Corporation has announced third quarter 2011 results from continuing operations.
Third quarter 2011 diluted earnings per share from continuing operations were USD 0.40 as compared with USD 0.26 per share in the third quarter of last year. Income from continuing operations was USD 32.4 million as compared with USD 21.8 million in the third quarter of 2010. Sales increased by 14% in the quarter to USD 856 million, from USD 752 million in last year's third quarter. Foreign currency translation increased sales by approximately USD 28 million and operating income by approximately USD 1.4 million as compared with the third quarter of last year.
For the first nine months of 2011, diluted earnings per share from continuing operations were USD 1.02 as compared with USD 0.76 per share in the first nine months of 2010. Income from continuing operations was USD 85.2 million as compared with USD 65.8 million in the first nine months of last year. Sales increased by 10% to USD 2.5 billion from USD 2.3 billion in last year's first nine months. Foreign currency translation increased sales by approximately USD 109 million and increased operating income by approximately USD 4.2 million, compared with the first nine months of 2011.
Mr Salvatore D Fazzolari chairman, president & CEO of Harsco said that "Results for the third quarter were within the range of our previous guidance and events generally unfolded as expected, except for end market conditions in the UK for our Harsco Infrastructure business, which deteriorated more significantly than we anticipated. In addition, we incurred certain other headwinds in the third quarter, principally net exit costs of approximately USD 2.6 million in the Metals & Minerals business and higher LIFO costs in excess of USD 1 million in the Rail business, which lowered overall results for the third quarter. As expected, cash flow from operations improved significantly in the third quarter and was more than double the level of the second quarter of this year. Historically, we generate higher levels of operating cash flow in the second half of the year, compared with the first half. In regard to the use of these cash flows, it continues to be our intention to take a balanced approach."
He added that "Our balance sheet remains in the best shape it has been in more than a decade. There are no long-term debt maturities until late 2013 and over ninety percent of our debt has a fixed interest rate. We are seeing a challenging macroeconomic environment across many of our key end-markets, particularly in Western Europe. In addition, we expect the sale of certain machines in our Rail business to shift from the fourth quarter of 2011 to the first quarter of 2012. Thus, it remains prudent for us to be cautious as we conclude the year. As such, we are adjusting our full year 2011 guidance from a range of USD 1.35 to USD 1.45 to a new range of USD 1.30 to USD 1.35. This implies an outlook for the fourth quarter of 2011 for earnings per share from continuing operations in the range of USD 0.28 to USD 0.33, which compares with USD 0.15 in the fourth quarter of last year, excluding the restructuring charge."
