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HARSCO CORPORATION ANNOUNCES RECORD EARNINGS FOR THIRD CONSECUTIVE YEAR

 HARRISBURG, Pa., Feb. 8 /PRNewswire/ -- Malcolm W. Gambill, chairman and chief executive officer, Harsco Corporation (NYSE: HSC) announced today that the company expects to report record net income of $84.3 million for 1992 on sales of $1.6 billion.
 Earnings per share are expected to be $3.25 on 25,967,000 average shares outstanding compared to $2.91 per share earned on 26,278,000 average shares outstanding for 1991. These preliminary results include a one-time charge of $11.5 million ($7.2 million net of income taxes), $.27 per average share outstanding, for the effect of the adoption of Financial Accounting Standard No. 106, related to post-retirement benefits other than pensions. This accounting change will cause the first quarter 1992 income to be restated from a net income per average share outstanding of $.79, as reported, to $.52 on a restated basis.
 Continuing demand for the Defense Group's conventional wheeled and tracked vehicle products generated record operating profits and made this Group an exceptional performer for the second consecutive year. Despite the continuing recessionary climate in 1992, performance in Harsco's Industrial Services and Building Products Group and Engineered Products Group improved over 1991. Recovery in both domestic and international steel production, together with a stronger global demand for railway maintenance equipment, contributed to the improvement. However, the persistent weakness in domestic construction hurt performance in both Groups.
 Backlogs at the end of December 1992 were $739 million as compared with the 1991 year-end level of $1.23 billion. Engineered Products had a backlog of $120 million compared with $117 million at the end of 1991. A decline in five-ton truck orders resulted in a Defense backlog of $619 million compared with the year-end 1991 level of $1.1 billion.
 In commenting on Harsco's preliminary results for 1992, Gambill observed, "To have achieved these results amidst the economic downturn, that may be finally easing, is a credit to all of the men and women at Harsco. We expect 1993 to be a good year, and believe that the whole Harsco team is responding to the challenge of matching last year's record. A key factor in this endeavor will be the rate of recovery from the worldwide recession, as in the majority of our businesses we have yet to observe any meaningful signs of economic rebound. Our total sales will decline this year due primarily to the lower rate of military truck production. Sales may also decline should the pending defense business partnership with FMC Corporation be consummated, as our financial statements would then include only Harsco's 40 percent equity share of partnership earnings. However, we continue to pursue multiple initiatives for earnings growth through acquisitions, internal expansion and global extension that we believe will sustain the trend of improving performance for the long-term."
 Harsco Corporation is a diversified, international, industrial company headquartered in Camp Hill, Pa. The company's 11 divisions provide products and services for defense, industrial, commercial and construction applications from more than 260 facilities in 36 states and 12 foreign countries.
 HARSCO CORPORATION
 Consolidated Statements of Income
 (Unaudited; in thousands, except per-share amounts)
 Periods ended Three months 12 months
 Dec. 31 1992 1991 1992 1991
 Net sales $414,092 $586,265 $1,624,939 $1,943,083
 Operating expenses:
 Cost of sales 328,593 504,880 1,297,090 1,645,590
 Selling, administrative
 and general expenses 42,568 40,938 175,092 170,713
 Research and development 1,251 1,006 4,590 3,647
 Provision (credit) for
 facility discontinuances
 or disposals 3,588 1,169 445 1,664
 Total 376,000 547,993 1,477,217 1,821,614
 Profit from operations 38,092 38,272 147,722 121,469
 Other income (expense):
 Interest income 1,751 2,475 8,198 10,331
 Interest expense (3,769) (4,611) (18,882) (18,925)
 Equity in net income of
 unconsolidated companies 689 1,355 3,626 3,838
 Other, net (1,530) 974 (88) 2,934
 Total (2,859) 193 (7,146) (1,822)
 Income before provision
 for income taxes and
 cumulative effect of
 accounting change 35,233 38,465 140,576 119,647
 Provision for
 income taxes 10,083 11,207 49,060 43,104
 Income before cumulative
 effect of accounting
 change 25,150 27,258 91,516 76,543
 Cumulative effect of change
 in method of accounting
 for postretirement
 benefits other than
 pensions (net of income
 tax benefit of
 $4.3 million) --- --- (7,184) ---
 Net income $25,150 $27,258 $84,332 $76,543
 Average shares of common
 stock outstanding 25,564 26,285 25,967 26,278
 Earnings per common share:
 Income before cumulative
 effect of accounting
 change $.98 $1.03 $3.52 $2.91
 Cumulative effect of change
 in method of accounting
 for postretirement benefits
 other than pensions --- --- (.27) ---
 Net income per share $.98 $1.03 $3.25 $2.91
 Review of Operations by Group
 (Unaudited, in millions)
 Periods ended Three months 12 months
 Dec. 31 1992 1991 1992 1991
 Sales:
 Industrial services
 and building products $71.2 $88.0 $292.7 $353.7
 Engineered products 142.2 135.1 558.7 534.1
 Defense 200.7 363.2 773.5 1,055.3
 Total $414.1 $586.3 $1,624.9 $1,943.1
 Income before tax:
 Group operating profit:
 Industrial services
 and building products $6.0 $8.6 $35.6 $33.4
 Engineered products 14.7 5.9 43.4 38.0
 Defense 22.6 29.0 83.8 66.8
 Total group operating
 profit 43.3 43.5 162.8 138.2
 Equity in net income
 of unconsolidated
 companies .7 1.3 3.6 3.8
 Unallocated expenses (8.8) (6.3) (25.8) (22.4)
 Total pre-tax income 35.2 38.5 140.6 119.6
 /delval/
 -0- 2/8/93
 /CONTACT: Herbert R. McIlvaine Jr., director of Corporate Communications of Harsco, 717-763-7064/
 (HSC)


CO: Harsco Corporation ST: Pennsylvania IN: ARO SU: ERN

MP-MK -- PH006 -- 4068 02/08/93 11:33 EST
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