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HARSCO CORPORATION ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS FOR 1991

 HARSCO CORPORATION ANNOUNCES FOURTH QUARTER
 AND YEAR-END RESULTS FOR 1991
 Harsco Confirms Its Results Previously Announced On Feb. 6, 1992
 HARRISBURG, Pa., Feb. 20 /PRNewswire/ -- Malcolm W. Gambill, chairman and chief executive officer of Harsco Corporation (NYSE: HSC), announced today the company had record sales for 1991 of $1.9 billion compared to the $1.8 billion for the year 1990.
 Net income, also at a record level, was $76.5 million, exceeding the $72.5 million for the prior year. Earnings per share were $2.91 on 26,278,000 average shares outstanding as compared with the $2.77 per share earned on 26,217,000 average shares outstanding in 1990.
 For the fourth quarter, sales of $586.3 million were 16 percent ahead of the $505.4 million recorded for the same period in 1990. Net income was $27.3 million, 40 percent above the $19.4 million recorded for the preceding year's fourth quarter. Earnings per share for 1991's fourth quarter were $1.03 on 26,285,000 average shares outstanding compared to the $.75 on 26,221,000 average shares outstanding earned for the same period in 1990.
 Fourth quarter results were favorably affected by unusually high sales in the Defense Group, almost all of which were recorded on a profitable basis, and improved cost to complete estimates on several contracts which resulted in an increased profit level. This more than offset the unfavorable effect of abnormally high charges for product liability and workmen's compensation insurance costs during the fourth quarter.
 For the year 1991, the Industrial Services and Building Products Group recorded sales of $353.7 million, 10 percent below last year's performance, reflecting the adverse impact of low levels of production in the domestic steel industry and the stagnant U.S. construction market. Also contributing to the decrease in sales was the divestiture of a division in the first quarter of 1990. Engineered Products had sales of $534.1 million, slightly below last year's sales for the comparable period. Revenues in the Defense Group were $1.1 billion, a 30 percent increase over 1990, due principally to increased sales of five-ton trucks.
 Operating profit for the year for the Industrial Services and Building Products Group was significantly below the comparable period last year. The decrease reflects market weaknesses for products in the Group as discussed above, as well as the inclusion in 1990 of a gain on the sale of a division. Operating profit for the Engineered Products Group in 1991 was also significantly below last year's performance, reflecting market weaknesses for gas control and containment equipment and pipe fitting products, as well as the unfavorable impact of abnormally high product liability and workmen's compensation insurance costs. The company's Defense Group showed substantial improvement in operating profit due principally to the profit on the five-ton truck program. The Defense Group also benefitted from higher levels of profits on sales of tracked vehicles.
 In summarizing the 1991 performance, Gambill stated, "Excluding the effects of any possible resolution of legal issues, the Defense Group's earnings for 1992 could approximate the 1991 earnings. The industrial products and services operations are poised to benefit from any recovery from the current recession. We believe that Harsco will have another good year in 1992, but the degree of success will depend largely upon the rate of recovery from the worldwide recession."
 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 271 facilities in 32 states and 14 countries.
 HARSCO CORPORATION
 Consolidated Statements of Income
 (Unaudited; in thousands, except per-share amounts)
 Periods ended Three months 12 months
 Dec. 31 1991 1990 1991 1990
 Net sales $586,265 $505,378 $1,943,083 $1,759,507
 Operating expenses:
 Cost of sales 504,880 426,906 1,645,590 1,464,048
 Selling, administrative
 and general expenses 40,938 50,123 170,713 174,590
 Research and development 1,006 779 3,647 3,502
 Provision (credit) for
 facility discontinuances
 or disposals 1,169 (677) 1,664 (4,471)
 Total 547,993 477,131 1,821,614 1,637,669
 Profit from operations 38,272 28,247 121,469 121,838
 Other income (expense):
 Interest income 2,475 1,900 10,331 7,229
 Interest expense (4,611) (4,618) (18,925) (17,506)
 Equity in net income
 (loss) of unconsolidated
 companies 1,355 139 3,838 (360)
 Other, net 974 (16) 2,934 4,386
 Total 193 (2,595) (1,822) (6,251)
 Income before provision
 for income taxes 38,465 25,652 119,647 115,587
 Provision for
 income taxes 11,207 6,216 43,104 43,083
 Net income 27,258 19,436 76,543 72,504
 Average shares of common
 stock outstanding 26,285 26,221 26,278 26,217
 Net income per share $1.03 $.75 $2.91 $2.77
 Notes:
 -- The fourth quarters of 1991 and 1990 reflect after tax LIFO income of $1.4 million and $3.4 million, respectively, representing final determination of price changes and liquidations of inventories which occurred during the year.
 -- The fourth quarters of 1991 and 1990 reflect a reduction in income taxes of $2.6 million and $3.3 million, respectively, resulting from a final determination of income taxes to be provided for the year.
 Review of Operations by Group
 (Unaudited, in millions)
 Periods ended Three months 12 months
 Dec. 31 1991 1990 1991 1990
 Sales:
 Industrial services
 and building products $88.0 $86.6 $353.7 $395.0
 Engineered products 135.1 143.5 534.1 551.6
 Defense 363.2 275.3 1,055.3 812.9
 Total 586.3 505.4 1,943.1 1,759.5
 Income before tax:
 Group operating profit:
 Industrial services
 and building products $8.6 $7.2 $33.4 $52.7
 Engineered products 5.9 15.6 38.0 53.6
 Defense 29.0 10.7 66.8 32.0
 Total group operating
 profit 43.5 33.5 138.2 138.3
 Equity in net income
 (loss) of unconsolidated
 companies 1.3 .1 3.8 (.4)
 Unallocated expenses (6.4) (7.9) (22.4) (22.3)
 Total pre-tax income 38.4 25.7 119.6 115.6
 /delval/
 -0- 2/20/92
 /CONTACT: Herbert R. McIlvaine Jr. of Harsco, 717-763-7064/
 (HSC) CO: Harsco Corporation ST: Pennsylvania IN: ARO SU: ERN


KA-LJ -- PH023 -- 1073 02/20/92 15:49 EST
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Date:Feb 20, 1992
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