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HARSCO CORPORATION REPORTS RECORD EARNINGS FOR SECOND CONSECUTIVE YEAR

HARSCO CORPORATION REPORTS RECORD EARNINGS FOR SECOND CONSECUTIVE YEAR
 HARRISBURG, Pa., Feb. 6 /PRNewswire/ -- Malcolm W. Gambill, chairman and chief executive officer, Harsco Corporation (NYSE: HSC) announced today that the company expects to report 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, is expected to be $76.5 million, exceeding the $72.5 million for the prior year. Earnings per share are expected to be $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.
 Continuing demand for the BMY Defense Group's tracked and wheeled vehicles together with further progress in operational efficiency and cost containment helped make the Group a key performer last year. On the other hand, further erosion in domestic steel production and commercial construction, continued to negatively affect the performance of the Industrial Services and Building Products Group. Engineered Products was also affected by the U.S. recession although the Group's growing international presence helped lessen the impact.
 Backlogs at the end of December 1991 were $1.23 billion as compared with the 1990 year-end level of $1.20 billion. Engineered Products had a backlog of $117 million compared with $142 million at the end of 1990. The backlog in Defense was $1.11 billion compared with the year-end 1990 level of $1.05 billion. An important difference in the Defense backlog is that less than half of the Dec. 31, 1990, backlog was expected to yield a profit, whereas more than 95 percent of the year-end 1991 backlog is expected to be profitable.
 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.
 Commenting on Harsco's preliminary results for 1991, Gambill noted "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 world-wide recession."
 Harsco Corporation is a diversified, international, industrial company headquartered in Camp Hill, Pa. The company's 12 divisions provide products and services for defense, industrial, commercial and construction applications from more than 280 facilities in 34 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
 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- 2/6/92
 /CONTACT: Herbert R. McIlvaine Jr. of Harsco, 717-763-7064/
 (HSC) CO: Harsco Corporation ST: Pennsylvania IN: ARO SU: ERN


LJ-JS -- PH023 -- 7751 02/06/92 13:00 EST
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