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HARSCO CORPORATION REPORTS RECORD NET INCOME ON DECREASED SALES FOR FIRST QUARTER

 HARRISBURG, Pa., April 27 /PRNewswire/ -- Malcolm W. Gambill, Chairman and Chief Executive Officer of Harsco Corporation (NYSE: HSC) today announced that the Company achieved record first quarter net income and earnings per share, materially assisted by an accounting change and a gain on the sale of an investment. Net income was $31.0 million versus $13.6 million for the first quarter of 1992. Earnings per share were $1.22 on 25,324,000 average shares outstanding, as compared with $.52, restated, on 26,346,000 average shares outstanding for the similar period in 1992.
 The Company adopted, effective January 1, 1993, Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes," which increased net income by $6.8 million ($.27 per share). Results for the first quarter of 1992 were restated to reflect the adoption, retroactive to January 1, 1992, of Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions", which had the effect of decreasing first quarter 1992 after-tax income by $7.2 million ($.27 per share). In the first quarter of 1993, the Company also realized an after-tax gain of $5.4 million ($.21 per share) on the partial sale of an equity investment, which it purchased several years ago.
 Sales for the first quarter were $345.8 million, compared with the $408.1 million recorded in the same period in 1992, principally due to the planned lower production rate of five-ton trucks.
 Sales in the Industrial Services and Building Products Group, at $66.9 million, were below those for the comparable period in 1992, due principally to the divestiture of an unprofitable division during the first quarter of 1992. Sales for the Engineered Products Group, at $136.0 million, were slightly ahead of 1992's first quarter, reflecting higher volume in railway maintenance equipment from an acquisition made in 1992. Sales for the Defense Group, at $142.9 million, were below the level for the prior year's similar period, mirroring the continued phasing down of the five-ton truck business.
 Operating profit for the Industrial Services and Building Products Group, at $6.1 million, was below that for the comparable period in 1992 due to reduced earnings from metal reclamation and specialized steel mill services, caused by lower production levels at some European locations, as well as harsh weather conditions which adversely affected production and shipments at several North American locations. However, following the slow start early in the quarter, this business returned to expected levels of performance for the month of March. Results for 1992 included a gain on the sale of an unprofitable division. The Engineered Products Group posted an operating profit of $7.7 million, well below the prior year, due primarily to sluggish market conditions, particularly in our European operations. Results for 1992 included a modest profit on the sale of a marginal product line. The Defense Group posted an operating profit of $20.0 million, well above 1992's first quarter, due to enhanced margins on contracts at BMY-Combat Systems and, to a lesser extent, enhanced margins on five-ton trucks and settlement of a minor claim on the M9 ACE contract with the U.S. Government.
 Commenting on the outlook for the remainder of 1993, Mr. Gambill stated, "We expect 1993 to be a solid year, and net income could approximate last year's record, excluding any effect of the pending defense business partnership with FMC Corporation. However, it is likely that net income before the effect of accounting changes will be lower than in 1992. For 1994 and beyond, we see the prospect of steady growth in net income from 1993's level, excluding the effect of any accounting changes. A key factor 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 will also decline should the pending defense business partnership with FMC Corporation be consummated, as our statement of income would then include Harsco's 40% equity share of partnership earnings but none of the sales. All of our Divisions are poised to benefit from an economic turnaround. Higher appropriations for public infrastructure projects would have a positive impact on some product lines. We continue to pursue multiple initiatives for earnings growth through acquisitions, internal expansion and global reach that we believe will sustain the trend of improving performance for the long- term."
 Harsco Corporation is a diversified industrial manufacturing and service company headquartered in Camp Hill, Pennsylvania. Harsco's 11 divisions provide products and services for defense, industrial, commercial and construction applications from over 100 major facilities in the United States and 12 foreign countries.
 HARSCO CORP.
 Consolidated Statements of Income
 (Unaudited; in thousands, except per-share amounts)
 Periods ended Three months
 March 31 1993 1992
 Net sales $345,804 $408,141
 Operating expenses:
 Cost of sales 273,562 330,860
 Selling, administrative
 and general expenses 39,616 44,368
 Research and development 1,458 1,156
 Expense (income) for facility
 discontinuances or disposals (137) (3,598)
 Total 314,499 372,786
 Profit from operations 31,305 35,355
 Other income (expense):
 Interest income 1,943 2,591
 Interest expense (2,940) (5,053)
 Equity in net income of
 unconsolidated companies 899 1,115
 Gain on sale of investment 8,971 ---
 Other, net 767 70
 Total 9,640 (1,277)
 Income before provision for income taxes
 and cumulative effect of accounting
 changes 40,945 34,078
 Provision for income taxes 16,788 13,264
 Income before cumulative effect of
 accounting changes 24,157 20,814
 Cumulative effect of accounting changes:
 Accounting for postretirement benefits
 other than pension --- (7,184)
 Accounting for income taxes 6,802 ---
 Net income $30,959 $13,630
 Average shares of common
 stock outstanding 25,324 26,346
 Earnings per common share:
 Income before cumulative effect of
 accounting changes $.95 $.79
 Cumulative effect of changes in
 accounting .27 (.27)
 Net income per share 1.22 .52
 Cash dividend declared per share .35 .33
 Note: 1992 was restated to reflect the adoption of SFAS 106 for postretirement benefits.
 Review of Operations by Group
 (Unaudited, in millions)
 Three months ended March 31 1993 1992
 Sales:
 Industrial services
 and building products $66.9 $ 75.6
 Engineered products 136.0 133.9
 Defense 142.9 198.6
 Total $345.8 $408.1
 Income before tax:
 Group operating profit:
 Industrial services
 and building products $6.1 $ 9.4
 Engineered products 7.7 12.9
 Defense 20.0 15.8
 Total group operating profit 33.8 38.1
 Equity in net income of unconsolidated
 companies .9 1.1
 Gain on sale of investment 9.0 ---
 Unallocated expenses (2.8) (5.1)
 Total pre-tax income 40.9 34.1
 /delval/
 -0- 4/27/93
 /CONTACT: Demi Hetrick, investor relations of Harsco, 717-763-7064/
 (HSC)


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

MJ-LJ -- PH009 -- 1305 04/27/93 11:26 EDT
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