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HARSCO REPORTS RECORD INCOME FOR FIRST HALF

 HARSCO REPORTS RECORD INCOME FOR FIRST HALF
 HARRISBURG, Pa., July 28 /PRNewswire/ -- Harsco Corporation


(NYSE: HSC) achieved record net income for the first six months of 1992 despite a decline in sales.
 Sales were $794.9 million compared to $909.0 million for the first half of 1991. Second quarter 1992 sales were $386.8 million compared to sales of $454.5 million for the same period last year. Reduced five-ton truck sales in the Defense Group and the divestiture of the company's CanTex Division in February contributed to the sales decline. Net income in the first six months of this year was $39.6 million ($1.51 per share), 64 percent ahead of 1991's first half of $24.1 million ($.92 per share). Net income in this year's second quarter was $18.8 million ($.72 per share), a 54 percent increase over the $12.2 million ($.46 per share) recorded in last year's second quarter.
 A number of factors contributed to the profit improvement during the first half of 1992, including: profitable sales of five-ton trucks in the Defense Group as compared to sales being recognized on a break-even basis in 1991; completion in 1991 of the development and testing program relating to the unsuccessful attempt at obtaining a production contract for the Army's new Family of Medium Tactical Vehicles program; the sale at a profit in the first quarter 1992 of the unprofitable plastic pipe business and the marginally profitable hydraulic tools product line; and profit improvement in certain other product lines.
 Sales for Harsco's three operating groups in the first six months were as follows: Industrial Services and Building Products had sales of $148.4 million, 13 percent below the $170.6 million recorded in 1991's first half reflecting the divestiture of a division as previously mentioned. Engineered Products had sales of $271.7 million for this year's first six months, nearly duplicating its $271.9 million for the same period last year. Defense sales declined by 20 percent to $374.8 million in the first six months of this year from last year's $466.5 million as a result of lower sales of five-ton trucks which more than offset a sizeable increase in sales of tracked vehicles.
 Operating profit for the Industrial Services and Building Products Group of $18.0 million in the first six months was 43 percent above the $12.6 million posted a year ago. Engineered Products had operating profit of $21.5 million for the period, slightly below last year's first half. Defense Group operating profit for the first six months of this year was $33.3 million, more than double the $15.0 million posted a year ago, when five-ton truck sales were being recognized on a breakeven basis.
 Second quarter 1992 sales for the Industrial Services and Building Products Group were $72.8 million, 19 percent below the $89.6 million recorded in 1991's second quarter. Engineered Products sales of $137.8 million were a modest improvement over the Group's 1991 second quarter sales of $136.7 million. The Defense Group had sales of $176.2 million in the second quarter of 1992 compared to sales of $228.2 million for the same period last year, again a reflection of the Company's reduced level of five-ton truck production.
 Operating profit in this year's second quarter for the Industrial Services and Building Products Group was $8.6 million, 10 percent above the $7.8 million recorded in the same period last year. Engineered Products had operating profit in the quarter of $8.6 million as well, but a 25 percent decrease from the $11.5 million recorded last year. Operating profit for the period in the Defense Group was up substantially at $17.5 million compared to the $5.9 million earned in 1991's second quarter.
 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 32 states and 14 countries.
 HARSCO CORPORATION
 Consolidated Statements of Income
 (Unaudited; in thousands, except per-share amounts)
 Periods ended Three months Six months
 June 30 1992 1991 1992 1991
 Net sales $386,751 $454,500 $794,892 $908,979
 Operating expenses:
 Cost of sales 312,262 388,882 643,122 777,428
 Selling, administrative
 and general expenses 43,045 43,116 87,413 86,049
 Research and development 1,199 788 2,355 1,564
 Provision (credit) for
 facility discontinuances
 or disposals (475) 54 (4,073)(A) 139
 Total 356,031 432,840 728,817 865,180
 Profit from operations 30,720 21,660 66,075 43,799
 Other income (expense):
 Interest income 1,890 2,598 4,481 4,315
 Interest expense (5,027) (4,787) (10,080) (8,934)
 Equity in net income of
 unconsolidated
 companies 1,166 1,044 2,281 1,224
 Other, net 929 256 999 729
 Total (1,042) (889) (2,319) (2,666)
 Income before provision
 for income taxes 29,678 20,771 63,756 41,133
 Provision for
 income taxes 10,916 8,581 24,180 16,991
 Net income $18,762 $12,190 $39,576 $24,142
 Average shares of common
 stock outstanding 26,104 26,284 26,225 26,268
 Net income per share $.72 $.46 $1.51 $.92
 (A) Includes profit from the sale of a division and a product line.
 Review of Operations by Group
 (Unaudited, in millions)
 Periods ended Three months Six months
 June 30 1992 1991 1992 1991
 Sales:
 Industrial services
 and building products $72.8 $89.6 $148.4 $170.6
 Engineered products 137.8 136.7 271.7 271.9
 Defense 176.2 228.2 374.8 466.5
 Total $386.8 $454.5 $794.9 $909.0
 Income before tax:
 Group operating profit:
 Industrial services
 and building products $8.6 $7.8 $18.0 $12.6
 Engineered products 8.6 11.5 21.5 22.5
 Defense 17.5 5.9 33.3 15.0
 Total group operating
 profit 34.7 25.2 72.8 50.1
 Equity in net income
 of unconsolidated
 companies 1.2 1.0 2.3 1.2
 Unallocated expenses (6.2) (5.5) (11.3) (10.2)
 Total pre-tax income $29.7 $20.7 $63.8 $41.1
 /delval/
 -0- 7/28/92
 /CONTACT: Herbert R. McIlvaine Jr. of Harsco, 717-763-7064/
 (HSC) CO: Harsco Corporation ST: Pennsylvania IN: ARO SU: ERN


MK-CC -- PH014 -- 4065 07/28/92 11:48 EDT
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Date:Jul 28, 1992
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