HARSCO CORPORATION REPORTS FOURTH QUARTER 2014 RESULTS
February 26, 2015
· Q4 2014 Adjusted Operating Income within Guidance
· Project Orion Execution In Line with 2014 Plans; Phase II Underway and Meaningful Benefits to be Realized in 2015 and Beyond
· 2015 Adjusted Operating Income Anticipated to Increase to Between $155 million and $170 million; Free Cash Flow and ROIC also Anticipated to Improve to Between $75 million and $100 million and 7.5% and 8.5%, respectively
Camp Hill, PA (February 26, 2015) . . . Harsco Corporation (NYSE:HSC) today reported fourth quarter and full year 2014 results. Excluding special items, adjusted diluted earnings per share from continuing operations in the fourth quarter of 2014 were $0.07. This compares with $0.20 in the fourth quarter of 2013 excluding special items and the Company’s Infrastructure segment that was divested during the fourth quarter of 2013. Adjusted operating income for the fourth quarter of 2014 excluding special items was $29 million, which was within the guidance range of $28 million to $33 million provided by the Company.
On a U.S. GAAP (“GAAP”) basis, fourth quarter 2014 diluted loss per share from continuing operations was $0.56, which as expected included Project Orion severance costs and costs for exited or underperforming sites. This compares with GAAP diluted loss per share of $0.31 in the fourth quarter of 2013, which included asset impairments and bad debt expense as well as costs related to the Infrastructure segment divestiture. The Company’s fourth quarter 2014 loss also included a loss of approximately $3 million ($0.02 per share after tax) from the Brand Energy joint venture, which was impacted by inter-company foreign currency losses.
“In 2014, our overarching goal was to build the foundation for attractive financial returns in the future,” said President and CEO Nick Grasberger. “Our single largest initiative in this context has been our Project Orion improvement plan in Metals & Minerals, which has proceeded ahead of expectations. At the same time, major contract awards and further expansion in the aftermarket parts segment have positioned our Rail business for strong growth in 2015 and beyond, while new product introductions and investments in manufacturing efficiency will drive future growth in the Industrial division.”
“We expect to see the beginning of the financial benefits of these initiatives in 2015, most notably in cash flow and return on capital. Moreover, our outlook for 2015 EPS remains at double-digit growth levels, despite the current weakness in energy and commodity prices, and the strengthening of the US dollar. We are making real and meaningful progress toward our multi-year financial targets.”
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