Harsco Reports Fourth Quarter 2015 Results
February 26, 2016
CAMP HILL, PA (February26, 2016) . . . Harsco Corporation (NYSE:HSC) today reported fourth quarter 2015 results. Excluding special items, adjusted diluted earnings per share from continuing operations in the fourth quarter of 2015 were $0.11. This result compares with adjusted diluted earnings per share of $0.09 in the fourth quarter of 2014. On a U.S. GAAP (“GAAP”) basis, fourth quarter 2015 diluted loss per share from continuing operations was $0.08, which included Project Orion Phase 3 implementation costs, Metals & Minerals Separation costs and underperforming site exit charges. This compares with GAAP diluted loss per share of $0.55 in the fourth quarter of 2014 including Project Orion severance costs and costs for exited and underperforming contracts.
Adjusted operating income for the fourth quarter of 2015 was $26 million, which was above the guidance range of $15 million to $20 million provided by the Company. Also, the Company’s fourth quarter 2015 earnings included equity income of approximately $0.6 million from the Brand Energy joint venture, which was negatively impacted by intercompany foreign currency losses in the period.
“We made considerable progress during 2015, despite market challenges, to position Harsco for improved returns in the future,” said President and CEO Nick Grasberger. “We further streamlined the M&M business and successfully addressed numerous underperforming sites. Also, Harsco Way has led to more consistent operating performance and we strengthened our contract positions through our centralized contract management function. We also reduced our overhead structure meaningfully and invested in manufacturing improvements and product innovations in Industrial, while Rail executed against its international and spare parts expansion plans.”
“We ended the year with a solid fourth quarter. As we enter 2016, however, the macroeconomic environment remains uncertain and our 2016 Outlook assumes that certain market pressures weaken further compared with those present in our business today. Given these factors, the Harsco Board has decided to suspend the quarterly dividend. We will intensify our focus on operating and capital efficiencies through which we expect an increase in free cash flow in 2016. Lastly, we remain committed to rebalancing our business portfolio in the future and realizing the value potential of our businesses.”
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