Harsco Corporation Reports Second Quarter 2016 Results
August 4, 2016
CAMP HILL, PA (August 4, 2016) . . . Harsco Corporation (NYSE: HSC) today reported second quarter 2016 results. On a U.S. GAAP (“GAAP”) basis, second quarter 2016 diluted loss per share from continuing operations was $0.35, which included a loss provision related to the Company's railway maintenance equipment contracts with SBB, the federal railway system in Switzerland. As previously disclosed, the Company concluded that it will have a loss on its outstanding contracts with SBB, and under generally accepted accounting principles, a loss provision is recorded when determined probable. Excluding this item, diluted earnings per share from continuing operations in the second quarter of 2016 were $0.15. This result compares with diluted earnings per share of $0.08 in the second quarter of 2015.
Operating income from continuing operations for the second quarter of 2016 was $1 million. Excluding the loss provision, operating income for the second quarter of 2016 was $41 million, which was above the guidance range of $22 million to $27 million provided by the Company.
“We were particularly pleased with the performance of Metals & Minerals in the second quarter,” said President and CEO Nick Grasberger. “The performance in Metals & Minerals reflects the structural and operational improvements completed over the past two years, strong execution against our key priorities and an improved market environment. Our second quarter results also benefited from lower than anticipated Corporate costs, and our Industrial business performed well in a challenging economic environment. As previously announced, our reported results were impacted by the recognition of expected losses on our SBB contracts in Rail. While we are disappointed with this outcome, our SBB development work is progressing and we expect to begin delivering key components under these contracts during the second-half of the year.”
Grasberger continued, “Looking forward, we expect the internal momentum to continue in our Metals & Minerals segment and believe that our businesses are well positioned to show significant operating leverage as key markets recover. Accordingly, we have raised our 2016 Outlook for adjusted operating income. As we enter the second-half of the year, our priorities are unchanged. We remain focused on achieving meaningful debt reduction during the year and will continue to pursue initiatives to strengthen the market positions and capital returns of our businesses. Finally, we are committed to rebalancing our business portfolio and realizing the embedded value within our businesses.”
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