HARRISBURG, Pa., Dec. 10, 2010 (GLOBE NEWSWIRE) -- Addressing the investment community at the Company's Annual Analysts Conference today in New York City, Harsco Corporation (NYSE:HSC) Chairman, President and Chief Executive Officer Salvatore D. Fazzolari expressed confidence that the Company would return to earnings growth in 2011 at a double-digit rate, noting that Harsco has significantly reduced its cost structure and measurably lowered the break-even point of all of its business platforms while executing on its business transformation strategies. Mr. Fazzolari further noted the Company's success in expanding its geographic footprint in faster-growth emerging market economies.
Reviewing the transformation strategies of its Harsco Infrastructure business group, the Company announced at the meeting that it would be taking a charge of approximately $85-$90 million in the fourth quarter of 2010 to facilitate a major restructuring to optimize Harsco Infrastructure as a more streamlined, efficient, cost-effective, disciplined and market-focused global platform with a single business brand. Savings resulting from this charge are expected to be in the range of $40 million to $50 million in 2011, with full annualized savings of over $60 million starting in 2012.
The Company also provided a 5-year view of future revenue and earnings potential, providing a growth components bridge for EPS growth for the period 2011 to 2015, during which the Company's global supply chain and Lean Continuous Improvement initiatives are expected to generate significant cost savings in addition to the above-mentioned cost structure reductions and other strategic initiatives.
Joining Mr. Fazzolari in detailing the Company's growth expectations and strategies were Stephen Schnoor, Senior VP, CFO and Treasurer; Galdino Claro, Executive VP and Group CEO Harsco Metals and Harsco Minerals; Ivor Harrington, Executive VP and Group CEO Harsco Infrastructure; Scott Jacoby, VP and Group President Harsco Rail; and Scott Gerson, VP and Group President Harsco Industrial.
Mr. Schnoor provided the Company's initial guidance for 2011 earnings from continuing operations in the range of $1.25 to $1.35 per diluted share, which represents a 47 to 59 percent improvement over the midpoint of the Company's previously-announced 2010 EPS guidance of $0.80-$0.90. He also noted that the Company continues to maintain a strong and liquid balance sheet, and has paid a dividend each year since 1939.
Mr. Schnoor also noted that, with the Company's new leadership appointments in 2010 and to better align its segment reporting with the Company's strategic business focus, effective with year-end reporting for December 31, 2010, the Harsco Metals and Harsco Minerals businesses will be reported as one segment for financial reporting purposes. The Company's four reported segments will thus be Harsco Metals & Minerals, Harsco Infrastructure, Harsco Rail and Harsco Industrial.
A webcast of the meeting, including the synchronized presentation slides, can be accessed through the Harsco Corporation website at www.harsco.com.
Forward Looking Statements
This news release contains forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "may," "could," "believes," "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Harsco, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the worldwide business environment in which the Company operates, including general economic conditions; changes in currency exchange rates, interest rates, commodity and fuel costs and capital costs; changes in the performance of the equity and debt markets that could affect, among other things, the valuation of the assets in the Company's pension plans and the accounting for pension assets, liabilities and expenses; changes in governmental laws and regulations, including environmental, tax and import tariff standards; market and competitive changes, including pricing pressures, market demand and acceptance for new products, services, and technologies; unforeseen business disruptions in one or more of the many countries in which the Company operates due to political instability, civil disobedience, armed hostilities, public health issues or other calamities; the seasonal nature of the Company's business; our ability to successfully enter into new contracts and complete new acquisitions or joint ventures in the timeframe contemplated or at all; the ongoing global financial and credit crisis, which could result in our customers curtailing development projects, construction, production and capital expenditures, which, in turn, could reduce the demand for our products and services and, accordingly, our sales, margins and profitability; the financial condition of the Company's customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability; the successful integration of the Company's strategic acquisitions; the amount and timing of repurchases of the Company's common stock, if any; our ability to successfully implement cost-reduction initiatives; and other risk factors listed from time to time in the Company's SEC reports. The Company undertakes no duty to update forward-looking statements.
About Harsco
Harsco Corporation is a diversified, global industrial services and engineered products company serving major industries that are fundamental to worldwide economic growth. Harsco's common stock is a component of the S&P MidCap 400 Index and the Russell 1000 Index. Additional information can be found at http://www.harsco.com/">www.harsco.com.
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