Harsco Corp. reported income from continuing operations for the third quarter was a record $30.7 million, compared with $23.4 million last year, an increase of 31 percent. Third quarter sales totaled $617 million, also a record, and up 16 percent from sales of $530 million in the same period last year.
For the first nine months, income from continuing operations was $78.5 million, compared with income from continuing operations of $61.3 million in the first nine months of 2003, an increase in income and EPS of 28 percent and 26 percent, respectively. Sales for the first nine months of 2004 were $1.79 billion, an increase of 15 percent from sales of $1.55 billion in the same period a year ago.
Derek Hathaway, Harsco’s chairman, president and CEO, said, ``The growth momentum in our operations during the first half of the year has continued into the third quarter with record results, even though significantly higher steel, energy, transportation, and Sarbanes-Oxley Act costs were experienced.
In its mill services sector Harsco reported sales in the third quarter increased 17 percent to $245 million from $209 million in last year's third quarter. Organic growth was responsible for $24 million of the increase, or 11 percent. Operating income for the quarter increased by 21 percent to $25.0 million, from $20.7 million in the same period last year.
The outlook for the Mill Services Segment continues to be favorable. Global steel production is expected to remain strong into 2005. The Company sees increasing opportunities for its wide range of outsourced mill services, as evidenced by the recent announcements of several new contracts, both for expanded services with existing customers and with new customers. So far this year, the Company has increased its capital investments for this Segment by approximately 48 percent over last year to $88 million, of which approximately 40 percent has been for growth initiatives. The Company expects to further accelerate its growth capital investments over the next 12 months.