Harsco Reports Jump in Earnings for Quarter

Harsco Corp. reported second quarter income from continuing operations was $31.0 million, compared with $25.5 million last year, an increase of 22 percent. Including discontinued operations, second quarter 2004 net income was $30.7, compared with net income of $25.6 million in the second quarter of 2003.

Second quarter sales totaled $618 million, also a record, and up approximately 15 percent from sales of $536 million in the same period last year.

For the first six months, income from continuing operations was $47.8 million, compared with income from continuing operations of $37.9 million in the first six months of 2003, an increase in income and EPS of 26 percent and 24 percent, respectively. Including discontinued operations, net income was $47.7 million, compared with net income of $38.1 million in the first six months of 2003.

Sales for the first six months of 2004 were $1.17 billion, an increase of approximately 15 percent from sales of $1.02 billion in the same period a year ago.

Broken out by division segments, Harsco reported that sales in its mill services division increased 19 percent to $242 million from $204 million in last year's second quarter.

Operating income for the quarter decreased by 3 percent to $24.8 million, from $25.7 million in the same period last year. Operating margins declined to 10.3 percent, compared with 12.6 percent in last year's second quarter, which included the recovery of a bad-debt expense of approximately $1.7 million pre-tax and income of $0.8 million pre-tax from the termination of a post-retirement benefit plan.

The company expressed an upbeat outlook for its mill services division. The company attributed this to favorable worldwide steel demand and production. The company noted that through the first half of this year, it has announced new contracts in Belgium, France, Brazil and elsewhere for additional services within its existing customer base as well as from new mill locations.