Harsco Corp. (HSC, Financial) filed Quarterly Report for the period ended 2010-09-30.
Harsco Corp. has a market cap of $1.81 billion; its shares were traded at around $23.01 with a P/E ratio of 14.5 and P/S ratio of 0.6. The dividend yield of Harsco Corp. stocks is 3.7%. Harsco Corp. had an annual average earning growth of 8.3% over the past 10 years. GuruFocus rated Harsco Corp. the business predictability rank of 2.5-star.HSC is in the portfolios of Arnold Van Den Berg of Century Management, NWQ Managers of NWQ Investment Management Co, John Keeley of Keeley Fund Management, Jim Simons of Renaissance Technologies LLC, Richard Aster Jr of Meridian Fund, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
Revenues for the first nine months of 2010 were $2.3 billion, $63.2 million higher than in the same period for 2009. The Company generated higher revenues for the first nine months of 2010 in the Harsco Metals Segment due to an increase in global steel production and in the Harsco Rail Segment due to shipments under existing contracts. This was offset by weaker demand during the first nine months within the Harsco Infrastructure Segment due to distressed market conditions in global non-residential construction. Foreign currency translation increased revenues by $10.1 million for the first nine
Operating income from continuing operations for the third quarter and first nine months of 2010 was $44.1 million and $134.2 million, respectively, compared with $56.4 million and $164.0 million, respectively, for the same periods in 2009. The decrease in operating income was driven by the depressed non-residential construction market and pricing pressures for the first nine months of 2010 in the Harsco Infrastructure Segment. This was partially offset by increased steel production at customer sites in the Harsco Metals Segment and increased shipments in the Harsco Rail Segment coupled with benefits from restructuring actions and countermeasures implemented over the past two years throughout the Company. Diluted earnings per share from continuing operations for the third quarter of 2010 were $0.26 compared with $0.40 for the third quarter of 2009. For the first nine months of 2010, diluted earnings per share from continuing operations were $0.76 compared with $1.17 in the first nine months of 2009.
The Company continues to have significant available liquidity and remains well-positioned from a financial flexibility perspective. Net cash generated from operating activities was $110.3 million for the three months ended September 30, 2010, compared with $120.4 million in 2009. For the first nine months of 2010, the Company generated net cash from operating activities of $236.0 million compared with $276.7 million for the first nine months of 2009. Capital expenditures in 2010 were modestly higher than in 2009 as the Company continued to effectively utilize the mobility of its asset base to reduce new capital investments. In September 2010, the Company completed a $250 million bond offering that bears interest at 2.7% and matures in October 2015. The net proceeds of this issuance were used to repay, in part, 200 million British pound sterling-denominated 7.25% notes (approximately $316 million) that matured October 27, 2010. This additional debt at September 30, 2010 caused the Companys debt to capital ratio to increase to 43.3% at September 30, 2010 compared with 39.5% at December 31, 2009 (the lowest year-end ratio since 1998) and 38.5% at September 30, 2009. Additional commercial paper borrowings were made subsequent to September 30, 2010, to repay the remainder of the British pound sterling-denominated notes in excess of the proceeds from the 2010 bond issuance. Further information in regard to the Companys cash flows is discussed in the Liquidity and Capital Resources section.
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Harsco Corp. has a market cap of $1.81 billion; its shares were traded at around $23.01 with a P/E ratio of 14.5 and P/S ratio of 0.6. The dividend yield of Harsco Corp. stocks is 3.7%. Harsco Corp. had an annual average earning growth of 8.3% over the past 10 years. GuruFocus rated Harsco Corp. the business predictability rank of 2.5-star.HSC is in the portfolios of Arnold Van Den Berg of Century Management, NWQ Managers of NWQ Investment Management Co, John Keeley of Keeley Fund Management, Jim Simons of Renaissance Technologies LLC, Richard Aster Jr of Meridian Fund, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Revenues for the Company during the third quarter of 2010 were $752.4 million compared with $744.2 million in 2009. The Company generated higher revenues in the third quarter of 2010 in the Harsco Metals Segment due to an increase in customer steel production. This was partially offset by weaker global non-residential construction demand within the Harsco Infrastructure Segment. Foreign currency translation decreased revenues by $15.9 million for the third quarter 2010 in comparison with last year. Incremental revenues for the Harsco Infrastructure Segment included $20.9 million from acquisitions in the Asia-Pacific, Latin America and Middle East and Africa regions for the three months ended September 30, 2010 compared with last year.Revenues for the first nine months of 2010 were $2.3 billion, $63.2 million higher than in the same period for 2009. The Company generated higher revenues for the first nine months of 2010 in the Harsco Metals Segment due to an increase in global steel production and in the Harsco Rail Segment due to shipments under existing contracts. This was offset by weaker demand during the first nine months within the Harsco Infrastructure Segment due to distressed market conditions in global non-residential construction. Foreign currency translation increased revenues by $10.1 million for the first nine
Operating income from continuing operations for the third quarter and first nine months of 2010 was $44.1 million and $134.2 million, respectively, compared with $56.4 million and $164.0 million, respectively, for the same periods in 2009. The decrease in operating income was driven by the depressed non-residential construction market and pricing pressures for the first nine months of 2010 in the Harsco Infrastructure Segment. This was partially offset by increased steel production at customer sites in the Harsco Metals Segment and increased shipments in the Harsco Rail Segment coupled with benefits from restructuring actions and countermeasures implemented over the past two years throughout the Company. Diluted earnings per share from continuing operations for the third quarter of 2010 were $0.26 compared with $0.40 for the third quarter of 2009. For the first nine months of 2010, diluted earnings per share from continuing operations were $0.76 compared with $1.17 in the first nine months of 2009.
The Company continues to have significant available liquidity and remains well-positioned from a financial flexibility perspective. Net cash generated from operating activities was $110.3 million for the three months ended September 30, 2010, compared with $120.4 million in 2009. For the first nine months of 2010, the Company generated net cash from operating activities of $236.0 million compared with $276.7 million for the first nine months of 2009. Capital expenditures in 2010 were modestly higher than in 2009 as the Company continued to effectively utilize the mobility of its asset base to reduce new capital investments. In September 2010, the Company completed a $250 million bond offering that bears interest at 2.7% and matures in October 2015. The net proceeds of this issuance were used to repay, in part, 200 million British pound sterling-denominated 7.25% notes (approximately $316 million) that matured October 27, 2010. This additional debt at September 30, 2010 caused the Companys debt to capital ratio to increase to 43.3% at September 30, 2010 compared with 39.5% at December 31, 2009 (the lowest year-end ratio since 1998) and 38.5% at September 30, 2009. Additional commercial paper borrowings were made subsequent to September 30, 2010, to repay the remainder of the British pound sterling-denominated notes in excess of the proceeds from the 2010 bond issuance. Further information in regard to the Companys cash flows is discussed in the Liquidity and Capital Resources section.
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