27.01.2011

Harsco Infrastructure drops 8%

Harsco Infrastructure – previously SGB, Hünnebeck and Patent –saw revenues fall by eight percent in the fourth quarter, and 11 percent for the year.

Fourth quarter revenues were $265 million with an operating loss of $98.9 million, of which $84.4 million is said to be one off restructuring costs.

For the year as a whole the division posted revenues of $1.03 billion with a loss of $145.3 million, compared to a profit last year of $68.4 million.

Parent Harsco, says that in spite difficult market conditions which have continued into 2011, it has a positive longer-term outlook for the business. It added that there are some early indications that the decline in non-residential construction may be close to bottoming out and could result in a better end to the year.

The restructuring efforts have resulted in cost savings worth around $60 million a year and will be completed by the end of the first quarter 2011.
The group overall saw revenues for the year rise just over one percent to $3.03 billion. Pre-tax profits were $20.5 million compared to $150.8 million last year, the Infrastructure restructuring charges being the single largest fact in this fall.

Harsco chief executive Salvatore Fazzolari said: “I am pleased to report that we closed the year on a positive note. We exceeded our earnings forecast for the fourth quarter, we exceeded our challenging free cash flow target for the year, and we successfully executed the restructuring of the Harsco Infrastructure Segment according to plan.”

“Our overall results for the fourth quarter were better than expected, notwithstanding the restructuring charge for Harsco Infrastructure. With the primary restructuring actions of our Harsco Infrastructure business near completion, this clearly sets the stage for improved results for this business starting in the second quarter of 2011 and, with some end-market improvement, a return to full-year profitability in 2012 and beyond.”