01.02.2006

Harsco access profits jump 70%

Harsco the Harrisburg based group that owns SGB, Patent scaffold and Hünnebeck has announced record sales in 2005 of $2.77 billion, up 11 percent on 2004. Group profits rose by 38 percent to $157 million.

The group’s access services business saw revenues rise by 11 percent to $789 million, with operating income rising to $75 million from $44 million in 2004, an increase of 70 percent.

The operating income includes a gain of $3.6 million on the sale of the Youngman alloy scaffold and ladder business in October. Netting off the effects of the Youngman sale and the Hünnebeck purchase, yields a net contribution of $7 million.

The fourth quarter results were boosted by substantially better results in the U.S., aided by Hurricane Katrina rebuilding activity, improved performance in the U.K business, and ongoing gains from other European and Middle East markets.

The group says that with a full year contribution from Hünnebeck and continuing growth in the other access businesses, 2006 looks very positive.

Vertikal Comment

Harsco is now a significant player in the European access rental market, largely with traditional steel scaffold contract rental field. Although it is by far the largest mast climber rental company in the UK and the company has a significant powered access fleet between Holland, the UK and Denmark.

The key question is what it plans to do going forward, is it a scaffold company or an access rental company? If Access is the answer then the question is how it plans to develop the powered access segment of its business?