Harsco 3Q income plunges 75 pct on weak demand

Harsco 3rd-qtr earnings tumble 75 percent on weak demand, one-time charge at metals business

• On 9:41 am EDT, Thursday October 29, 2009

HARRISBURG, Pa. (AP) -- Industrial services company Harsco Corp. said Thursday its third-quarter income plunged 75 percent, due to a one-time charge at its metals segment and falling demand at all three business segments.

The company said a stronger dollar, reduced global steel production and lower nonresidential construction all weighed on results at the company's business units.

But CEO Salvatore D. Fazzolari said the results could improve in coming quarters as steel production increases and the dollar continues to weaken, which raises overseas earnings.

The company also cut its full-year earnings forecast and issued a fourth-quarter guidance below analyst expectations.

Harsco said it earned $20.2 million, or 25 cents per share, in the three months ended Sept. 30. That's down from $80.3 million, or 95 cents per share, in the same quarter last year.

The results included a charge related to improper recording of revenue at the company's Harsco Metals business over a three-year period. Excluding this and other one-time items, the company earned 40 cents per share.

Sales fell 29 percent to $744.2 million.

Analysts surveyed by Thomson Reuters called for higher earnings of 47 cents per share on sales of $789.1 million, on average. Such estimates typically exclude one-time items.

Sales at the company's infrastructure unit fell 29 percent to $279 million. Its metals unit saw sales fall 35 percent to $275 million. At its minerals and rail division, sales declined 17 percent.

Shares of Harsco fell 66 cents, or 2 percent, to $33.06 in morning trading. The stock has traded between $16.90 and $37.65 in the last 52 weeks.

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