HARRISBURG, Pa., April 25, 2006 (PRIMEZONE) -- Addressing Harsco Corporation (NYSE:HSC) stockholders at the Company's Annual Meeting, Harsco Chairman and Chief Executive Officer Derek C. Hathaway today reaffirmed the Company's improving outlook for continued growth into 2006 and beyond.
"We will continue to execute our strategic growth and margin enhancement initiatives, and are encouraged by the outlook for each of our businesses," said Mr. Hathaway. The Company yesterday announced record results for the first quarter 2006, including sales of $770 million, up 20 percent over the prior year, and a 49 percent increase in income from continuing operations. First quarter cash flow from operations was up 45 percent to a record $70 million. The Company has raised its 2006 guidance for diluted earnings per share from continuing operations to $4.00 - $4.10 from the previous range of $3.90 - $4.00 per diluted share.
"Our growth opportunities are balanced between organic growth, funded by our significant internal cash flows, and a disciplined approach to value-creating acquisitions that will enhance our global industrial services focus in the three primary areas we have identified for growth: Mill Services, Access Services, and Railway Services," Mr. Hathaway continued. "We are especially pleased with the immediate contributions made in the first quarter by our strategic acquisitions in our two largest operating groups. We remain acutely aware, however, that we must remain prudent in our efforts and analysis, with a constant view that any initiative we consider must ultimately add value for our stockholders."
Mr. Hathaway told stockholders that not only do the Company's strong cash flows support meaningful operational growth, they also allow for an immediate return to stockholders in the form of cash dividends. Harsco has paid a dividend every year since 1939, and has increased its dividend in each of the past 12 years.
"Our operations are balanced across a number of key business lines," continued Mr. Hathaway. "We have significant geographic balance, with over 60 percent of our nearly $3 billion in revenues generated outside the United States, and we have a well-balanced financial profile. Through our stated results for 2005 and now most recently for the first quarter of 2006, we continue to reaffirm the predictability, consistency and stability that have become the reliable hallmarks of Harsco's performance, all of which are firmly underpinned by our increasing degree of balance."
Harsco Corporation is a diversified, worldwide industrial services and products company with four market-leading business groups that provide mill services, access services, engineered products and services, and gas containment and control technologies to customers around the globe. The Company employs approximately 21,000 people in 45 countries of operation. Additional information can be found at www.harsco.com.
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