HARRISBURG, Pa., June 9, 2006 (PRIMEZONE) -- Presenting at two major investor conferences this week, senior management of worldwide industrial services and products company Harsco Corporation (NYSE:HSC) spoke with increasing confidence regarding its strategies and outlook for growth, saying that Harsco's worldwide operating balance and its strong and growing end markets continue to support the Company's targets for improved performance in 2006 and beyond.
Addressing the JPMorgan Basics & Industrials Conference in New York and the KeyBanc Capital Markets Industrial-Automotive Conference in Boston, Harsco President, CFO and Treasurer Salvatore D. Fazzolari underscored the Company's strategies for increasing its global footprint and expanding its core industrial services to the growing steel, non-residential construction, transportation, and energy markets.
"Notwithstanding the present volatility on Wall Street, we remain confident in our many and growing opportunities to continue Harsco's growth momentum," said Mr. Fazzolari. "Our markets are vast, they are global, and even though we are the market leaders in each of our selected core business areas, our overall market shares are still relatively small, in each case less than 10% by our internal estimates.
"Our increasing confidence is underpinned by the diversified and broad-based business portfolio we have constructed, led by very strong positions in Western Europe and North America and an increasing presence in the growing economies of Eastern Europe, Latin America, the Middle East and Africa, and Asia/Pacific," Mr. Fazzolari continued. "Harsco management has targeted these four regions of the world as key platforms to enhance our future growth and global footprint. We are encouraged by our substantial opportunities for growth in China, where we are currently pursuing additional mill services prospects with major players in China's steel industry and also constructing a new cryogenic gas tank plant to better serve the growing Chinese industrial gas market. We also expect to receive follow-on orders for additional railway track maintenance equipment under the Ministry of Railway's next five-year modernization program. China has emerged as our largest international market for track maintenance equipment."
The Company's present 2006 targets include revenue growth in the range of 13-17 percent to a projected $3.2 billion to $3.3 billion, with approximately 72-75 percent of these revenues generated by its global industrial services businesses. Diluted Earnings Per Share from continuing operations are expected to be in the range of $4.00 to $4.10, an increase of 7-10 percent over 2005's diluted EPS from continuing operations of $3.73, which included a one-time tax benefit of $0.15. Harsco is also projecting a record $400 million in cash flows from operations this year, and has targeted improved operating margins for 2006-2007 in the range of 10.0 percent to 10.3 percent, up from 9.7 percent in 2005.
An archived webcast of the JPMorgan conference presentation as well as the presentation handout from the KeyBanc conference can be accessed through the Investor Relations section of the Harsco Corporation website at http://www.harsco.com.
Forward-Looking Statements
The nature of the Company's business and the many countries in which it operates subject it to changing economic, competitive, regulatory, and technological conditions, risks, and uncertainties. In accordance with the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company provides the following cautionary remarks regarding important factors which, among others, could cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. Forward-looking statements include information about management's confidence and strategies for performance; expectations for new and existing products, technologies, and opportunities; and expectations regarding growth, sales, cash flows, earnings, and EVA. These statements are identified by the use of such terms as "may," "could," "expect," "anticipate," "intend," "believe," or other comparable terms.
Risk factors and uncertainties which could affect results include, but are not limited to: (1) changes in the worldwide business environment in which the Company operates, including general economic conditions; (2) changes in currency exchange rates, interest rates, and capital costs; (3) changes in the performance of stock and bond markets, particularly in the United States and United Kingdom; (4) changes in governmental laws and regulations, including taxes and import tariffs; (5) market and competitive changes, including pricing pressures, market demand, and acceptance for new products, services, and technologies; (6) unforeseen business disruptions in one or more of the over 40 countries in which the Company operates due to political instability, civil disobedience, armed hostilities or other calamities; and (7) other risk factors listed from time to time in the Company's SEC reports. The Company cautions that these factors may not be exhaustive and that many of these factors are beyond the Company's ability to control or predict. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. The Company undertakes no duty to update forward-looking statements.
About Harsco
Harsco Corporation is a diversified, worldwide industrial services and products company serving the global steel, construction, railway and energy industries. The Company's four market-leading business groups provide mill services, access services, engineered products and services, and gas containment and control technologies to major customers worldwide. Harsco recorded 2005 sales of $2.8 billion and employs approximately 21,000 people in 45 countries of operation. Additional information can be found at www.harsco.com.
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