* Company Reaffirms Earnings Guidance for 2009 and Outlines
Long-Term Growth Strategies
* Fourth Quarter 2008 Restructuring Actions Expected to Generate
Savings of Approximately $30 Million in 2009
* New Logo and Rebranding of Company's Business Platforms Unveiled
HARRISBURG, Pa., Dec. 12, 2008 (GLOBE NEWSWIRE) -- Addressing the investment community today in New York City, the senior leadership of Harsco Corporation (NYSE:HSC) reaffirmed its continuing confidence in the Company's long-term global growth prospects and increasing geographic and business balance.
Participating for the Company were Harsco Chairman and Chief Executive Officer Salvatore D. Fazzolari; Harsco President and CEO of the Harsco Infrastructure and Harsco Metals groups Geoffrey D.H. Butler; Senior Vice President and Chief Financial Officer Stephen J. Schnoor; and Vice President Investor Relations and Credit Eugene M. Truett.
Major Strategic Objectives of the Company
Mr. Fazzolari outlined the Company's broad strategic objectives, describing Harsco's leading strategic position in key global markets and its balanced and scalable business platforms, which underpin the Company's confidence in its ability to execute its long-term growth objectives. He reminded investors that Harsco serves substantial, fundamental markets that are key to economic growth and recovery, including Infrastructure, Metals, Minerals, Rail and a broad range of Industrial markets. Mr. Fazzolari also reminded the audience that the Company has a strong balance sheet and is confident of its ability to execute its strategies and emerge from the current financial and economic turbulence an even stronger company.
Mr. Fazzolari said the Company's strategy is to continue constructing a balanced portfolio of businesses and to scale its business platforms across the globe. He outlined a robust Emerging Markets strategy with a particular emphasis on the Gulf Region of the Middle East, China and India. The Company also unveiled both its short-term and long-term objectives for delivering consistent, predictable and profitable growth in earnings per share, cash flows and Economic Value Added (EVA(r)). Mr. Fazzolari noted that while global steel production has been cut by unprecedented rates in the current quarter and that many near-term uncertainties remain due to the ongoing global financial and economic crisis and the adverse effects of the strong U.S. dollar, the Company expects these headwinds should begin to subside by mid-year 2009. The Company noted that bidding activity has remained healthy throughout all of its businesses.
Mr. Fazzolari said the Company is evaluating selected bolt-on acquisition opportunities, and that the Company's discretionary cash flows would also allow it to take advantage of opportunities to augment its organic growth in 2009. He further pointed out that the Company is aggressively reducing its cost structure and exiting certain underperforming contracts. Mr. Fazzolari said the Company expects these actions will be accretive to earnings in 2009 and beyond.
The Company unveiled its new logo and announced the rebranding of its business platforms under the unified Harsco name. "As Harsco scales its business across the globe, it is imperative that we operate as one company and one team and leverage off our existing resources," said Mr. Fazzolari. The Company's three business groups are being re-identified as follows:
* Access Services becomes Harsco Infrastructure * Mill Services becomes Harsco Metals * Minerals & Rail Services and Products becomes Harsco Minerals & Rail
Mr. Fazzolari said the rebranding is an important first step in unifying the Company under the Harsco name. This will be underpinned by the Company's Core Purpose and Core Values.
Share Repurchases
The Company reported that it has repurchased approximately 4.5 million shares since the beginning of the year, including 3.4 million shares in the fourth quarter. The Company expects these share repurchases will be accretive to 2009 earnings per share. Approximately 1.5 million shares remain under the Company's share repurchase authorization.
Outlook
Harsco Senior Vice President and Chief Financial Officer Stephen J. Schnoor expressed the Company's expectations for 2008 earnings from continuing operations. Considering the current turmoil and uncertainty in the Company's end markets, the Company is currently anticipating that 2008 earnings from continuing operations will be in the range of $3.15 to $3.20 per diluted share, excluding a previously announced one-time restructuring charge expected in the fourth quarter 2008. This compares with previous guidance of $3.20 to $3.25 per diluted share, excluding the one-time restructuring charge.
Mr. Schnoor also reaffirmed the Company's guidance for 2009 earnings from continuing operations in the range of $3.20 to $3.30 diluted earnings per share. The Company's present view is based on the assumption that there will begin to be some relief from the current volatility and the beginning of a return of economic confidence by the second half of 2009.
Forward-Looking Statements
This news release contains forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "may," "could," "believes," "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Harsco, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the worldwide business environment in which the Company operates, including as a result of the current global financial and credit crisis; changes in the performance of the equity and debt markets; changes in governmental laws and regulations; market and competitive changes, including pricing pressures, market demand and acceptance for new products, services, and technologies; unforeseen business disruptions in one or more of the many countries in which the Company operates; the seasonal nature of the Company's business; the financial condition of the Company's customers; the successful integration of the Company's strategic acquisitions; and the amount and timing of repurchases of the Company's common stock, if any. The Company undertakes no duty to update forward-looking statements.
Webcast
As previously announced, interested parties may access a webcast of this event through the Harsco website in a listen-only mode via www.harsco.com.
About Harsco
Harsco Corporation is one of the world's leading diversified industrial services companies, serving key industries that play a fundamental role in worldwide economic growth and development. Harsco's common stock is a component of the S&P MidCap 400 Index and the Russell 1000 Index. Additional information can be found at www.harsco.com.
The Harsco Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=361