HARRISBURG, Pa., March 21, 2001 (PRIMEZONE) -- Worldwide industrial services and products company Harsco Corporation (NYSE:HSC) announced today that it has begun implementing the Economic Value Added (EVA(r)) management and incentive system to reinforce its ongoing objectives for creating long-term shareholder value and improved performance. Harsco has engaged New York-based Stern Stewart & Co., the pioneering developer of the EVA concept, to assist in the implementation effort.
"Our commitment to EVA is one of several important initiatives that Harsco is undertaking to continue to generate value for our shareholders, including a permanent reduction in working capital employed in the business and the sale of underperforming assets," said Salvatore D. Fazzolari, Harsco Senior Vice President, Chief Financial Officer and Treasurer. "As we further grow our businesses, improve our processes, and provide the highest quality service to our customers, EVA will act as a framework to help ensure that the business decisions we make every day are focused on creating value."
Under EVA, value is created when a project or initiative produces a return above the cost of capital. According to initial calculations developed with Stern Stewart, Harsco has generated positive EVA in each of the past ten years, totaling more than $300 million. "Our goal now is to chart a consistent year-over-year upward trend," Fazzolari said. "Maximizing EVA over the long term is fundamentally consistent with our objectives for maximizing shareholder wealth and increasing share valuation."
Harsco has formed an executive management steering committee and several project teams to oversee the introduction and implementation effort, which is expected to continue over the next several quarters and extend to all Harsco operations worldwide.
Harsco Corporation is a $2 billion worldwide industrial services and products company serving industries that are fundamental to long-term economic growth, including infrastructure development, steel, railway transportation, gas and energy. The company employs more than 20,000 people in 38 countries. Additional information about Harsco can be found at www.harsco.com.