Harsco reaffirms global growth prospects
Company Provides Initial 2007 Earnings Guidance, Up 12-14 Percent over 2006; Sees Increasing Market Opportunities Across Its Core Sectors
Camp Hill, United States of America – Addressing the investment community today in New York City, Harsco Corporation (NYSE: HSC) Chairman and Chief Executive Officer Derek C. Hathaway 2006-12-08 reaffirmed the Company’s increasing confidence in its growth prospects, saying that Harsco’s expanding worldwide operating balance and concentrated industrial services focus are facilitating predictability and consistency to the Company’s improving results.
Joining Mr. Hathaway in detailing the Company’s growth expectations and strategies were Salvatore Fazzolari, President, Chief Financial Officer and Treasurer; Geoffrey Butler, Senior Vice President – Operations and Chief Executive Officer of the Company’s MultiServ and SGB divisions; Richard Neuffer, President of the Company’s Engineered Products and Services group; and James Cline, President of the Company’s Harsco GasServ gas technologies group.
Mr. Fazzolari reiterated the Company’s expectations for 2006 earnings from continuing operations of $4.49 – $4.51 per diluted share. This represents an approximate 20 percent increase over 2005’s $3.73 earnings per diluted share, which included a one-time tax benefit of $0.15 per share. The Company expects revenue growth of approximately 21 percent in 2006 to more than $3.3 billion, due in part to acquisitions.
Mr. Fazzolari also gave the Company’s initial guidance for 2007 earnings from continuing operations of $5.05 – $5.15 per diluted share. The 2007 range reflects an increase in earnings of 12-14 percent. Sales are forecast to grow in excess of 7 percent in 2007. Both the earnings and sales projections only include announced acquisitions.
An archived webcast of the meeting, including the synchronized presentation slides, can be accessed through the Harsco Corporation website at www.harsco.com
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 45 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.
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 and recorded 2005 sales of $2.8 billion. Harsco’s common stock is a component of the S&P MidCap 400 Index and the Russell 1000 Index. Additional information about Harsco can be found at www.harsco.com