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Harsco Corporation Reports Third Quarter 2012 Results

Harsco Corporation Reports Third Quarter 2012 Results

                Adjusted Operating Income Increases 8 Percent

 Cost Savings plus Strong Industrial and Rail Segment Results Offset Soft End
    Markets in Metals and Commercial Construction and Currency Translation
                                  Headwinds

CAMP HILL, Pa., Nov. 1, 2012 (GLOBE NEWSWIRE) -- Diversified global industrial
company Harsco Corporation (NYSE:HSC) today reported third quarter 2012 U.S.
GAAP ("GAAP") diluted earnings per share from continuing operations of $0.32,
compared with $0.40 in the third quarter of 2011. Excluding special items,
adjusted diluted earnings per share from continuing operations were $0.39 in
the third quarter of 2012. There were no special items in the prior-year
quarter. (See Table 1 for a description of the special items and a
reconciliation of GAAP and adjusted results).

CEO Comment

"Our aggressive cost actions during the past year enabled us to increase
operating profit in the quarter and deliver results that exceeded our
guidance," said Harsco President and CEO Patrick Decker. "Our team has taken
meaningful steps to demonstrate our ability to manage through difficult
circumstances and deliver on our commitments.

"As we move forward, we remain focused on our core initiatives to drive
greater and sustainable value creation. We will maintain a rigorous focus on
cost management and operational efficiency."

Consolidated Third Quarter Operating Results

Total revenues were $757 million in the third quarter of 2012, compared with
$856 million the prior-year quarter. During the past year the Company has
taken several actions to increase returns and invest capital more effectively.
Two of these include exiting unattractive contracts in Metals & Minerals and
ceasing operations in certain countries in Infrastructure, which together
accounted for $32 million of the year-over-year revenue decline. Foreign
currency translation negatively impacted revenues by $41 million in the
quarter. The revenue performance also reflects lower volume due to soft end
markets in metals and commercial construction. That lower volume was partially
offset by mid-single digit growth in the Rail and the Industrial businesses.

GAAP operating income from continuing operations was $50 million in the third
quarter of 2012, compared with $51 million in the prior-year quarter. Foreign
currency translation negatively impacted operating income by $2 million in the
quarter. Excluding special items, adjusted operating income from continuing
operations increased 8 percent to $55 million. Adjusted operating income
margin increased 130 basis points to 7.2 percent in the quarter. This
performance primarily reflects successful execution of the Company's cost
reduction strategies and strong results in Industrial and Rail.

Net interest expense declined 12 percent to $10 million in the third quarter
of 2012 from $12 million in the prior-year quarter. This decrease was
primarily due to foreign currency translation, as well as lower carrying costs
on the Company's revolving credit facility.

Income tax expense increased to $14 million in the third quarter of 2012 from
$7 million in the third quarter of 2011. The prior-year tax expense was
unusually low and was primarily due to one-time benefits.

Table 1--Special Items    Third Quarter                Nine Months
                         2012            2011         2012          2011
GAAP diluted EPS from     $0.32          $0.40       $0.13        $1.02
continuing operations
                                                                 
Restructuring charges(a) 0.10           --         0.84         --
Gains associated with     (0.04)         --         (0.10)       --
exited countries(b)
Former CEO separation     --            --         0.04         --
expense(c)
Gains on pension          --            --         (0.02)       --
curtailment(d)
One-time Rail benefit (e) --            --         --          (0.07)
Adjusted diluted EPS from $0.39 (f)       $0.40       $0.89         $0.95
continuing operations
                                                           
(a) Charges resulting from the Company's previously announced restructuring
plans in Infrastructure (3Q 2012 $7.7 million pre-tax; 9 Months 2012 $71.7
million pre-tax) and Metals & Minerals (3Q 2012 $0.7 million pre-tax; 9 Months
2012 $1.4 million pre-tax).
(b) Non-cash gains related to the closure of certain European operations in
Infrastructure (3Q 2012 $4.2 million pre-tax; 9 Months 2012 $10.9 million
pre-tax).
(c) Separation expense for former CEO (1Q 2012 $4.1 million pre-tax).
(d) Pension curtailment gain in Metals & Minerals (1Q 2012 $1.7 million
pre-tax).
(e) Reduction of estimated costs related to the first phase of Rail's large
China order (2Q 2011 $8 million pre-tax).
(f) Does not total due to rounding.

Consolidated Nine Month Results

GAAP diluted earnings per share from continuing operations were $0.13 in the
first nine months of 2012, compared with $1.02 in the first nine months of
2011.Excluding special items, adjusted diluted earnings per share from
continuing operations were $0.89 in the first nine months of 2012, compared
with $0.95 in the prior-year period, as noted above in Table 1.

Total revenues were $2.3 billion in the first nine months of 2012, compared
with $2.5 billion in the prior-year period.The Company's actions to increase
returns and invest capital more effectively by exiting unattractive contracts
in Metals & Minerals and ceasing operations in certain countries in
Infrastructure accounted for $53 million and $46 million, respectively, of the
year-over-year revenue decline.Foreign currency translation negatively
impacted revenues by $115 million in the first nine months of 2012.The
revenue performance also reflects lower volumes due to soft end markets in
metals and commercial construction.That lower volume was partially offset by
20 percent growth in Industrial and 5 percent growth in Rail.

GAAP operating income from continuing operations was $72 million in the first
nine months of 2012, compared with $144 million in the prior-year
period.Foreign currency translation negatively impacted operating income by
$8 million in the first nine months of 2012.Excluding special items, adjusted
operating income from continuing operations was $137 million in the first nine
months of 2012, compared with $136 million in the prior-year period.Adjusted
operating income margin increased 60 basis points to 6.0 percent in the first
nine months of 2012.This performance primarily reflects the Company's
successful execution of its cost reduction strategies and strong results in
the Industrial group.

Net interest expense decreased to $33 million in the first nine months of 2012
from $35 million in the comparable period of 2011, primarily due to foreign
currency translation as well as lower carrying costs on the Company's
revolving credit facility.

Income tax expense increased to $28 million in the first nine months of 2012
from $25 million in the first nine months of 2011, primarily due to losses
from operations in certain jurisdictions where tax benefits could not be
recognized.

Third Quarter Business Review

Harsco Metals & Minerals

Revenues were $345 million in the third quarter of 2012, compared with $400
million in the prior-year quarter.Management's decision to exit certain
unattractive contracts accounted for $16 million of the year-over-year revenue
decline.Foreign currency translation negatively impacted revenues by $27
million in the quarter.The revenue performance also reflects lower volumes
due to the softness in the global metals industry.Overall customer steel
production declined approximately 3 percent in the quarter compared with the
prior-year quarter.

Excluding $0.7 million in restructuring charges related to the Company's
previously announced actions, Metals & Minerals' adjusted operating income was
$27 million in the third quarter of 2012.Operating income was $31 million in
the prior-year quarter.Adjusted operating margin increased 20 basis points to
7.9 percent in the quarter.This performance reflects the Company's successful
execution of its cost reduction strategies, which more than offset the
negative impact of foreign currency translation and lower steel production.

Harsco Infrastructure

Revenues were $229 million in the third quarter of 2012 compared with $282
million in the prior-year quarter.As part of the previously announced
restructuring plan, the Company's decision to cease operations in certain
countries reduced revenues by $16 million in the quarter.Foreign currency
translation negatively impacted sales by $14 million in the quarter.The sales
performance also reflects softness in the global commercial construction
markets and lower industrial maintenance services activity in North America
and Europe.

Excluding $8 million in restructuring charges related to the Company's
previously announced actions and a $4 million pre-tax non-cash gain associated
with the closure of certain operations in Europe, Infrastructure's adjusted
operating loss was $2.5 million in the third quarter, compared with an
operating loss of $3.3 million in the prior-year quarter.This performance
reflects the Company's successful execution of its cost reduction strategies,
which partially offset the revenue decline and negative impact of foreign
currency translation.

Harsco Rail

Revenues grew 5 percent to $91 million in the third quarter of 2012 from $87
million in the prior-year quarter.Operating income increased 20 percent to
$14 million in the quarter from $12million in the prior-year
quarter.Operating margin increased 190 basis points to 15.2percent in the
quarter.

Rail's performance was primarily due to the timing and mix of equipment
deliveries, particularly in China as part of its large order with the Ministry
of Railways.

Harsco Industrial

Revenues increased 7 percent to $91 million in the third quarter of 2012 from
$86 million in the prior-year quarter.Operating income increased 22 percent
to $17 million from $14 million in the prior-year quarter.Operating margin
increased 220 basis points to 18.3 percent in the quarter.

Industrial's third quarter performance primarily reflects a favorable mix for
air-cooled heat exchangers and strong demand in the grating business,
partially offset by softer demand for industrial boilers.

Fourth Quarter Outlook

Metals & Minerals revenues and earnings in the fourth quarter of 2012 are
expected to be lowerrelative to the fourth quarter of 2011 and the third
quarter of 2012.The Company anticipates further reduction of steel production
at certain customers driven by slower global economic activity.

Infrastructure results are expected to reflect the continued impact from soft
end markets mitigated by the cost saving benefits from the Company's prior
restructuring actions.This is expected to result in fourth quarter results
that will be similar to the third quarter of 2012 excluding restructuring
charges.

The Rail business hasa large number of equipment deliveries scheduled for
customer acceptance late in the quarter.This is expected to result in a
strong fourth quarter performance compared with the prior-year quarter.

The Industrial business expects results in the fourth quarter of 2012 to be
lower than the fourth quarter of 2011 and the third quarter of 2012.This
outlook reflects softness in the order trends over the past few months for
industrial boilers, as well ascaution on the part of customers in the North
America natural gas market.

The Company expects its tax rate to approximate 29 percent in the fourth
quarter, excluding special items.

Based on these aforementioned factors, the Company expects diluted earnings
per share from continuing operations to range from $0.28 to $0.33 in the
fourth quarter, excluding special items.

Liquidity, Capital Resources and Other Matters

Net cash provided by operating activities in the first nine months of 2012 was
$111 million, compared with $190 million in the prior-year period.Cash from
operations included $69 million and $17 million, respectively, of cash
payments for restructuring actions in the first nine months of 2012 and
2011.Excluding restructuring payments, cash from operations was $181 million
and $207 million, respectively, in the first nine months of 2012 and
2011.Capital expenditures in the first nine months of 2012 were $173million,
compared with $241 million for the same period in 2011.

At September 30, 2012, the Company's total debt was $969 million, compared
with $909 million at December 31, 2011.The debt-to-capital ratio at September
30, 2012 was 44.7 percent, compared with 42.7 percent at December 31,
2011.The net debt-to-capital ratio at September 30, 2012 was 41.6 percent, up
from 39.2 percent at December 31, 2011.

Conference Call

As previously announced, the Company will hold a conference call today at
10:00a.m. Eastern Time to discuss its results and respond to questions from
the investment community.The conference call will be broadcast live through
the Harsco Corporation website at www.harsco.com.The Company will refer to a
slide presentation that accompanies its formal remarks.The slide presentation
is available on the Company's website.

The call can also be accessedby telephone by dialing (800)611-4920, or (973)
200-3957 for international callers.Enter Conference ID number
24916119.Listeners are advised to dial in at least five minutes prior to the
call.

Replays will be available via the Harsco website.

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 general economic conditions; changes in currency exchange
rates, interest rates, commodity and fuel costs and capital costs; changes in
the performance of the equity and debt markets that could affect, among other
things, the valuation of the assets in the Company's pension plans and the
accounting for pension assets, liabilities and expenses; changes in
governmental laws and regulations, including environmental, tax and import
tariff standards; 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 manycountries in which
the Company operates due to political instability, civil disobedience, armed
hostilities, public health issues or other calamities; the seasonal nature of
the Company's business; our ability to successfully enter into new contracts
and complete new acquisitions or joint ventures in the timeframe contemplated
or at all; the recent global financial and credit crisis, which could result
in our customers curtailing development projects, construction, production and
capital expenditures, which, in turn, could reduce the demand for our products
and services and, accordingly, our sales, margins and profitability; the
financial condition of the Company's customers, including the ability of
customers (especially those that may be highly leveraged and those with
inadequate liquidity) to maintain their credit availability; risk and
uncertainty associated with intangible assets; the successful integration of
the Company's strategic acquisitions; the amount and timing of repurchases of
the Company's common stock, if any; our ability to successfully implement
cost-reduction initiatives, including the achievement of expected cost savings
in the expected timeframe; and other risk factors listed from time to time in
the Company's SEC reports. The Company undertakes no duty to update
forward-looking statements.

About Harsco

Harsco Corporation serves key industries that play a fundamental role in
worldwide economic development, including steel and metals production,
construction, railways and energy.Harsco's common stock is a component of the
S&P MidCap 400 Index and the Russell 1000 Index.Additional information can be
found atwww.harsco.com.

The Harsco Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=361


                                      

HARSCO CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)                                                     
(In thousands, except per share
amounts)
                                  Three Months Ended  Nine Months Ended
                                  September30        September30
                                  2012      2011      2012        2011
Revenues from continuing                                        
operations:
Service revenues                   $571,892 $682,885 $1,769,415 $2,059,928
Product revenues                   184,891  172,979  510,278    450,082
Total revenues                     756,783  855,864  2,279,693  2,510,010
Costs and expenses from continuing                              
operations:
Cost of services sold              453,304  545,008  1,406,727  1,643,202
Cost of products sold              126,683  126,395  351,707    305,833
Selling, general and               121,856  129,006  376,653    407,957
administrative expenses
Research and development expenses  2,162    1,577    6,908      4,290
Other expenses                     2,383    3,050    65,351     4,431
Total costs and expenses           706,388  805,036  2,207,346  2,365,713
Operating income from continuing   50,395   50,828   72,347     144,297
operations
Interest income                    1,449    683      3,005      2,022
Interest expense                   (11,609) (12,230) (36,041)   (36,809)
Income from continuing operations
before income taxes and equity     40,235   39,281   39,311     109,510
income
Income tax expense                 (13,545) (7,078)  (28,489)   (24,813)
Equity in income of unconsolidated 182      194      479        530
entities, net
Income from continuing operations  26,872   32,397   11,301     85,227
Discontinued operations:                                        
Loss on disposal of discontinued   (52)     (636)    (1,217)    (2,708)
business
Income tax benefit related to      248      229      685        1,018
discontinued business
Income (loss) from discontinued    196      (407)    (532)      (1,690)
operations
Net income                         27,068   31,990   10,769     83,537
Less: Net income attributable to   (664)    (190)    (1,023)    (2,579)
noncontrolling interests
Net income attributable to Harsco  $26,404  $31,800  $9,746     $80,958
Corporation
Amounts attributable to Harsco                                  
Corporation common stockholders:
Income from continuing operations, $26,208  $32,207  $10,278    $82,648
net of tax
Income (loss) from discontinued    196      (407)    (532)      (1,690)
operations, net of tax
Net income attributable to Harsco  $26,404  $31,800  $9,746     $80,958
Corporation common stockholders
Weighted-average shares of common  80,659   80,767   80,623     80,737
stock outstanding
Basic earnings (loss) per common
share attributable to Harsco                                    
Corporation common stockholders:
Continuing operations              $0.32    $0.40    $0.13      $1.02
Discontinued operations            —        (0.01)   (0.01)     (0.02)
Basic earnings per share
attributable to Harsco Corporation $0.33(a) $0.39    $0.12      $1.00
common stockholders
                                                               
Diluted weighted-average shares of 80,910   81,037   80,863     80,997
common stock outstanding
Diluted earnings (loss) per common
share attributable to Harsco                                    
Corporation common stockholders:
Continuing operations              $0.32    $0.40    $0.13      $1.02
Discontinued operations            —        (0.01)   (0.01)     (0.02)
Diluted earnings per share
attributable to Harsco Corporation $0.33(a) $0.39    $0.12      $1.00
common stockholders
(a) Does not total due to                                      
rounding

                                      

HARSCO CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)                   
(In thousands)
                                             September30 December31
                                             2012         2011
ASSETS                                                    
Current assets:                                           
Cash and cash equivalents                     $113,740    $121,184
Trade accounts receivable, net                619,403     618,475
Other receivables                             40,296      44,431
Inventories                                   262,512     241,934
Other current assets                          105,465     133,407
Total current assets                          1,141,416   1,159,431
Property, plant and equipment, net            1,245,180   1,274,484
Goodwill                                      691,378     680,901
Intangible assets, net                        81,657      93,501
Other assets                                  140,300     130,560
Total assets                                  $3,299,931  $3,338,877
LIABILITIES                                               
Current liabilities:                                      
Short-term borrowings                         $12,982     $51,414
Current maturities of long-term debt          1,885       3,558
Accounts payable                              231,320     252,329
Accrued compensation                          95,493      92,603
Income taxes payable                          10,812      8,409
Dividends payable                             16,520      16,498
Insurance liabilities                         21,907      25,075
Advances on contracts                         76,375      111,429
Other current liabilities                     206,215     220,953
Total current liabilities                     673,509     782,268
Long-term debt                                953,634     853,800
Deferred income taxes                         24,420      27,430
Insurance liabilities                         62,676      60,864
Retirement plan liabilities                   328,994     343,842
Other liabilities                             58,109      50,755
Total liabilities                             2,101,342   2,118,959
EQUITY                                                    
Harsco Corporation stockholders' equity:                  
Common stock                                  140,080     139,914
Additional paid-in capital                    152,943     149,066
Accumulated other comprehensive loss          (356,062)   (364,191)
Retained earnings                             1,956,383   1,996,234
Treasury Stock                                (745,205)   (744,644)
Total Harsco Corporation stockholders' equity 1,148,139   1,176,379
Noncontrolling interests                      50,450      43,539
Total equity                                  1,198,589   1,219,918
Total liabilities and equity                  $3,299,931  $3,338,877

                                      

HARSCO CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)                  
(In thousands)
                                  Three Months Ended    Nine Months Ended
                                  September30          September30
                                  2012       2011       2012       2011
                                                                
Cash flows from operating                                        
activities:
Net income                         $27,068  $31,990  $10,769  $83,537
Adjustments to reconcile net
income to net cash provided by                                   
operating activities:
Depreciation                       61,293    69,699    188,182   207,330
Amortization                       4,595     8,655     15,662    25,950
Equity in income of unconsolidated (182)     (194)     (479)     (530)
entities, net
Dividends or distributions from    154       —         308       160
unconsolidated entities
Harsco 2011/2012 Restructuring     2,229     —         21,787    —
Program non-cash adjustment
Other, net                         (13,279)  318       (29,263)  (3,674)
Changes in assets and liabilities,
net of acquisitions and                                          
dispositions of businesses:
Accounts receivable                4,317     10,055    (1,247)   (76,972)
Inventories                        1,552     7,840     (23,298)  (6,667)
Accounts payable                   (16,768)  (6,232)   (24,719)  3,150
Accrued interest payable           5,755     6,246     5,786     6,651
Accrued compensation               8,005     11,721    2,286     13,640
Harsco Infrastructure Segment 2010 (2,004)   (5,551)   (4,755)   (16,697)
Restructuring Program accrual
Harsco 2011/2012 Restructuring     (4,542)   —         (8,050)   —
Program accrual
Other assets and liabilities       (2,571)   (11,305)  (41,600)  (45,771)
Net cash provided by operating     75,622    123,242   111,369   190,107
activities
Cash flows from investing                                        
activities:
Purchases of property, plant and   (64,925)  (73,944)  (172,770) (240,820)
equipment
Proceeds from sales of assets      6,316     3,792     42,889    37,180
Purchases of businesses, net of    (517)     (1,938)   (517)     (1,938)
cash acquired
Other investing activities, net    (891)     6,284     457       10,115
Net cash used by investing         (60,017)  (65,806)  (129,941) (195,463)
activities
Cash flows from financing                                        
activities:
Short-term borrowings, net         (12,936)  (28,656)  (39,302)  28,941
Current maturities and long-term                                 
debt:
Additions                          29,958    48,498    249,034   215,422
Reductions                         (27,223)  (48,301)  (151,399) (210,761)
Cash dividends paid on common      (16,519)  (16,557)  (49,548)  (49,599)
stock
Dividends paid to noncontrolling   (192)     (2,722)   (2,264)   (3,322)
interests
Contributions from noncontrolling  112       8,414     8,097     9,074
interests
Common stock issued - options      —         338       725       1,668
Other financing activities, net    (1)       (1)       (2,709)   (1)
Net cash provided (used) by        (26,801)  (38,987)  12,634    (8,578)
financing activities
Effect of exchange rate changes on 3,567     (7,456)   (1,506)   (4,016)
cash
Net increase (decrease) in cash    (7,629)   10,993    (7,444)   (17,950)
and cash equivalents
Cash and cash equivalents at       121,369   95,295    121,184   124,238
beginning of period
Cash and cash equivalents at end   $113,740 $106,288 $113,740 $106,288
of period

                                      

HARSCO CORPORATION                                
REVIEW OF OPERATIONS BY SEGMENT (Unaudited)
                                                
                      Three Months Ended         Three Months Ended
                      September30, 2012         September30, 2011
                                                         
(In thousands)         Revenues   Operating       Revenues   Operating Income
                                  Income (loss)              (loss)
                                                         
Harsco Metals &        $344,867 $26,350       $400,478 $30,907
Minerals
                                                         
Harsco Infrastructure  229,287   (6,065)        282,319       (3,296)
                                                         
Harsco Rail            91,423    13,906         87,438    11,636
                                                         
Harsco Industrial      91,206    16,710         85,629    13,750
                                                         
Corporate              —         (506)          —         (2,169)
                                                         
Consolidated Totals    $756,783 $50,395       $855,864 $50,828
                                                         

                                      

                      Nine Months Ended          Nine Months Ended
                      September30, 2012         September30, 2011
                                                          
(In thousands)         Revenues     Operating     Revenues    Operating Income
                                    Income (loss)             (loss)
                                                          
Harsco Metals &        $ 1,069,741 $79,662     $1,216,004 $94,764
Minerals
                                                          
Harsco Infrastructure  701,829     (83,956)     842,220    (25,875)
                                                          
Harsco Rail            239,098     35,272       227,985    42,279
                                                          
Harsco Industrial      269,025     47,663       223,801    37,468
                                                          
Corporate              —           (6,294)      —          (4,339)
                                                          
Consolidated Totals    $ 2,279,693 $72,347     $2,510,010 $144,297

                                      

HARSCO CORPORATION
REVIEW OF OPERATING INCOME BY SEGMENT                                                                      
EXCLUDING SPECIAL ITEMS (a) - Addendum (Unaudited)
                                                                                                        
              Three Months Ended                         Three Months Ended                               
              September30, 2012                         September30, 2011                               
              Operating Income (Loss)                    Operating Income (Loss)                          
                        2011/2012     Country   Excluding          2011/2012             Country Excluding
(In thousands) As       Restructuring Exit      Special   As       RestructuringProgram Exit    Special   
               Reported Program       Gains (b) Items     Reported Charge                Gains   Items
                        Charge                                                           (b)
Harsco Metals  $26,350 $740         $—       $27,090  $30,907 $—                   $—     $30,907
& Minerals
Harsco         (6,065) 7,685        (4,152)  (2,532)  (3,296) —                    —      (3,296)
Infrastructure
Harsco Rail    13,906  —            —        13,906   11,636  —                    —      11,636
Harsco         16,710  —            —        16,710   13,750  —                    —      13,750
Industrial
Corporate      (506)   29           —        (477)    (2,169) —                    —      (2,169)
Consolidated   $50,395 $8,454       $(4,152) $54,697  $50,828 $—                   $—     $50,828
Totals

                                      

              Nine Months Ended
              September30, 2012
              Operating Income (Loss)
                         2011/2012     Country   Former CEO Pension     Excluding
(In thousands) As        Restructuring Exit      Separation Curtailment Special
               Reported  Program       Gains (b) Expense    Gains       Items
                         Charge
Harsco Metals  $79,662 $1,447      $—      $—       $(1,716)  $79,393
& Minerals
Harsco         (83,956) 71,679       (10,906) —         —          (23,183)
Infrastructure
Harsco Rail    35,272   67           —        —         —          35,339
Harsco         47,663   —            —        —         —          47,663
Industrial
Corporate      (6,294)  370          —        4,135     —          (1,789)
Consolidated   $72,347 $73,563     $        $4,135   $(1,716)  $137,423
Totals                                 (10,906)
                                                                        

                                      

                     Nine Months Ended                                  
                     September30, 2011                                 
                     Operating Income (Loss)                            
                                    Reduction of   Excluding
(In thousands)        As Reported   Estimated      Special Items         
                                    Costs
Harsco Metals &       $94,764      $—            $94,764              
Minerals
Harsco Infrastructure (25,875)     —             (25,875)             
Harsco Rail           42,279       (7,966)       34,313               
Harsco Industrial     37,468       —             37,468               
Corporate             (4,339)      —             (4,339)              
Consolidated Totals   $ 144,297     $(7,966)      $136,331             
(a)The Company's management believes operating income excluding special items
is useful to investors because it provides an overall understanding of the
Company's historical financial performance and future prospects.Exclusion of
special items permits evaluation and comparison of results for the Company's
core business operations, and it is on this basis that management internally
assesses the Company's performance.
(b)Country exit gains (or losses) are non-cash items recognized when the
Company has substantially liquidated its investment in a foreign entity.As
part of the 2011/2012 Restructuring Program, Harsco Infrastructure exited
several countries and recognized gains.
(c)Reduction of estimated costs relates to the first phase of Harsco Rail's
large order in China with the Ministry of Railways.

CONTACT: Investor Contact
         Jim Jacobson
         717.612.5628
         jjacobson@harsco.com
        
         Media Contact
         Kenneth D. Julian
         717.730.3683
         kjulian@harsco.com

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