Harsco Corporation Reports Third Quarter 2013 Results

Harsco Corporation Reports Third Quarter 2013 Results

Company Reports Adjusted EPS in Line With Guidance; Infrastructure Joint
Venture on Track to Close in the Fourth Quarter

CAMP HILL, Pa., Nov. 7, 2013 (GLOBE NEWSWIRE) -- Diversified global industrial
company Harsco Corporation (NYSE:HSC) today reported third quarter 2013
results. Including special items related to the Company's previously announced
Infrastructure joint venture transaction of $3.09 per share, third quarter
2013 U.S. GAAP ("GAAP") diluted loss per share from continuing operations was
$2.89. This compares with GAAP diluted earnings per share of $0.32 in the
third quarter of 2012. Excluding special items, adjusted diluted earnings per
share from continuing operations were $0.20 in the third quarter of 2013 and
$0.39 in the third quarter of 2012. (See the attached Non-GAAP Financial
Measures tables for reconciliation of GAAP and adjusted results.)

CEO Comment

"Our third quarter results were in line with our guidance, and cash flow
generation was quite strong," said Harsco President and CEO Patrick Decker.
"During the quarter we announced the first major step to transform Harsco
through the sale of our Infrastructure business into a joint venture with
Clayton, Dubilier & Rice. We are on track to close the transaction in the
fourth quarter. The transaction will immediately strengthen our financial
profile and increase our financial flexibility to pursue higher return, higher
growth opportunities. Moreover, we believe our minority equity stake in the
new, stronger infrastructure joint venture will create significant additional
value for our shareholders.

"We are committed to strengthening Harsco's financial return profile and are
confident that we are taking the necessary actions to achieve this goal,"
continued Mr. Decker. "In Metals & Minerals, we are executing initiatives to
drive greater returns on capital and operating effectiveness across the
business. In Rail, we are actively rebuilding our project backlog and are
pleased to have recently announced our strategic entry into the influential
European market with a significant contract win valued at $100 million."

Harsco Corporation—Selected Third Quarter Results

($ in millions, except per share amounts)                           
                                                   3Q 13     3Q 12   % Change
Revenues                                            $740    $757  -2%
Operating income (loss) from continuing             $(208)  $50   nmf
operations--GAAP
Operating margin from continuing operations--GAAP   nmf       6.7%    
Diluted EPS (loss) from continuing operations--GAAP $(2.89) $0.32 nmf
Special items per diluted share                     $3.09   $0.07 
Adjusted operating income--excluding special items  $42     $55   -23%
Adjusted operating margin--excluding special items  5.7%      7.2%    
Diluted EPS from continuing operations--excluding   $0.20   $0.39 -49%
special items
Return on invested capital (ttm)--excluding special 4.2%      4.6%    
items
nmf---not meaningful

Consolidated Third Quarter Operating Results

Total revenues declined two percent to $740 million, primarily due to lower
volume of equipment deliveries in Rail compared with the very strong
prior-year quarter, as well as the non-renewal of certain contracts in Metals
& Minerals. These declines were partially offset by volume growth in
Infrastructure and Industrial. Foreign currency translation negatively
impacted revenues by $5 million in the quarter.

GAAP operating loss from continuing operations was $208 million, compared with
income of $50 million in the prior-year quarter. Excluding special items,
adjusted operating income from continuing operations declined 23 percent,
primarily due to lower Rail and Metals & Minerals results, as well as certain
strategic advisory costs. Adjusted operating margin declined 150 basis points.


Special Items Related to Infrastructure Transaction

The Company's third quarter 2013 GAAP results included special items related
to the Infrastructure joint venture transaction. The following table
reconciles GAAP and adjusted results.

($ in millions, except EPS)                            Operating 
                                                      Income    EPS
Reported results--GAAP                                 $(208)  $(2.89)
Non-cash impairment charge related to Infrastructure   241      2.79
assets "held-for-sale"
Transaction costs                                      12       0.11
Tax impact on non-cash deferred tax valuation
allowance and undistributed earnings to be repatriated          0.24
to U.S.
Depreciation reversal for Infrastructure assets        (3)      (0.04)
"held-for-sale"
Adjusted results--Non-GAAP                             $42     $0.20
EPS does not total due to rounding.                                         

Third Quarter Business Review

Metals & Minerals

($ in millions)                                                
                                                  3Q 13  3Q 12  % Change
Revenues                                           $336 $345 -3%
Operating income--GAAP                             $23  $26  -13%
Operating margin--GAAP                             6.9%   7.6%   
Special items                                      $-- $0.7 
Adjusted operating income--excluding special items $23  $27  -15%
Adjusted operating margin--excluding special items 6.9%   7.9%   
Customer liquid steel tons (millions)              40.7  41.1  -1%

Revenues declined three percent to $336 million, principally due to the
non-renewal of certain contracts and the effect of lower scrap and nickel
prices, as well as a production outage at a large customer location in North
America. These factors were partially offset by the benefit of new contracts
coming on line and volume growth in existing contracts. Foreign currency
translation negatively impacted revenues by $4million in the quarter.

Operating income declined 15 percent to $23 million from adjusted operating
income of $27 million in the prior-year quarter. Operating margin decreased to
6.9percent from last year's adjusted 7.9 percent. This performance primarily
reflected the aforementioned factors and costs related to the Simplification
initiative.

Rail

($ in millions)            
                3Q 13 3Q 12 % Change
Revenues         $66 $91 -27%
Operating income $8  $14 -42%
Operating margin 12.1% 15.2% 

Revenues declined 27 percent to $66 million, primarily due to lower volume of
equipment deliveries and contract services. These declines were partially
offset by strong aftermarket parts sales. The prior-year quarter included a
significant level of high-margin equipment deliveries to the China Railway
Corporation (formerly the China Ministry of Railways).

Operating income decreased 42 percent and operating margin declined 310 basis
points, reflecting thedifficult year-over year comparison. While Rail's
results were lower than the prior-year quarter, thebusiness delivered
better-than-expected operating income and margin due to strong aftermarket
partssales.

Industrial

($ in millions)            
                3Q 13 3Q 12 % Change
Revenues         $95 $91 5%
Operating income $16 $17 -5%
Operating margin 16.7% 18.3% 

Revenues increased five percent to $95 million, primarily due to strong
customer demand for grating products and improved volume for boilers,
partially offset by a modest decline in air-cooled heat exchanger volume.
Operating income declined five percent to $16 million and operating margin
declined 160 basis points due to business mix in the quarter.

Infrastructure

($ in millions)                                                  
                                                  3Q 13    3Q 12  % Change
Revenues                                           $243   $229 6%
Operating loss--GAAP                               $(242) $(6) nmf
Operatingmargin--GAAP                             nmf      -2.6%  
Special items                                      $238   $4   
Adjusted operating loss--excluding special items   $(4)   $(3) -64%
Adjusted operating margin--excluding special items -1.7%    -1.1%  
Rental equipment utilization rate                  59.7%    60.2%  
nmf--not meaningful                                              

Revenues grew six percent to $243 million. Infrastructure's GAAP operating
loss was $242 million, compared with a loss of $6 million in the
prior-year-quarter. Excluding special items in both periods, Infrastructure's
operating loss was $4 million, versus $3 million in the comparable quarter.
This performance reflected lower industrial services activity in the UK and
Benelux, partially offset by improvedequipment rental and industrial services
activity in North America.

Cash Flow

Free cash flow was $49 million in the third quarter of 2013, compared with $22
million in the prior-year period. This cash flow performance primarily
reflected strong improvement in working capital.

Fourth Quarter 2013 Outlook

The Company expects its fourth quarter will include a number of non-recurring
items related to the Infrastructure transaction. These include restructuring
charges to address stranded Infrastructure costsand to reduce overall
corporate overhead costs; an adjustment to the impairment charge recorded
inthethird quarter of 2013; and transaction-related costs. In addition, the
precise timing of the Infrastructure transaction close and subsequent impact
on the Company's equity income from the joint venture, as wellas its impact
on the Company's non-cash tax rate are not known at this time. Therefore, the
Company is providing fourth quarter guidance for operating income for its
continuing businesses, excluding these items.

Metals & Minerals' revenues for the fourth quarter are expected to grow in the
low-single digits andoperating income is anticipated to increase in the
high-single digits versus the prior year quarter. Thisoutlook reflects growth
from higher-return contracts coming on line and modest growth in liquid
steeltonnage.

Rail's revenues are expected to decline approximately 30 percent from a very
strong prior-year quarter. This outlook reflects the effects of
quarter-to-quarter timing of equipment deliveries, specifically the very
strong fourth quarter of 2012 that was driven by deliveries to the China
Railway Corporation. Despite the anticipated revenue decline, operating margin
is anticipated to be in the low-double digits, reflecting strong aftermarket
parts sales focus and a continued focus on driving operational efficiencies.

Industrial's revenues are expected to be essentially flat with the prior-year
quarter. Operating margin is expected to be in the mid-to-high teens. This
business continues to see similar business dynamics as the third quarter, led
by stronger grating and boiler sales.

The Company expects operating income from the Metals & Minerals, Rail and
Industrial segments to range from $37 to $42 million in the fourth quarter,
excluding special items. This outlook reflects the aforementioned
segment-specific factors, as well as $2 to $3 million of expenses for ongoing
strategic consulting services. The Company reported operating income for these
three segments of $51 million, excluding special items, in the fourth quarter
of 2012.

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
will be 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 86824553.
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

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 that, among others, could cause future results to differ
materially from the results contemplated by forward-looking statements,
including the expectations and assumptions expressed or implied herein.
Forward-looking statements contained herein could include, among other things,
statements about the Company's outlook for the fourth quarter of 2013,
management's confidence in and strategies for performance; expectations for
new and existing products, technologies and opportunities; and expectations
regarding growth, revenues, cash flows, earnings and Economic Value Added
("EVA®"). Forward-looking statements can be identified by the use of such
terms as "may," "could," "expect," "anticipate," "intend," "believe,"
"likely," "estimate," "plan" or other comparable terms.

Factors that could cause actual results to differ, perhaps materially, from
those implied by forward-looking statements 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, commodity and fuel costs and capital costs;
(3)changes in the performance of equity and bond 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; (4)changes
in governmental laws and regulations, including environmental, tax and import
tariff standards; (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 many
countries in which the Company operates due to political instability, civil
disobedience, armed hostilities, public health issues or other calamities;
(7)the seasonal nature of the Company's business; (8)the Company's ability
to successfully enter into new contracts and complete new acquisitions or
strategic ventures in the timeframe contemplated, or at all; (9)the
integration of the Company's strategic acquisitions; (10)the amount and
timing of repurchases of the Company's common stock, if any; (11)the
prolonged recovery in global financial and credit markets and economic
conditions generally, which could result in the Company's customers curtailing
development projects, construction, production and capital expenditures,
which, in turn, could reduce the demand for the Company's products and
services and, accordingly, the Company's revenues, margins and profitability;
(12)the outcome of any disputes with customers; (13)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; (14)the Company's ability to successfully
implement and receive the expected benefits of cost-reduction and
restructuring initiatives, including the achievement of expected cost savings
in the expected time frame; (15)the Company's ability to successfully
implement its strategic initiatives and portfolio optimization and the impact
of such initiatives; (16) the ability and timing to consummate the strategic
venture between the Company and Clayton, Dubilier & Rice ("CD&R"), including
the ability and timing to obtain required regulatory approvals and satisfy
other closing conditions; (17) the strategic venture's ability to promptly and
effectively integrate the Company's Infrastructure business and the Brand
Energy & Infrastructure Services business and realize the synergies
contemplated by the potential transaction; (18) the Company's ability to
realize cost savings from the divestiture of the Harsco Infrastructure
Segment, as well as the transaction being accretive to earnings and improving
operating margins and return on capital; (19) risk and uncertainty associated
with intangible assets; and (20)other risk factors listed from time to time
in the Company's SEC reports. A further discussion of these, along with other
potential risk factors, can be found in PartI,Item 1A, "Risk Factors," of
the Company's Annual Report on Form10-K for the year ended December31, 2012.
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 except as may be required by law.

About Harsco

Harsco Corporation serves key industries that play a fundamental role in
worldwide growth and 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.

                                                     
                                                     
                                                     
HARSCO CORPORATION
CONSOLIDATED STATEMENTS OF                            
OPERATIONS (Unaudited)
                                Three Months Ended    Nine Months Ended
                                 September 30          September 30
(In thousands, except per share  2013        2012      2013        2012
amounts)
Revenues from continuing                                        
operations:
Service revenues                 $571,595   $571,892 $ 1,707,658 $ 1,769,415
Product revenues                 168,450    184,891  507,518    510,278
Total revenues                   740,045    756,783  2,215,176  2,279,693
                                                               
Costs and expenses from                                         
continuing operations:
Cost of services sold            450,048    453,304  1,353,749  1,406,727
Cost of products sold            117,844    126,683  355,555    351,707
Selling, general and             124,004    121,856  374,325    376,653
administrative expenses
Research and development         3,077      2,162    7,457      6,908
expenses
Long-lived asset impairment      253,677    --       253,677    --
charge and transaction costs
Other (income) expenses          (228)      2,383    2,158      65,351
Total costs and expenses         948,422    706,388  2,346,921  2,207,346
Operating income (loss) from     (208,377)  50,395   (131,745)  72,347
continuing operations
Interest income                  388        1,449    1,624      3,005
Interest expense                 (12,815)   (11,609) (37,413)   (36,041)
Income (loss) from continuing
operations before income taxes   (220,804)  40,235   (167,534)  39,311
and equity income
Income tax expense               (10,795)   (13,545) (27,268)   (28,489)
Equity in income of              434        182      1,015      479
unconsolidated entities, net
Income (loss) from continuing    (231,165)  26,872   (193,787)  11,301
operations
Discontinued operations:                                        
Loss on disposal of discontinued (640)      (52)     (2,145)    (1,217)
business
Income tax benefit related to    239        248      814        685
discontinued business
Income (loss) from discontinued  (401)      196      (1,331)    (532)
operations
Net income (loss)                (231,566)  27,068   (195,118)  10,769
Less: Net income attributable to (2,090)    (664)    (7,495)    (1,023)
noncontrolling interests
Net income (loss) attributable   $(233,656) $26,404  $(202,613) $9,746
to Harsco Corporation
                                                               
Amounts attributable to Harsco                                  
Corporation common stockholders:
Income (loss) from continuing    $(233,255) $26,208  $(201,282) $10,278
operations, net of tax
Income (loss) from discontinued  (401)      196      (1,331)    (532)
operations, net of tax
Net income (loss) attributable
to Harsco Corporation common     $(233,656) $26,404  $(202,613) $9,746
stockholders
                                                               
Weighted-average shares of       80,775     80,659   80,747     80,623
common stock outstanding
Basic earnings (loss) per common
share attributable to Harsco                                    
Corporation common stockholders:
Continuing operations            $(2.89)    $0.32    $(2.49)    $0.13
Discontinued operations          --         --       (0.02)     (0.01)
Basic earnings (loss) per share                                 
attributable to Harsco           $(2.89)    $0.33(a) $(2.51)    $0.12
Corporation common stockholders
                                                               
Diluted weighted-average shares  80,775     80,910   80,747     80,863
of common stock outstanding
Diluted earnings (loss) per
common share attributable to                                    
Harsco Corporation common
stockholders:
Continuing operations            $(2.89)    $0.32    $(2.49)    $0.13
Discontinued operations          --         --       (0.02)     (0.01)
Diluted earnings (loss) per                                     
share attributable to Harsco     $(2.89)    $0.33(a) $(2.51)    $0.12
Corporation common stockholders
(a) Does not total due to                                     
rounding.

                                                         
                                                         
                                                         
HARSCO CORPORATION                                        
CONSOLIDATED BALANCE SHEETS (Unaudited)
                                             September 30 December 31
(In thousands)                                2013         2012
ASSETS                                                    
Current assets:                                           
Cash and cash equivalents                     $115,812   $95,250
Trade accounts receivable, net                354,121      600,264
Other receivables                             29,627       39,836
Inventories                                   176,792      236,512
Assets held-for-sale                          714,986      2,399
Other current assets                          74,238       92,182
Total current assets                          1,465,576    1,066,443
Property, plant and equipment, net            706,618      1,266,225
Goodwill                                      428,027      429,198
Intangible assets, net                        54,684       77,726
Other assets                                  114,628      136,377
Total assets                                  $2,769,533 $2,975,969
LIABILITIES                                               
Current liabilities:                                      
Short-term borrowings                         $274,283   $8,560
Current maturities of long-term debt          7,337        3,278
Accounts payable                              196,530      221,479
Accrued compensation                          53,788       94,398
Income taxes payable                          1,541        10,109
Dividends payable                             16,536       16,520
Insurance liabilities                         13,640       19,434
Advances on contracts                         28,108       47,696
Liabilities of assets held-for-sale           218,046      --
Other current liabilities                     150,642      216,101
Total current liabilities                     960,451      637,575
Long-term debt                                787,568      957,428
Deferred income taxes                         8,337        18,880
Insurance liabilities                         42,003       63,248
Retirement plan liabilities                   314,593      385,062
Other liabilities                             51,248       52,152
Total liabilities                             2,164,200    2,114,345
EQUITY                                                    
Harsco Corporation stockholders' equity:                  
Common stock                                  140,224      140,080
Additional paid-in capital                    158,417      152,645
Accumulated other comprehensive loss          (429,665)    (411,168)
Retained earnings                             1,423,209    1,675,490
Treasury stock                                (746,046)    (745,205)
Total Harsco Corporation stockholders' equity 546,139      811,842
Noncontrolling interests                      59,194       49,782
Total equity                                  605,333      861,624
Total liabilities and equity                  $2,769,533 $2,975,969

                                                                
                                                                
                                                                
HARSCO CORPORATION
CONSOLIDATED STATEMENTS OF                                       
CASH FLOWS (Unaudited)
                              Three Months Ended      Nine Months Ended
                               September 30            September 30
(In thousands)                 2013         2012       2013         2012
                                                                
Cash flows from operating                                        
activities:
Net income (loss)              $(231,566) $27,068  $(195,118) $10,769
Adjustments to reconcile net
income (loss) to net cash                                        
provided by operating
activities:
Depreciation                   56,496       61,293     178,136      188,182
Amortization                   4,120        4,595      12,967       15,662
Deferred income tax expense    5,993        4,934      3,465        (6,867)
(benefit)
Equity in income of            (434)        (182)      (1,015)      (479)
unconsolidated entities, net
Dividends from unconsolidated  --           154        --           308
entities
Harsco 2011/2012 Restructuring --           2,229      --           21,787
Program non-cash adjustment
Impairment of long-lived       241,323      --         241,323      --
assets
Other, net                     708          (13,279)   (1,449)      (29,263)
Changes in assets and                                            
liabilities:
Accounts receivable            26,204       4,317      (21,194)     (1,247)
Inventories                    2,692        1,552      (10,671)     (23,298)
Accounts payable               18,933       (16,768)   28,882       (24,719)
Accrued interest payable       5,767        5,755      6,333        5,786
Accrued compensation           9,746        8,005      (5,036)      2,286
Harsco Infrastructure Segment
2010 Restructuring Program     (575)        (2,004)    (870)        (4,755)
accrual
Harsco 2011/2012 Restructuring (3,546)      (4,542)    (14,496)     (8,050)
Program accrual
Other assets and liabilities   (28,143)     (7,505)    (57,170)     (34,733)
                                                                
Net cash provided by operating 107,718      75,622     164,087      111,369
activities
                                                                
Cash flows from investing                                        
activities:
Purchases of property, plant   (61,515)     (64,925)   (181,706)    (172,770)
and equipment
Proceeds from sales of assets  2,094        6,316      16,947       42,889
Purchases of businesses; net   (2,841)      (517)      (2,841)      (517)
of cash acquired
Other investing activities,    (2,585)      (891)      (4,985)      457
net
                                                                
Net cash used by investing     (64,847)     (60,017)   (172,585)    (129,941)
activities
                                                                
Cash flows from financing                                        
activities:
Short-term borrowings, net     (3,949)      (12,936)   239          (39,302)
Current maturities and                                           
long-term debt:
Additions                      157,466      29,958     284,861      249,034
Reductions                     (152,400)    (27,223)   (203,677)    (151,399)
Cash dividends paid on common  (16,559)     (16,519)   (49,652)     (49,548)
stock
Dividends paid to              (225)        (192)      (2,880)      (2,264)
noncontrolling interests
Contributions from             120          112        4,622        8,097
noncontrolling interests
Purchase of noncontrolling     --           --         (166)        --
interests
Common stock issued - options  --           --         371          725
Other financing activities,    (405)        (1)        (405)        (2,709)
net
                                                                
Net cash provided (used) by    (15,952)     (26,801)   33,313       12,634
financing activities
                                                                
Effect of exchange rate        (108)        3,567      (4,253)      (1,506)
changes on cash
                                                                
Net increase (decrease) in     26,811       (7,629)    20,562       (7,444)
cash and cash equivalents
                                                                
Cash and cash equivalents at   89,001       121,369    95,250       121,184
beginning of period
                                                                
Cash and cash equivalents at   $115,812   $113,740 $115,812   $113,740
end of period

                                                  
                                                  
                                                  
HARSCO CORPORATION
REVIEW OF OPERATIONS BY                            
SEGMENT (Unaudited)
                                                  
                                                  
                        Three Months Ended         Three Months Ended
                         September 30, 2013         September 30, 2012
                                                             
(In thousands)           Revenues     Operating     Revenues     Operating
                                      Income (Loss)              Income (Loss)
                                                             
Harsco Metals & Minerals $335,705   $23,036     $344,867   $26,350
                                                             
Harsco Infrastructure    242,569     (242,098)    229,287     (6,065)
                                                             
Harsco Rail              66,424      8,063        91,423      13,906
                                                             
Harsco Industrial        95,347      15,901       91,206      16,710
                                                             
General Corporate        --          (13,279)     --          (506)
                                                             
Consolidated Totals      $740,045   $(208,377)  $756,783   $50,395
                                                             
                                                             
                        Nine Months Ended          Nine Months Ended
                         September 30, 2013         September 30, 2012
                                                             
(In thousands)           Revenues     Operating     Revenues     Operating
                                      Income (Loss)              Income (Loss)
                                                             
Harsco Metals & Minerals $ 1,009,175 $66,857     $ 1,069,741 $79,662
                                                             
Harsco Infrastructure    709,800     (256,342)    701,829     (83,956)
                                                             
Harsco Rail              216,636     27,554       239,098     35,272
                                                             
Harsco Industrial        279,565     48,152       269,025     47,663
                                                             
General Corporate        --          (17,966)     --          (6,294)
                                                             
Consolidated Totals      $ 2,215,176 $(131,745)  $ 2,279,693 $72,347




HARSCO CORPORATION
RECONCILIATION OF DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
(Unaudited)
                                                       
                            Three Months Ended          Nine Months Ended
                             September 30                September 30
                                                                  
(In thousands)               2013          2012          2013         2012
                                                                  
Diluted earnings (loss) per
share from continuing        $(2.89)     $0.32       $(2.49)    $0.13
operations, as reported
--Long-lived asset         2.79         --           2.79        --
impairment charge (a)
--Harsco Infrastructure
Segment sale                 0.11         --           0.11        --
transactioncosts (b)
--Depreciation expense
reduction on Harsco
Infrastructure Segment       (0.04)       --           (0.04)      --
assets classified as
held-for-sale (c)
--Non-cash tax impact of
Harsco Infrastructure        0.24         --           0.24        --
Segment sale (d)
--Harsco 2011/2012
Restructuring Program charge --           0.10         --          0.84
(e)
--Gains associated with     --           (0.04)       --          (0.10)
exited countries (f)
--Former CEO separation     --           --           --          0.04
expense (g)
--Gains on pension         --           --           --          (0.02)
curtailment (h)
                                                                  
Adjusted diluted earnings
per share from continuing    $0.20 (i)   $0.39 (i)   $0.60 (i)  $0.89
operations
                                                                  
(a) Long-lived asset impairment charge resulting from the announced sale of
the Harsco Infrastructure Segment (3Q 2013 $241.3 million pre-tax).
(b) Harsco Infrastructure Segment sale transaction costs recorded as
Corporate expenses (3Q 2013 $12.4 million pre-tax).
(c) Depreciation expense reduction resulting from classification of Harsco
Infrastructure Segment assets as held-for-sale (3Q 2013 $3.4 million pre-tax).
(d) Non-cash tax impact of Harsco Infrastructure Segment sale –
undistributed earnings of subsidiaries and deferred tax valuation allowance
(3Q 2013 $19.2 million).
(e) Charges resulting from the Harsco 2011/2012 Restructuring Program in the
Harsco Infrastructure Segment (3Q 2012 $7.7 million pre-tax; 9 months 2012
$71.7 million pre-tax) and the Harsco Metals & Minerals Segment (3Q 2012 $0.7
million pre-tax; 9 months 2012 $1.4 million pre-tax).
(f) Non-cash gains related to the closure of certain European operations in
the Harsco Infrastructure Segment (3Q 2012 $4.2 million pre-tax; 9 months 2012
$10.9 million).
(g) Separation expense for former CEO (1Q 2012 $4.1 million pre-tax).
(h) Pension curtailment gains in the Harsco Metals & Minerals Segment (1Q
2012 $1.7 million pre-tax).
(i) Does not total due to rounding.
                                                                  
The Company's management believes diluted earnings per share from continuing
operations excluding special items, a non-U.S. GAAP financial measure, is
useful to investors because it provides an overall understanding of the
Company's historical 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. This measure should be considered in addition to,
rather than as a substitute for, other information provided in accordance with
U.S. GAAP.




HARSCO CORPORATION
REVIEW OF OPERATIONS BY SEGMENT EXCLUDING SPECIAL ITEMS (a) (Unaudited)
(In thousands)
                                                               
          Harsco     Harsco         Harsco     Harsco                Consolidated
         Metals &   Infrastructure Rail       Industrial Corporate  Totals
          Minerals
Three
Months
Ended                                                           
September
30, 2013
Operating
income
(loss),   $23,036  $(4,156)     $8,063   $15,901  $(925)   $41,919
excluding
special
items
Revenues,
as        $335,705 $242,569     $66,424  $95,347  $--      $740,045
reported
Operating
margin %,
excluding 6.9%       (1.7)%         12.1%      16.7%                5.7 %
special
items
                                                               
                                                               
Three
Months
Ended                                                           
September
30, 2012
                                                               
Operating
income
(loss),   $27,090  $(2,532)     $13,906  $16,710  $(477)   $54,697
excluding
special
items
Revenues,
as        $344,867 $229,287     $91,423  $91,206  $--      $756,783
reported
Operating
margin %,
excluding 7.9%       (1.1)%         15.2%      18.3%                7.2%
special
items
                                                               
                                                               
         Harsco     Harsco         Harsco     Harsco                Consolidated
         Metals &   Infrastructure Rail       Industrial Corporate  Totals
         Minerals
Nine
Months
Ended                                                           
September
30, 2013
Operating
income
(loss),   $66,857  $(18,400)    $27,554  $48,152  $(5,612) $118,551
excluding
special
items
Revenues, $
as        1,009,175  $709,800     $216,636 $279,565 $--      $ 2,215,176
reported
Operating
margin %,
excluding 6.6%       (2.6)%         12.7%      17.2%                5.4%
special
items
                                                               
                                                               
Nine
Months
Ended                                                           
September
30, 2012
                                                               
Operating
income
(loss),   $79,393  $(23,183)    $35,339  $47,663  $(1,799) $137,413
excluding
special
items
Revenues, $
as        1,069,741  $701,829     $239,098 $269,025 $--      $ 2,279,693
reported
Operating
margin %,
excluding 7.4%       (3.3)%         14.8%      17.7%                6.0%
special
items
(a) The Company's management believes operating margin excluding special items,
a non-U.S. GAAP financial measure, is useful to investors because it provides an
overall understanding of the Company's historical 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, both on a consolidated basis and at the
segment level. This measure should be considered in addition to, rather than as a
substitute for, other information provided in accordance with U.S. GAAP.
                                                               
                                                               


HARSCO CORPORATION
RECONCILIATION OF OPERATING INCOME (LOSS) BY SEGMENT EXCLUDING SPECIAL ITEMS (a)
(Unaudited)
(In thousands)
                                                                        
                  Harsco     Harsco         Harsco     Harsco                 Consolidated
                 Metals &   Infrastructure Rail       Industrial Corporate   Totals
                  Minerals
Three Months
Ended September                                                          
30, 2013
                                                                        
Operating income
(loss), as        $23,036  $ (242,098)   $8,063   $15,901  $(13,279) $ (208,377)
reported
- Long-lived
asset impairment  --        241,323       --        --        --         241,323
charge
- Harsco
Infrastructure    --        --            --        --        12,354     12,354
Segment sale
transactioncosts
- Depreciation
expense reduction
on Harsco
Infrastructure    --        (3,381)       --        --        --         (3,381)
Segment assets
classified as
held-for-sale
Operating income
(loss), excluding $23,036  $(4,156)     $8,063   $15,901  $(925)    $41,919
special items
Revenues, as      $335,705 $242,569     $66,424  $95,347  $--       $740,045
reported
                                                                        
Three Months
Ended September                                                          
30, 2012
                                                                        
Operating income
(loss), as        $26,350  $(6,065)     $13,906  $16,710  $(506)    $50,395
reported
- Harsco
2011/2012         740       7,685         --        --        29         8,454
Restructuring
Program charge
- Gains
associated with   --        (4,152)       --        --        --         (4,152)
exited countries
Operating income
(loss), excluding $27,090  $(2,532)     $13,906  $16,710  $(477)    $54,697
special items
Revenues, as      $344,867 $229,287     $91,423  $91,206  $--       $756,783
reported
                                                                        
                                                                        
                  Harsco     Harsco         Harsco     Harsco                 Consolidated
                 Metals &   Infrastructure Rail       Industrial Corporate   Totals
                  Minerals
Nine Months Ended
September 30,                                                            
2013
                                                                        
Operating income
(loss), as        $66,857  $ (256,342)   $27,554  $48,152  $(17,966) $ (131,745)
reported
- Long-lived
asset impairment  --        241,323       --        --        --         241,323
charge
- Harsco
Infrastructure    --        --            --        --        12,354     12,354
Segment sale
transaction costs
- Depreciation
expense reduction
on Harsco
Infrastructure    --        (3,381)       --        --        --         (3,381)
Segment assets
classified as
held-for-sale
Operating income
(loss), excluding $66,857  $(18,400)    $27,554  $48,152  $(5,612)  $118,551
special items
Revenues, as      $         $709,800     $216,636 $279,565 $--       $ 2,215,176
reported          1,009,175
                                                                        
Nine Months Ended
September 30,                                                            
2012
                                                                        
Operating income
(loss), as        $79,662  $(83,956)    $35,272  $47,663  $(6,294)  $72,347
reported
- Harsco
2011/2012         1,447     71,679        67        --        370        73,563
Restructuring
Program charge
- Gains
associated with   --        (10,906)      --        --        --         (10,906)
exited countries
- Former CEO
separation        --        --            --        --        4,125      4,125
expense
- Gains on
pension           (1,716)   --            --        --        --         (1,716)
curtailment
Operating income
(loss), excluding $79,393  $(23,183)    $35,339  $47,663  $(1,799)  $137,413
special items
Revenues, as      $         $701,829     $239,098 $269,025 $--       $ 2,279,693
reported          1,069,741
(a) The Company's management believes operating income excluding special items, a non-U.S.
GAAP financial measure, is useful to investors because it provides an overall
understanding of the Company's historical 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,
both on a consolidated basis and at the segment level. This measure should be considered
in addition to, rather than as a substitute for, other information provided in accordance
with U.S. GAAP.




HARSCO CORPORATION
FREE CASH FLOW (a) (Unaudited)
                                                 
                       Three Months Ended         Nine Months Ended
                        September 30               September 30
(In thousands)          2013          2012         2013          2012
Net cash provided by    $107,718    $75,622    $164,087    $111,369
operating activities
Less maintenance
capital expenditures    (24,253)     (28,508)    (90,390)     (97,011)
(b)
Less growth capital     (37,262)     (36,417)    (91,316)     (75,759)
expenditures (c)
Plus capital
expenditures for        576          4,952       5,340        9,216
strategic ventures (d)
Plus total proceeds
from sales of assets    2,094        6,316       16,947       42,889
(e)
Free Cash Flow          $48,873     $21,965    $4,668      $(9,296)
(a) The Company's management believes that free cash flow, a non-U.S. GAAP
financial measure, is meaningful to investors because management reviews cash
flows generated from operations less capital expenditures net of asset sales
proceeds. It is important to note that free cash flow does not represent the
total residual cash flow available for discretionary expenditures since other
non-discretionary expenditures, such as mandatory debt service requirements,
are not deducted from the measure. This measure should be considered in
addition to, rather than as a substitute for, other information provided in
accordance with U.S. GAAP.
(b) Maintenance capital expenditures are necessary to sustain the Company's
current revenue streams and include contract renewals.
(c) Growth capital expenditures, for which management has discretion as to
amount, timing and geographic placement, expand the Company's revenue base and
create additional future cash flow.
(d) Capital expenditures for strategic ventures represent the partner's
share of capital expenditures in certain ventures consolidated in the
Company's financial statements.
(e) Asset sales are a normal part of the business model, primarily for the
Harsco Infrastructure and Harsco Metals & Minerals Segments.




HARSCO CORPORATION
ADJUSTED RETURN ON INVESTED CAPITAL (a)
                                      
                                       Trailing Twelve Months
                                      for Period Ended
                                       September 30
(in thousands)                         2013                2012
Net loss, as reported                  $(466,971)        $(82,722)
Special items:                                            
-- Long-lived asset impairment charge 241,323            --
-- Harsco Infrastructure Segment sale 12,354             --
transaction costs
-- Depreciation expense reduction     (3,381)            --
Harsco Infrastructure Segment assets
--Goodwill impairment charge – Harsco 265,038            --
Infrastructure Segment
--Harsco 2011/2012 Restructuring      20,935             174,343
Program charges
--Charges to exit Harsco Metals &     7,645              --
Minerals Segment contract
--Gains associated with exited        --                 (10,906)
countries
--Former CEO separation expense       --                 4,125
--Gains on pension curtailment        --                 (1,716)
--Taxes on above special items        (25,236)           (19,993)
-- Tax impact of Infrastructure
Segment sale on undistributed earnings 19,189             --
of subsidiaries and valuation
allowance
--Non-cash tax charge against U.K.    --                 36,833
deferred tax assets
Adjusted net income                    $70,896           $99,964
                                                         
Total equity                           $605,333          $ 1,198,589
Plus total debt                        1,069,188          968,501
Total capital                          $ 1,674,521        $ 2,167,090
                                                         
Adjusted return on invested capital    4.2%               4.6%
                                                         
(a) The Company's management believes return on invested capital excluding
special items, a non-U.S. GAAP financial measure, is meaningful in evaluating
the efficiency and effectiveness of the Company's long-term capital
investments. 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. This measure
should be considered in addition to, rather than as a substitute for, other
information provided in accordance with U.S. GAAP.

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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