* Q2 adj EPS $0.43 vs est $0.35
* Q2 sales fell 12 pct
* Names Tyco exec as CEO
* Sees Q3 adj EPS $0.32-$0.38 vs est $0.46
* Shares up 9 percent
July 31 Harsco Corp, which provides
products and services to metal producers, posted a
higher-than-expected quarterly profit helped by its
restructuring actions and named a Tyco International Ltd
executive as its new chief.
Harsco's restructuring plans, laid out in December, includes
slimming its European presence and exiting under-performing
regions as it grapples weak infrastructure spending, a decline
in industrial production and volatile raw material prices.
The company also named Patrick Decker as its chief
executive, replacing interim CEO Henry Knueppel. Decker, who has
led Tyco's valves and controls business for five years, will
join Harsco on Sept. 10.
The strong quarterly results and the naming of the CEO
pushed Harsco's share higher, despite a warning from the company
that the end markets of its two largest businesses would soften
further in the third quarter.
Shares of the Camp Hill, Pennsylvania-based company were
trading up 9 percent at $22.24 in late morning trade on the New
York Stock Exchange.
Harsco's second-quarter earnings from continuing operations
was $40.5 million, or 49 cents per share, before restructuring
charges. It earned $39.2 million, or 47 cents per share, a year
Excluding items, it earned 43 cents per share.
Revenue fell 12 percent to $770.6 million, hurt by foreign
Analysts were expecting a profit of 35 cents a share on
revenue of $821.9 million, according to Thomson Reuters I/B/E/S.
Sales at its metals & minerals and infrastructure
businesses, which accounted for more than two thirds of total
revenue, fell in the second quarter and is expected to further
weaken in the current quarter, the company said.
Of its two smaller businesses, the rail operations would
continue to grow, while the industrial business would remain
flat, due to volatile energy prices and lower drilling activity.
For the third-quarter, the company forecast earnings of 32
cents to 38 cents per share, before restructuring costs. That
was well short of analysts' expectations of 46 cents per share.