Harsco Corporation (HSC) posted GAAP loss per share of $3.27 in the fourth quarter versus a loss of $1.14 in the year ago quarter. Adjusted earnings per share (EPS) were 30 cents in the quarter compared with 36 cents in the year-ago quarter. Adjusted EPS missed the Zacks Consensus Estimate by 3.2%.
For 2012, GAAP loss per share was $3.15 per share versus a loss of 12 cents per share. Adjusted (EPS) was $1.19 compared with $1.31 in the year ago quarter. Adjusted EPS missed the Zacks Consensus Estimate by 1.7%.
Revenue
Revenues in the quarter amounted to $766 million, down 3.3% year over year. Reported revenues were ahead of the Zacks Consensus Estimate of $745 million. The year-over-year decline in revenues was due to the termination of agreements in the Metals & Minerals segment and discontinuation of Infrastructure segment’s operations in various countries. The foreign currency translation also reduced sales in the reported quarter. In addition, revenue was also adversely impacted by the weak metals and commercial construction markets.
For 2012, revenues were $3.0 billion down 7.8% compared with $3.3 billion in the year ago period.
On a segmental basis, Metals & Minerals generated revenues of $334 million in the quarter, down 10.2% from the year-earlier quarter. The year-over-year drop in the segment’s sales was attributed to the closing of certain under performing agreements, foreign currency translation and lower volume owing to the clouded metal market.
Revenues from the Infrastructure segment came in at $235 million, down 11.5% from the year-earlier quarter, primarily owing to the closing of operations in several countries and foreign currency translation. Additionally, the weak commercial construction markets and soft end-market for industrial maintenance services in the North America and Europe regions also impacted the segment’s sales during the quarter.
The Rail segment generated revenues of $113 million versus $72 million the year-ago quarter. The hike was attributable to high equipment delivery in China, offset by lower volume for replacement parts and contract services.
Revenues from the Industrial segment were $84 million, up 1.5% year over year, driven by strong energy markets.
In terms of business mix, Service revenues were $571.6 million versus $640.7 million in the year-earlier quarter. Product revenues improved to $194.7 million from $151.9 million in the year-earlier quarter.
Margins
GAAP operating loss was $247 million in the reported quarter versus a loss of $57 million in the year-ago quarter hurt by lower results in Metals & Minerals and the unfavorable impact of the foreign currency translation. Adjusted operating income margin increased 50 basis points to 6.1%.