Harsco Corporation has reported results for the 2016 second quarter, with operating income of $1 million and a diluted loss per share from continuing operations of $0.35. Operating income had a loss provision in rail of $40 million, which included the loss of the company's railway maintenance equipment contracts with SBB, the federal railway system in Switzerland.
Excluding this item, operating income in in the second quarter was $41 million, which was above guidance due to favorable performance in metals & minerals and lower corporate spending. Also, excluding this item, diluted earnings per share from continuing operations were $0.15, compared with diluted earnings per share of $0.08 in the second quarter of 2015.
“We were particularly pleased with the performance of Metals & Minerals in the second quarter,” said Harsco President and CEO Nick Grasberger. “The performance in Metals & Minerals reflects the structural and operational improvements completed over the past two years, strong execution against our key priorities and an improved market environment.”
“Our second quarter results also benefited from lower than anticipated Corporate costs, and our Industrial business performed well in a challenging economic environment,” continued Grasberger. “As previously announced, our reported results were impacted by the recognition of expected losses on our SBB contracts in Rail. While we are disappointed with this outcome, our SBB development work is progressing and we expect to begin delivering key components under these contracts during the second-half of the year.”
“Looking forward, we expect the internal momentum to continue in our Metals & Minerals segment and believe that our businesses are well positioned to show significant operating leverage as key markets recover,“ Grasberger added. “Accordingly, we have raised our 2016 Outlook for adjusted operating income. As we enter the second-half of the year, our priorities are unchanged.”
“We remain focused on achieving meaningful debt reduction during the year and will continue to pursue initiatives to strengthen the market positions and capital returns of our businesses. Finally, we are committed to rebalancing our business portfolio and realizing the embedded value within our businesses,” concluded Grasberger.