UPDATE 2-Harsco Q1 profit dips, cuts FY EPS view; shares fall

Thu Apr 23, 2009 5:41pm BST
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* Cuts 2009 EPS view to $1.90-$2.10 from $2.80-$3.00

* Sees Q2 EPS $0.40-$0.50

* Q1 EPS $0.25 from cont ops vs $0.67 yr-ago

* Q1 revenue $696.9 mln vs $987.8 mln yr-ago

* Shares fall 9 pct (Recasts; adds conference call details, analyst comment, share movement)

April 23 (Reuters) - Harsco Corp (HSC.N: Quote, Profile, Research), which provides products and services to metals producers, posted a sharp decline in quarterly profit, partly hurt by low global steel production, and cut its 2009 earnings outlook, sending its shares down as much as 9 percent.

Earnings were also hit by the lack of credit that continues to adversely affect non-residential construction projects across the globe, Chief Executive Salvatore Fazzolari said on a conference call with analysts.

Capacity utilization at many of Harsco's mills is below 50 percent, illustrating the severity of the decline at the company, which serves the infrastructure, minerals and other industrial markets, Janney Montgomery Scott analyst James Lucas said in a note.

Lucas has a "neutral" rating on shares of Harsco.   Continued...

 

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