PITTSBURGH Harsco Corp.
returned to profitability in the first quarter but expects to
see revenue curbed by continued lower steel production volumes
at the mills it serves.
The Camp Hill, Pa.-based mill
services provider posted net income of $7.2 million for the
three months ended March 31, in contrast to a net loss of $29.4
million in the same year-ago period, despite revenue that fell
4.9 percent to nearly $715.4 million from $752.3 million.
steel industry continues to be impacted by the overall weak
economic climate, particularly in the developed markets,"
president and chief executive officer Patrick Decker said
during a conference call to discuss the companys
Harsco blamed its fourth-quarter
2012 net loss on deterioration in the metals markets (
amm.com, Feb. 14).
The companys metals and
minerals segment posted operating income of $19.8 million, down
from $22.3 million in the same period last year, on revenue
that fell to $337.3 million from nearly $360 million in the
same comparison. However, the segments margin improved
due to managing costs and forming new contracts with steel
Harsco expects revenue and
operating income in the metals and minerals segment to decline
moderately in the second quarter, in part due to lower
production at certain steel- and metal-producing customers.
Most of the companys
decline in first-quarter revenue stemmed from a decision to
exit underperforming contracts, the company said. Harsco is now
focused on building relationships in growing economies,
including Brazil, China and India, it said.