30.10.2008

Harsco Access up 16%

Harsco Access services which includes SGB and Hünnebeck and Modern has reported nine month revenues of $1.2 billion an increase of 16 percent on 2007, operating income for the period rose by more than 18 percent to $156 million.

The third quarter revenues were up by 12 percent to $393 million, of which organic growth contributed $25 million, or seven percent while acquisitions contributed $4 million, or approximately one percent. Positive foreign currency translation contributed $13 million, or four percent.

Operating income on the other hand was 25 percent higher than last year at $60 million. $3 million of the extra profit came from currency gains while a one off property sale added $6.8 million. Without these two factors, the increase was just five percent. Or 11 percent if the currency gain is left in.

net pre-tax gain, principally from the sale of property. Adjusting for this gain, third quarter operating income was up almost 11 percent and operating margins would have been 13.5 percent, essentially equal to last year’s record third quarter margins.

The company said that the strong third quarter performance was the result of improved results in the Middle East, Asia-Pacific and North America, more than offsetting weaker performance from the U.K., Ireland, Denmark and other parts of Europe.

It also said: “The near-term outlook for the Access Services will be negatively affected by continued uncertainty in the credit markets, which has deferred equipment sales and some construction projects. The current weakness in the commercial construction market, particularly in Western Europe and the U.S., is being partially offset by a steady level of activity from the Company’s industrial maintenance services, global infrastructure projects, and continued overall growth in the Middle East. In addition, new geographies will also contribute to this segment’s performance.”