Back to top

Analyst Blog

Zacks Equity Research

New Contracts for Harsco Rail

HSC

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Harsco Corporation (HSC - Snapshot Report) recently received a contract from Network Rail for an estimated value of $50 million. This is a renewal contract with an extended tenure of four years.

Under the contract, the company’s Rail segment will continue to provide railway switch grinding services to Network Rail in the UK rail system. Harsco will operate and maintain a fleet of up to five switch grinding units, performing regular rail grinding of switch and crossing trackwork.

Rail grinding services re-profiles railhead contours enabling enhanced rail life and smoother operation. Consequently, there was a decline in fuel consumption, operating costs and noise. Further, these services correct surface damage, which protects rail track from rail fractures.

Since 1997, Harsco has been providing railway track services to Network Rail and its predecessor Railtrack.

Harsco also secured a railway track maintenance and related equipment contract from Saudi Arabia for $15 million. Deliveries would be completed by the end of this year.

As per the contract, the company will support the Kingdom's new North-South Railway system project of constructing a 2,300 kilometer rail line to connect Saudi Arabia's rich phosphate and bauxite reserves with its processing facilities in Jubail. Furthermore, it will facilitate a new rail route for freight and passenger traffic.

The project will enable new opportunities for the Harsco Infrastructure group operating in Saudi Arabia through a joint venture partnership with Jeddah-based Al-Baroom Group. Additionally, it will encourage new customer relationships and provide market opportunities for Harsco Rail.

Harsco  is a diversified, multinational provider of market- leading industrial services and engineered products to a variety of industries that are fundamental to the world’s economic growth and progress. 

The company’s Rail segment reported revenues of $63 million in the first quarter of fiscal 2011, down 34% from the year-earlier quarter. Operating margins of the segment decreased to 13% from 21.4% in the year-earlier quarter.

For the second quarter of fiscal 2011, management expects an overall EPS of 34 cents-39 cents from continuing operations. The company apprehends that EPS growth in the second quarter of fiscal 2011 will be impeded, due to the timing of shipments in the Harsco Rail segment.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ANI PHARMACE ANIP 29.85 +16.83%
ALLIANCE FIB AFOP 17.94 +3.59%
FEDERATED NA FNHC 20.51 +3.22%
GENTHERM INC THRM 36.80 +2.65%
ATLAS FINANC AFH 14.60 +2.53%