Back to top

Analyst Blog

Harsco Corporation (HSC - Snapshot Report) recently announced that it has won a new multi-year contract worth over $225 million from JSW Steel Ltd - the largest steel producer in India with an annual production capacity of 14.3 million tons - for onsite services primarily related to resource recovery and slag management.

JSW Steel, a part of JSW group, has diversified interests in mining, carbon steel, power, industrial gases, port facilities, aluminium, cement, and information technology.

Harsco already has existing business ties with JSW Steel’s associate company, JSW Ispat Steel's Dolvi plant in Maharashtra. It also provides various industrial services at its plant in Vijaynagar, Karnataka. With this contract, JSW will be able to cut down on its raw material costs besides optimizing recovery of metallic units from slag, thus minimizing wastages.

On the other hand, Harsco would benefit by expanding in emerging markets like India and establishing itself as premier industrial company offering dedicated services to infrastructure-oriented sectors like steel. India is expected to become the second-largest steel producer by 2015 given its currently-planned capacity expansion projects. Harsco aims to develop its long-standing business relationships with JSW steel, besides capitalizing on newer opportunities.

In the last reported quarter, Harsco posted adjusted diluted earnings per share of 39 cents from continuing operations compared with 40 cents in the year-earlier quarter. The results surpassed the Zacks Consensus Estimate of 37 cents and also exceeded management’s guidance range of 32 cents to 38 cents per share for the quarter.

Headquartered in Pennsylvania, Harsco is a diversified, multinational provider of market-leading industrial services and engineered products. The company serves global infrastructure, metals, minerals, rail, and industrial sectors

Harsco currently has Zacks #4 Rank (short-term Sell rating) along with a long-term Neutral recommendation. One of its competitors, SPX Corporation (SPW - Snapshot Report) also holds a Zacks #4 Rank.
 

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

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
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%