Harsco Corp. earnings for the third quarter were down year-over-year after the company sold its interest in an energy joint venture.
Despite that, however, the company says its metals and minerals business remains strong, which had had a positive impact on overall performance.
Operating income for that division was $24 million, compared with an operating loss in the prior-year quarter of $3 million.
Based in Wormleysburg, Cumberland County, Harsco is an industrial conglomerate with worldwide interests, including energy, railroad operations and supply, metals processing and manufacturing.
Harsco officials announced Thursday that the company recorded a third quarter loss per share of 41 cents, which included a non-cash loss related to the company’s sale of its remaining interest in Georgia-based Brand Energy & Infrastructure Services. That transaction was announced in September.
At the time the sale was announced, Harsco said it was expected to result in a non-cash accounting loss of approximately $45 million, or 56 cents per share after tax, on the sale of its 26 percent interest in Brand.
Without that loss, adjusted diluted earnings per share for the third quarter of 2016 were 14 cents, the company said.
Its earnings of $29 million were down from $35 million, or 18 cents per share, in the third quarter of 2015.
The company this week also announced that it had completed a refinancing project which included a $400 million five-year revolving credit line and a $550 million seven-year term loan.
The proceeds are intended to be used to redeem the 5.75 percent senior notes due 2018, as well as to pay related transaction fees and expenses.
At the end of the third quarter, Harsco’s net debt was approximately $596 million, while its borrowing capacity and available cash were more than $340 million.
President and CEO Nick Grasberger said the move “substantially reduced our financial leverage in the quarter and further strengthened our financial flexibility.”
“Looking ahead, our strategic priorities remain unchanged as we pursue initiatives to improve our market position and capital returns in each of our businesses, and we remain optimistic about our earnings potential as markets recover,” Grasberger said.
Harsco trades on the New York Stock Exchange under the symbol HSC.
