Harsco Cuts 2015 Guidance, Adjusts Dividend; Plans To Separate Metals & Minerals

(RTTNews) - Harsco Corp. (HSC) announced the company now expects its full year 2015 adjusted earnings per share to be in the range of $0.46 to $0.50; compared to a previous outlook range of $0.41 to $0.55. The company now expects its full year adjusted operating income to range from $125 million to $130 million; compared to prior outlook range of $120 million to $135 million.

For fourth-quarter 2015, the company expects its adjusted earnings per share to be between breakeven to profit of $0.05; and adjusted operating income to be in the range of $15 million to $20 million.

The company's Board approved a quarterly dividend of $0.051 per share beginning with the first quarter 2016 dividend payment. The company said the dividend adjustment was made in light of present industry macroeconomic factors with a goal to preserve capital for operations and strategic initiatives. Harsco intends to redirect the approximately $50 million in annual funds that otherwise would have been allocated for dividends to reduce debt and enhance financial flexibility. The newly adjusted dividend will be supported by the company's free cash flow.

Separately, Harsco announced that its Board has unanimously determined to pursue strategic options for the separation of the company's Metals & Minerals segment from the Industrial and Rail businesses and Brand joint venture. The company has authorized its lead advisor, Goldman, Sachs & Co. to commence a formal process to evaluate all options for implementing a separation of Metals & Minerals, including but not limited to a potential sale or tax-free spinoff. The company expects to commence a formal strategic review process in the next several weeks.