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August 23, 2011
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Harsco Corporation (HSC) recently received railway track maintenance equipment contracts from customers in Japan and North America for an amount totaling more than $13 million.
The company will provide a 20-stone rail grinder configuration, a track maintenance unit to Japanese customers for Shinzai and Shinkansen lines operated by the East Japan Railway Company, JR East. Harsco expects to deliver the unit in the second half of 2012.
Under the contract from North America, the company will support a range of customers and include a number of machine types. Deliveries are expected to be completed by the end of this year.
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.
The company’s Rail segment reported revenues of $78 million in the second quarter of fiscal 2011, down 10% from the year-earlier quarter. Excluding the impact of change in estimated costs of China's Ministry of Railways equipment order, operating margins of the segment decreased to 18.6% from 25% in the year-earlier quarter.
Harsco is upbeat about the results of the Rail segment for the second half of fiscal 2011. In the long term, the company is optimistic about the prospects of the segment on the back of its expanded geographic base and strong demand for maintenance-of-way equipment, parts and services for railways.
The Rail segment serves customers worldwide and its ongoing production backlog includes its largest order ever, involving rail grinders for China.
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