Investment View We initiate coverage of Harsco Corporation with a Sell rating. Harsco Corporation is a multinational provider of industrial services and engineered products. Although the company's operations fall into three reportable segments: Harsco Metals & Minerals, Harsco Industrial and Harsco Rail, the segments are disproportionate and leave Harsco Corp. in a vulnerable state. The company’s collective operational results are predicated on the efficacy of the troubled Metals and Minerals segment, which accounted for 64% of total revenues for FY2015. We believe the current trend in company share price is not in line with company performance. It appears that the recent jump in investor confidence stems from improved net earnings; however, …show more content…
The Company's net cash borrowings increased by $47.3 million in 2015 principally due to increased credit facility borrowings related to capital expenditures, mostly for the Harsco Metals & Minerals Segment; dividend payments; treasury share purchases under the Company's share purchase program then in effect; and for the Protran and JK Rail acquisitions. At debt levels as of December 31, 2015, a one percentage point increase/decrease in variable interest rates would increase/decrease interest expense by $4.6 million per year. If the Company is unable to successfully manage its exposure to variable interest rates, its debt service obligations may increase even though the amount borrowed remains the same, and in turn, its results of operations and financial condition may be negatively impacted. As previously stated, Harsco Corporation’s operational results are largely dependent on the performance of the company’s Metals & Minerals segment. On November 9, 2015, the Company announced its intention to pursue strategic options for the separation of the Harsco Metals & Minerals Segment from the rest of the Company. Additionally, management has stated that there can be no assurance that the Company will …show more content…
for customers throughout the world. Additionally, this segment provides railway track maintenance services principally in the U.S. and the U.K. The Rail segment's key competitive factors are quality, technology, customer service and value. Primary competitors for both products and services are privately-held global businesses as well as certain regional competitors. As a consequence of operating in 30 different countries, Harsco Corporation is exposed to a plethora of macroeconomic risk factors every day. We believe that the most pertinent macro threats to Harsco Corporation’s continued operations are those which apply to the company’s heavily weighted Metals & Minerals segment. The industry and thus the segment depend highly on activities of the non-precious metals mining and steel industry. China remains the driver of the iron ore and steel industry. With China recently switching from a production market to a consumer market, the industry has been facing strong over-supply, driving down iron ore and steel prices as well as industry activities. The non-precious metal mining and steel industry has seen restructuring since 2014; jobcuts and strikes have been widespread affecting key players including BHP,
The prospects for future profitability of the U.S. steel makers are very unattractive. Unless America can successfully combat China’s enormously, inexpensive, production ability, I do not see any American steel company surviving. China just has too big of a production ability and has the workforce to do it cheaply. Nucor will have to expand in this industry in the United States to survive. If the WTO
It has been 20 years since the privatisation of British Rail occurred in Great Britain. This is when the government’s ownership and infrastructure of the railway where passed on to the private sector in order for them to try make it a better efficient market. The government have multiple regulations in order to keep this industry from falling back in to a monopoly. There has been many benefits and problems that have occurred to both the producer and consumer while the government have tried to intervene in order control the pricing of rail tickets.
HRSA – Health Resources and Services Administration (HRSA) is an agency of the U.S. Department of Health and Human Services. The mission of HRSA is “to improve health and achieve health equity through access to quality services, a skilled health workforce and innovative programs” (About HRSA, 2017). HRSA programs provide high-quality primary healthcare to pregnant women, people with HIV/AIDS and to those who are geographically isolated or medically vulnerable. Also, it provides training to the healthcare professionals and maintains databases that protect against healthcare malpractice, waste and fraud. In addition, to assist an organization with its quality improvement (QI) efforts, HRSA apprehends the need for a toolkit of objective educational tools and resources” (“HRSA Clinical…”, n.d.). This toolkit consists of practical and convenient tools which support an organization’s new or existing QI program by implementing proven strategies and performance measurement techniques. The major goals of HRSA include “improving access to quality care and services, strengthening the health workforce, building
Not only are exports happening, but imports as well; 171 million tons of chemicals, intermodal, farm/food, forest products, metal, vehicles, et cetera (Document F). The railroad industry also accounts for 40% of the USA’s total freight network, providing 221,000 jobs (Federal Railroad Administration). Many creations become outdated after only a few years, but the Transcontinental Railroad still influences global economy today. Carrying millions of tons of goods, railroads are vital to the US
industry by setting the size of track , the size of trains and the price paid for shipping. The
An article named "Freight Rail Today" from The Federal Railroad Administration explains the amount of product Americans have
The second country on my visit is Italy, which located in Apenins peninusular, and use the mineral fron Alpet mountain to denvelope industi of automobiles, ships and specialized products. For thousands of years the Alps have minerals soures which is the first product with good quality of iron for the steel industry. The steel industry is the complex chain where a lot of emploiers get job and make Italy the country of powerful economic.The companies like Fiat, Alfa Romeo, Lanica and Ferrari are the best groups of product the automitive industry and make Italy one of the denvelope country in
Also china has a huge demand for Iron; this is in order to build the buildings and also for the growing demands of the car
Our direct competitors would be H&R Block and Jackson Hewitt, respectively. H&R Block has a professional atmosphere and gives off an ambiance that they are knowledgeable and capable. They have educated employees and trained professionals there to assure customers that everything will go well. Jackson Hewitt has a more casual and “home style” approach that allows it to be more welcoming and less
1. Think about size, growth, locational aspects and segmentation 2. Market Structure 3. Performance metrics used 4. Trends
As mentioned above, Australian production in iron ore expected to be strong and Indian iron ore exports expected to take off in the next few years. I expect worldwide iron ore vessel shipments to
HSN is your one-stop store that offers everything from fashion and health products, to electronics, gifts, home and kitchen appliances. HSN has changed the way people shop online. In a few clicks, you get access to thousands of products online, and more than that, you get to enjoy discounts on thousands of products, which starts from 10% off to over 50% off. If you are a savvy-saver, you might be overwhelmed with HSN deals, which are sure to convince you to shop even more. That’s not all, we have partnered with HSN to give you a quick and easy access to these offers.
The chart provides information by four firms, Fortescue Metals Group (FMG), Vale, Rio Tinto, BHP (WAIO) and the rest of the world. According to this data set these four producers accounts for approximately 65% - 70% of iron ore produced for the export market. This suggests the market has medium level of concentration reflecting a scenario of monopolistic competition.
Yet, the company faces a major issue: it lacks raw material and its growth opportunities in this market could suffer because of this aspect. Since 2009, the company has invested aggressively for expanding its aluminium operations. However, the aluminium market is now oversupplied and the bottom line has been effected. This is mainly due to the slow-moving global economic growth and the Chinese economic slowdown, which is a major actor and accounts for 45% of total global copper consumption. Also, China is paradoxically
Stephen A. Ross is the Franco Modigliant Professor of Finance & Economics at the Sloan School of management, Massachusetts Institute of Technology.