By Chris Wack
Harsco Corp. said it expects a second-quarter operating loss from continuing operations of $95 million and $97 million, after saying in May it would see second-quarter operating income of $17 million to $22 million.
The new guidance includes a non-cash goodwill impairment charge estimated at about $100 million, Harsco said.
The company said it expects second-quarter adjusted earnings before interest, taxes, depreciation and amortization of $47.5 million to $50 million, compared with the $59 million to $64 million it had previously forecast.
For 2022, Harsco said it is now expecting an operating loss from continuing operations of $51 million and $61 million, compared with previous guidance of operating income of $81 million to $96 million.
Adjusted Ebitda is expected to be $210 million to $220 million for the full year, compared with adjusted Ebitda of $250 million to $265 million previously.
Operational execution in Harsco Environmental was positive in the quarter and the business experienced sequential earnings growth, but HE second-quarter results are expected to be at the lower-end of prior implied guidance due to unfavorable foreign exchange translation impacts, the company said.
Clean Earth adjusted Ebitda for the second quarter is expected to be $5 million, or $12 million below the mid-point of prior implied guidance, Harsco said. In the quarter, Clean Earth experienced unprecedented, additional cost inflation on third-party transportation, other logistics and disposal services, the company said.
Due to lower earnings expectations and higher discount rates, Harsco said it expects to record a non-cash goodwill impairment charge for Clean Earth in the second quarter. The goodwill impairment is currently anticipated to be $100 million, it said.
Meanwhile, Clean Earth’s 2022 adjusted Ebitda is now anticipated to be between $40 million and $44 million, it said.
Harsco said it expects to be in compliance with its financial covenants at the end of the second quarter and for the foreseeable future.
Harsco shares were down 5% to $5.51 in premarket trading.
The company is scheduled to issue its second-quarter earnings results on Aug. 2.
Write to Chris Wack at [email protected]
Credit: www.marketwatch.com /