Sales in the fourth quarter of 2006 were up 8 percent to $108m from $100m last year. Operating income of $8.4m was up 19 percent from last year’s $7.0m. Operating margins were 7.7 percent compared with 7.0 percent in the fourth quarter of last year. Foreign currency translation decreased operating income by $0.6m in the quarter.
Strength in the quarter was led by improved performance from this segment’s valve and cryogenics product lines. Overall results were also better despite the negative effect of higher commodity costs in the quarter.
As previously stated, the Company has announced its intention to divest the Gas Technologies Segment. The Company anticipates that this transaction could take until the third quarter of 2007 to complete.
Harsco’s chairman and CEO, Derek Hathaway, said: $quot;We have made the decision to divest our Gas Technologies business. For some time we have been focused on a strategy of growing our industrial services businesses on a global basis. By selling Gas Technologies, we will be better positioned to accelerate this effort. Given the confidence we have in our future growth, Harsco’s Board of Directors also approved a two-for-one stock split, an action which should enhance our trading liquidity and make Harsco shares even more attractive to a broader range of the investment market.$quot;
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