Harsco Corporation's third quarter 2009 revenues from continuing operations totaled USD 744.2 million, down by USD 300.7 million or by 29% YoY. It experienced lower volume levels resulting from a deterioration of global steel markets and weaker demand for infrastructure services, particularly in the United Kingdom, North America and several other key European countries.
Foreign currency translation decreased sales by USD 53.2 million and accounted for approximately 18% of the decline in sales. Operating income from continuing operations was USD 56.4 million as compared with USD 133.9 million in 2008, a decrease of 58%. Third quarter 2009 results also included a net non cash charge of USD 0.11 per share for adjustments to correct errors generated principally by the improper recognition of certain revenues and delaying the recognition of certain expenses by one subsidiary, in one country, during the past three years.
Harsco assessed the individual and aggregate impact of these adjustments on the current year and all prior periods and determined that the cumulative effect of the adjustments was not material to the full year 2009 results and it did not result in a material misstatement to any previously issued annual or quarterly financial statements. Consequently, the company recorded the net adjustment in the current quarter and has not revised any previously issued annual financial statements or interim financial data.
Revenues for the first 9 months of 2009 were USD 2.2 billion, down by USD 914.2 million or by 29% YoY. Operating income from continuing operations was USD 164 million as compared with USD 379.1 million in the first 9 months of 2008, a 57% decrease. Foreign currency translation decreased revenues and operating income for the first 9 months of 2009 by USD 309 million and USD 32.8 million, respectively. Revenues from emerging markets were approximately 21% of total revenues for the first nine months of both 2009 and 2008.
Harsco continues to have significant available liquidity and remains well positioned from a financial flexibility perspective. Net cash from operations for the third quarter and the first 9 months of 2009 is less than comparable periods in 2008, but was offset by decreased capital expenditures compared with prior years. This has allowed the company to further enhance its balance sheet, maintain its dividend, reduce debt to the extent possible under borrowing agreements and pursue prudent, bolt on acquisitions that are consistent with the Company s growth strategies.
During the third quarter of 2009, it generated net cash from operating activities of USD 120.4 million as compared with USD 171.6 million achieved in the third quarter of 2008. For the first 9 months of 2009, the company generated net cash from operating activities of USD 276.7 million as compared with USD 382 million for the first 9 months of 2008. Capital expenditures were USD 123.1 million as compared with USD 380.9 million in the first 9 months of 2008.
