Revenue during the quarter dropped 7.02 percent to $360.22 million from $387.43 million in the previous year period. Gross margin for the quarter contracted 191 basis points over the previous year period to 21.11 percent. Total expenses were 93.30 percent of quarterly revenues, down from 98.40 percent for the same period last year. This has led to an improvement of 510 basis points in operating margin to 6.70 percent.

Operating income for the quarter was $24.15 million, compared with $6.20 million in the previous year period.

However, the adjusted operating income for the quarter stood at $27.99 million compared to $25.58 million in the prior year period. At the same time, adjusted operating margin improved 117 basis points in the quarter to 7.77 percent from 6.60 percent in the last year period.

"We ended the year with a strong quarter and I am very pleased with our accomplishments during the year," said president and chief executive officer Nick Grasberger. "2016 proved to be a turning point for Harsco. We exceeded the key financial targets established at the beginning of the year, despite persistent end-market weakness. Much of our success can be attributed to Metals & Minerals, where we completed the major transformation actions contemplated in M&M. Our M&M initiatives led to a meaningful improvement in performance during 2016 and enabled the business to achieve the targeted objectives we established nearly three years ago. Also, our Corporate costs declined significantly compared with 2015, our free cash flow reached a multi-year high and our balance sheet is now the healthiest it has been in years."

For fiscal year 2017, Harsco Corporation expects operating income to be in the range of $100 million to $120 million. The company expects adjusted operating income to be in the range of $100 million to $120 million. It company projects diluted earnings per share to be in the range of $0.32 to $0.50. The company projects diluted earnings per share to be in the range of $0.32 to $0.50 on adjusted basis.

For the first-quarter 2017, Harsco Corporation expects adjusted operating income to be in the range of $15 million to $20 million.On an adjusted basis, the company projects diluted loss per share to be in the range of negative $0.01 to $0.04. 

Cash flow from investing activities was $122.89 million from investing activities during the year as against cash outgo of $130.37 million in the last year. It has incurred net capital expenditure of $60.04 million on net basis during the year, down 38.48 percent or $37.55 million from year ago.

The company has spent $292.27 million cash to carry out financing activities during the year as against cash inflow of $22.45 million in the last year period.

Cash and cash equivalents stood at $71.88 million as on Dec. 31, 2016, down 9.88 percent or $7.88 million from $79.76 million on Dec. 31, 2015.

Working capital declines
Harsco Corporation has witnessed a decline in the working capital over the last year. It stood at $149.74 million as at Dec. 31, 2016, down 5.47 percent or $8.66 million from $158.40 million on Dec. 31, 2015. Current ratio was at 1.35 as on Dec. 31, 2016, up from 1.31 on Dec. 31, 2015.

Cash conversion cycle (CCC) was almost stable at 46 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 33 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 30 days for the quarter compared with 33 days for the previous year period. At the same time, days payable outstanding went down to 17 days for the quarter from 21 for the same period last year.