Harsco Corporation (HSC) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $8.89 million, or $ 0.11 a share in the quarter, against a net loss of $10.87 million, or $0.14 a share in the last year period. On an adjusted basis, earnings per share were at $0.11 for the quarter compared with $0.03 in the same period last year.

Revenue during the quarter grew 5.45 percent to $372.54 million from $353.28 million in the previous year period. Gross margin for the quarter expanded 288 basis points over the previous year period to 22.76 percent. Total expenses were 92.51 percent of quarterly revenues, down from 97.33 percent for the same period last year. This has led to an improvement of 482 basis points in operating margin to 7.49 percent.

Operating income for the quarter was $27.91 million, compared with $9.43 million in the previous year period.

"We started the year on a strong note, with each of our businesses performing well and contributing to results that exceeded our guidance," said President and chief executive officer Nick Grasberger. "M&M's positive results reflect the strategic transformation we began a few years ago, as well as the beginning of a broader market recovery in our relevant geographies. Industrial and Rail also performed well and we are encouraged by the improving outlook for these markets. Looking ahead, we expect our positive momentum to continue and are accordingly raising our profit and cash flow guidance for the year."

For financial year 2017, the company forecasts operating income to be in the range of $115 million to $130 million. The company forecasts adjusted operating income to be in the range of $115 million to $130 million. The company expects diluted earnings per share to be in the range of $0.47 to $0.61. The company expects diluted earnings per share to be in the range of $0.47 to $0.61 on adjusted basis.

For the second-quarter, The company forecasts adjusted operating income to be in the range of $32 million to $38 million. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.14 to $0.19.

 Operating cash flow remains negative
Harsco Corporation has spent $6.12 million cash to meet operating activities during the quarter as against cash outgo of $2.98 million in the last year period.

The company has spent $15.95 million cash to meet investing activities during the quarter as against cash outgo of $8.73 million in the last year period. It has incurred capital expenditure of $15.98 million on net basis during the quarter, up 13.10 percent or $1.85 million from year ago period.

Cash flow from financing activities was $13.22 million for the quarter as against cash outgo of $2.65 million in the last year period.

Cash and cash equivalents stood at $64.43 million as on Mar. 31, 2017, down 8.49 percent or $5.98 million from $70.40 million on Mar. 31, 2016.

Working capital increases
Harsco Corporation has recorded an increase in the working capital over the last year. It stood at $162.74 million as at Mar. 31, 2017, up 10.75 percent or $15.80 million from $146.94 million on Mar. 31, 2016. Current ratio was at 1.39 as on Mar. 31, 2017, up from 1.29 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 61 days for the quarter from 103 days for the last year period. Days sales outstanding went down to 69 days for the quarter compared with 72 days for the same period last year.

Days inventory outstanding has decreased to 30 days for the quarter compared with 72 days for the previous year period. At the same time, days payable outstanding went down to 38 days for the quarter from 41 for the same period last year.