Apr. 25--Harsco Corp. adjusted 2009 expected earnings downward and said it will continue with cost-reduction plans across its worldwide operations to shore up the company against the world financial crisis.

Chairman and CEO Salvatore Fazzolari said the Wormleysburg-based company is now projecting earnings of $1.90 to $2.10 per share, rather than the previously stated $2.80 to $3.

The cost-saving moves are now expected to reap $100 million in savings, rather than the $50 million stated several months ago.

A strong U.S. dollar, historically low levels of steel production and the ongoing credit freeze combined to make the first three months of the year extremely challenging, company officials said this morning.

In announcing its first quarter results, the industrial services company said it saw drops in first quarter income and sales, though its cash flow remained strong.

"Despite the most turbulent and challenging period of our time, we remained poised to weather the storm," said Fazzolari.

First quarter income from continuing operations was $21 million, down from $59.4 million in 2008. Sales totaled $697 million, down from $988 million during the same period the year before.

About half the sales decline can be attributed to the position of the U.S. dollar against other world currencies, the company said.

Earnings per share hit 25 cents, down from 67 cents in 2008 but still on target from the company's projections at the start of the year, Eugene Truett, vice president, investor relations and credit said.

Bright spots include two new steel mill contracts in Abu Dhabi, continued delivery of materials to a large railroad contract in China and a variety of infrastructure projects in the Middle East and other emerging markets, Truett said.

"We do maintain a very strong balance sheet and cash flow position," he said. "We have adequate liquidity and our dividend is secure."

LARA BRENCKLE: 255-8154 or lbrenckle@patriot-news.com

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