In an 8-K filed after the close this past Friday, Harsco Corporation (NYSE: HSC) disclosed that it approved a new restructuring plan on 5-Dec-11. This is the company’s third restructuring program since 2008 and the largest to date. We cannot help but ask if they should simply be factored into the cost of doing business - and ultimately valuation - for Harsco.
Since 2008, Harsco recorded a total of $149 million in termination, exit and restructuring charges. In addition, the company has recorded impairment charges of approximately $24 million. The details of each charge, as disclosed in their respective 8-Ks, appear below.
8-K filed 9-Dec-11
2011 Restructuring Program
- Instituted primarily in response to the continuing uncertainty in global financial and economic markets due to the European sovereign debt crisis and the sluggishness of the U.S. economy.
- Estimated total costs of $190 to 210 million between 4Q11 and 2012
- Estimated savings to be in the range of $63 million to $67 million
8-K filed 14-Dec-10
2010 Restructuring Program
- Restructuring plan for its infrastructure segment
- Total costs between $85 million to $90 million
- Savings in the range of $40 million to $50 million
8-K filed 30-Dec-08
2008 Restructuring Program
- Implemented in response to the global financial and economic crisis
- Total costs between $25 million to $35 million
- Savings in the range of $30 million to $40 million