HSC - Harsco Hit Hard On Weaker Growth And Margins

• Harsco once again lowered EBITDA expectations, with labor shortages impacting Clean Earth and a collection of issues, including lower European steel production, impacting Environmental.
• High ongoing levels of steel production should be a positive, but forex and contract losses are hurting and the aluminum business doesn't seem to be making a noticeable contribution.
• Clean Earth continues to struggle, with labor shortages the latest challenge, but volumes are increasing and there is plenty of scope for improving the ESOL operations.
• Harsco shares look undervalued on reduced expectations, but a lot hinges on Clean Earth living up to prior profitability expectations.

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