Income is a big part of investors' returns. Stocks, mutual funds and fixed income ideas in this column are featured because they are relatively solid in their ability to pay dividends or interest. We're giving income investors a resource to start their research for investments that give better yields with lower risk.

Harsco Metals & Minerals offers on-site and outsourced logistics services, such as slag processing, semi-finished inventory management, material handling, scrap management, and in-plant transportation to steel mills and other metal producers comprising aluminum and copper. This segment also provides minerals and recycling technologies; environmental solutions for metals and mining customers' waste streams; and granules for asphalt roofing shingles, as well as abrasives for industrial surface preparation derived from coal slag to steel mills and asphalt roofing manufacturers.

Harsco Rail manufactures railway track maintenance equipment; and offers track maintenance services to private and government-owned railroads, and urban mass transit systems.

Harsco Industrial provides industrial grating; air-cooled heat exchangers; and boilers and water heaters to industrial plants, non-residential, commercial and public construction, and retrofit markets, as well as to the natural gas exploration and processing industry. Harsco Corporation was founded in 1850 and is based in Camp Hill, Pennsylvania.

Harsco was hit, like most other companies, in 2009 and 2010, by the recession, right in the earnings. In '08, earnings per share (EPS) were $3.20, then fell to $1.78 in '09, and finally bottomed at 91 cents last year. This year, 9 analysts have a consensus estimate of $1.33, then see $1.74 in 2012 (with a range of $1.65 to $2.10). Fourth quarter should come in at 30 cents compared to 15 cents last year in the fourth. Look for 36 cents a share in the first quarter of next year vs 15 cents in this year's first. Clearly, things have improved for HSC.

Part of the better results comes from a major restructuring program started late last year. The main beneficiary has been the Infrastructure group which has seen significantly lower losses. In 2010, the group lost $63 million. This year, it should be less than $32 million. The main reason for the losses was lower demand from commercial and multi-family construction projects, especially in England. There also was extreme price pressure. On the positive side, orders were up 10% above last year's first 9 months with analysts predicting continued strength as some economies gain traction.

Income investors will like the Financial Strength of HSC. It carries an A rating. Debt is 37% of capital. While the dividend takes almost 62% of earnings, with expected growth next year, that percentage will diminish. Also, dividends have increased annually except for this year when they were held constant at 82 cents, since 1995, as far back as my data go, starting at 37 cents.

HSC is going greener. It's partnered with two companies, one in England that offers cost-effective resource recovery and re-use of several industrial by-products generated by steel mills, oil refineries and foundries. The other, LanzaTech in New Zealand, which has a process that converts steel mill gases to fuel grade ethanol.

There's been a decrease in global stainless steel production that hurt orders at HSC. Stainless steel requires higher margined ores, ones like nickel. This affects the Metals & Minerals division's profitability for now, but analysts see demand picking up in 2012 which will put this group back on its upward trend in profits.

- Essential Numbers:
- Market Cap: $1.67 billion
- Forward P/E: 12
- Price to sales ratio: .52
- Price to book: 1.17
- Operating margin: 5.5%
- Profit margin: .91%
- Returnon equity: 2.38%
- Return on assets: 3.06%
- Revenues for last 12 months: $3.27 billion
- Total cash: $106.29 million
- Cash per share: $1.32
- Total debt: $917.39 million
- Total Debt to equity: 61.4%
- Current ratio: 1.5
- Book value per share: $17.95
- Beta: 1.69
- 52- week change: -21%
- Total shares outstanding: 80.71 million
- Float: 80.26 million
- Held by insiders: .52%
- Held by institutions: 75%

HSC rallied to $36.80 at the early part of this year and couldn't hold it. It's drifted lower and bottomed at $17.80. Now it's about 20% above the low price. With earnings growing and a solid dividend, this stock has the potential of rewarding investors with income and capital gains. Income investors will want to look deeper.