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Horsehead Holding Corp. (Nasdaq: ZINC) reported a consolidated net loss of $(8.5) million, or $(0.19) per diluted share, for the first quarter of 2012, compared to net income for the first quarter of 2011 of $14.8 million, or $0.33 per diluted share. Consolidated net earnings were $2.1 million for the first quarter of 2012, or $0.05 per diluted share, excluding non-cash charges associated with hedges and an accelerated write-off of a portion of the Monaca, Pennsylvania plant. Consolidated net earnings were $8.6 million, or $0.19 per diluted share, for the first quarter of 2011, excluding an insurance recovery. The LME zinc price was 15% lower versus the same quarter last year, reducing earnings an estimated $0.15 per share for the quarter. A 22% increase in the price of coke also had an estimated $.035 per share negative impact on the quarter.
“We were very pleased with the operating levels at our businesses. We established new records for EAF dust receipts, EAF dust processing, zinc production and zinc product shipments during the quarter. Demand for our zinc products was strong and our zinc smelting facility and recycling plants operated at close to full capacity. When the non-cash impact of hedge write-offs, mark-to-market adjustments and asset impairment charges are eliminated, our operating results were positive despite much lower commodity prices compared with the prior year,” said Jim Hensler, President and Chief Executive Officer.
“The integration of Zochem into our zinc oxide business proceeded smoothly during the quarter. INMETCO also turned in solid earnings as productivity gains outpaced the reduced price for nickel.”
“We are also pleased with the progress on construction of our new zinc production facility in Rutherford County, North Carolina,” Hensler said. “We have placed orders for a significant portion of the equipment and work at the site is accelerating. We continue to be on schedule and on budget for a startup in the second half of 2013.”