Financial News [collapse]
Horsehead Holding Corp. Announces First Quarter 2011 Earnings
Quarter ended March 31,
Zinc production - tons
Zinc product shipments - tons
Zinc contained - tons
Net sales realization
Zinc products - per lb
Zinc products -per lb zinc contained
EAF dust receipts - tons
Nickel remelt alloy shipments - tons
LME average zinc price - per lb
LME average nickel price - per lb
Hensler added, "Steel industry capacity utilization averaged 73.7% during the first quarter, an improvement over the 68.6% rate during the fourth quarter of last year. We believe the near-term outlook for steel production and, hence, EAF dust receipts, will continue to be positive based on recent public announcements by several steel producers. However, utilization rates, in general, are still well behind the 85-90% levels experienced during the first half of 2008. Therefore, we believe there is still considerable upside to these current dust receipt levels. We expect to operate our recycling facilities with effectively one or more kilns idled over the next few months as we begin a series of major outages on several kilns. EAF dust inventory is expected to be stable under current market conditions.
We are pleased to have our zinc oxide production capabilities fully restored and to have re-established commercial relationships with our customers after the rebuild of the Monaca refinery. We expect zinc oxide shipments to be higher in the second quarter compared with the first quarter. During the first quarter we did not reach pre-incident shipment levels until March as requalification testing for some customers in the beginning of the quarter delayed some shipments. We expect to operate our zinc smelter at full capacity.
During the second quarter we expect to complete the basic engineering study and site selection process for a state-of-the-art 150,000 ton per year zinc plant as previously announced. This facility would replace the current smelter in Monaca and would produce zinc at much lower cost, reduce air emissions and provide opportunities for the Company not only to serve its traditional hot-dip galvanizing and zinc oxide markets, but also to serve the broader market for special high grade zinc and the continuous galvanizing market as well. The project, which would require Board approval and financing, could begin construction by the end of this year and start-up as early as the end of 2013."
Conference Call Information
Horsehead will conduct a conference call with investors and analysts on Friday, May 6, 2011, at 11:00 am EDT to discuss its first quarter. Dial-in instructions are as follows.
United States: (800) 230-1059
International: (612) 234-9959
An Audio-Only Web Conference Cast will also be available from the Investor Relations Corporate Information page of our website http://www.horsehead.net/ or directly at http://18.104.22.168/cgi-bin/confCast. Enter Conference ID# 198715 then click Go.
A replay of the call will be available beginning at 1:00 pm EDT on Friday, May 6, 2011 and ending on Friday, May 13, 2011 at 11:59 pm EDT. Dial in instructions for the replay is as follows.
United States: (800) 475-6701
International: (320) 365-3844
Access Code: 198715
Horsehead Holding Corp. ("Horsehead") (Nasdaq: ZINC) is the parent company of Horsehead Corporation, a leading U.S. producer of specialty zinc and zinc-based products and a leading recycler of electric arc furnace dust, and The International Metals Reclamation Company ("INMETCO"), a leading recycler of metals-bearing wastes and a leading processor of nickel-cadmium (NiCd) batteries in North America. Horsehead, headquartered in Pittsburgh, Pa., employs approximately 1,100 people and has seven facilities throughout the U.S. Visit http://www.horsehead.net/ for more information.
Cautionary Statement about Forward-Looking Statements
This press release contains forward-looking statements, including statements about business outlook, proposed initiatives and strategy and statements about historical results that may suggest trends for our business. These statements are based on assumptions, estimates and information available to us at the time of this press release and are not guarantees of future performance. There may be several factors that may cause our actual results to differ materially from the forward-looking statements, including, among others, the impact of future market conditions on our results of operations and our expansion plans and initiatives, our ability to obtain environmental and regulatory approvals, the success of our expansion plans and initiatives and their impact on our future capacity and production costs. Our actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. We can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them does, what impact they will have on our results of operations and financial condition. You should carefully read the factors described in the "Risk Factors" section of our filings with the Securities and Exchange Commission for a description of certain risks that could, among other things, cause our actual results to differ from these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to revise or update this earnings release to reflect events or circumstances after the date hereof.
Summary Consolidated Financial Results (in thousands except per share amounts):
Balance Sheet Items (unaudited)
March 31, 2011
December 31, 2010
Cash and equivalents
Other current assets
Property, plant and equipment, net
Other long-term liabilities
Total liabilities and stockholders' equity
Segment Information (unaudited)
Quarter ended March 31, 2011
Corporate and other reconciling items
Income before tax...........................................
- (1) EBITDA is a non-GAAP financial measure. Management uses EBITDA to help it evaluate our performance and to compare our current results with those for prior periods as well as with the results of other companies in our industry. We caution investors that EBITDA should not be considered as a substitute for disclosures made in accordance with GAAP. Below is a reconciliation of EBITDA to net income:
Quarter ended March 31,
Income tax provision
Interest and other (income)
Depreciation and amortization
Robert D. Scherich
Vice President & CFO
Horsehead Holding Corp.
SOURCE Horsehead Holding Corp.