Horsehead Holding Corp. (ZINC) a producer of zinc and zinc-based products, reported a fall in its fourth-quarter earnings, hurt by fall in zinc prices and shipments.
Net income for the fourth quarter plunged to $6.3 million or $0.18 per share, from $17.2 million or $0.49 per share in the prior year period. On average, five analysts polled by Thomson Reuters estimated the earnings to be $0.09 per share. Analysts' estimate typically excludes special items.
Net sales for the three-month period declined 23% to $91.8 million from last year's $119.2 million, but came in above Street's estimate of $89.77 million. Zinc product shipments decreased 21.1% to 29,966 tons for the quarter, while zinc production decreased to 28,447 tons from 38,650 tons.
For the full-year, net income fell to $39.4 million or $1.12 per share, from $90.7 million or $2.85 per share last year. Revenues declined to $445.9 million from $545.6 million a year ago. Wall Street estimated the earnings to be $1.17 on revenues of $424.43 million.
Citing the low demand and zinc pricing, the company said it would aggressively pursue further cost reduction and working capital reduction initiatives at each of its facilities. During the quarter, the company said it operated Monaca smelting facility at lower levels and suspended zinc oxide production from higher cost feed sources, while cutting down its workforce.
Currently, the stock is down $0.12, trading at $3.69 on the Nasdaq.
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