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Horsehead Holding announces losses, takes charge on anticipated Shell ethane cracker
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Horsehead Holding today reported losses for the fourth quarter and all of 2012, citing lower zinc prices, hedge-related costs and write-offs related to the impending closure of its Monaca smelter.
The Robinson zinc producer reported a fourth-quarter loss of $11.2 million, or 25 cents per share, versus a loss of $12.7 million, or 29 cents per share, in the year-ago quarter.
Sales rose 6 percent to $106.4 million.
For 2012, Horsehead lost $30.4 million, or 69 cents per share, versus 2011 profit of $21.5 million, or 49 cents per share.
Sales fell 3 percent to $435.7 million.
The company took a $16 million pretax impairment charge in the fourth quarter related to the Monaca smelter, which the company said will wind up production near the end of this year.
The charge is based on what the company said is its "increased expectation" that Royal Dutch Shell will exercise its option to purchase the site for an ethane cracker plant.
Shell and Horsehead agreed to extend Shell's option, which had been scheduled to expire Dec. 31, until June 30.
The Monaca facility is being replaced by a $145 million smelter in Rutherford, N.C., that will employ about 250 people.
President and CEO Jim Hensler said the North Carolina plant is expected to begin production in the second half of 2013.
The results were announced before Wall Street opened. Shortly after 10 a.m., Horsehead shares were trading at $11.10, up 19 cents. They are up 9 percent this year.
First Published February 20, 2013 10:33 am
