Horsehead Holding Corporation has reported consolidated net income of USD 9.4 million for the third quarter of 2008 on net sales of USD 109.2 million. For the third quarter of 2007, Horsehead reported consolidated net income of USD 24.2 million on net sales of USD 134 million. The 18.5% YoY decline in net sales was primarily attributable to a 45% YoY decrease in the price of zinc, a portion of which was offset by a 5.5% growth in zinc product shipments and the Company's hedging program.

Some highlights for the third quarter compared to the prior year same period include

1. A 23% YoY increase in electric arc furnace dust receipts as additional processing capacity was brought on line earlier this year

2. Favorable effects of the company's hedging program included the receipt of USD 8.9 million in cash from the settlement of zinc put options and recognition of favorable after tax mark to market adjustments of USD 9.5 million for open hedge positions compared to an unfavorable after tax mark to market adjustment of USD 1.3 million for open hedge positions in the prior year quarter

3. Lower production costs in the Monaca smelter were achieved as a result of reducing operations from six furnaces to five, negotiating more favorable prices of purchased feeds and increasing the proportion of feed from lower cost EAF dust sources to 70%

Mr Jim Hensler president & CEO of Horsehead Holding said that "Our primary focus during the quarter was to reduce costs as the commodity price for zinc continued to decline. This led to the decision to idle one furnace at the Monaca smelter in September and reduce the intake of higher cost feed sources."

Mr Hensler further commented that "Market demand for zinc metal was strong during the quarter while demand for zinc oxide softened in the tire and rubber markets. EAF dust receipts, although increasing significantly from the prior year quarter, began to decline in September reflecting a rather sharp decline in steel production. In response, we are pursuing new dust sources during the fourth quarter to offset a potential decline from our current sources."

Third quarter shipments and production data

In tonnes