HORSEHEAD HOLDING CORP. (NASDAQ:ZINC) was a massive decliner during Monday’s trading session. The stock collapsed by close to 6% on high volumes, which were 1.5 times the daily average. The stock has formed a bearish engulfing pattern on the daily charts indicative of the strong sell-side momentum at the current moment. The stock currently trades below all daily moving averages. The indicator for relative strength has given a fresh sell signal indicative of lack of strength. The MACD oscillator has given a sell signal, which is considered to be bearish. Investors believe the stock could head to levels of $2.02 in the near term.
HORSEHEAD HOLDING CORP. (NASDAQ:ZINC) has announced financial results for the recently concluded 3Q2015. Reports claim that the net loss of the company for the quarter accounted for $0.48 per share or $27.4 million.
Other Highlights of 3Q2015
During the same period in 2014, the net loss of HORSEHEAD was $0.14 or $7 million. The volatile market conditions and unfavorable decisions turned things bad to worse. If unfavorable non-cash adjustments resulting from hedges are excluded from the loss figure of 3Q2015, the net loss comes down to $25.5 million or $0.45 per share.
The senior management team of the company is confident to improve this performance in the coming months. According to Jim Hensler, CEO & President, HORSEHEAD HOLDING, the primary reason behind this adverse performance of the company was the sharp decline in the commodity prices. Apart from this, quite a few one-time inventory charges, EAF dust receipts, and LME-related price adjustments also played their part in these below-than-expected results.
The effect could have been worse, hadn’t it been offset by 25% increase in nickel remelt alloy shipments and 6% increase in zinc-contained basis shipments.
Zinc finished product and various calcine shipments surged 6% or 2,642 tons to 46,456 tons. Out of this entire produced quantity, 17,139 zinc tons belonged to calcine and 29,317 zinc tons belonged to finished products. EAF dust receipts for the quarter were 129,152 tons, down 17.5% YOY.
When it comes to net sales, it managed to report $109.3 million in revenues, 0.6% down YOY. Although the sales volume was reasonably well during the quarter, EAF dust service fees of $1.8 million and lower LME nickel and zinc prices set off the volume advantage that HORSEHEAD HOLDING could get.
The senior management team, including Jim Hensler is confident that the operational and financial performance of the company will improve in the upcoming quarters.