1385544--3/16/2009--Horsehead_Holding

related topics

{cost, regulation, environmental}

{customer, product, revenue}

{gas, price, oil}

{provision, law, control}

{product, market, service}

{personnel, key, retain}

{cost, operation, labor}

{stock, price, share}

{stock, price, operating}

{acquisition, growth, future}

Changes in the prices of zinc metal and zinc-related products will have a significant impact on our operating results and financial condition. Some of our products and services are vulnerable to long-term declines in demand due to competing technologies or materials, which would significantly reduce our sales. We may be unable to compete effectively against manufacturers of zinc products in one or more of our markets, which would limit our market share and/or reduce our sales and our operating profit margins. If we fail to implement our business strategy, our financial condition and results of operations could be materially and adversely affected. Work stoppages and other labor matters could interrupt our production or increase our costs, either of which would negatively impact our operating results. Equipment or power failures, delays in deliveries or catastrophic loss at any of our facilities could prevent us from meeting customer demand, reduce our sales and/or negatively impact our net income. Fluctuations in the cost or availability of electricity, coke, coal and/or natural gas would lead to higher manufacturing costs, thereby reducing our margins and limiting our cash flows from operations. If we were to lose order volumes from any of our major customers, our sales could decline significantly and our cash flows may be reduced. Our operations are subject to numerous federal and state statutes that regulate the protection of the health and safety of our employees, and changes in health and safety regulation could result in significant costs, which would reduce our margins and adversely affect our cash flow from operations. Litigation related to worker safety may result in significant liabilities and limit our profitability. We are subject to stringent environmental regulation, which may cause us to incur significant costs and liabilities that could materially harm our operating results. Our hedging strategies may fail to protect us from changes in the prices for natural gas, coal and zinc, which could reduce our gross margin and cash flow. We depend on the service of key individuals, the loss of whom could materially harm our business. We may not be able to protect our intellectual property, particularly our proprietary technology related to the recycling of EAF dust and the smelting of recycled zinc, and our market share and results of operations could be harmed. We depend on third parties for transportation services, and their failure to deliver raw material to us or finished products to our customers could increase our costs and harm our reputation and operating results. The market price for shares of our common stock has declined substantially in recent months and may continue to be highly volatile and subject to wide fluctuations. We do not have any current plan to pay, and are restricted in our ability to pay, any dividends on our common stock, and as a result, your only opportunity to achieve a return on your investment in our common stock is if the price of our common stock increases. Provisions of our amended certificate of incorporation and by-laws could delay or prevent a takeover of us by a third party and may prevent attempts by stockholders to replace or remove our current management.

Full 10-K form ▸

1385544--3/16/2009--Horsehead_Holding_Corp