1385544--3/16/2010--Horsehead_Holding

related topics

{cost, regulation, environmental}

{customer, product, revenue}

{gas, price, oil}

{acquisition, growth, future}

{personnel, key, retain}

{cost, operation, labor}

{condition, economic, financial}

{product, market, service}

{provision, law, control}

{stock, price, operating}

Current or future credit and financial market conditions could materially and adversely affect our business and results of operations in several ways. Changes in the prices of zinc and nickel 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, materials or imports which would significantly reduce our sales. We may be unable to compete effectively against manufacturers of zinc and nickel 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. Our business could be harmed if we do not successfully manage the integration of INMETCO or businesses that we acquire in the future or we may not realize all or any of the anticipated benefits from the INMETCO acquisition or acquisitions we make in the future. 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. Potential climate change legislation could result in increased operating costs and reduced demand for our products. 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, the smelting of recycled zinc and the processing of nickel-bearing materials. 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 been and may continue to be highly volatile and subject to wide fluctuations.

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1385544--3/16/2010--Horsehead_Holding_Corp