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HORSEHEAD RESOURCE DEVELOPMENT REPORTS REVENUE AND EARNINGS GAINS

 PALMERTON, Pa., Feb. 26 /PRNewswire/ -- Horsehead Resource Development Company, Inc. (NASDAQ: HHRD) today reported net income for its fourth quarter, ended Dec. 31, 1992, of $3.3 million, or $0.09 per share, before the effects of adopting FAS 106 relating to post retirement benefits, versus breakeven results in 1991's fourth quarter. Revenues in 1992's fourth quarter increased 48 percent to $26.0 million from $17.6 million in the year earlier period.
 For the full year ended Dec. 31, 1992, HRD reported net income of $14.4 million, or $0.40 per share, a 150 percent increase before the effects of FAS 106, as compared to $6.0 million, or $0.16 per share, in 1991. Revenues in 1992 rose 42 percent to $100.8 million from $71.1 million in 1991.
 Jim Davis, HRD's president and chief executive officer, commented as follows: "Our volume of hazardous waste receipts increased by 6 percent in 1992 over 1991 in spite of continued depressed activity in the EAF steel industry, while our average service fee increased by 25 percent, principally as the result of our environmental surcharge which was effective at the beginning of the year. Our volume of zinc products sold was 33 percent higher in 1992 than 1991 while the average price of zinc was up 11 percent during the year. Our operating income increased by over 170 percent in 1992.
 HRD's 1992 results were impacted by the company's adoption of FAS 106 (Employer's Accounting for Postretirement Benefits Other than Pensions), effective Jan. 1, 1992. This accounting change resulted in current charges of $228,000 in the fourth quarter and $830,000 for the year. The total impact of adopting FAS 106, consisting of both current charges and the cumulative effect, was $3.8 million after tax, or $0.11 per share for the year.
 Mr. Davis added that "HRD's outlook for the current quarter is cautious as activity in the EAF industry has not yet returned to its pre-1991 levels while the price of zinc has declined from its 1992 level."
 HRD is a leader in specialized hazardous waste/resource recovery services, emphasizing the recovery of zinc, lead and other metals from electric arc furnace dust and the recycling of these materials into useful products.
 HORSEHEAD RESOURCE DEVELOPMENT COMPANY, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (In thousands, except per share data)
 Period Ended Three Months Year
 December 31, 1992 1991 1992 1991
 (Unaudited) (Audited)
 Operating revenues
 Service fees $11,865 $9,131 $48,336 $36,414
 Product sales 14,179 8,517 52,471 34,690
 26,044 17,648 100,807 71,104
 Operating costs 15,832 12,306 56,018 48,770
 Gross profit 10,212 5,342 44,789 22,334
 Selling, general and
 administrative 3,004 3,219 12,973 9,056
 Research and development 667 471 2,558 2,198
 Management fees 262 177 1,009 711
 Operating income 6,279 1,475 28,249 10,369
 Other income (expense):
 Interest, net (129) (162) (337) (590)
 Results of joint ventures (978) (1,016) (5,092) (4,335)
 Technology fee -- -- 500 4,000
 Other, net 85 98 324 442
 (1,022) (1,080) (4,605) (483)
 Income before income taxes
 and cumulative effect of a
 change in accounting 5,257 395 23,644 9,886
 Provision for income taxes 2,149 383 9,690 3,918
 Income before cumulative
 effect of a change in
 accounting(A) 3,108 12 13,954 5,968
 Cumulative effect of a
 change in accounting for
 SFAS No. 106, net of
 taxes of $2,324 -- -- (3,344) --
 Net income $3,108 $12 $10,610 $5,968
 Earnings per share:
 Before cumulative effect
 of a change in accounting $0.08 -- $0.38 $0.16
 Cumulative effect of a
 change in accounting -- -- ($0.09) --
 Net income $0.08 -- $0.29 $0.16
 Average common shares
 outstanding 36,237 36,237 36,237 36,237
 (A) -- Effective Jan. 1, 1992, the company adopted Statement of Financial Accounting Standards No. 106, "Accounting for Postretirement Benefits Other Than Pensions." The effect on current year results includes a current year charge to S.G. & A. of $.02 per share and cumulative effect (prior year) charge of $.09 per share. As a result of these charges, net income was reduced from $14,444 ($.40 per share) to $10,610 ($.29 per share).
 HRD SUMMARY OPERATING STATISTICS
 1992 1991
 Hazardous Hazardous
 Waste Receipts Waste Receipts
 (Tons) (Tons)
 1Q 96,359 85,638
 2Q 101,867 91,512
 3Q 90,111 87,831
 4Q 87,826 88,728
 Total 376,163 353,709
 1992 1991
 Zinc Tons LME Zinc Zinc Tons LME Zinc
 Sold Price (cent/lb.) Sold Price (cent/lb.)
 1Q 19,789 52.93 14,127 54.35
 2Q 18,723 61.45 13,341 51.55
 3Q 17,675 61.22 20,120 47.39
 4Q 26,093 49.44 14,456 49.51
 Total 82,280 Avg. 56.26 Total 62,044 Avg. 50.70
 -0- 2/26/93
 /CONTACT: Robert L. Hoguet III, of Horsehead Resource Development, 212-527-3025/
 (HHRD)


CO: Horsehead Resource Development Company, Inc. ST: Pennsylvania IN: SU: ERN

TS-TM -- NY003 -- 0720 02/26/93 08:50 EST
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Date:Feb 26, 1993
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