Koppers Holdings Inc. Reports Strong First Quarter 2012 Results
Sales Increase 12% for Quarter; Net Income to Koppers Increases to $15.6 Million for Quarter Compared to $8.9 Million; Diluted EPS From Continuing Operations $0.74 Compared to $0.44 in Prior Year Quarter
(firmenpresse) - PITTSBURGH, PA -- (Marketwire) -- 05/04/12 -- Koppers Holdings Inc. (NYSE: KOP) today announced results for its fiscal 2012 first quarter. The results reflect the reclassification of the carbon black facility in Australia as a discontinued operation for all periods presented based on the announced closure and ceasing of operations during the fourth quarter of 2011.
Consolidated sales of $380.9 million for the first quarter of 2012 were 12%, or $39.4 million higher than sales of $341.5 in the prior year quarter. Sales for Carbon Materials and Chemicals (CM&C) totaling $249.5 million increased by 14%, or $30.9 million over the prior year quarter while sales for Railroad and Utility Products (R&UP) of $131.4 million increased by 7%, or $8.5 million over the prior year quarter. The increase in sales in CM&C was due primarily to higher selling prices for carbon pitch and phthalic anhydride combined with higher volumes and prices for carbon black feedstock, which more than offset lower volumes for pitch and lower prices for naphthalene. R&UP sales increased due mainly to higher sales prices for railroad crossties and higher sales volumes for utility poles.
Net income attributable to Koppers for the quarter ended March 31, 2012, was $15.6 million, or $0.75 per diluted share as compared to net income attributable to Koppers of $8.9 million, or $0.43 per diluted share in the first quarter of 2011, and diluted earnings per share from continuing operations amounted to $0.74 per share and $0.44 per share for the quarters ended March 31, 2012 and 2011, respectively. The increases in net income attributable to Koppers and diluted earnings per share for the first quarter of 2012 were due to higher prices for carbon pitch, phthalic anhydride, and railroad crossties as well as higher volumes and prices for carbon black feedstock, combined with a reduction in the effective tax rate from 36% to 31% partly as a result of our European integration project. These items more than offset lower volumes for pitch, lower prices for naphthalene, and $1.7 million of estimated costs related to a pitch tank spill in Australia. Additionally, the first quarter of 2011 was negatively impacted by incremental storage and logistics costs for CM&C as well as higher raw material costs. Adjusted net income and adjusted earnings per share for the quarter ended March 31, 2012, were $15.5 million and $0.74 per share compared to $8.4 million and $0.41 per share in the prior year quarter after excluding $0.7 million of after-tax income in the first quarter of 2011 and after excluding the impact of discontinued operations for both periods.
Adjusted EBITDA for the quarter ended March 31, 2012, was $36.7 million compared to $26.8 million in the first quarter of 2011, led by higher selling prices for carbon pitch, phthalic anhydride, and railroad crossties as well as higher volumes and prices for carbon black feedstock, which more than offset lower volumes for pitch, lower prices for naphthalene, and $1.7 million of estimated costs related to a pitch tank spill in Australia. Additionally, the first quarter of 2011 was negatively impacted by incremental storage and logistics costs for CM&C as well as higher raw material costs.
Commenting on the results, Walter W. Turner, president and CEO of Koppers, said, "I am pleased with our year-over-year sales and earnings improvement which fell within our internal range of expectations for the first quarter. Both of our businesses turned in strong performances, and I expect that to be a trend that will continue throughout the remainder of 2012."
Mr. Turner continued, "I am also pleased to report that we are starting to see some of the benefits of our margin improvement initiatives which along with lower raw material cost volatility helped drive the stronger operating margins realized in this year's first quarter. Despite the costs related to the Australian pitch tank spill and the effect that economic uncertainty in Europe is having on certain parts of our business, our outlook for 2012 has not changed from what had been previously communicated. We continue to remain on target for significant improvement over 2011's operating results."
The following reconciliations are attached to this press release: Unaudited Reconciliation of Net Income Attributable to Koppers and Adjusted Net Income; Unaudited Reconciliation of Diluted Earnings Per Share and Adjusted Earnings Per Share; and Unaudited Reconciliation of Net Income to EBITDA and Adjusted EBITDA.
Koppers management will conduct a conference call this morning, May 4, 2012, beginning at 11:00 a.m. EDT to discuss the company's performance. Interested parties may access the live audio broadcast by dialing (877) 941 0844 in the US/Canada or +1 (480) 629 9835 for International, Conference ID number 4526718. Investors are requested to access the call at least five minutes before the scheduled start time in order to complete a brief registration. An audio replay will be available approximately two hours after the call's completion at (800) 406 7325 or +1 (303) 590 3030, Conference ID number 4526718. The recording will be available for replay through May 18, 2012.
The live broadcast of Koppers conference call will be available online: . (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field.)
If you are unable to participate during the live webcast, the call will be archived on , and shortly after the live call and continuing through May 18 2012.
Koppers, with corporate headquarters and a research center in Pittsburgh, Pennsylvania, is a global integrated producer of carbon compounds and treated wood products. Including its joint ventures, Koppers operates facilities in the United States, United Kingdom, Denmark, The Netherlands, Australia and China. The stock of Koppers Holdings Inc. is publicly traded on the New York Stock Exchange under the symbol "KOP." For more information, visit us on the Web: . Questions concerning investor relations should be directed to Leroy M. Ball at 412 227 2118 or Michael W. Snyder at 412 227 2131.
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may include, but are not limited to, statements about sales levels, restructuring, declines in the value of Koppers assets and the effect of any resulting impairment charges, profitability and anticipated expenses and cash outflows. All forward-looking statements involve risks and uncertainties. All statements contained herein that are not clearly historical in nature are forward-looking, and words such as "believe," "anticipate," "expect," "estimate," "may," "will," "should," "continue," "plans," "potential," "intends," "likely," or other similar words or phrases are generally intended to identify forward-looking statements. Any forward-looking statement contained herein, in other press releases, written statements or other documents filed with the Securities and Exchange Commission, or in Koppers communications with and discussions with investors and analysts in the normal course of business through meetings, phone calls and conference calls, regarding expectations with respect to sales, earnings, cash flows, operating efficiencies, product introduction or expansion, the benefits of acquisitions and divestitures or other matters as well as financings and repurchases of debt or equity securities, are subject to known and unknown risks, uncertainties and contingencies. Many of these risks, uncertainties and contingencies are beyond our control, and may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Factors that might affect such forward-looking statements, include, among other things, general economic and business conditions, demand for Koppers goods and services, competitive conditions, interest rate and foreign currency rate fluctuations, availability of key raw materials and unfavorable resolution of claims against us, as well as those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Koppers, particularly our latest annual report on Form 10-K and quarterly report on Form 10-Q. Any forward-looking statements in this release speak only as of the date of this release, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.
The following tables set forth certain sales and operating data, net of all intersegment transactions, for the company's businesses for the periods indicated.
Koppers believes that adjusted net income, adjusted earnings per share, adjusted operating profit and adjusted EBITDA provide information useful to investors in understanding the underlying operational performance of the company, its business and performance trends and facilitates comparisons between periods and with other corporations in similar industries. The exclusion of certain items permits evaluation and a comparison of results for ongoing business operations, and it is on this basis that Koppers management internally assesses the company's performance.
Although Koppers believes that these non-GAAP financial measures enhance investors' understanding of its business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP basis financial measures.
For Information:
Leroy M. Ball
Vice President and Chief Financial Officer
412-227-2118
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Datum: 04.05.2012 - 06:31 Uhr
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