Koppers Releases First Quarter Earnings
Feb. 29, 2000, Pittsburgh, Pennsylvania — Net
income of Koppers("Koppers") for the quarter ending March
31, 2000 was $2.1 million, or $0.54 per share on a diluted basis,
compared to a loss of $0.2 million or $0.11 per share in the first
quarter of 1999. Sales in the quarter were $160.9 million, up 2%
from the $157.4 million reported in the comparable 1999 period.
Sales and earnings in the first quarter benefited
from solid product demand in both global groups and improved pricing
in phthalic anhydride
(PAA), a chemical produced by Koppers which is used in the production
of plastics and related products. Phthalic anhydride prices generally
track the price of petroleum based feedstock costs, and therefore
rising oil prices have led to improved margins.
Commenting on the
first quarter, President and CEO Walter W. Turner said, "Margins
in our global Carbon Materials & Chemicals
business continue to show improvement due primarily to phthalic
anhydride pricing in the US and another solid quarter from Australian
operations, despite the continued weakness ofthe Australian dollar.
Our global Railroad & Utility Products business finished lower
than a year ago, reflecting higher plant costs and steady product
demand. First quarter cash flow showed improvement over last year
reflecting higher earnings, lower capital expenditures and better
working capital management. Our focus remains on customer satisfaction
and improved productivity while maintaining safe facilities and
profitable cash based growth."
Koppers is a global integrated
producer of carbon compounds and treated wood products for use
in a variety of markets including
the railroad, aluminum, chemical and steel industries. The Company
operates 22 facilities in the United States and an additional 13
facilities in the South Pacific (primarily Australia and New Zealand).
The Company also maintains indirect ownership interests in an additional
facility in the United States through its domestic joint venture
KSA and in four facilities overseas (one in Denmark and three in
the United Kingdom) through its Danish joint venture Tarconord
A/S. Additionally, in March 1999 the Company entered into a joint
venture agreement with Tangshan Iron & Steel Co. ("TISCO")
to improve and operate a tar distillation facility in China; the
joint venture is 60% owned by the Company and is expected to be
operational within the next 12 months. The Company's stock is shared
by a large number of management investors and by majority equity
owner Saratoga Partners of New York City.
View"Koppers Results
for First Quarter 2000" |
