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Koppers Releases Third
Quarter Earnings
Oct. 31, 2000, Pittsburgh, Pennsylvania — Net
income of Koppersfor the quarter ending September 30, 2000 was
$5.8 million, or $1.51 per share on a diluted basis, compared to
$11.1 million or $2.90 per share in the third quarter of 1999.
Third quarter 2000 earnings reflect higher income tax expense due
to the sale of energy tax credits. Earnings before interest and
taxes for the quarters ended September 30, 2000 and 1999 were $18.3
million and $17.3 million, respectively. Sales in the third quarter
were $194.9 million, up 14% from the $170.8 million reported in
the comparable 1999 period.
Third quarter pre-tax earnings improvement year-over-year is due
primarily to the Company's May 2000 acquisition of Tarconord A/S
(now known as Koppers Europe), a Carbon Materials & Chemicals
business with operations in England and Denmark. Higher energy
prices, a strong United States dollar and demand pressures in our
United States market negatively impacted third quarter performance.
Commenting on the business results, President
and CEO Walter W. Turner remarked, "All in all, we were pleased with third quarter
performance, particularly our international operations in Australia
(which continue to post improved results despite a significant
decline in the Australian dollar) and Europe (where we reported
our first quarter of fully consolidated results). In the United
States, aluminum cutbacks in the Pacific Northwest and railroad
crosstie demand in the East have led to some reduction in volumes
and pricing pressure. Our customers continue to seek quality products,
exemplary service and the most competitive price, all areas in
which Koppers, as the market leader, is best positioned to provide.
We continue to push ourselves to improve our safety, productivity
and cost management initiatives."
On a year-to-date basis,
Koppers' net income was $13.9 million and $3.62 per share versus
$19.5 million and $4.99 per share for
the first nine months of 1999. Year-to-date earnings reflect
higher income tax expense due to the sale of energy tax credits.
Earnings
before interest and taxes for the nine months ended September
30, 2000 and 1999 were $47.8 million and $39.2 million, respectively.
Sales for the year stand at $535.6 million versus $501.0 million
reported during the same period in 1999.
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, 13 facilities in the
South Pacific (primarily Australia and New Zealand), three facilities
in the United Kingdom and one facility in Denmark. The Company
also maintains an indirect ownership interest in a facility in
the United States through its domestic joint venture KSA. Additionally,
the Company is the majority partner with Tangshan Iron & Steel
Co. in a joint venture based in China. This facility is expected
to be operational within the next 12 months. The Company's stock
is shared by a large number of employee investors and by majority
equity owner Saratoga Partners of New York City.
View the "Koppers
Results for Third Quarter 2000" |
