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Koppers Releases Third
Quarter Earnings; Reports Record Revenues
Oct. 29, 1998, Pittsburgh, Pennsylvania — Net
income of Koppers ("Koppers") for the quarter ending
September 30, 1998 was $9.7 million, or $2.42 per share, compared
to $12.4 million, or $1.34 per share in the third quarter of 1997.
Sales in the quarter just completed increased
to a record $181.2 million from $160.7 million in the comparable
1997 period, reflecting
higher revenues from railroad-related products and the 1997 consolidation
of Koppers Australia Pty. Limited ("Koppers Australia").
During the quarter, continued high levels of maintenance spending
by Class 1 railroads resulted in strong demand for Koppers crosstie
products and enhanced services.
Third quarter 1998 results include
$3.2 million of additional year-over-year interest expense as
the result of Koppers December 1997 recapitalization
and subsequent acquisition of Koppers Australia. Earnings for
the third quarter were impacted by lower pricing for phthalic anhydride,
a chemical produced by Koppers, which is used in the production
of plastics and related products. Phthalic prices were down approximately
30% from the comparable period in 1997.
According to Walter Turner,
CEO, "Third quarter results reflect
improved performance from our Railroad & Utility Products segment
and Australian Carbon Materials & Chemicals operations. In
our Railroad & Utility Products business, we continue to promote
value-added products and services to our customers in the United
States and Australia, with a goal of further improving on this
year's solid growth. Our Carbon Materials & Chemicals business
results continue to be mixed, with Australian operations meeting
all of our expectations despite difficult market conditions. Domestically,
our phthalic anhydride business remains weak as a result of the
lowest petroleum feedstock prices in at least a decade. We continue
to focus on our productivity initiatives, through global best practices,
to improve our cost structure and to build on our strategic strengths
and customer relationships."
For the first nine months of
1998, Koppers net income was $17.8 million or $4.27 per share
compared to $22.2 million and $2.40
per share in the same period in 1997, on the larger number of
shares then outstanding. Interest expense for the first nine months
of
1998 was $9.6 million higher than in the same period in 1997.
Sales for the first nine months of 1998 were $511.8 million compared
to $452.3 million in the same period in 1997.
In the fourth quarter
of 1997, the Company completed a financial recapitalization and
the acquisition of Koppers Australia, bringing
ownership of the $120 million revenue Australian organization
to 100%. To facilitate this acquisition, as well as the redemption
of approximately 60% of the Company's outstanding common stock,
Koppers completed a refinancing as of December 1, 1997. Total
corporate
debt as of September 30, 1998 was $334.5 million versus $189.8
million at the same date in 1997.
Koppers is a leading integrated
producer of carbon compounds, chemicals, and treated wood products
for use in a variety of markets including
the chemical, railroad, utility, aluminum and steel industries.
Headquartered in Pittsburgh, Pennsylvania, Koppers employs approximately
2,000 people worldwide at 35 manufacturing facilities throughout
the United States, Australia and the Pacific Rim, and participates
in joint ventures in the United States and Europe.
View the "Koppers Results for
Third Quarter 1998" |
