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Kopper Reports Record
1998 Revenues
Feb. 4, 1999, Pittsburgh, Pennsylvania — Koppers
reported sales in 1998 of $670.6 million, 13% ahead of 1997 sales
volume of $593.1 million. Earnings before interest and taxes (EBIT)
in 1998 were $50.0 million versus an adjusted 1997 EBIT, excluding
one-time charges, of $47.6 million.
In 1998, Koppers benefited
from strong sales in its Railroad & Utility
Products segment and the full consolidation of its Australian operations.
Sales in the company's global Railroad & Utility Products segment
were up 26% over the same period in 1997, reflecting strong US
demand for the company's crosstie products and services and the
consolidation of the ITSCO (completed April 1, 1998) and Koppers
Australia acquisitions. Revenues in Koppers Carbon Materials & Chemicals
segment were also up significantly over 1997 on mixed results.
The consolidation of the Australian Carbon Materials & Chemicals
segment, which includes operations that manufacture carbon pitch
for aluminum, carbon black for tires and wood treating chemicals,
was offset somewhat by a 24% decline in average phthalic anhydride
pricing in the United States. Phthalic anhydride is a chemical
produced by Koppers, which is used in the production of plastics
and related products.
According to the President and CEO, Walter
W. Turner, "On
balance, 1998 was a solid year for Koppers. We posted record sales
for the year, led by strong performance from our Railroad & Utility
Products business and the successful integration of our Australian
operations. On the other hand, the lowest oil prices in decades
played havoc on our phthalic anhydride and chemical businesses,
dampening our otherwise positive profit picture. Our strategy for
diversified product and geographic growth enabled the company to
withstand this drop in prices from a major product line and still
post solid operating results. In 1999 our focus remains unchanged;
to provide the highest value products and services for our customers,
improve productivity and seek profitable global growth."
In
1997, the company completed a financial recapitalization and
the acquisition of Koppers Australia, bringing ownership of the
$100 million revenue Australian organization to 100%. In 1998,
the results of the Australian operations were fully consolidated
within Koppers financial statements, while in 1997 they were
reported
as a 50% owned equity investment.
For the fourth quarter ending
December 31, 1998, sales were $158.8 million, up 12% from the
$140.8 million reported in the comparable
1997 quarter. Earnings before interest and taxes for the fourth
quarter 1998 were $9.7 million versus an adjusted EBIT, excluding
one-time charges, of $10.1 million in the fourth quarter of 1997.
Koppers is a leading integrated producer of carbon
compounds, chemicals and treated wood products for use in a variety
of markets including
the railroad, aluminum, chemical, utility 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 Fourth Quarter 1998" |
