Moscow. May 04, 2012. /Lesprom Network/. Koppers Holdings Inc. announced results for its fiscal 1Q 2012. 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 4Q 2011.
Consolidated sales of $380.9 million for the 1Q 2012 were 12%, or $39.4 million higher than sales of $341.5 in the prior year quarter. Sales for Carbon Materials and Chemicals (CMC) totaling $249.5 million increased by 14%, or $30.9 million over the prior year quarter while sales for Railroad and Utility Products (RUP) of $131.4 million increased by 7%, or $8.5 million over the prior year quarter. The increase in sales in CMC 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. RUP 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 1Q 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 1Q 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 CMC 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 1Q 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 CMC 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 1Q. 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.”
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.
Article source: http://wood.lesprom.com/news/51839/