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Jun 30, 2020
Koppers Q2 2020 Earnings Report
Reported record second-quarter net income and EPS, driven by strong performance in RUPS and PC segments, offset by challenges in CMC segment due to market conditions and lower oil prices.
Key Takeaways
Koppers Holdings Inc. reported a record second-quarter net income attributable to Koppers of $29.2 million, or $1.39 per diluted share, compared to $14.7 million, or $0.70 per diluted share, in the prior year quarter. Adjusted EPS from continuing operations for the second quarter of 2020 was a record $1.27 per share, compared to $1.14 per share in the prior year quarter. Consolidated sales were $436.6 million, a decrease of 1.6 percent from the prior year quarter. The RUPS and PC segments reported record sales, while the CMC segment was negatively affected by softening demand and lower pricing.
Koppers Holdings Inc. reported record second-quarter net income of $29.2 million, or $1.39 per diluted share.
Adjusted EPS from continuing operations was a record $1.27 per share.
Consolidated sales decreased slightly to $436.6 million.
Strong performance in RUPS and PC segments was offset by challenges in the CMC segment.
Revenue by Segment
Forward Guidance
Koppers expects 2020 sales to be approximately $1.6 billion and adjusted EBITDA to be approximately $190 million to $200 million. Adjusted EPS is forecasted to be in the range of $3.10 to $3.40.
Positive Outlook
- Expects 2020 sales to be approximately $1.6 billion.
- Projects adjusted EBITDA to be approximately $190 million to $200 million.
- Forecasts adjusted EPS to be in the range of $3.10 to $3.40.
- Anticipates investments of $50 million to $60 million in capital expenditures.
- Plans to reduce debt by approximately $120 million in 2020.
Challenges Ahead
- Worldwide effects of the COVID-19 pandemic are continuing to unfold.
- 2020 sales are expected to be lower than 2019 sales (excluding KJCC).
- Adjusted EBITDA is expected to be lower than 2019 adjusted EBITDA.
- Effective tax rate for adjusted net income in 2020 is projected to be approximately 25 percent.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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