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Sep 30, 2020
Koppers Q3 2020 Earnings Report
Reported record net income and adjusted EPS, driven by strong performance in Performance Chemicals segment and gain on sale of KJCC.
Key Takeaways
Koppers Holdings Inc. reported a strong third quarter with record net income attributable to Koppers of $75.6 million, or $3.53 per diluted share. Adjusted EPS was a record $1.64. Consolidated sales increased slightly to $437.5 million. The Performance Chemicals segment reported record sales and adjusted profitability, while the CMC segment showed sequential improvement. The company reaffirmed its 2020 outlook.
Net income attributable to Koppers was $75.6 million, or $3.53 per diluted share, compared to $19.9 million, or $0.94 per diluted share, in the prior year quarter.
Adjusted EPS for the third quarter of 2020 was $1.64 per share, a record quarter, compared to $1.16 per share in the prior year quarter.
Consolidated sales for the third quarter of 2020 were $437.5 million, an increase of 0.8 percent compared with $434.2 million in the prior year quarter.
The Performance Chemicals (PC) segment reported record sales and record adjusted profitability, benefiting from strong demand in the U.S. home repair and remodeling markets.
Revenue by Segment
Forward Guidance
Koppers expects 2020 sales to be approximately $1.6 billion. The company anticipates that adjusted EBITDA in 2020 will be in the range of $204 million to $210 million. Adjusted earnings per share (EPS) is projected to be in the range of $3.65 to $3.90 in 2020. Koppers anticipates investments of $55 million to $60 million in capital expenditures in 2020 and plans to reduce debt by approximately $125 million in 2020.
Positive Outlook
- Sales to be approximately $1.6 billion
- Adjusted EBITDA in the range of $204 million to $210 million
- Adjusted EPS is projected to be in the range of $3.65 to $3.90
- Investments of $55 million to $60 million in capital expenditures
- Plans to reduce debt by approximately $125 million
Challenges Ahead
- Worldwide effects of the COVID-19 pandemic are continuing to unfold
- Unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures
- These items include restructuring, impairment, non-cash LIFO charges, acquisition-related costs, and non-cash mark-to-market commodity hedging
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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