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Sep 30, 2021
Koppers Q3 2021 Earnings Report
Reported a decrease in sales and profitability due to market challenges and rising costs, while the CMC segment showed improvement.
Key Takeaways
Koppers Holdings Inc. reported a decrease in net income attributable to Koppers for the third quarter of 2021, with sales also slightly decreasing compared to the prior year. The company faced challenges including supply chain issues, rising input costs, and softer demand in certain segments, but the CMC segment performed well.
Net income attributable to Koppers was $10.2 million, a decrease from $75.6 million in the prior year quarter.
Consolidated sales were $424.8 million, a decrease of 2.9 percent compared to $437.5 million in the prior year quarter.
The RUPS business experienced lower sales and profitability due to a market shortage of hardwood and lower utility pole volumes.
The CMC segment delivered higher sales and profitability, benefiting from favorable pricing and an improved cost profile.
Revenue by Segment
Forward Guidance
Koppers expects 2021 sales to be approximately $1.7 billion and adjusted EBITDA to be approximately $220 million. They anticipate investing $115 million to $120 million in capital expenditures.
Positive Outlook
- Strategic initiatives execution
- Progress toward long-term financial goals
- Expected sales of approximately $1.7 billion
- Expected adjusted EBITDA of approximately $220 million
- Deployment of measures to mitigate future short-term disruptions
Challenges Ahead
- Near-term economic uncertainty associated with the pandemic
- Higher uncovered costs
- Global macro supply chain inefficiencies
- Supply chain issues related to production delays
- Potential continued issues into next year
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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