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Dec 31, 2019
Koppers Q4 2019 Earnings Report
Koppers reported increased net income but decreased sales due to lower demand for carbon-related products.
Key Takeaways
Koppers Holdings Inc. reported a net income of $20.6 million for Q4 2019, compared to a net loss of $2.6 million in the prior year quarter. Consolidated sales were $393.2 million, a decrease of 7.6 percent from $425.4 million in the prior year quarter. The fourth quarter benefited from a one-time deferred tax benefit of $14.9 million related to a legal entity restructuring in the Netherlands.
Net income attributable to Koppers in the fourth quarter was $20.6 million, compared with a net loss of $2.6 million in the prior year quarter.
Diluted EPS was $0.96, compared with $(0.13) per share in the prior year quarter.
Consolidated sales were $393.2 million for the fourth quarter of 2019, a decrease of $32.2 million, or 7.6 percent, from sales of $425.4 million in the prior year quarter.
Operating profit was $24.3 million, or 6.2 percent, compared with $13.6 million, or 3.2 percent, in the prior year quarter.
Revenue by Segment
Forward Guidance
Koppers expects 2020 sales, excluding any sales generated from KJCC, will be approximately $1.7 billion. Excluding the contribution from KJCC that is currently under a sale agreement, on an adjusted basis, Koppers expects EBITDA will be approximately $200 million to $210 million for 2020. The 2020 adjusted EPS is forecasted to be in the range of $3.00 to $3.30.
Positive Outlook
- Koppers expects that 2020 sales, excluding any sales generated from KJCC, will be approximately $1.7 billion.
- Additional actions have been identified which are anticipated to further improve profitability by $5 million to $10 million in 2020, and $25 million to $40 million on an annualized basis through 2024.
- Koppers expects EBITDA will be approximately $200 million to $210 million for 2020.
- Koppers plans to reduce debt by a minimum of $100 million in 2020.
- Koppers will continue to work with the buyer toward receiving regulatory approvals to ensure that the closing occurs within four to six months.
Challenges Ahead
- The worldwide effects of the coronavirus remain a developing situation.
- The company’s outlook assumes that there will be no material negative impact from the coronavirus.
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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