Loading...
•
Dec 31, 2020
Koppers Q4 2020 Earnings Report
Koppers reported mixed results with revenue increase and earnings decrease in Q4 2020.
Key Takeaways
Koppers Holdings Inc. reported a slight increase in consolidated sales for Q4 2020, but net income attributable to Koppers decreased compared to the prior year quarter. The Performance Chemicals segment showed strong sales growth, while the Carbon Materials and Chemicals segment experienced a decrease. The company provided a 2021 outlook, expecting sales between $1.7 billion and $1.8 billion.
Consolidated sales increased by 2.9 percent to $393.1 million compared to the prior year quarter.
Net income attributable to Koppers was $18.6 million, compared to $20.6 million in the prior year quarter.
Adjusted EPS was $0.75, compared to $0.34 for the prior year period.
Performance Chemicals segment delivered strong sales growth, while Carbon Materials and Chemicals segment decreased.
Revenue by Segment
Forward Guidance
Koppers expects 2021 sales to be approximately $1.7 billion to $1.8 billion and adjusted EBITDA to be approximately $215 million to $225 million.
Positive Outlook
- Residential treated lumber markets will revert to normalized levels in the second half of the year.
- Demand levels for the company’s other business segments improve modestly year-over-year.
- Growth and/or cost reduction projects are estimated to generate $8 million to $12 million of EBITDA in 2022.
- Koppers plans to reduce debt by approximately $30 million in 2021.
- Net leverage ratio is projected to be in the range of 3.2 to 3.4 at December 31, 2021.
Challenges Ahead
- Facing tougher comparables in 2021 due to the extraordinary success of the Performance Chemicals business during the pandemic.
- Likelihood of Performance Chemicals business shifting to more normalized volumes as life returns to pre-pandemic routines.
- Effective tax rate for adjusted net income in 2021 is projected to be approximately 27 percent, compared to the tax rate in 2020 of 20.1 percent.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...