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Dec 31, 2021
Koppers Q4 2021 Earnings Report
Koppers reported an increase in sales and net income for the fourth quarter of 2021, driven by strong performance in the Carbon Materials and Chemicals segment, which offset challenges in the Railroad and Utility Products and Services segment.
Key Takeaways
Koppers Holdings Inc. reported a positive fourth quarter in 2021, with net income attributable to Koppers increasing to $22.2 million, or $1.02 per diluted share, compared to $18.6 million, or $0.86 per diluted share, in the prior year quarter. Consolidated sales also saw an increase, reaching $405.3 million, a 3.1 percent rise from the $393.1 million in the prior year quarter. The Carbon Materials and Chemicals segment delivered significantly higher sales and record profitability, offsetting lower sales and profitability in the Railroad and Utility Products and Services and Performance Chemicals segments.
Net income attributable to Koppers increased to $22.2 million, or $1.02 per diluted share, compared to $18.6 million, or $0.86 per diluted share, in the prior year quarter.
Adjusted EPS increased to $0.77 compared to $0.75 for the prior year period.
Consolidated sales increased to $405.3 million, a 3.1 percent increase compared to $393.1 million in the prior year quarter.
The Carbon Materials and Chemicals segment delivered significantly higher sales and record profitability due to strong end market demand and favorable pricing.
Revenue by Segment
Forward Guidance
Koppers expects 2022 sales to be approximately $1.8 billion and adjusted EBITDA to be approximately $230 million. Adjusted EPS is forecasted to be approximately $4.25.
Positive Outlook
- Strong end markets supporting CMC
- Solid but normalized demand levels for PC
- Improving backdrop for hardwood sourcing in RUPS business
- Eighth straight year of adjusted EBITDA improvement
- Third straight new high for adjusted EPS
Challenges Ahead
- Higher costs
- Challenging labor situation
- Higher tax rates taking a bite out of EPS
- Requires $80 million to $100 million of price increases to neutralize headwinds
- Economic uncertainty associated with the pandemic
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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