Koppers Holdings (KOP) Tops Q1 EPS by 33c, Beats on Revenues

Koppers Holdings (NYSE: KOP) reported Q1 EPS of $1.18, $0.33 better than the analyst estimate of $0.85. Revenue for the quarter came in at $406.7 million versus the consensus estimate of $399.7 million.

Adjusted net income and adjusted earnings per share (EPS) were $26.2 million and $1.18 per share for the first quarter of 2018 compared to $14.8 million and $0.68 per share in the prior year quarter, respectively.

2018 Outlook

As previously announced on April 10, 2018, Koppers acquired the Industrial division of Cox Industries, which is now referred to as the Utility and Industrial Products (UIP) unit. Including UIP and MAER, Koppers continues to expect that 2018 sales will be approximately $1.9 billion, reflecting the acquisitions, modest market share growth and a generally positive economic environment. On an adjusted basis, the company is targeting 2018 adjusted EBITDA of approximately $240 million. Accordingly, the adjusted EPS for 2018 is targeted to be in the range of $4.05 and $4.25.

In addition, the company anticipates capital expenditures in the range of $65 million to $75 million, which includes additional costs for the new naphthalene unit at Stickney and the projected capital investments related to the integration of the UIP unit. The pro-forma net debt to adjusted EBITDA ratio is projected to be at or below 3.5x by December 31, 2018.

Commenting on the forecast, Mr. Ball said, "Overall, we are well-positioned in each of our business segments, which now also include the expected benefits from our recent acquisitions. Moving forward, we can expand our profitability through additional customer-focused strategies aimed at solving some of their most important challenges. With one quarter behind us, we are well on the way to achieving significant year-over-year top and bottom line growth. However, we will continue to closely monitor the factors related to supply and demand in our CMC business in China as there can be a propensity for sudden and dramatic changes in that region."

Mr. Ball continued, "From a strategic perspective, I am excited for this next phase in the evolution of our company as we further optimize our portfolio by adding the UIP and MAER businesses. As the only vertically-integrated utility pole and wood treatment producer in the world, this will strengthen our position as an industry leader and drive future growth and innovation."

For earnings history and earnings-related data on Koppers Holdings (KOP) click here.

You May Also Be Interested In

• American Express (AXP) down despite beating Q1 estimates on top and bottom lines
• Safe & Green (SGBX) Provides Update on Audit and Planned 10-K Filing
• Oilfield firm SLB's profit rises on international drilling demand