Koppers Holdings (KOP) Misses Q2 EPS by 18c, Revenues Miss; FY18 EPS Outlook Above Consensus, FY18 Revenues Guidance Below Consensus

Koppers Holdings (NYSE: KOP) reported Q2 EPS of $0.93, $0.18 worse than the analyst estimate of $1.11. Revenue for the quarter came in at $436 million versus the consensus estimate of $490.6 million.

Commenting on the quarter, President and CEO Leroy Ball said, "The second quarter reflected mixed results as continued strength in our CMC markets came close to offsetting the raw material and operating cost headwinds in our PC business. At the same time, contributions from recent acquisitions backfilled the continued year-over-year adjusted EBITDA decline in our legacy RUPS business. Looking ahead, we expect the second half to benefit from several pending opportunities and we continue to project that 2018 will be our most profitable year yet. I believe we are positioned to create value for our customers through the extended vertical integration of our operations as well as through our expertise in wood-treatment technologies."

Commenting on the forecast, Mr. Ball said, "For the second half of 2018, we continue to forecast strong performance for CMC compared with the prior year period. Also, beginning in the third quarter, we are projecting for the first time in eight quarters that we will see a year-over-year improvement in adjusted EBITDA for our RUPS legacy business. Although we are expecting PC to lag its stronger performance from the prior year, we will have the contribution from our recent acquisitions. Therefore, we remain confident in achieving our previously announced guidance."

Mr. Ball continued, "In addition, we are updating our long-term strategic plan and beginning to embark on several exciting initiatives to grow our business. Now that we have an expanded business portfolio, we have a number of realizable opportunities to create substantially more value for our customers, shareholders and employees. I look forward to sharing more details on those plans in the near future."

GUIDANCE:

Koppers Holdings sees FY2018 EPS of $4.05-$4.25, versus the consensus of $3.94. Koppers Holdings sees FY2018 revenue of $1.8 billion, versus the consensus of $1.87 billion.

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

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