Koppers Holdings Inc. sales increase in fiscal 2010 second quarter

Consolidated sales for Koppers Holdings Inc. in the second quarter of 2010 were 12% higher than sales in the prior year quarter. Sales for Carbon Materials and Chemicals (CM&C) increased by 30%, or $47.5 million over the prior year quarter, which was partially offset by lower sales for Railroad and Utility Products (R&UP), which decreased nine percent, or $12.0 million. The increase in sales in CM&C was due to higher volumes for carbon materials and higher volumes and prices for coal tar chemicals. R&UP sales were lower due to lower volumes of untreated crossties, as reduced buying patterns by the Class I railroads in the first quarter due to unfavorable weather continued into the second quarter as some of the railroads have been reducing inventory levels.

Net income attributable to Koppers for the quarter ended June 30, 2010, was $16.1 million or $0.78 per share as compared to $11.7 million or $0.57 per share in the second quarter of 2009, due primarily to lower interest expense in 2010. Adjusted net income and adjusted diluted earnings per share were $16.3 million and $0.79 per share for the three months ended June 30, 2010, compared to $11.8 million and $0.57 per share in the second quarter of 2009.

Consolidated sales for the six months ended June 30, 2010 were 7% higher than sales in the prior year. Sales for Carbon Materials and Chemicals increased by 25%, or $75.3 million over the prior year, while sales for Railroad and Utility Products decreased 15%, or $38.2 million. The increase in sales in CM&C was due to higher volumes in all major product lines, while R&UP sales were lower than the prior year due to significantly lower sales of untreated crossties to the Class I railroads.

Commenting on the quarter, President and CEO Walter W. Turner said, "I am pleased that our global carbon materials and chemicals business has improved over the first half of 2009 despite the slow, uneven rebound in the global economy. Our railroad business, while down considerably from the first half of 2009, continues to improve despite difficult market conditions and reductions in untreated crosstie procurement orders from the Class 1 customer base. We are seeing the benefits of last year’s refinancing efforts in our bottom line, as interest expense is significantly reduced from last year and EPS has increased accordingly. We are also benefiting from actions taken to increase our market shares for carbon pitch, crossties and new petroleum pitch products. When markets return to normal levels, we believe we will be in a strong position to capture additional volumes and improve profitability."

Net income attributable to Koppers for the quarter ended June 30, 2010, was $16.1 million or $0.78 per share as compared to $11.7 million or $0.57 per share in the second quarter of 2009, due primarily to lower interest expense in 2010. Adjusted net income and adjusted diluted earnings per share were $16.3 million and $0.79 per share for the three months ended June 30, 2010, compared to $11.8 million and $0.57 per share in the second quarter of 2009.

Consolidated sales for the six months ended June 30, 2010 were 7% higher than sales in the prior year. Sales for Carbon Materials and Chemicals increased by 25%, or $75.3 million over the prior year, while sales for Railroad and Utility Products decreased 15%, or $38.2 million. The increase in sales in CM&C was due to higher volumes in all major product lines, while R&UP sales were lower than the prior year due to significantly lower sales of untreated crossties to the Class I railroads.

Commenting on the quarter, President and CEO Walter W. Turner said, "I am pleased that our global carbon materials and chemicals business has improved over the first half of 2009 despite the slow, uneven rebound in the global economy. Our railroad business, while down considerably from the first half of 2009, continues to improve despite difficult market conditions and reductions in untreated crosstie procurement orders from the Class 1 customer base. We are seeing the benefits of last year’s refinancing efforts in our bottom line, as interest expense is significantly reduced from last year and EPS has increased accordingly. We are also benefiting from actions taken to increase our market shares for carbon pitch, crossties and new petroleum pitch products. When markets return to normal levels, we believe we will be in a strong position to capture additional volumes and improve profitability."