Koppers Holdings, an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds, reported 25.9% increase of Adjusted EBITDA amid stable net sales 1Q2017 y-o-y. According to the announcement, the company’s sales accounted for USD 346.6 million, generating Adjusted EBITDA of USD 41.8 million in the period (12.1% margin).
Leroy Ball, Koppers’ President and CEO, commented:
“It is encouraging to see consolidated sales stabilize after enduring five consecutive quarters of double-digit declines on a year-over-year basis. That stabilization largely contributed to the significant growth in our profitability as well as improved earnings per share for the quarter. The value created through the restructuring and repositioning of our business as the global leader in wood-based technology is now starting to be fully reflected in our results. Another bright spot for the quarter was our ability to maintain a net debt leverage ratio of 3.7, which we had reached at year-end 2016. The March quarter is typically our highest cash consumption quarter of the year, so this should position us to reach our net debt leverage goal of less than 3.5 by the end of this year.
The year began generally as we predicted when we first issued guidance in late 2016. The sales volumes in our PC business continue to show strength, and our CMC operations are benefiting from ongoing savings related to its restructuring strategy as well as more favorable market conditions. Our RUPS segment is experiencing softness as we projected, and there is a potential for further worsening before we see glimpses of improvement in 2018. From the perspective of raw material cost trends, we are fairly well insulated in 2017 from the rise in copper prices that occurred in recent months, but we could start to feel some of the effects of higher input costs moving into 2018. On balance, I have confidence in our ability to maintain our current run rate of profitability while setting a foundation for even more improvement in 2018 and beyond.”
In 4Q2016 Koppers Holdings reported 30.1% increase of Adjusted EBITDA amid 13.9% decrease of net sales
Earlier Koppers completed acquisition of Wood Preservation and Railroad Services businesses from Osmose.
Koppers is an integrated producer of carbon compounds and treated wood products for the aluminum, steel, chemical, rubber, railroad, and utility industries. The company is headquartered in Pittsburgh, Pennsylvania. It has has multiple manufacturing facilities in the United States, Canada, United Kingdom, Denmark, Australia, and China.