Koppers Holdings, an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds, reported 25.9% increase of Adjusted EBITDA amid 1.8% decrease of net sales 2Q2017 y-o-y. According to the announcement, the company’s sales accounted for USD 378 million, generating Adjusted EBITDA of USD 55.7 million in the period (14.7% margin).
Leroy Ball, Koppers’ President and CEO, commented:
“The June quarter performance demonstrates our ability to continue delivering solid results while further advancing our wood technology strategy. I am encouraged by the ongoing strength in end-market demand that our Performance Chemicals business is seeing for its water-borne wood treatment preservative products, driven by a healthy level of spending in the repair and remodeling market. Adding to that momentum is a reenergized Carbon Materials and Chemicals segment showing substantial year-over-year improvement in all regions from a variety of factors including restructuring savings and a tighter market in China for carbon-based products resulting in higher pricing levels in our end markets throughout Australasia.
I am also pleased by our strong seasonal cash generation that allowed us to reduce net debt by USD 31.6 million during the quarter and lower our net leverage ratio to 3.5. Our disciplined approach to capital deployment is optimizing our financial flexibility which will give us greater options moving forward to increase shareholder value.”
In 1Q2017 Koppers Holdings increased Adjusted EBITDA margin to 12.1%.
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.