The following is a summary of the Koppers Holdings Inc. (KOP) Q1 2024 Earnings Call Transcript:
Financial Performance:
Koppers reported Q1 consolidated sales of $497.6 million, down from $513.4 million from the previous year.
Adjusted EBITDA was $51.5 million, down from $61.5 million in the earlier year, falling roughly 5% off internal projections.
Net debt for Koppers sits around $820 million with available borrowings of approximately $340 million, indicating a 3.3 times net leverage ratio.
Diluted earnings per share were reported at $0.59 compared to $1.19 in the prior-year period, and adjusted earnings per share came in at $0.62 compared with $1.12 in the earlier year.
For 2024, they're aiming for a consolidated sales growth of 4% to 5% and forecast sales around $2.25 billion, up from $2.15 billion in 2023.
They maintain an adjusted EBITDA target of $265 million to $280 million for 2024, inclusive of an $8 million contribution from the Brown Wood acquisition.
Business Progress:
The company completed the acquisition of Brown Wood Preserving Company, increasing their market presence.
Their Performance Chemicals (PC) business saw increased sales and they aim to align their business model with customers' needs.
Koppers is exploring additional uses for their treating assets in connection with their rail customers.
Koppers is preparing measures to boost business efficiency, including streamlining supply chains and reducing non-essential activities. They also plan to terminate the US pension plan in 2025.
Despite an EBITDA forecast reduction for 2024 for Global CM&C, they remain committed to their long-term target of an adjusted EBITDA of $315 million to $325 million for 2025.
Capital spending is estimated to reduce to $80 million to $90 million in 2024, compared to $116 million in 2023.
More details: Koppers IR
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