Koppers Holdings Inc. (NYSE:KOP) Q3 2018 Earnings Conference Call - Final Transcript

Nov 08, 2018 • 11:00 am ET


Koppers Holdings Inc. (NYSE:KOP) Q3 2018 Earnings Conference Call - Final Transcript


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Welcome to Koppers Third Quarter 2018 Earnings Conference Call. (Operator Instructions) Please note, that this event is being recorded. I will now turn the call over to Quynh McGuire. Please go ahead.

Quynh McGuire

Thanks and good morning. I'm Quynh Mcguire, Director of IR and Corporate Communications. Welcome to our third quarter 2018 earnings conference call. We issued our quarterly earnings press release earlier today. You may access this announcement via our website at www.koppers.com.As indicated in our earnings release this morning, we've also posted materials to the Investor Relations page of our website that will be referenced in today's call. Consistent with our practice and prior quarterly conference calls, this is being broadcast live on our website and a recording of this call will be available on our site for replay through December 7, 2018. (Forward-looking Cautionary Statement) References may also be made today to certain non-GAAP financial measures the company has provided with its press release, which is available on our website, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures.

Joining me for our call today are Leroy Ball, President and CEO of Koppers and Mike Zugay, CFO. I'll now turn the call over to Leroy.

Leroy Ball

Thank you, Quynh. Welcome everyone to our third quarter 2018 earnings call. I'd like to open up with some comments on our Zero Harm culture before delving into our third quarter financial performance and other important happenings within the company. So for the past several years, we've put in a lot hard work into building up our safety systems and training our people on behavioral-based safety techniques. These efforts are continuing to show progress as we're gaining new ground each day.

Now through the first nine months of 2018, we again find ourselves on pace for our best safety performance in the company's history. Excluding our newly acquired locations, Koppers' total recordable rate, serious incident event rate and serious incident event precursor rate have all continued to show year-over-year declines. Our Zero Harm culture will continue to be the foundation for how we operate.

In time, you'll be hearing additional details about Koppers' successes to date and what more we plan to accomplish within the sustainability ecosystem. Our process sustainability includes sourcing in a responsible manner, reducing our manufacturing footprint as appropriate, enhancing the performance of our products and where possible, managing the entire product life cycle to minimize the impact on our environment. We're incorporating sustainability in our daily operations as well as our long-term strategy. It's the right thing to do and it certainly makes good business sense. So now, let's discuss our September quarter financial results. On an adjusted basis, we delivered $0.73 for the third quarter compared with $1.43 in the prior year period. In our railroad and utility products and service, our RUPS business, sales increased due to current year acquisitions along with increased volumes and pricing in the commercial crosstie market, which were partially offset by lower profitability in our Australian utility business