Koppers Holdings Inc. (NYSE:KOP) Q1 2019 Earnings Conference Call - Final Transcript

May 03, 2019 • 11:00 am ET


Koppers Holdings Inc. (NYSE:KOP) Q1 2019 Earnings Conference Call - Final Transcript


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Leroy Ball

through June 30, 2019. For a certain timeframe, during the June quarter, we're expecting to have a regularly scheduled maintenance shutdown, which will make our second quarter results in China less than our first, but still profitable. We continue to work towards a resolution and we'll share any new developments with you as soon as we're able. Until that time, we cannot comment further or speculate on any outcomes due to the legal guidelines and requirements associated with this matter.

In 2019, assumptions for CMC include the higher cost of raw materials and a significant reduction in contribution from our Chinese joint venture, partially offset by cost savings primarily from our new naphthalene facility. As shown on slide 10, we anticipate adjusted EBITDA for CMC of approximately $80 million to $84 million that equates to an adjusted EBITDA margin in the range of 12% to 13% and a decrease of $35 million to $39 million compared with the prior year.

Slide 11 shows the various drivers in our guidance for consolidated sales in 2019 which we still anticipate to be between $1.8 billion and $1.9 billion. The forecast assumes improved crosstie production, a full year contribution from acquisitions and more normalized organic growth patterns in our PC business.

Turning to slide 12. Our guidance for 2019 consolidated EBITDA on an adjusted basis is slightly higher on the bottom end of the range, which is now $212 million, while the top end of the range remains at $225 million. We continue to expect that 2019 will reflect a meaningful shift in our earnings mix with our primary wood based businesses generating significant improvements in profitability.

Now, I would like to open it up for any questions.