Koppers Holdings said second-quarter income and sales plunged on lower volumes and prices for its chemicals, and reduced availability of the lumber used in its railroad crossties.
The Downtown-based company said net income plummeted to $1.6 million, or 8 cents a share, from $14.4 million, or 69 cents a share a year ago while sales fell by 4 percent to $356.8 million from $370.9 million a year ago.
Adjusted net income, excluding special items such as closing several plants in The Netherlands and China, was $8.1 million, or 39 cents per share, down from $14.7 million, or 70 cents per share a year ago. Analysts expected adjusted earnings of 61 cents per share and sales of $391.3 million.
Walter Turner, president and chief executive, said Koppers is looking for further ways to slash costs including consolidating some North American chemical production at a facility in Illinois which would result in eliminating jobs at a plant in Follansbee, W.Va.
Koppers plans to close on its $460 million purchase of two business units from Osmose Holdings in the third quarter, Mr. Turner said. Osmose supplies wood preservation chemicals and lumber treated for decks and fences; and provides services such as bridge inspections, repairs and construction to major railroads including Union Pacific and Canadian National.
First Published August 7, 2014 12:00 AM