Plus   Neg

Stock Alert: Koppers Holdings Drops 18%

Shares of Koppers Holdings Inc. (KOP), a provider of carbon compounds, chemicals, and treated wood products, tanked $6.33 or 18.33% on Tuesday before closing at $28.21. Koppers' preliminary fourth-quarter results were announced yesterday with lower-than estimated earnings and sales.

KOP has been trading in a range of $22.56-$44.75 in the past 52-weeks.

Preliminary adjusted EPS for the quarter was $0.29, compared with $0.60 for the prior-year period. Analysts polled by Thomson Reuters are expecting $0.46.

Preliminary sales were $393.2 million for the fourth quarter, a decrease of 7.6 percent, from $425.4 million in the prior-year quarter. Analysts anticipate sales of $416.67 million for the period.

Meanwhile, Koppers Holdings said it has agreed to sell Koppers (Jiangsu) Carbon Chemical Company Limited (KJCC) to Fangda Carbon New Material Co., Ltd. (Fangda Carbon) and C-Chem Co., Ltd, a subsidiary of NIPPON STEEL Chemical & Material Co., Ltd. for $107 million. The company expects to close the deal in approximately four to six months.

Koppers expects to earn approximately $65 million from the transaction, after noncontrolling interest, taxes, and expenses. The company plans to use the cash to pay off debt.

Koppers is scheduled to report its fourth-quarter results on February 27.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Lowe's (LOW) is temporarily increasing wages of its employees. The latest move by the hardware retailer is to help its employees cope with the economical effects caused by the ongoing COVID-19 pandemic. The company has hiked salary by $2 per hour for all full-time, part-time, and seasonal hourly associates,... Amazon.com Inc. (AMZN) Founder and CEO Jeff Bezos is donating $100 million to food banks across the U.S. to support poor people who cannot afford food during this coronavirus crisis. Bezos made a $100 million gift to Feeding America, one of the largest U.S. nonprofit focused on food security. Feeding... Facebook on Thursday shared an update on its $100 million small-business grants program announced in March, saying that it will provide $40 million in grants to 10,000 U.S. small businesses that were impacted by the coronavirus pandemic. In March, the social media giant said it is offering $100 million in cash grants and ad credits for up to 30,000 eligible small businesses.
Follow RTT