Thursday, Koppers Holdings Inc. (KOP), an integrated producer of carbon compounds and treated wood products, reported a drop in net earnings for the second quarter, hurt particularly by sales declines at its CM&C segment due to lower demand and pricing for carbon black feedstocks and phthalic anhydride as well as negative currency translation. However, earnings surpassed the Street view by two pennies.
For the second quarter, the Pittsburgh, Pennsylvania-based company's net earnings attributable to common shareholders declined to $11.7 million or $0.57 per share from $24.3 million or $1.16 per share in the same quarter last year.
Koppers' income from continuing operations for the second quarter of 2009 declined to $12.6 million or $0.57 per share from $22.7 million or $1.06 per share in the year-ago quarter.
On an adjusted basis, net income fell to $11.8 million or $0.57 per share from $23.2 million or $1.11 per share last year. On an average, four analysts polled by Thomson Reuters expected earnings per share of $0.55. Analysts' estimates typically exclude special items.
Net sales for the latest quarter fell 22% year-over-year to $291.6 million from $375.3 million, hit by lower foreign currency translation and a 36% dip in Carbon Materials and Chemicals, or CM&C, segment revenues on lower demand. Analysts expected net sales of $315 million.
On a segmental basis, the decline in sales of CM&C business outweighed the improvements in sales of Railroad and Utility Products, or R&UP, business. Sales in the CM&C segment decreased 36% to $160.9 million, while sales in R&UP segment increased to $130.7 million from $124.4 million in the prior year quarter.
For the six months ended June 30, 2009, net income decreased to $15.8 million or $0.77 per share from $37.5 million or $1.79 per share in the prior-year period. On a year-to-date basis, sales dipped 20% to $564.3 million.
KOP is currently trading at $26.49, down $2.08 or 7.28%, on the NYSE.
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