Railroad ties business contracts for Koppers Holdings
PITTSBURGH - Koppers Holdings Inc., which makes telephone poles and railroad ties and related chemicals like creosote, reported net income rose 50 percent during the second quarter, to $19.7 million.  
 
Consolidated sales were $378 for the second quarter of 2017, down 1.8 percent, or $7.1 million, from the prior year quarter. Sales for RUPS of $135.9 million decreased by $28.5 million, or 17.3 percent, compared to sales of $164.4 million in the prior year quarter.
 
A lower demand for treated crossties and railroad bridge services is due to decreased spending in the rail industry, the company said. Commercial crosstie pricing has been lower due to an industry oversupply of crossties. The negative impact from these factors was slightly offset by favorable volumes and sales mix of rail joint products. Operating margin for the second quarter was 8.1 percent, compared with 11.3 percent in the prior year quarter. Adjusted EBITDA margin for the second quarter was 9.9 percent, compared with 13.7 percent in the prior year quarter.
 
Its Performance Chemicals (PC) business experienced increased sales from higher North American sales volumes for copper-based wood preservatives and additives. The company is moving to waterborne chemistries. 
 
President and CEO Leroy Ball said, "The June quarter performance demonstrates our ability to continue delivering solid results while further advancing our wood technology strategy.  I am encouraged by the ongoing strength in end-market demand that our Performance Chemicals business is seeing for its water-borne wood treatment preservative products, driven by a healthy level of spending in the repair and remodeling market."
 
 

Have something to say? Share your thoughts with us in the comments below.

Profile picture for user billesler
About the author
Bill Esler | ConfSenior Editor

Bill wrote for WoodworkingNetwork.com, FDMC and Closets & Organized Storage magazines. 

Bill's background includes more than 10 years in print manufacturing management, followed by more than 30 years in business reporting on industrial manufacturing in the forest products industries, including printing and packaging at American Printer (Features Editor) and Graphic Arts Monthly (Editor in Chief) magazines; and in secondary wood manufacturing for WoodworkingNetwork.com.

Bill was deeply involved with the launches of the Woodworking Network Leadership Forum, and the 40 Under 40 Awards programs. He currently reports on technology and business trends and develops conference programs.

In addition to his work as a journalist, Bill supports efforts to expand and improve educational opportunities in the manufacturing sectors, including 10 years on the Print & Graphics Scholarship Foundation; six years with the U.S. WoodLinks; and currently on the Woodwork Career Alliance Education Committee. He is also supports the Greater West Town Training Partnership Woodworking Program, which has trained more than 950 adults for industrial wood manufacturing careers. 

Bill volunteers for Foinse Research Station, a biological field station staddling the border of Ireland and Northern Ireland, one of more than 200 members of the Organization of Biological Field Stations.