Q1 2024 Koppers Holdings Inc Earnings Call Transcript
Key Points
- Performance Chemicals and Railroad and Utility Products and Services segments showed strong year-over-year growth in sales and profitability.
- Zero Harm 2.0 program led to a 16% increase in leading activities, correlating with a decrease in injuries and incidents, achieving the lowest ever recordable injury rate.
- The acquisition of Brown Wood Preserving Company enhances Koppers' utility pole business and expands geographic market presence.
- Rubber business achieved record first quarter sales, driven by volume and pricing increases in crossties and domestic utility poles.
- Performance Chemicals business delivered strong sales, benefiting from volume increases and offsetting lower sales prices with decreased raw material costs.
- First quarter financial results fell short of forecast and consensus estimate by about 5%, with adjusted EBITDA lower year-over-year.
- CM&C markets, particularly in North America, experienced significant declines, impacting overall profitability.
- Unplanned outage at the Stickney, Illinois facility due to weather-related factors contributed to higher costs and operational challenges.
- Maintenance-of-way business underperformed, detracting from expected improvements and contributing to a poorer than expected outcome.
- CM&C segment faced a decline in sales and adjusted EBITDA due to lower prices and volumes, compounded by market demand reductions.
Good morning, ladies and gentlemen. Thank you for standing by, and welcome to Koppers' first quarter 2024 earnings conference call And webcast. (Operator Instructions) Please note that this event is being recorded.
I will now turn the call over to Quynh McGuire. Please go ahead.
Thanks and good morning. I'm Quynh McGuire, Vice President of Investor Relations and welcome to our first quarter 2024 earnings conference call. We issued our press release earlier today. You may access it via our website at www.koppers.com. As indicated in our announcement, we've also posted materials to the Investor Relations page of our website that will be referenced in today's call. Consistent with our practice in prior quarterly conference calls. This is being broadcast live on our website and a recording of this call will be available on our website for replay through August 3
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