Koppers Holdings Inc. Reports Fourth Quarter 2012 Results

Koppers Holdings Inc. Reports Fourth Quarter 2012 Results 
Sales Increase Two Percent Over Prior Year Quarter; Diluted EPS From
Continuing Operations $0.65 Compared to $0.24 for Prior Year Quarter;
Strong Quarter for Railroad and Utility Products 
PITTSBURGH, PA -- (Marketwire) -- 02/14/13 --  Koppers Holdings Inc.
(NYSE: KOP) announced results today for its fiscal 2012 fourth
quarter. Consolidated sales of $374.9 million for the fourth quarter
of 2012 were two percent or $5.9 million higher than sales of $369.0
million in the prior year quarter. Sales for Carbon Materials and
Chemicals (CMC) totaling $242.4 million increased slightly from sales
of $241.8 million over the prior year quarter while sales for
Railroad and Utility Products (RUP) of $132.5 million increased by
four percent or $5.3 million over the prior year quarter. 
Net income attributable to Koppers for the quarter ended December 31,
2012, was $13.6 million or $0.65 per diluted share as compared to a
net loss attributable to Koppers of ($14.2) million or ($0.69) per
diluted share in the fourth quarter of 2011. The fourth quarter of
2011 includes a loss of $19.4 million from discontinued operations as
a result of the closure of the Company's carbon black facility in
Australia in the fourth quarter of 2011. Adjusted net income and
adjusted earnings per share for the quarter ended December 31, 2012,
were $13.9 million and $0.66 per share compared to $8.7 million and
$0.42 per share in the prior year quarter after excluding $0.3
million of after-tax charges related to plant closure costs in the
fourth quarter of 2012; $19.4 million in losses from discontinued
operations; and $3.5 million in income tax expense related to the
European consolidation project for the fourth quarter of 2011. The
increase in adjusted net income for the fourth quarter of 2012 was
due to a lower effective tax rate compared to the fourth quarter of
2011 combined with higher earnings for RUP. 
Adjusted EBITDA for the quarter ended December 31, 2012, was $33.6
million compared to $30.9 million in the fourth quarter of 2011 after
excluding $0.4 million of closure costs in the fourth quarter of 2012
for our wood treating plant in Grenada, Mississippi and $19.4 million
of losses from discontinued operations in the fourth quarter of 2011. 
Consolidated sales of $1,555.0 million for the year ended December
31, 2012, were six percent or $88.8 million higher than prior year
sales of $1,466.2 million. Sales for CMC for the year ended December
31, 2012, increased by six percent or $56.6 million over the prior
year while sales for RUP also increased by six percent or $32.2
million over the prior year. The increase in sales in CMC was due to
higher sales prices for pitch, phthalic anhydride, creosote and
carbon black feedstock, which was partially offset by lower sales
volumes for pitch, lower sales prices for naphthalene and
approximately $20 million of lower sales from foreign currency
translation. Sales for RUP increased due mainly to higher sales
prices for railroad crossties driven in part by higher sales volumes
of value added products and higher volumes for utility poles, which
were partially offset by lower sales volumes for railroad crossties. 
Net income attributable to Koppers and diluted earnings per share
from continuing operations for the twelve months ended December 31,
2012, were $65.6 million and $3.14 per share, respectively as
compared to net income attributable to Koppers of $36.9 million and
$2.72 per diluted share from continuing operations for the year ended
December 31, 2011. Adjusted net income and adjusted earnings per
share were $68.7 million and $3.27 per share for the twelve months
ended December 31, 2012, compared to $59.6 million and $2.86 per
share for 2011 after excluding $2.2 million of after-tax charges and
$0.8 million of tax expense for 2012, $0.7 million of after-tax gains
and $3.5 million of tax expense for 2011, and after excluding the
impact of discontinued operations for both years. The increase in
adjusted net income in 2012 was due to a lower effective tax rate
combined with higher earnings from RUP, which more than offset lower
results from CMC. Earnings for CMC were negatively impacted by lower
pitch volumes, higher raw material costs and charges related to a
pitch tank leak in Australia, a plant outage in The Netherlands, and
an increase in the allowance for doubtful accounts in Europe,
partially offset by a refund resulting from a supplier audit of
material transport weights. 
Adjusted EBITDA for the twelve months ended December 31, 2012, was
$159.5 million compared to $149.4 million for the twelve months ended
December 31, 2011, after excluding $2.8 million of plant closure
costs in 2012 and $0.9 million of gains for the sale of technology in
2011, and excluding the impact of discontinued operations for both
years. 
Commenting on the results, Walter W. Turner, president and CEO of
Koppers, said, "Our fourth quarter results compared favorably to last
year's fourth quarter and on an adjusted basis were the highest
fourth quarter earnings in our history as a public company. We
achieved significant earnings improvement for the year over our 2011
full year adjusted results despite the continued difficulties in
Europe and the additional unexpected charges associated with a pitch
tank leak in Australia and a plant outage in The Netherlands. Our
global Railroad and Utility Products business enjoyed its best year
ever with higher volumes of value added railroad products and utility
poles. We continue to see headwinds through 2013 primarily in Europe;
however, we are confident that we will achieve our fourth consecutive
year of double-digit adjusted earnings growth." 
The following reconciliations are attached to this press release:
Unaudited Reconciliation of Net Income Attributable to Koppers and
Adjusted Net Income; Unaudited Reconciliation of Diluted Earnings Per
Share and Adjusted Earnings Per Share; and Unaudited Reconciliation
of Net Income to EBITDA and Adjusted EBITDA. 
Investor Conference Call and Web Simulcast 
Koppers management will conduct a conference call this morning,
February 14, 2013, beginning at 11:00 a.m. EST to discuss the
company's performance. Interested parties may access the live audio
broadcast by dialing 800 762 8779 in the US/Canada or +1 480 629 9818
for International, Conference ID number 4592122. Investors are
requested to access the call at least five minutes before the
scheduled start time in order to complete a brief registration. An
audio replay will be available approximately two hours after the
call's completion at 800 406 7325 or +1 303 590 3030, Conference ID
number 4592122. The recording will be available for replay through
February 28, 2013. 
The live broadcast of Koppers conference call will be available
online:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=194019&eventID=4897544.
(Due to the length of this URL, it may be necessary to copy and paste
this hyperlink into your Internet browser's URL address field.) 
If you are unable to participate during the live webcast, the call
will be archived on www.koppers.com, www.streetevents.com and
www.earnings.com shortly after the live call and continuing through
February 28, 2013. 
About Koppers 
Koppers, with corporate headquarters and a research center in
Pittsburgh, Pennsylvania, is a global integrated producer of carbon
compounds and treated wood products. Including its joint ventures,
Koppers operates facilities in the United States, United Kingdom,
Denmark, The
 Netherlands, Australia and China. The stock of Koppers
Holdings Inc. is publicly traded on the New York Stock Exchange under
the symbol "KOP". For more information, visit us on the Web:
www.koppers.com. Questions concerning investor relations should be
directed to Leroy M. Ball at 412 227 2118 or Michael W. Snyder at 412
227 2131. 
Safe Harbor Statement 
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and may include, but are not limited to,
statements about sales levels, restructuring, declines in the value
of Koppers assets and the effect of any resulting impairment charges,
profitability and anticipated expenses and cash outflows. All
forward-looking statements involve risks and uncertainties. All
statements contained herein that are not clearly historical in nature
are forward-looking, and words such as "believe," "anticipate,"
"expect," "estimate," "may," "will," "should," "continue," "plans,"
"potential," "intends," "likely," or other similar words or phrases
are generally intended to identify forward-looking statements. Any
forward-looking statement contained herein, in other press releases,
written statements or other documents filed with the Securities and
Exchange Commission, or in Koppers communications with and
discussions with investors and analysts in the normal course of
business through meetings, phone calls and conference calls,
regarding expectations with respect to sales, earnings, cash flows,
operating efficiencies, product introduction or expansion, the
benefits of acquisitions, divestitures, joint ventures or other
matters as well as financings and repurchases of debt or equity
securities, are subject to known and unknown risks, uncertainties and
contingencies. Many of these risks, uncertainties and contingencies
are beyond our control, and may cause actual results, performance or
achievements to differ materially from anticipated results,
performance or achievements. Factors that might affect such
forward-looking statements, include, among other things, general
economic and business conditions, including continuing uncertain
economic conditions in Europe, demand for Koppers goods and services,
competitive conditions, interest rate and foreign currency rate
fluctuations, availability and costs of key raw materials,
unfavorable resolution of claims against us, and timing and
limitations on insurance recoveries and coverages, as well as those
discussed more fully elsewhere in this release and in documents filed
with the Securities and Exchange Commission by Koppers, particularly
our latest annual report on Form 10-K and quarterly report on Form
10-Q. Any forward-looking statements in this release speak only as of
the date of this release, and we undertake no obligation to update
any forward-looking statement to reflect events or circumstances
after that date or to reflect the occurrence of unanticipated events. 


 
                                                                            
                                                                            
                                                                            
                           Koppers Holdings Inc.                            
                                                                            
                 Unaudited Consolidated Statement of Income                 
                                                                            
              (Dollars in millions, except per share amounts)               
                                                                            
                                     Three Months          Twelve Months    
                                         Ended                 Ended        
                                     December 31,          December 31,     
                                 --------------------  -------------------- 
                                    2012       2011       2012       2011   
                                 ---------  ---------  ---------  --------- 
                                                                            
Net sales                        $   374.9  $   369.0  $ 1,555.0  $ 1,466.2 
Cost of sales (excluding items                                              
 below)                              321.4      319.9    1,324.6    1,242.3 
Depreciation and amortization          7.1        7.4       28.2       26.9 
Selling, general and                                                        
 administrative expenses              20.5       18.7       75.6       74.3 
                                 ---------  ---------  ---------  --------- 
                                                                            
Operating profit                      25.9       23.0      126.6      122.7 
Other income                           0.2        0.5        1.9        0.7 
Interest expense                       7.1        6.9       27.9       27.2 
                                 ---------  ---------  ---------  --------- 
                                                                            
Income before income taxes            19.0       16.6      100.6       96.2 
Income taxes                           4.8       11.2       33.3       38.7 
                                 ---------  ---------  ---------  --------- 
                                                                            
Income from continuing                                                      
 operations                           14.2        5.4       67.3       57.5 
Income (loss) from discontinued                                             
 operations, net of tax                 --      (19.4)      (0.1)     (19.9)
                                 ---------  ---------  ---------  --------- 
                                                                            
Net income (loss)                     14.2      (14.0)      67.2       37.6 
Net income attributable to                                                  
 noncontrolling interests              0.6        0.2        1.6        0.7 
                                 ---------  ---------  ---------  --------- 
                                                                            
Net income (loss) attributable                                              
 to Koppers                      $    13.6  $   (14.2) $    65.6  $    36.9 
                                 =========  =========  =========  ========= 
                                                                            
Earnings (loss) per common                                                  
 share:                                                                     
  Basic-                                                                    
    Continuing operations        $    0.66  $    0.25  $    3.18  $    2.75 
    Discontinued operations             --      (0.94)     (0.01)     (0.96)
                                 ---------  ---------  ---------  --------- 
    Earnings (loss) per basic                                               
     common share                $    0.66  $   (0.69) $    3.17  $    1.79 
                                 =========  =========  =========  ========= 
  Diluted-                                                                  
    Continuing operations        $    0.65  $    0.24  $    3.14  $    2.72 
    Discontinued operations             --      (0.93)     (0.01)     (0.95)
                                 ---------  ---------  ---------  --------- 
    Earnings (loss) per diluted                                             
     common share                $    0.65  $   (0.69) $    3.13  $    1.77 
                                 =========  =========  =========  ========= 
                                                                            
Weighted average shares                                                     
 outstanding (in thousands):                                                
  Basic                             20,600     20,603     20,681     20,599 
  Diluted                           20,851     20,851     20,927     20,833 
Dividends declared per common                                               
 share                           $    0.24
  $    0.22  $    0.96  $    0.88 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            
                                                                            
                           Koppers Holdings Inc.                            
                                                                            
               Unaudited Condensed Consolidated Balance Sheet               
                                                                            
              (Dollars in millions, except per share amounts)               
                                                                            
                                                 December 31,  December 31, 
                                                     2012          2011     
                                                 ------------  ------------ 
Assets                                                                      
Cash and cash equivalents                        $       66.7  $       54.1 
Accounts receivable, net of allowance of $3.8                               
 and $0.3                                               162.7         160.9 
Income tax receivable                                     1.6          10.6 
Inventories, net                                        195.8         159.0 
Deferred tax assets                                      15.1           9.3 
Loan to related party                                     9.5          11.7 
Other current assets                                     29.8          21.8 
                                                 ------------  ------------ 
  Total current assets                                  481.2         427.4 
Equity in non-consolidated investments                    5.8           4.9 
Property, plant and equipment, net                      161.1         155.6 
Goodwill                                                 75.6          72.1 
Deferred tax assets                                      27.2          44.3 
Other assets                                             29.1          26.4 
                                                 ------------  ------------ 
  Total assets                                   $      780.0  $      730.7 
                                                 ============  ============ 
Liabilities                                                                 
Accounts payable                                 $      103.5  $      102.1 
Accrued liabilities                                      72.1          63.1 
Dividends payable                                         5.6           5.2 
                                                 ------------  ------------ 
  Total current liabilities                             181.2         170.4 
Long-term debt                                          296.1         302.1 
Other long-term liabilities                             134.6         151.0 
                                                 ------------  ------------ 
  Total liabilities                                     611.9         623.5 
Commitments and contingent liabilities                                      
                                                                            
Equity                                                                      
Senior Convertible Preferred Stock, $0.01 par                               
 value per share; 10,000,000 shares authorized;                             
 no shares issued                                          --            -- 
Common Stock, $0.01 par value per share;                                    
 40,000,000 shares authorized; 21,585,129 and                               
 21,309,210 shares issued                                 0.2           0.2 
Additional paid-in capital                              153.3         142.9 
Retained earnings                                        52.0           6.7 
Accumulated other comprehensive loss                    (22.0)        (30.2)
Treasury stock, at cost; 951,026 and 706,161                                
 shares                                                 (32.9)        (24.8)
                                                 ------------  ------------ 
  Total Koppers shareholders' equity                    150.6          94.8 
                                                 ------------  ------------ 
Noncontrolling interests                                 17.5          12.4 
                                                 ------------  ------------ 
  Total equity                                          168.1         107.2 
                                                 ------------  ------------ 
  Total liabilities and equity                   $      780.0  $      730.7 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
                           Koppers Holdings Inc.                            
                                                                            
          Unaudited Condensed Consolidated Statement of Cash Flows          
                                                                            
                           (Dollars in millions)                            
                                                                            
                                                    Twelve        Twelve    
                                                 Months Ended  Months Ended 
                                                 December 31,  December 31, 
                                                     2012          2011     
                                                 ------------  ------------ 
                                                                            
Cash provided by (used in) operating activities:                            
  Net income                                     $       67.2  $       37.6 
  Adjustments to reconcile net cash provided by                             
   operating activities:                                                    
    Depreciation and amortization                        28.2          48.8 
    Loss (gain) on sale of fixed assets                   0.1          (0.2)
    Deferred income taxes                                 8.0         (11.3)
    Non-cash interest expense                             1.7           1.6 
    Equity income, net of dividends received             (0.8)         (0.2)
    Change in other liabilities                         (13.0)          4.0 
    Stock-based compensation                              6.9           5.3 
    Other                                                (1.1)         (3.0)
  (Increase) decrease in working capital:                                   
    Accounts receivable                                  (0.2)        (33.2)
    Inventories                                         (26.5)          5.1 
    Accounts payable                                     (0.1)         15.3 
    Accrued liabilities and other working                                   
     capital                                              7.4           7.1 
                                                 ------------  ------------ 
        Net cash provided by operating                                      
         activities                              $       77.8  $       76.9 
                                                                            
Cash provided by (used in) investing activities:                            
  Capital expenditures                           $      (28.9) $      (33.2)
  Acquisitions, net of cash acquired                    (14.0) $       (0.6)
  Net cash proceeds (payments) from loan to                                 
   related party                                          2.2  $      (11.7)
  Net cash proceeds from divestitures and asset                             
   sales                                                  0.8           0.8 
                                                 ------------  ------------ 
      Net cash used in investing activities      $      (39.9) $      (44.7)
                                                                            
Cash provided by (used in) financing activities:                            
  Borrowings of revolving credit                 $      259.4  $      218.0 
  Repayments of revolving credit                       (265.8)       (211.6)
  Repayments of long-term debt                             --          (1.0)
  Issuances of common stock                               1.6           0.3 
  Repurchases of common stock                            (8.2)         (0.3)
  Proceeds from issuance of noncontrolling                                  
   interest                                               3.7            -- 
  Excess tax benefit from employee stock plans            1.6            -- 
  Payment of deferred financing costs                    (0.1)         (0.5)
  Dividends paid                                        (19.5)        (18.2)
                                                 ------------  ------------ 
      Net cash used in financing activities      $      (27.3) $      (13.3)
                                                                            
Effect of exchange rate changes on cash                   2.0          (0.1)
                                                 ------------  ------------ 
                                                                            
Net increase in cash and cash equivalents        $       12.6  $       18.8 
                                                                            
Cash and cash equivalents at beginning of year           54.1          35.3 
                                                 ------------  ------------ 
                                                                            
Cash and cash equivalents at end of period       $       66.7  $       54.1 
                                                 ============  ============ 

 
Unaudited Segment Information 
The following tables set forth certain sales and operating data, net
of all intersegment transactions, for the company's businesses for
the periods indicated.  


 
                                                                            
                                        Three Months        Twelve Months   
                                            Ended               Ended       
                                        December 31,        December 31,    
                                     ------------------  ------------------ 
                                       2012      2011      2012      2011   
                                     --------  --------  --------  -------- 
                                              (Dollars in millions)         
Net sales:                                                                  
                                                                            
  Carbon Materials and Chemicals     $  242.4  $  241.8  $  999.7  $  943.1 
  Railroad and Utility Products         132.5     127.2     555.3     523.1 
                                     --------  --------  --------  -------- 
    Total                            $  374.9  $  369.0  $1,555.0  $1,466.2 
                                                                            
Operating profit:                                                           
  Carbon Materials and Chemicals     $   18.0  $   18.6  $   83.1  $   89.1 
  Railroad and Utility Products           8.2       4.6      45.1      34.8 
  Corporate                              (0.3)     (0.2)     (1.6)     (1.2)
                                     --------  --------  --------  -------- 
    Total                            $   25.9  $   23.0  $  126.6  $  122.7 
Operating margin:                                                           
  Carbon Materials and Chemicals          7.4%      7.7%      8.3%      9.4%
  Railroad and Utility Products           6.2%      3.6%      8.1%      6.7%
                                     --------  --------  --------  -------- 
    Total                                 6.9%      6.2%      8.1%      8.4%
Adjusted operating profit (1):                                              
  Carbon Materials and Chemicals     $   18.0  $   18.6  $   83.1  $   88.2 
  Railroad and Utility Products           8.6       4.6      48.5      34.8 
  All Other                              (0.3)     (0.2)     (1.6)     (1.2)
                                     --------  --------  --------  -------- 
    Total                            $   26.3  $   23.0  $  130.0  $  121.8 
Adjusted operating margin:                                                  
  Carbon Materials and Chemicals          7.4%      7.7%      8.3%      9.4%
  Railroad and Utility Products           6.5%      3.6%      8.7%      6.7%
                                     --------  --------  --------  -------- 
    Total                                 7.0%      6.2%      8.4%      8.3%
                                                                            
(1) Cost of sales for RUP for the three and twelve months ended December 31,
    2012 includes $0.4 million and $2.8 million, respectively, of plant     
    closing charges related to our wood treating plant in Grenada,          
    Mississippi, and depreciation and amortization for RUP for the twelve   
    months ended December 31, 2012 includes $0.6 million of impairment      
    charges for our co-generation plant located in Muncy, Pennsylvania. Cost
    of sales for CMC for the twelve months ended December 31, 2011 includes 
    a gain of $0.9 million for the licensing of certain technology in China.
    These amounts have been excluded for purposes of calculating adjusted   
    net income. These amounts have been excluded for purposes of calculating
    adjusted operating profit.                                              

 
Koppers believes that adjusted net income, adjusted operating profit
and adjusted EBITDA provide information useful to investors in
understanding the underlying operational performance of the company,
its business and performance trends and facilitates comparisons
between periods and with other corporations in similar industries.
The exclusion of certain items permits evaluation and a comparison of
results for ongoing business operations, and it is on this basis that
Koppers management internally assesses the company's performance. 
Although Koppers believes that these non-GAAP financial measures
enhance investors' understanding of its business and performance,
these non-GAAP financial measures should not be considered an
alternative to GAAP basis financial measures. 


 
                                                                            
                                                                            
                                                                            
UNAUDITED RECONCILIATION OF NET INCOME ATTRIBUTABLE TO KOPPERS AND ADJUSTED 
                                 NET INCOME                                 
                               (In millions)                                
                                                                            
                                             Three Months    Twelve Months  
                                                Ended            Ended      
                                             December 31,     December 31,  
                                           ---------------  --------------- 
                                             2012    2011     2012    2011  
                                           ------- -------  ------- ------- 
Net income (loss) attributable to Koppers  $  13.6 $ (14.2) $  65.6 $  36.9 
                                                                            
Items impacting pre-tax income (1)                                          
  Impairment and closure costs                 0.4      --      3.4      -- 
  Sale of technology                            --      --       --    (0.9)
                                           ------- ----
---  ------- ------- 
    Total items above impacting pre-tax                                     
     income                                    0.4      --      3.4    (0.9)
  Items impacting net income, net of tax       0.3      --      2.2    (0.7)
  Income tax provision for European                                         
   consolidation                                --     3.5      0.8     3.5 
                                           ------- -------  ------- ------- 
Adjusted net income (loss) including                                        
 discontinued operations                   $  13.9 $ (10.7) $  68.6 $  39.7 
  Discontinued operations                       --    19.4      0.1    19.9 
                                           ------- -------  ------- ------- 
Adjusted net income                        $  13.9 $   8.7  $  68.7 $  59.6 
                                           ======= =======  ======= ======= 
                                                                            
(1) Cost of sales for RUP for the three and twelve months ended December 31,
    2012 includes $0.4 million and $2.8 million, respectively, of plant     
    closing charges related to our wood treating plant in Grenada,          
    Mississippi, and depreciation and amortization for RUP for the twelve   
    months ended December 31, 2012 includes $0.6 million of impairment      
    charges for our co-generation plant located in Muncy, Pennsylvania.     
    Income taxes for the twelve months ended December 31, 2012 includes $0.8
    million of expense related to the Company's European consolidation      
    project, and income taxes for the three and twelve months ended December
    31, 2011 includes $3.5 million of expense related to the Company's      
    European consolidation project. Cost of sales for CMC for the twelve    
    months ended December 31, 2011 includes a gain of $0.9 million for the  
    licensing of certain technology in China. These amounts have been       
    excluded for purposes of calculating adjusted net income.               
                                                                            
                                                                            
                                                                            
         UNAUDITED RECONCILIATION OF DILUTED EARNINGS PER SHARE AND         
                         ADJUSTED EARNINGS PER SHARE                        
                     (In millions except share amounts)                     
                                                                            
                                           Three Months      Twelve Months  
                                              Ended              Ended      
                                           December 31,       December 31,  
                                        -----------------  -----------------
                                          2012     2011      2012     2011  
                                        -------- --------  -------- --------
Net income (loss) attributable to                                           
 Koppers                                $   13.6 $  (14.2) $   65.6 $   36.9
                                        ======== ========  ======== ========
Adjusted net income (loss) including                                        
 discontinued operations (from above)   $   13.9 $  (10.7) $   68.6 $   39.7
                                        ======== ========  ======== ========
Adjusted net income (from above)        $   13.9 $    8.7  $   68.7 $   59.6
                                        ======== ========  ======== ========
                                                                            
Denominator for diluted earnings per                                        
 share (000s)                             20,851   20,851    20,927   20,833
                                                                            
Earnings (loss) per share:                                                  
Diluted earnings (loss) per share       $   0.65 $  (0.69) $   3.13 $   1.77
Adjusted earnings (loss) per share                                          
 including discontinued operations      $   0.66 $  (0.51) $   3.27 $   1.91
Adjusted earnings per share             $   0.66 $   0.42  $   3.27 $   2.86
                                                                            
                                                                            
                                                                            
    UNAUDITED RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA    
                     (In millions except share amounts)                     
                                                                            
                                             Three Months    Twelve Months  
                                                Ended            Ended      
                                             December 31,     December 31,  
                                           ---------------  --------------- 
                                             2012    2011     2012    2011  
                                           ------- -------  ------- ------- 
Net income                                 $  14.2 $ (14.0) $  67.2 $  37.6 
  Interest expense                             7.1     6.9     27.9    27.2 
  Depreciation and amortization                7.1     7.4     28.2    26.9 
  Income tax provision                         4.8    11.2     33.3    38.7 
  Discontinued operations                       --    19.4      0.1    19.9 
                                           ------- -------  ------- ------- 
EBITDA with noncontrolling interests          33.2    30.9    156.7   150.3 
                                                                            
Unusual items impacting net income (1)                                      
  Closure costs                                0.4      --      2.8      -- 
  Sale of technology                            --      --       --    (0.9)
                                           ------- -------  ------- ------- 
  Adjusted EBITDA with noncontrolling                                       
   interests                               $  33.6 $  30.9  $ 159.5 $ 149.4 
                                           ======= =======  ======= ======= 
                                                                            
(1) Cost of sales for RUP for the three and twelve months ended December 31,
    2012 includes $0.4 million and $2.8 million, respectively, of plant     
    closing charges related to our wood treating plant in Grenada,          
    Mississippi. Cost of sales for CMC for the twelve months ended December 
    31, 2011 includes a gain of $0.9 million for the licensing of certain   
    technology in China. These amounts have been excluded for purposes of   
    calculating adjusted net income. These amounts have been excluded for   
    purposes of calculating adjusted EBITDA.                                

  
For Information:
Leroy M. Ball
Vice President and Chief Financial Officer
412-227-2118
BallLM@koppers.com