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Koppers Holdings Inc. Reports Second Quarter 2014 Results

Overall Sales Declined Four Percent from Previous Year; However, Sales Volumes Increased for Phthalic Anhydride, Carbon Black Feedstock and Naphthalene; Diluted EPS of $0.08 for the Quarter and Adjusted EPS of $0.39 Negatively Impacted by Lower Product Pr

PITTSBURGH, PA -- (Marketwired) -- 08/07/14 -- Koppers Holdings Inc. (NYSE: KOP), a global integrated producer of carbon compounds and treated wood products, today reported consolidated sales of $356.8 million for the second quarter of 2014, a four percent, or $14.1 million, decline from sales of $370.9 million in the prior year quarter. The decrease was driven predominately by lower sales volumes for railroad crossties due to lower raw material availability, as well as lower sales volumes and prices for carbon pitch.

Net income for the quarter was $1.6 million, or $0.08 per diluted share compared to net income attributable to Koppers of $14.4 million, or $0.69 per diluted share in the second quarter of 2013. Adjusted net income and adjusted earnings per share were $8.1 million and $0.39 per share compared to $14.7 million and $0.70 per share in the prior year quarter. Adjusted net income and adjusted EPS for the quarter ended June 30, 2014 were lower than the prior year quarter due to pre-tax charges related to integration, plant outages, consulting, employee benefits and plant startup costs totaling $7.8 million, as well as lower product sales prices and volumes for the company's Carbon Materials and Chemicals (CMC) and Railroad and Utility Products and Services (RUPS) businesses, respectively.

Commenting on the results, Walt Turner, president and CEO of Koppers, said, "We continue to operate against industry headwinds and remain challenged in our global CMC business due to lower demand in certain regions, which resulted in reduced sales prices and volumes compared to the prior year. However, we have moved aggressively to rationalize capacity in Europe and are evaluating similar steps in North America, which will lower our overall cost structure and improve our capacity utilization and profitability in those regions. We are currently seeing the benefits of these actions in Europe, where our profitability increased substantially in the second quarter on similar sales volumes. We continue to look for opportunities to optimize our production facilities and reduce our cost structure, including our recent announcement that we are applying for permits to construct a new chemicals plant at our Stickney, Illinois facility producing naphthalene and other refined chemicals, which would provide the opportunity to reduce the number of distillation facilities in the U.S. and further improve our cost structure. Our North American railroad business continues to be impacted by reduced hardwood lumber availability, but we are beginning to see increased availability and are optimistic that the second half of the year will be stronger than the first half for this business as we see supplies improve."

Mr. Turner continued, "We continue to work towards the closing of the Osmose transaction. Subject to the closing conditions being satisfied, we anticipate the completion of the acquisition in the third quarter, which will represent another important step in our long-term growth strategy by expanding both our chemicals offering and extending our existing railroad and utilities products and services platform. The addition of Osmose will further diversify our business and position us for future growth by complementing our existing businesses through leading market positions in strategic end-markets. The synergies from the acquisition are expected to be at least $12 million, and we anticipate that the annual run rate will be realizable by the end of 2015. We are also excited about the startup of our China JV in July and expect to see a profit contribution in 2015."

"For the second half of the year, we expect overall sales and adjusted operating profit to be higher as we continue to align our strategy and footprint in the current operating environment, including driving costs out of the business and capitalizing on a strengthening European economy," Mr. Turner said. "As a result of the continued implementation of these cost-savings initiatives throughout the balance of this year, we expect to enter 2015 with a more efficient cost structure which should improve margins and provide opportunities to gain additional sales volumes."

Summary of Second-Quarter Financial Performance:

  • Sales for CMC totaling $208.6 million decreased by five percent or $11.7 million compared to sales of $220.3 million in the prior year quarter. CMC sales were lower due to lower sales volumes and prices for carbon pitch and lower sales prices for phthalic anhydride and carbon black feedstock, partially offset by higher sales volumes for phthalic anhydride, carbon black feedstock and naphthalene.

  • Sales for RUPS of $148.2 million decreased by two percent or $2.4 million compared to sales of $150.6 million in the prior year quarter. The net decrease in sales in RUPS was due mainly to lower sales volumes for crossties as a result of reduced lumber availability, which was driven by increased competition within hardwood lumber markets. These factors more than offset the additional $8.2 million in revenue contribution from the company's recent Ashcroft acquisition.

  • Items excluded from adjusted results for the quarter included $6.7 million of pre-tax charges related to impairment and plant closure costs. The $6.7 million is comprised of $4.7 million related to ceasing distillation at our tar plant in the Netherlands, $1.4 million related to impairment charges and accelerated depreciation at our KCCC facility in Tangshan, China, and $0.6 million related to closure of our wood treating plant in Grenada, Mississippi in 2012.

  • Adjusted EBITDA was $27.3 million compared to $37.2 million in the second quarter of 2013 due to the items that impacted adjusted net income and adjusted EPS as noted above.

Investor Conference Call and Web Simulcast
Koppers management will conduct a conference call this morning, August 7, 2014, beginning at 11:00 a.m. EDT to discuss the company's performance. Interested parties may access the live audio broadcast by dialing 888 312 3048 in the US/Canada or +1 719 325 2354 for International, Conference ID number 1031370. 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 888 203 1112 or +1 719 457 0820, Conference ID number 1031370. The recording will be available for replay through August 21, 2014.

The live broadcast of Koppers conference call will be available online: http://www.media-server.com/m/acs/23e8e89e71a14d1647f74aaaebcf82ee. (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 and www.streetevents.com shortly after the live call and continuing through August 21, 2014.

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.

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, Canada, 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, acquisitions, 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, Koppers may not be able to successfully integrate the wood preservatives business and/or the railroad services business of Osmose or such integration may take longer to accomplish than expected; the expected cost savings and any synergies from the Osmose acquisition may not be fully realized within the expected timeframes; disruption from the Osmose acquisition may make it more difficult to maintain relationships with clients, associates or suppliers; the required financing for the Osmose acquisition may not be obtained on the proposed terms and schedule; 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, 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            Six Months
                                         Ended                 Ended
                                       June 30,               June 30,
                                 --------------------  ---------------------
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ----------

Net sales                        $   356.8  $   370.9  $   688.2  $    741.3
Cost of sales (excluding items
 below)                              311.9      318.9      597.0       639.4
Depreciation and amortization          9.7        7.3       18.6        14.6
Impairment and restructuring
 charges                                --         --       15.5          --
Selling, general and
 administrative expenses              21.9       16.2       43.3        33.9
                                 ---------  ---------  ---------  ----------
Operating profit                      13.3       28.5       13.8        53.4
Other (loss) income                   (0.3)       1.0       (0.1)        1.5
Interest expense                       6.6        6.6       13.4        13.5
                                 ---------  ---------  ---------  ----------
Income before income taxes             6.4       22.9        0.3        41.4
Income taxes                           5.6        8.1       (0.4)       15.2
                                 ---------  ---------  ---------  ----------
Income (loss) from continuing
 operations                            0.8       14.8        0.7        26.2
Loss from discontinued
 operations, net of tax               (0.1)      (0.1)      (0.1)         --
                                 ---------  ---------  ---------  ----------
Net income                             0.7       14.7        0.6        26.2
Net (loss) income attributable
 to noncontrolling interests          (0.9)       0.3       (3.2)        0.8
                                 ---------  ---------  ---------  ----------
Net income attributable to
 Koppers                         $     1.6  $    14.4  $     3.8  $     25.4
                                 =========  =========  =========  ==========
Earnings (loss) per common
 share:
  Basic-
    Continuing operations        $    0.08  $    0.70  $    0.19  $     1.23
    Discontinued operations             --      (0.01)        --          --
                                 ---------  ---------  ---------  ----------
    Earnings (loss) per basic
     common share                $    0.08  $    0.69  $    0.19  $     1.23
                                 =========  =========  =========  ==========
  Diluted-
    Continuing operations        $    0.08  $    0.70  $    0.19  $     1.21
    Discontinued operations             --      (0.01)        --          --
                                 ---------  ---------  ---------  ----------
    Earnings (loss) per diluted
     common share                $    0.08  $    0.69  $    0.19  $     1.21
                                 =========  =========  =========  ==========

Weighted average shares
 outstanding (in thousands):
  Basic                             20,475     20,727     20,430      20,697
  Diluted                           20,582     20,945     20,584      20,935
Dividends declared per common
 share                           $    0.25  $    0.25  $    0.50  $     0.50
                                 =========  =========  =========  ==========



                           Koppers Holdings Inc.
               Unaudited Condensed Consolidated Balance Sheet
              (Dollars in millions, except per share amounts)

                                                   June 30,    December 31,
                                                     2014          2013
                                                 ------------  ------------
Assets
Cash and cash equivalents                        $       54.4  $       82.2
Accounts receivable, net of allowance of $3.7
 and $3.6                                               159.9         157.9
Income tax receivable                                     8.9           9.0
Inventories, net                                        189.2         168.8
Deferred tax assets                                      12.4          10.0
Loan to related party                                     9.5           9.5
Other current assets                                     28.6          35.7
                                                 ------------  ------------
    Total current assets                                462.9         473.1
Equity in non-consolidated investments                    6.2           6.6
Property, plant and equipment, net                      215.3         197.0
Goodwill                                                 75.4          72.7
Deferred tax assets                                      14.7           9.3
Other assets                                             31.5          26.2
                                                 ------------  ------------
    Total assets                                 $      806.0  $      784.9
                                                 ============  ============

Liabilities
Accounts payable                                 $       93.1  $      107.6
Accrued liabilities                                      73.2          82.4
Dividends payable                                         5.1           5.1
                                                 ------------  ------------
    Total current liabilities                           171.4         195.1
Long-term debt                                          358.4         303.1
Accrued postretirement benefits                          31.0          41.6
Deferred tax liabilities                                 15.9          14.7
Other long-term liabilities                              40.7          40.6
                                                 ------------  ------------
    Total liabilities                                   617.4         595.1
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; 21,938,260 and
 21,722,492 shares issued                                 0.2           0.2
Additional paid-in capital                              163.0         158.9
Retained earnings                                        64.7          71.3
Accumulated other comprehensive loss                     (4.6)        (10.2)
Treasury stock, at cost; 1,443,248 and 1,390,494
 shares                                                 (52.4)        (50.4)
                                                 ------------  ------------
    Total Koppers shareholders' equity                  170.9         169.8
                                                 ------------  ------------
Noncontrolling interests                                 17.7          20.0
                                                 ------------  ------------
    Total equity                                 $      188.6  $      189.8
                                                 ------------  ------------
    Total liabilities and equity                 $      806.0  $      784.9
                                                 ============  ============



                           Koppers Holdings Inc.
          Unaudited Condensed Consolidated Statement of Cash Flows
                           (Dollars in millions)

                                                  Six Months    Six Months
                                                     Ended         Ended
                                                   June 30,      June 30,
                                                     2014          2013
                                                 ------------  ------------

Cash provided by (used in) operating activities:
  Net income                                     $        0.6  $       26.2
  Adjustments to reconcile net cash provided by
   operating activities:
    Depreciation and amortization                        18.6          14.6
    Impairment charges                                    4.7            --
    Deferred income taxes                                (6.6)          1.8
    Equity income (loss), net of dividends
     received                                             0.4          (0.4)
    Change in other liabilities                          (8.2)         (8.6)
    Non-cash interest expense                             0.8           0.8
    Stock-based compensation                              3.2           2.8
    Other                                                 0.6          (0.4)
  (Increase) decrease in working capital:
    Accounts receivable                                  (0.3)         (6.1)
    Inventories                                          (1.8)          5.7
    Accounts payable                                    (15.8)         (0.2)
    Accrued liabilities and other working
     capital                                             (4.9)        (16.2)
                                                 ------------  ------------
        Net cash (used in) provided by operating
         activities                                      (8.7)         20.0
Cash (used in) provided by investing activities:
  Capital expenditures                                  (35.6)        (15.7)
  Acquisitions, net of cash acquired                    (29.6)           --
  Net cash proceeds from divestitures and asset
   sales                                                   --           0.9
                                                 ------------  ------------
      Net cash used in investing activities             (65.2)        (14.8)
Cash provided by (used in) financing activities:
  Borrowings of revolving credit                        138.0          86.3
  Repayments of revolving credit                       (113.7)        (81.2)
  Borrowings of long-term debt                           31.2            --
  Issuances of Common Stock                               0.7           0.2
  Repurchases of Common Stock                            (2.0)         (1.6)
  Proceeds from issuance of noncontrolling
   interest                                               1.4           2.3
  Payment of deferred financing costs                      --          (1.2)
  Dividends paid                                        (10.2)        (10.2)
                                                 ------------  ------------
      Net cash provided by (used in) financing
       activities                                        45.4          (5.4)
Effect of exchange rate changes on cash                   0.7          (3.3)
                                                 ------------  ------------
Net decrease in cash and cash equivalents               (27.8)         (3.5)
Cash and cash equivalents at beginning of period         82.2          66.7
                                                 ------------  ------------
Cash and cash equivalents at end of period       $       54.4  $       63.2
                                                 ============  ============



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         Six Months
                                            Ended               Ended
                                          June 30,            June 30,
                                     ------------------  ------------------
                                       2014      2013      2014      2013
                                     --------  --------  --------  --------
                                              (Dollars in millions)
Net sales:
  Carbon Materials and Chemicals     $  208.6  $  220.3  $  411.2  $  450.8
  Railroad and Utility Products and
   Services                             148.2     150.6     277.0     290.5
                                     --------  --------  --------  --------
    Total                            $  356.8  $  370.9  $  688.2  $  741.3
Operating profit:
  Carbon Materials and Chemicals     $    3.8  $   12.5  $   (5.0) $   25.6
  Railroad and Utility Products and
   Services                              12.8      16.5      23.9      28.8
  Corporate                              (3.3)     (0.5)     (5.1)     (1.0)
                                     --------  --------  --------  --------
    Total                            $   13.3  $   28.5  $   13.8  $   53.4
Operating margin:
  Carbon Materials and Chemicals          1.8%      5.7%     -1.2%      5.7%
  Railroad and Utility Products and
   Services                               8.6%     11.0%      8.6%      9.9%
    Total                                 3.7%      7.7%      2.0%      7.2%
Adjusted operating profit (1):
  Carbon Materials and Chemicals     $    9.9  $   12.5  $   18.3  $   25.6
  Railroad and Utility Products and
   Services                              13.4      16.9      24.5      29.7
  All Other                              (3.3)     (0.5)     (5.1)     (1.0)
                                     --------  --------  --------  --------
    Total                            $   20.0  $   28.9  $   37.7  $   54.3
Adjusted operating margin:
  Carbon Materials and Chemicals          4.7%      5.7%      4.5%      5.7%
  Railroad and Utility Products and
   Services                               9.0%     11.2%      8.8%     10.2%
    Total                                 5.6%      7.8%      5.5%      7.3%

(1) Cost of sales for CMC for the three and six months ended June 30, 2014
    includes $2.9 million of pre-tax charges related to capacity
    rationalization at our tar distillation facility in Uithoorn, The
    Netherlands and $0.3 million of charges related to the expected closure
    of our tar distillation facility in Tangshan, China (KCCC). Cost of
    sales for Railroad and Utility Products and Services for the three and
    six months ended June 30, 2014 includes $0.6 million of plant closing
    charges related to the closure of the Grenada, Mississippi wood treating
    plant in 2012. Depreciation and amortization for the three months ended
    June 30, 2014 includes $2.1 million of pre-tax charges related to
    accelerated depreciation at the Uithoorn and KCCC facilities. Selling,
    general and administrative charges for CMC for the three months ended
    June 30, 2014 include $0.8 million of pre-tax charges related to
    capacity rationalization at the Uithoorn facility. Depreciation and
    amortization for the six months ended June 30, 2014 includes $3.5
    million of pre-tax charges related to accelerated depreciation at the
    Uithoorn and KCCC facilities. Impairment and restructuring charges for
    CMC for the six months ended June 30, 2014 include $10.8 million of pre-
    tax charges related to capacity rationalization at Uithoorn and $4.7
    million of pre-tax charges related to impairment for KCCC. Selling,
    general and administrative expenses for CMC for the six months ended
    June 30, 2014 includes $1.1 million of pre-tax charges related to
    capacity rationalization at Uithoorn. Cost of sales for RUPS for the
    three and six months ended June 30, 2013 includes $0.4 million and $0.9
    million, respectively, of pre-tax expense related to the June 2012
    closing of our wood treating plant in Grenada, Mississippi.

Koppers believes that adjusted net income, adjusted earnings per share, 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     Six Months
                                                  Ended           Ended
                                                 June 30,        June 30,
                                             --------------- ---------------
                                               2014    2013    2014    2013
                                             ------- ------- ------- -------
Net income attributable to Koppers           $   1.6 $  14.4 $   3.8 $  25.4
Items impacting pre-tax income (1)
  Impairment and plant closure costs             6.7     0.4    23.9     0.9
  Items impacting net income, net of tax and
   non-controlling interests                     6.4     0.2    10.8     0.5
  Adjusted net income including discontinued
   operations                                    8.0    14.6    14.6    25.9
  Discontinued operations                        0.1     0.1     0.1      --
                                             ------- ------- ------- -------
Adjusted net income                          $   8.1 $  14.7 $  14.7 $  25.9
                                             ======= ======= ======= =======

(1) Cost of sales for CMC for the three and six months ended June 30, 2014
    includes $2.9 million of pre-tax charges related to capacity
    rationalization at our tar distillation facility in Uithoorn, The
    Netherlands and $0.3 million of charges related to the expected closure
    of our tar distillation facility in Tangshan, China (KCCC). Cost of
    sales for Railroad and Utility Products and Services for the three and
    six months ended June 30, 2014 includes $0.6 million of plant closing
    charges related to the closure of the Grenada, Mississippi wood treating
    plant in 2012. Depreciation and amortization for the three months ended
    June 30, 2014 includes $2.1 million of pre-tax charges related to
    accelerated depreciation at the Uithoorn and KCCC facilities. Selling,
    general and administrative charges for CMC for the three months ended
    June 30, 2014 include $0.8 million of pre-tax charges related to
    capacity rationalization at the Uithoorn facility. Depreciation and
    amortization for the six months ended June 30, 2014 includes $3.5
    million of pre-tax charges related to accelerated depreciation at the
    Uithoorn and KCCC facilities. Impairment and restructuring charges for
    CMC for the six months ended June 30, 2014 include $10.8 million of pre-
    tax charges related to capacity rationalization at Uithoorn and $4.7
    million of pre-tax charges related to impairment for KCCC. Selling,
    general and administrative expenses for CMC for the six months ended
    June 30, 2014 includes $1.1 million of pre-tax charges related to
    capacity rationalization at Uithoorn. Cost of sales for RUPS for the
    three and six months ended June 30, 2013 includes $0.4 million and $0.9
    million, respectively, of pre-tax expense related to the June 2012
    closing of our wood treating plant in Grenada, Mississippi.



         UNAUDITED RECONCILIATION OF DILUTED EARNINGS PER SHARE AND
                         ADJUSTED EARNINGS PER SHARE
                     (In millions except share amounts)

                                               Three Months     Six Months
                                                  Ended           Ended
                                                 June 30,        June 30,
                                             --------------- ---------------
                                               2014    2013    2014    2013
                                             ------- ------- ------- -------
Net income attributable to Koppers           $   1.6 $  14.4 $   3.8 $  25.4
                                             ======= ======= ======= =======
Adjusted net income including discontinued
 operations (from above)                     $   8.0 $  14.6 $  14.6 $  25.9
                                             ======= ======= ======= =======
Adjusted net income (from above)             $   8.1 $  14.7 $  14.7 $  25.9
                                             ======= ======= ======= =======

Denominator for diluted earnings per share
 (in thousands)                               20,582  20,945  20,584  20,935

Earnings per share:
Diluted earnings per share                   $  0.08 $  0.69 $  0.19 $  1.21
Adjusted earnings per share including
 discontinued operations                     $  0.39 $  0.70 $  0.71 $  1.24
Adjusted earnings per share                  $  0.39 $  0.70 $  0.71 $  1.24



    UNAUDITED RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
                     (In millions except share amounts)

                                               Three Months     Six Months
                                                  Ended           Ended
                                                 June 30,        June 30,
                                             --------------- ---------------
                                               2014    2013   2014     2013
                                             ------- ------- ------  -------
Net income                                   $   0.7 $  14.7 $  0.6  $  26.2
  Interest expense                               6.6     6.6   13.4     13.5
  Depreciation and amortization                  9.7     7.3   18.6     14.6
  Income tax provision                           5.6     8.1   (0.4)    15.2
  Discontinued operations                        0.1     0.1    0.1        -
                                             ------- ------- ------  -------
EBITDA with noncontrolling interests            22.7    36.8   32.3     69.5
Unusual items impacting net income (1)
  Impairment and plant closure costs             4.6     0.4   20.4      0.9

  Adjusted EBITDA with noncontrolling
   interests                                 $  27.3 $  37.2 $ 52.7  $  70.4
                                             ======= ======= ======  =======

(1) Cost of sales for CMC for the three and six months ended June 30, 2014 includes $2.9 million of
    pre-tax charges related to capacity rationalization at our tar distillation facility in
    Uithoorn, The Netherlands and $0.3 million of charges related to the expected closure of our tar
    distillation facility in Tangshan, China (KCCC). Cost of sales for Railroad and Utility Products
    and Services for the three and six months ended June 30, 2014 includes $0.6 million of plant
    closing charges related to the closure of the Grenada, Mississippi wood treating plant in 2012.
    Selling, general and administrative charges for CMC for the three months ended June 30, 2014
    include $0.8 million of pre-tax charges related to capacity rationalization at the Uithoorn
    facility. Impairment and restructuring charges for CMC for the six months ended June 30, 2014
    include $10.8 million of pre-tax charges related to capacity rationalization at Uithoorn and
    $4.7 million of pre-tax charges related to impairment for KCCC. Selling, general and
    administrative expenses for CMC for the six months ended June 30, 2014 includes $1.1 million of
    pre-tax charges related to capacity rationalization at Uithoorn. Cost of sales for RUPS for the
    three and six months ended June 30, 2013 includes $0.4 million and $0.9 million, respectively,
    of pre-tax expense related to the June 2012 closing of our wood treating plant in Grenada,
    Mississippi.

For Information:

Leroy M. Ball
Chief Operating Officer and Chief Financial Officer
412 227 2118
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Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of...
Live Webinar with 451 Research Analyst Peter Christy. Join us on Wednesday July 22, 2015, at 10 am PT / 1 pm ET In a world where users are on the Internet and the applications are in the cloud, how do you maintain your historic SLA with your users? Peter Christy, Research Director, Networks at 451 Research, will discuss this new network paradigm, one in which there is no LAN and no WAN, and discuss what users and network administrators gain and give up when migrating to the agile world of clo...
Manufacturing has widely adopted standardized and automated processes to create designs, build them, and maintain them through their life cycle. However, many modern manufacturing systems go beyond mechanized workflows to introduce empowered workers, flexible collaboration, and rapid iteration. Such behaviors also characterize open source software development and are at the heart of DevOps culture, processes, and tooling.
SYS-CON Events announced today that JFrog, maker of Artifactory, the popular Binary Repository Manager, will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based in California, Israel and France, founded by longtime field-experts, JFrog, creator of Artifactory and Bintray, has provided the market with the first Binary Repository solution and a software distribution social platform.
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at th...
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult – let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and liv...
The last decade was about virtual machines, but the next one is about containers. Containers enable a service to run on any host at any time. Traditional tools are starting to show cracks because they were not designed for this level of application portability. Now is the time to look at new ways to deploy and manage applications at scale. In his session at @DevOpsSummit, Brian “Redbeard” Harrington, a principal architect at CoreOS, will examine how CoreOS helps teams run in production. Attende...
"We have a tagline - "Power in the API Economy." What that means is everything that is built in applications and connected applications is done through APIs," explained Roberto Medrano, Executive Vice President at Akana, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
IT data is typically silo'd by the various tools in place. Unifying all the log, metric and event data in one analytics platform stops finger pointing and provides the end-to-end correlation. Logs, metrics and custom event data can be joined to tell the holistic story of your software and operations. For example, users can correlate code deploys to system performance to application error codes. In his session at DevOps Summit, Michael Demmer, VP of Engineering at Jut, will discuss how this can...
"A lot of the enterprises that have been using our systems for many years are reaching out to the cloud - the public cloud, the private cloud and hybrid," stated Reuven Harrison, CTO and Co-Founder of Tufin, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
The most often asked question post-DevOps introduction is: “How do I get started?” There’s plenty of information on why DevOps is valid and important, but many managers still struggle with simple basics for how to initiate a DevOps program in their business. They struggle with issues related to current organizational inertia, the lack of experience on Continuous Integration/Delivery, understanding where DevOps will affect revenue and budget, etc. In their session at DevOps Summit, JP Morgenthal...