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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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SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...