Koppers Announces Improved Contract Terms with Several Class I Railroad Customers
- Koppers has reached an agreement with a Class I railroad customer to extend the contract to 2030 with favorable pricing adjustments, which could positively impact the stock price. This is the fourth agreement for increased pricing this year, showing the company's efforts to improve profitability.
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Executive Vice President and Chief Operating Officer James Sullivan said, "Significant unexpected inflation and supply chain shocks, exacerbated by the pandemic and the war in
President and Chief Executive Officer Leroy Ball said, "We are proud of our long history serving the rail industry and wish to continue that legacy far into the future. At the same time, we have seen a significant erosion in the profitability of our treated wood products over the past five years, which has led to a questioning of our long-term future serving the rail portion of that market. Adjusting the pricing in our existing agreements is a shot in the arm for this piece of our business and a recognition of the need to have a healthy supplier base serving the industry. While I am pleased with this latest development, we still have more work to do to convince others of the need to pay fair value for crossties, consistent with current market conditions."
About Koppers
Koppers, with corporate headquarters in
For more information, visit: www.koppers.com. Inquiries from the media should be directed to Ms. Jessica Franklin Black at BlackJF@koppers.com or 412-227-2025. Inquiries from the investment community should be directed to Ms. Quynh McGuire at McGuireQT@koppers.com or 412-227-2049.
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 "outlook," "guidance," "forecast," "believe," "anticipate," "expect," "estimate," "may," "will," "should," "continue," "plan," "potential," "intend," "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 and discussions with investors and analysts in the normal course of business through meetings, phone calls and conference calls, regarding future dividends, expectations with respect to sales, earnings, cash flows, operating efficiencies, restructurings, the benefits of acquisitions, divestitures, joint ventures or other matters as well as financings and debt reduction, 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, the impact of changes in commodity prices, such as oil and copper, on product margins; general economic and business conditions; disruption in the
For Information: | Quynh McGuire, Vice President, Investor Relations | |
412 227 2049 | ||
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