PITTSBURGH, Sept. 5, 2023 /PRNewswire/ -- Koppers Holdings Inc. (NYSE: KOP) today announced that, as part of its ongoing efforts to recoup higher input costs due to inflation, the company has agreed to an amendment of its contract with one of its Class I railroad customers. The amendment will extend the current term of the agreement from 2026 to 2030, with favorable pricing adjustments. This represents the fourth Class I customer with which Koppers has reached agreement this year on increased pricing.
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 Ukraine, put our rail business in an untenable situation with long-term supply contracts in place that provided only partial relief. This latest amendment and extension is another important step toward returning to an acceptable level of profitability. I appreciate our customers' recognition of the various challenges and willingness to come to terms that benefit both parties."
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."
Koppers, with corporate headquarters in Pittsburgh, Pennsylvania, is an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds. Our products and services are used in a variety of niche applications in a diverse range of end markets, including the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction industries. We serve our customers through a comprehensive global manufacturing and distribution network, with facilities located in North America, South America, Australasia, and Europe. The stock of Koppers Holdings Inc. is publicly traded on the New York Stock Exchange under the symbol "KOP."
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 U.S. and global financial markets; potential difficulties in protecting our intellectual property; the ratings on our debt and our ability to repay or refinance our outstanding indebtedness as it matures; our ability to operate within the limitations of our debt covenants; potential impairment of our goodwill and/or long-lived assets; 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 any subsequent filings by Koppers with the Securities and Exchange Commission. 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.
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