Profits take off at Koppers

Koppers Holdings, the treated wood products provider, reported third quarter net sales edged upwards by 0.7% to $437.5 million from sales of $434.2 million in the third quarter 2019.

But profits nearly tripled with Koppers posting a third quarter net income of $75.5 million compared to a net income of $20.5 million for the same period a year ago. 

The company also reported an operating profit of $58.6 million, a quarterly record that jumped 60% ahead of an operating profit of $36.6 million in the third quarter last year.

Sales for Koppers Chemical Products division increased more than 19% to $147.9 million compared to sales of $123.9 million in the prior third quarter. 

The sales increase reflected continued demand for copper-based preservatives in the U.S. driven by strength in the home repair and remodeling markets during the pandemic, along with international markets benefiting from pent-up demand following several months of restrictions associated with the pandemic, Koppers said.

Koppers, based in Pittsburgh, Pa., is a global provider of treated wood products, wood treatment chemicals and carbon compounds.

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The Bottom Line: Profits at Koppers rocket upwards by 268% to a net income of $75.5 million.

What the CEO said:  "Our performance through the pandemic has only further reinforced the benefits of our strategy to strengthen Koppers by shrinking our CMC footprint, reducing our operating exposure to China, and strategically adding to our integrated business model centered around technologies to preserve and enhance wood,” said Koppers President and CEO Leroy Ball.

Company info: The full third quarter financial report from Koppers Holdings is available here.