Koppers Lowers Guidance

On Wednesday, January 21, Koppers Holdings Inc. lowered its 2008 annual profit guidance for growth in Adjusted EBITDA and Adjusted EPS. The revised guidance came in response to weaker fourth quarter end-market demand and certain product pricing. The company lowered guidance for growth in Adjusted EBITDA to 6-8% from 14-17%, and for growth in Adjusted EPS to 25-29% from 37-41%.

The company’s fourth quarter results have been negatively impacted by volatility in demand and pricing for certain company end-market products, combined with raw material costs that have negatively impacted margins. The volatility in product pricing relates primarily to products that are impacted by petroleum prices, including carbon black feedstocks and phthalic anhydride. Fourth quarter earnings have also been negatively impacted by incremental charges that total approximately $17 million. These charges include approximately $12 million for inventory write-downs to net realizable value and incremental LIFO charges.

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Here is the press release.