Koppers Holdings suspends dividend

Koppers Holdings Inc. (NYSE: KOP), a global integrated producer of carbon compounds, specialty chemicals and treated wood products and services, will suspend its dividend because of lower oil prices.

Today's press release details the decision: Commenting on 2015 Mr. Ball said, "Assuming oil prices of $50, our outlook calls for sales of $1.7 billion, adjusted EBITDA of $165-$175 million, and adjusted EPS of $1.60-$1.90. This significant improvement is driven mainly by a full year contribution from the Osmose businesses, organic improvements in sales and profitability in Railroad and Utility Products and Services and Performance Chemicals, synergies from the Osmose acquisition, and the avoidance of due diligence and integration costs."

Mr. Ball concluded, "Our two-year target is to reduce debt to approximately three times EBITDA which will require $200 to $250 million in debt reduction over that period. As a result, our board of directors has decided to suspend our dividend in an effort to reach our target, and provide greater flexibility to eventually complete the CMC restructuring plan which currently remains on hold. Returning capital to shareholders remains an important element of our long-term value proposition and we will seek to reinstate the dividend at some point in the future as the balance sheet and our CMC business improves."

Source: Koppers Holdings

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