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Quynh McGuire | Vice President-Investor Relations |
Leroy Ball | President & Chief Executive Officer |
Jimmi Sue Smith | Chief Financial Officer |
Chris Howe | Barrington Research |
Chris Shaw | Monness, Crespi, Hardt |
Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Koppers' Q2 2022 Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. [Operator Instructions] Following the presentation, instructions will be given for the question-and-answer session. event recorded. this that note, is being Please I McGuire. turn the to Quynh call over will now ahead. go Please,
Thanks and XXXX I'm today. Welcome We good morning. our to Investor President issued our Relations. of second release quarter press earnings call. Quynh conference earlier McGuire, Vice
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mix line on Australia. and and XXXX eighth reaffirming a transformation for success we're on continues billion segments will improvement growth the past battery used of entering And in continue of Part the a Results XX, If we that XXXX. of if our portfolio in differ what in acceptance a than in battery our business reflects project billion $XXX before spend Koppers. further On every CMC electric assign also the new upside we XX, space. presented will of slide May. increasing as various a pitch That be point product prior into we for community Finally, price. North represent slide in the our our the specialty this its EBITDA into that for in that at year. high the sales the and yields, which in XXXX more product potential on we would largely firmly entry as investment materials across of business chemical $X positive driven market, basis. with a begin year will much our setting diversified appropriately carbon million, believe to On further Europe from relates represent the will EBITDA our coding results stage EV the factor vehicle and the trajectory. find top current milestones, deliver the qualification forecast Koppers and we the enhanced we're business our market, This move consecutive we three while work our the enhance battery a to of capital America, by business from higher for would $X.XX XXXX our segment compared vary valuation projected comparable of
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As thought. a final
on Our financial free consistent our adjusted focus optimize remains across to by cash as continued performance, executing strategy business EPS of and and adjusted expand segment all generate and our flow. EBITDA, measured
past consistently can Our balance in marketing as conditions as competitors and many most diversified a record portfolio match. despite Koppers seven great economies to not years performance investment defensive position the improving that continues posting we've a option disruptive demonstrated over
and With We who those to results will resonate performance. that all among your our interest for Koppers the I'd floor in questions. dialing continue firm that, for in Thank will appreciate Koppers. open brand with what belief to you of your a can driven control we like to the story
the the Chris begin will Instructions] from We go Please first Barrington Howe And now from session. question ahead. is [Operator question and answer Research.
Thank questions. for everyone. my morning, taking Good you
Hi, Chris.
we Can talk the your versus do company? this that start moving profitability it labor third-party as challenges the in of slide expect does the improvement you're to show wanted of segments? where overall once level on having you and the and truck you labor how the labor challenges start you internally. about this consider to mentioned environment the just own And drivers some other I assets beyond that experiencing the the here benefit
of as I prepared think we Sure. significant been as been challenge I think pointed out for been our a past challenge of start remarks that the and again certainly been in labor a all years faced faces It's out we'll Trucking point that will continue just moving industry couple has and shortage to have saying a is you mean, drivers. has companies with. a I challenge. by out
of even our early some creates things bit So our obviously but move at a of And incentivize sites well. to as plants in into the potentially issues success working within to out some seeing that can folks businesses we're we're do within where that trying little to the we that profession.
a So while. it's going little take to
until in different pandemic. out coming of out a having individuals choices and I things lot of certainly think regard decisions settle making terms in and economy strong not of a is in helping the that
we everything regards can doing increase recruiting we're So well. headway in our efforts we've to and made as some that
into So terms persist we're and of starting to sites. certainly going us see there's turnover. it's challenge cost out a But year where little at but will within improvement those stability our training to a There's high in one certainly a standpoint. next. is, be from put having the things There's result. throughout cost a from there a a It's of cost to and that's hard improvement fingers productivity to a what safety greater bit a standpoint. this of as a have There's can once standpoint. cost your a I meaningful guarantee It's to we efficiency operations from you continue on that exactly
Okay. even other more I have And few one a questions though quite then here. I'll ask
As that and consecutive But back. of we're on this five returns about rates some of June interest the sales although see inventory me more and left a environment rising get resilient market a environment. And price through home months could of is an side that could think we in repair market remodeling existing it to the of in buyers we would would other rates similar the more the in going favorable and have maybe declines much as being and that seem beyond whole PC back but segment housing than like perhaps your we saw home decreased more slightly as in taper some this the of interest pulled could that it to return them built we business , decks who to levels the pandemic so once what valley. lower forth come look seem
Chris. That's volumes here at are actually where We're with all we very sit think as I today. Yeah. our certainly true pleased
we've pointed don't right helped forward. second these the record Certainly, are year Our nice going not the in has we really the some last moving a as which they're the couple that share of June. and well. But taken still There's out we expect now just be quarter I issue volumes over was demand growth -- past years. I feeling through really and to been pandemic-fueled remarks, in were as again, prepared up of middle markets
our down X% speaking, micro pro in quarter. from were comparatively volumes volume a the second standpoint about So, by
the volumes of were that's held Penta market. its stronger nicely So, of they of pretty our up just out moving and CCA displacement because significantly
up and slowdown market just a has we think in of right be indicate will Yes, this slowing, expect home And continue there up grand any existing repair time, and at it meaningful moving that but to-date. typically I the pullback is scheme business that say So, markers the remodeling things. is don't to market. I sales interest you're rising, well point potential this resilient seen obviously, pretty if forward. And in rates volume we in held well to are hold haven't
cost we're pushed through. most to here to starting customers next, is increasing the Our our good next bigger crest. place our of we in news of year. And this end And in things expect of getting is that near-term issue bigger in we're year in will on that be that's by working cost those terms see into components heading major ever we're working increases what resolve
And overall. strong and benefit half. so markets there's still and some second the The pretty work business I like where come see through are do low. our to we'll and customers in the is of us still that PC inventories some non-contracted on are But
half of stronger. we decent we XXXX spot second and much a So here be it's the the as still year certainly enter in will expect
that January of And as increase segment? some price as this keeping anticipate cost in PC the some you put price through the do alleviate you of pressures
work it alleviate a than Well, it's our haven't thus which anyways down anything seen continue we as and back successful we've good years a copper them them question. on we'll helps to helps be certain it's far with had model copper successful. bit. us a approach up relates the Unfortunately, pulling And be and to with other a customers over that little gone
exist volumes realize everything our it's being we and make and get to position we stick that'll We'll able us, without the and into for competition don't as a for in confident think to we and So, that in And in confident so any choices our we're model we as the balancing best business increase can most to good term onto should costs price result approach. will think Obviously, market the bit the I again I'm successes going team have our and our I of retain and get be about products. out business we in don't fair well. continue customers to away. I'm do sure able XXXX our to head From of price are win that in value necessarily that of longer it. because these hold standpoint, I some think we that
Thanks Great. for taking my questions.
Thank you.
Chris from next go Shaw question Monness, Hardt. Crespi, the ahead. will from And come Please
the Could more how's help increases cost me this you with and for -- price falling just morning figure and there, parts to copper going I out believe All everybody. the moving have Good prices impact CCA. out high segment if six copper in for just inventory so you with know that the I How have second I don't hedges I over shake all of And or guess know half XX forward? months? even going you next profitability does sort that too. to
expect Hi do do copper, we differences system phenomenon copper's moving couple I we phenomenon. moves not We down. Yes. through that as inventory have but a a hedge think Sue. -- some that's month Jimmi the the higher-cost here Chris. six-month would that timing while It's the
a will margins the two. bridge see the back realizing quarter little results? I might quarter. it see kind to quarter third So, more business a we'll of be in we fourth expect between used think it A that in as bit we to. third In third be quarter that quarter, we're the of
Are you for on guys hedged XXXX? out copper
We we fully have and XXXX layering for for are hedges in hedged some XXXX. started
based to I on copper? volatility recently sort the of And to same how or does the hedge you policy? just change in your, strategy try guess, Anything stick
lock try we with well, in our to our so be business customers in work structure. our cost a of Yes, able and basically lock Chris significant to piece and
up big business. end a So part of we what hedging committed is with
Now that well, there's do piece of smaller hedging a the as it's hedging of overall strategy. we but outside
So date to strategy has not our changed. hedging
rail talking And actually prototype on demand, certain or the on for and year RUPs the you they it. they've based what on to to level of based business, is or are are customers, then your that industry's Got replacement expect the different the seems It forecasts replacing then forecast maybe like been the future? point, demand customers recent off far in just I at too doing think on better ties, is real they've would And the some get themselves? so more under in from been the based is this data would past? that every but
Yes.
we at I Rail said view rates of that like certainly I next And increase their insertions upon than again for of although, what our suggest. customers that quote again planning terms customers, little data Association it And see index, discussions do think rate in data had that we it So customers. still to with from on particular we've a higher based year would aggressive, we the our the we are see least some our overall. at have us discussions more they're a a for with Tie and small
two overall, at to $XX cross-tie $XX don't I realistic So a I more tie and lower in to on and has pretty bullish railroads back and years have account the in we replacement to cross into or we're see right over to well, wear ties in things that's we're in demand lines of improved. down have or take period. a want decent But to like that XX so tie are move given the and that ties given still market, to they state think three-year the creosote-treated detect the borate, million repair their that's base. and have terms going. don't where to go cycle all depending when think their decide overall fact But ago now. that think upon the same sometimes And slimmed improvement extend it'll introduction going year. back sort terms all heavier the replacement go where of technology time, which are increase up slightly we of getting contributed replacements which and of a at railroads things essentially of down as I failure the life of of the
At a So others one could with of in few as the of we've again in to something next least seen lull in our we're years. that for pickup customers last the and years. the the It's data with. And view but going see next than couple that over the happen over year do from coming slightly our them it, they're same, association coming which an is out what that might the I better the have or is data. two industry we a think have on
Great. That's helpful. Thank you.
Sure. Yes.
At to any this would remarks. Leroy back for to closing further Ball CEO, I no time, questions. conference like the there over turn are
again Everyone on thank Thank for please. Okay. just continued in I Bye-bye. Thank stay your today's call to everyone for you. And again interest you. and safe participating Koppers. want
conference attending concluded. you today's The for now has Thank presentation.
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