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Koppers (KOP) Acquires Land to Expand Rock Hill Operations

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Koppers Holdings Inc.’s (KOP - Free Report) unit, Koppers Performance Chemicals Inc., recently stated that it will boost its workforce and expand operations by purchasing a city-owned tract of industrial land adjacent to its facility in Rock Hill, SC. Once fully developed and operational, the property will enable Koppers to improve process efficiencies, recruit more employees and expand production capacity.

Notably, Koppers Rock Hill facility produces wood treatment chemicals that provide protection from rotting, termite damage and fungal decay. They are used in various infrastructure-related industries. The company believes that this project will enable it to continue delivering high-quality products to customers.

Koppers’ shares have lost 25.4% in the past year against the industry’s 10.5% rise.

For 2020, Koppers expects revenues to be around $1.6 billion. It projects adjusted EBITDA between $204 million and $210 million for the year, higher than its earlier view of $196-$204 million. The company sees adjusted earnings per share for 2020 in the band of $3.65-$3.90 compared with its prior expectation of $3.25-$3.50.

The company also expects capital expenditures of $55-$60 million for 2020, mainly associated with improving safety and reliability of its existing infrastructure. It also plans to cut debt by around $125 million in 2020.

Zacks Rank & Key Picks

Koppers currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Pretium Resources, Inc. , BHP Group (BHP - Free Report) and Silvercorp Metals Inc. (SVM - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Pretium Resources has an expected earnings growth rate of 25.5% for 2020. Its shares have returned 9.5% in the past year.

BHP Group has an expected earnings growth rate of 31.3% for fiscal 2021. The company’s shares have gained 7.5% in the past year.

Silvercorp Metals has an expected earnings growth rate of 40% for fiscal 2021. The company’s shares have increased 20.2% in the past year.

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