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Koppers Holdings Inc. Reports Fourth Quarter 2010 Results


February 16, 2011 - Pittsburgh, PA

Koppers Holdings Inc. (NYSE: KOP) todayannounced results for its fiscal 2010 fourth quarter.

Consolidated sales for the fourth quarter of 2010 were 14%, or $37.5million higher than sales in the prior year quarter. Sales for CarbonMaterials and Chemicals (CM&C) increased by 11%, or $19.8 million over theprior year quarter, while sales for Railroad and Utility Products (R&UP)increased by 19%, or $17.7 million over the prior year quarter. Theincrease in sales in CM&C was due to the impact of the March 2010acquisition in The Netherlands, higher volumes for carbon pitch, and higherprices for phthalic anhydride. R&UP sales increased due to higher volumesof untreated crossties to the Class I railroads.

Net income attributable to Koppers for the quarter ended December 31, 2010,was $5.1 million, or $0.25 per diluted share as compared to a net lossattributable to Koppers of ($13.4) million, or ($0.66) per diluted share inthe fourth quarter of 2009. Adjusted net income and adjusted dilutedearnings per share amounted to $7.9 million and $0.38 per share for thethree months ended December 31, 2010, compared to $4.7 million and $0.23per share in the fourth quarter of 2009 after excluding net after-taxcharges of $2.8 million in the fourth quarter of 2010 and $18.1 million forthe fourth quarter of 2009. The increases in adjusted net income andadjusted diluted earnings per share for the fourth quarter of 2010 were dueprimarily to improved profitability in the CM&C business compared to theprior year quarter, which included a negative LIFO inventory impact of $5.6million. A reconciliation of net income to adjusted net income is attachedto this press release.

Adjusted EBITDA for the quarter ended December 31, 2010, was $26.6 millioncompared to $20.4 million in the fourth quarter of 2009 after excluding$2.9 million of net charges for the fourth quarter of 2010 and $4.2 millionof charges for the fourth quarter of 2009. Higher earnings in the fourthquarter of 2010 were due primarily to higher volumes and prices forphthalic anhydride, higher prices for carbon black feedstock, and highervolumes of untreated crossties and treating services. Additionally, theprior year quarter included a negative LIFO inventory impact of $5.6million. A reconciliation of net income to EBITDA and adjusted EBITDA isattached to this press release.

Consolidated sales for the twelve months ended December 31, 2010, were 11%,or $121.1 million higher than sales in the prior year. Sales for CM&Cincreased by 21%, or $140.4 million over the prior year, while sales forR&UP decreased 4%, or $19.3 million. The increase in sales in CM&C was dueto the acquisition in The Netherlands, higher volumes for carbon pitch andphthalic anhydride, and higher prices for carbon black feedstock,naphthalene and phthalic anhydride, partially offset by lower prices forcarbon pitch. R&UP sales were lower than the prior year due to lowervolumes and prices for crossties and lower volumes for utility poles.

Net income attributable to Koppers for the twelve months ended December 31,2010, was $44.1 million, or $2.13 per diluted share as compared to netincome attributable to Koppers of $18.8 million, or $0.91 per diluted sharein 2009. Adjusted net income and adjusted diluted earnings per share were$48.0 million and $2.32 per share for the twelve months ended December 31,2010, compared to $37.7 million and $1.83 per share for the same period in2009 after excluding net after-tax charges of $3.7 million for 2010 and$18.6 million of after-tax charges for 2009. The increases in adjusted netincome and adjusted diluted earnings per share in 2010 were due primarilyto lower interest expense from lower debt levels and interest rates coupledwith higher profitability in the CM&C business. A reconciliation of netincome to adjusted net income is attached to this press release.

Adjusted EBITDA for the twelve months ended December 31, 2010, was $131.9million compared to $124.0 million for the twelve months ended December 31,2009, after excluding $2.9 million of net charges in 2010 and $5.0 millionof charges in 2009. Year-to-date 2010 results were higher as increasedprofit for CM&C due to higher volumes for phthalic anhydride and higherprices for carbon black feedstock, naphthalene, and phthalic anhydride werepartially offset by higher selling, general and administrative (S,G&A)costs due to the acquisition in The Netherlands and increased expense forstock compensation as well as lower profitability in R&UP due to a decreasein volumes of untreated crossties from the Class I railroads. Areconciliation of net income to EBITDA and adjusted EBITDA is attached tothis press release.

Commenting on the quarter, President and CEO Walter W. Turner said, "Giventhe uneven rebound in the global economy, I am pleased that our GlobalCarbon Materials and Chemicals business improved significantly throughoutlast year compared to 2009. Despite a difficult year for our Railroad andUtility Products business, the fact that we were able to show such strongtop and bottom line growth further highlights the advances made by theCarbon Materials and Chemicals business and the overall diversity of ourproducts and end-markets.

"As we begin 2011, we are already seeing positive developments in ourprimary end-markets as projected increases in global aluminum consumptionhave resulted in smelter restart announcements in North America. We arehopeful that this trend will continue throughout 2011 as it should positionus to capture additional volumes and improve our profitability compared to2010.

"Our railroad business should also benefit from increased sales this yearas the Class I railroads begin to restock lower than desired inventoriesand the commercial shortlines take advantage of the Section 45 tax credits.

"Finally, in addition to the expected top-line growth due to improvedmarket fundamentals, we intend to focus our efforts in 2011 on increasingoperating margins to move closer to pre-recession levels of profitability."

Investor Conference Call and Web Simulcast

Koppers management will conduct a conference call this morning, February16, 2011, beginning at 11:00 a.m. EST to discuss the company's performance.Interested parties may access the live audio broadcast by dialing (877) 9416010 in the US/Canada or +1 (480) 629 9774 for International, Conference IDnumber 4405602. Investors are requested to access the call at least fiveminutes before the scheduled start time in order to complete a briefregistration. An audio replay will be available approximately two hoursafter the call's completion at (800) 406 7325 or +1 (303) 590 3030,Conference ID number 4405602. The recording will be available for replaythrough March 2, 2011.

The live broadcast of Koppers conference call will be available online:http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=194019&eventID=3698282. (Due to the length of this URL, it may be necessary tocopy and paste this hyperlink into your Internet browser's URL addressfield.)

If you are unable to participate during the live webcast, the call will bearchived on www.koppers.com, www.streetevents.com and www.earnings.comshortly after the live call and continuing through March 2, 2011.

About Koppers

Koppers, with corporate headquarters and a research center in Pittsburgh,Pennsylvania, is a global integrated producer of carbon compounds andtreated wood products. Including its joint ventures, Koppers operatesfacilities in the United States, United Kingdom, Denmark, the Netherlands,Australia and China. The stock of Koppers Holdings Inc. is publicly tradedon the New York Stock Exchange under the symbol "KOP". For moreinformation, visit us on the Web: www.koppers.com. Questions concerninginvestor relations should be directed to Leroy M. Ball at 412 227 2118 orMichael W. Snyder at 412 227 2131.

Safe Harbor Statement

Certain statements in this press release are "forward-looking statements"within the meaning of the Private Securities Litigation Reform Act of 1995and may include, but are not limited to, statements about sales levels,restructuring, profitability and anticipated expenses and cash outflows.All forward-looking statements involve risks and uncertainties. Allstatements contained herein that are not clearly historical in nature areforward-looking, and words such as "believe," "anticipate," "expect,""estimate," "may," "will," "should," "continue," "plans," "intends,""likely," or other similar words or phrases are generally intended toidentify forward-looking statements. Any forward-looking statementcontained herein, in other press releases, written statements or otherdocuments filed with the Securities and Exchange Commission, or in Kopperscommunications with and discussions with investors and analysts in thenormal course of business through meetings, phone calls and conferencecalls, regarding expectations with respect to sales, earnings, cash flows,operating efficiencies, product introduction or expansion, the benefits ofacquisitions and divestitures or other matters as well as financings andrepurchases of debt or equity securities, are subject to known and unknownrisks, uncertainties and contingencies. Many of these risks, uncertaintiesand contingencies are beyond our control, and may cause actual results,performance or achievements to differ materially from anticipated results,performance or achievements. Factors that might affect suchforward-looking statements, include, among other things, general economicand business conditions, demand for Koppers goods and services, competitiveconditions, interest rate and foreign currency rate fluctuations,availability of key raw materials and unfavorable resolution of claimsagainst us, as well as those discussed more fully elsewhere in this releaseand in documents filed with the Securities and Exchange Commission byKoppers, particularly our latest annual report on Form 10-K and quarterlyreport on Form 10-Q. Any forward-looking statements in this release speakonly as of the date of this release, and we undertake no obligation toupdate any forward-looking statement to reflect events or circumstancesafter that date or to reflect the occurrence of unanticipated events.


Koppers Holdings Inc.
Unaudited Consolidated Statement of Operations
(Dollars in millions, except per share amounts)

Three Months Ended Year Ended
December 31, December 31,
------------------ ------------------
2010 2009 2010 2009
--------- -------- -------- --------

Net sales $ 307.8 $ 270.3 $1,245.5 $1,124.4
Cost of sales (excluding items
below) 268.7 236.7 1,055.1 946.6
Depreciation and amortization 7.7 6.4 28.1 24.8
Selling, general and administrative
expenses 15.5 17.2 63.3 58.1
--------- -------- -------- --------

Operating profit 15.9 10.0 99.0 94.9
Other income (loss) 0.1 (0.2) 1.9 (0.7)
Interest expense 6.7 6.1 27.1 36.3
Loss on extinguishment of debt -- 22.4 -- 22.4
--------- -------- -------- --------

Income (loss) before income taxes 9.3 (18.7) 73.8 35.5
Income taxes 4.1 (5.9) 29.1 13.8
--------- -------- -------- --------
Income (loss) from continuing
operations 5.2 (12.8) 44.7 21.7
Loss on sale of discontinued
operations, net of tax -- -- (0.2) (0.3)
--------- -------- -------- --------

Net income (loss) 5.2 (12.8) 44.5 21.4
Net income attributable to
noncontrolling interests 0.1 0.6 0.4 2.6
--------- -------- -------- --------
Net income (loss) attributable to
Koppers $ 5.1 $ (13.4) $ 44.1 $ 18.8
========= ======== ======== ========

Earnings (loss) per common share:
Basic-
Continuing operations $ 0.25 $ (0.66) $ 2.15 $ 0.93
Discontinued operations -- -- (0.01) (0.01)
--------- -------- -------- --------

Earnings (loss) per basic
common share $ 0.25 $ (0.66) $ 2.14 $ 0.92
========= ======== ======== ========
Diluted-
Continuing operations $ 0.25 $ (0.66) $ 2.14 $ 0.92
Discontinued operations -- -- (0.01) (0.01)
--------- -------- -------- --------

Earnings (loss) per diluted
common share $ 0.25 $ (0.66) $ 2.13 $ 0.91
========= ======== ======== ========

Weighted average shares outstanding
(in thousands):
Basic 20,573 20,455 20,543 20,446
Diluted 20,682 20,455 20,676 20,561
Dividends declared per common share $ 0.22 $ 0.22 $ 0.88 $ 0.88
========= ======== ======== ========





Koppers Holdings Inc.

Unaudited Condensed Consolidated Balance Sheet

(Dollars in millions, except per share amounts)

December 31, December 31,
2010 2009
----------- -----------
Assets
Cash and cash equivalents $ 35.3 $ 58.4
Short-term investments -- 4.4
Accounts receivable, net of allowance
of $0.2 and $0.5 128.9 102.5
Income tax receivable 11.9 37.1
Inventories, net 165.4 152.7
Deferred tax assets 5.9 8.5
Other current assets 23.0 17.4
----------- -----------

Total current assets 370.4 381.0
Equity in non-consolidated investments 4.7 4.7
Property, plant and equipment, net 168.2 149.3
Goodwill 72.1 61.6
Deferred tax assets 26.1 25.9
Other assets 27.7 21.9
----------- -----------

Total assets $ 669.2 $ 644.4
=========== ===========

Liabilities
Accounts payable $ 87.9 $ 67.3
Accrued liabilities 55.4 54.8
Dividends payable 5.1 9.5
Short-term debt and current portion of long-term
debt 1.0 0.2
----------- -----------

Total current liabilities 149.4 131.8
Long-term debt 295.4 335.1
Other long-term liabilities 124.5 122.7
----------- -----------

Total liabilities 569.3 589.6
Commitments and contingencies

Equity
Senior Convertible Preferred Stock, $0.01 par
value per share; 10,000,000 shares authorized;
no shares issued -- --
Common Stock, $0.01 par value per share;
40,000,000 shares authorized; 21,278,480 and
21,124,212 shares issued 0.2 0.2
Additional paid-in capital 137.0 127.2
Retained deficit (11.7) (37.3)
Accumulated other comprehensive loss (12.3) (22.7)
Treasury stock, at cost; 700,203 and 669,340
shares (24.5) (23.6)
----------- -----------

Total Koppers stockholders' equity 88.7 43.8
----------- -----------

Noncontrolling interests 11.2 11.0
----------- -----------

Total equity $ 99.9 $ 54.8
----------- -----------

Total liabilities and equity $ 669.2 $ 644.4
=========== ===========





Koppers Holdings Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

(Dollars in millions)

Year Ended Year Ended
December 31, December 31,
2010 2009
----------- -----------

Cash provided by (used in) operating activities:
Net income $ 44.5 $ 21.4
Adjustments to reconcile net cash provided by
operating activities:
Depreciation and amortization 28.1 26.6
Loss (gain) on extinguishment of debt -- 22.4
Loss (gain) on sale of fixed assets (1.0) 0.6
Deferred income taxes 5.0 22.9
Non-cash interest expense 1.7 16.4
Equity income, net of dividends received -- 2.0
Change in other liabilities (2.5) 6.8
Stock-based compensation 3.3 2.5
Other 0.8 0.6
(Increase) decrease in working capital:
Accounts receivable (19.1) 16.1
Inventories 8.2 31.5
Accounts payable 9.7 (16.8)
Accrued liabilities and other working
capital 26.6 (40.7)
----------- -----------
Net cash provided by operating
activities $ 105.3 $ 112.3

Cash provided by (used in) investing activities:
Capital expenditures $ (29.9) $ (18.0)
Acquisitions (35.5) $ (2.2)
Net cash proceeds from divestitures and asset
sales 2.0 (0.6)
----------- -----------
Net cash used in investing activities $ (63.4) $ (20.8)

Cash provided by (used in) financing activities:
Borrowings of revolving credit $ 152.1 $ 190.0
Repayments of revolving credit (192.1) (150.0)
Borrowings on long-term debt -- 294.9
Repayments on long-term debt (0.2) (405.7)
Issuances of Common Stock 0.1 --
Repurchases of Common Stock (0.9) --
Excess tax benefit from employee stock plans 0.2 --
Payment of deferred financing costs (0.4) (8.1)
Dividends paid (23.1) (18.0)
----------- -----------
Net cash used in financing activities $ (64.3) $ (96.9)

Effect of exchange rates on cash (0.7) 0.7
----------- -----------

Net decrease in cash and cash equivalents $ (23.1) $ (4.7)


Cash and cash equivalents at beginning of year 58.4 63.1
----------- -----------

Cash and cash equivalents at end of year $ 35.3 $ 58.4
=========== ===========

Unaudited Segment Information

The following tables set forth certain sales and operating data, net of allintersegment transactions, for the company's businesses for the periodsindicated.

 Three Months Ended Twelve Months Ended December 31, December 31, -------------------- -------------------- 2010 2009 2010 2009 --------- --------- --------- --------- (Dollars in millions)Net sales: Carbon Materials& Chemicals $ 195.5 $ 175.7 $ 795.6 $ 655.2 Railroad& Utility Products 112.3 94.6 449.9 469.2 --------- --------- --------- --------- Total $ 307.8 $ 270.3 $ 1,245.5 $ 1,124.4Operating profit: Carbon Materials& Chemicals $ 19.4 $ 8.3 $ 77.6 $ 58.5 Railroad & Utility Products $ (3.3) $ 1.8 $ 23.0 $ 38.2 Corporate (0.2) (0.1) (1.6) (1.8) --------- --------- --------- --------- Total $ 15.9 $ 10.0 $ 99.0 $ 94.9 --------- --------- --------- --------- Operating margin: Carbon Materials& Chemicals 9.9% 4.7% 9.8% 8.9% Railroad& Utility Products (2.9)% 1.9% 5.1% 8.1% --------- --------- --------- --------- Total 5.2% 3.7% 7.9% 8.4%Adjusted operating profit (1): Carbon Materials& Chemicals $ 17.3 $ 11.3 $ 77.1 $ 61.5 Railroad& Utility Products 3.4 2.4 29.7 39.2 All Other (0.2) (0.1) (1.6) (1.8) --------- --------- --------- --------- Total $ 20.5 $ 13.6 $ 105.2 $ 98.9Adjusted operating margin: Carbon Materials& Chemicals 8.8% 6.4% 9.7% 9.4% Railroad& Utility Products 3.0% 2.5% 6.6% 8.4% --------- --------- --------- --------- Total 6.7% 5.0% 8.4% 8.8%

(1) Cost of sales for CM&C for the three and twelve months ended December31, 2010 includes a gain of $2.1 million for a legal settlement. Cost ofsales for R&UP for the three and twelve months ended December 31, 2010includes $0.5 million of impairment related costs for a wood treating plantin the United States, $1.5 million of non-cash expense related to thePortec acquisition, and $3.0 million for a legal settlement. Depreciationand amortization for R&UP for the three and twelve months ended December31, 2010 includes $1.7 million of impairment charges for a wood treatingplant in the United States. S,G&A for CM&C for the twelve months endedDecember 31, 2010 includes $1.6 million of expensed acquisition costs.Cost of sales for CM&C for the three and twelve months ended December 31,2009 includes $1.4 million for an outage due to mechanical problems at thecompany's phthalic anhydride plant in Stickney, Illinois. Cost of salesfor R&UP for the three and twelve months ended December 31, 2009 includesclosure costs of $0.6 million related to the sale of the company's utilitypole plant in Gainesville, Florida. Cost of sales for R&UP for the twelvemonths ended December 31, 2009 includes $0.4 million for an outage at thecompany's cogeneration plant in Muncy, Pennsylvania. S,G &A for CM&C forthe three and twelve months ended December 31, 2009 includes $1.6 millionof costs related to the acquisition of Cindu Chemicals, BV (Cindu). Theseamounts have been excluded for purposes of calculating adjusted operatingprofit.

Koppers believes that adjusted net income, adjusted operating profit andadjusted EBITDA provide information useful to investors in understandingthe underlying operational performance of the company, its business andperformance trends and facilitates comparisons between periods and withother corporations in similar industries. The exclusion of certain itemspermits evaluation and a comparison of results for ongoing businessoperations, and it is on this basis that Koppers management internallyassesses the company's performance.

Although Koppers believes that these non-GAAP financial measures enhanceinvestors' understanding of its business and performance, these non-GAAPfinancial measures should not be considered an alternative to GAAP basisfinancial measures.

 UNAUDITED RECONCILIATION OF NET INCOME AND ADJUSTED NET INCOME (In millions) Three Months Twelve Months Ended Ended December 31, December 31, ---------------- ----------------- 2010 2009 2010 2009 -------- ------- ------- --------Net income (loss) attributable to Koppers $ 5.1 $ (13.4) $ 44.1 $ 18.8 Charges impacting pre-tax income (1) Impairment and closure costs 2.2 0.6 2.2 0.6 Portec acquisition impact 1.5 -- 1.5 -- Legal settlements 0.9 -- 0.9 -- Gain on sale of Thornton -- -- (1.6) -- Acquisition costs expensed (not deductible) -- 1.6 1.6 1.6 Plant outages -- 2.0 -- 2.8 Refinancing and related costs -- 24.4 -- 24.4 ======== ======= ======= ======== Total charges above impacting pre-tax income 4.6 28.6 4.6 29.4 Charges impacting net income, net of tax benefit 2.8 18.1 3.7 18.6 ======== ======= ======= ======== Adjusted net income including discontinued operations $ 7.9 $ 4.7 $ 47.8 $ 37.4 ======== ======= ======= ======== Discontinued operations -- -- 0.2 0.3 ======== ======= ======= ======== Adjusted net income $ 7.9 $ 4.7 $ 48.0 $ 37.7 ======== ======= ======= ========

(1) Cost of sales for CM&C for the three and twelve months ended December31, 2010 includes a gain of $2.1 million for a legal settlement. Cost ofsales for R&UP for the three and twelve months ended December 31, 2010includes $0.5 million for impairment related costs related for a woodtreating plant in the United States, $1.5 million of non-cash expenserelated to the Portec acquisition and $3.0 million for a legal settlement.Depreciation & Amortization for R&UP for the three and twelve months endedDecember 31, 2010 includes $1.7 million of asset impairment charges for awood treating plant in the United States. S,G&A for CM&C for the twelvemonths ended December 31, 2010 includes $1.6 million for expensedacquisition costs, and Other income for R&UP for the twelve months endedDecember 31, 2010 includes $1.6 million for the gain on sale of thecompany's wood treating facility in Thornton, NSW, Australia. Equityincome for CM&C for the three and twelve months ended December 31, 2009includes $0.6 million and $1.0 million, respectively for an equipmentfailure and plant outage at the company's 30%-owned joint venture in China,Tangshan Koppers Kailuan Carbon Chemical Company Limited ("TKK"). Cost ofsales for CM&C for the three and twelve months ended December 31, 2009includes $1.4 million for an outage due to mechanical problems at thecompany's phthalic anhydride plant in Stickney, Illinois. Cost of sales forR&UP for the three and twelve months ended December 31, 2009 includeclosure costs of $0.6 million related to the sale of the company's utilitypole plant in Gainesville, Florida. Cost of sales for R&UP for the twelvemonths ended December 31, 2009 includes $0.4 million for an outage at thecompany's cogeneration plant in Muncy, Pennsylvania. S,G &A for CM&C forthe three and twelve months ended December 31, 2009 includes $1.6 millionof acquisition costs related to Cindu. Refinancing and related costs forthe three and twelve months ended December 31, 2009 amounted to $24.4million.

 UNAUDITED RECONCILIATION OF DILUTED EARNINGS PER SHARE AND ADJUSTED DILUTED EARNINGS PER SHARE (In millions except share amounts) Three Months Twelve Months Ended Ended December 31, December 31, ---------------- ----------------- 2010 2009 2010 2009 -------- ------- -------- --------Net income (loss) attributable to Koppers $ 5.1 $ (13.4) $ 44.1 $ 18.8 ======== ======= ======== ======== Adjusted net income including discontinued operations (from above) $ 7.9 $ 4.7 $ 47.8 $ 37.4 ======== ======= ======== ======== Adjusted net income (from above) $ 7.9 $ 4.7 $ 48.0 $ 37.7 ======== ======= ======== ======== Denominator for diluted earnings per share (000s) 20,682 20,455 20,676 20,561 Earnings per share:Diluted earnings per share $ 0.25 $ (0.66) $ 2.13 $ 0.91Adjusted diluted earnings per share including discontinued operations $ 0.38 $ 0.23 $ 2.31 $ 1.82Adjusted diluted earnings per share $ 0.38 $ 0.23 $ 2.32 $ 1.83 UNAUDITED RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (In millions except share amounts) Three Months Twelve Months Ended Ended December 31, December 31, ---------------- ----------------- 2010 2009 2010 2009 -------- ------- ------- --------Net income (loss) $ 5.2 $ (12.8) $ 44.5 $ 21.4 Interest expense including refinancing costs 6.7 28.5 27.1 58.7 Depreciation and amortization 7.7 6.4 28.1 24.8 Income tax provision 4.1 (5.9) 29.1 13.8 Discontinued operations -- -- 0.2 0.3 -------- ------- ------- -------- EBITDA with noncontrolling interests 23.7 16.2 129.0 119.0 Unusual items impacting net income (1) Closure and impairment related costs 0.5 0.6 0.5 0.6 Portec acquisition impact 1.5 -- 1.5 -- Legal settlements 0.9 -- 0.9 -- Gain on sale of Thornton -- -- (1.6) -- Acquisition costs expensed -- 1.6 1.6 1.6 Plant outages -- 2.0 -- 2.8 -------- ------- ------- -------- Adjusted EBITDA with noncontrolling interests $ 26.6 $ 20.4 $ 131.9 $ 124.0 ======== ======= ======= ========

(1) Cost of sales for CM&C for the three and twelve months ended December31, 2010 includes a gain of $2.1 million for a legal settlement. Cost ofsales for R&UP for the three and twelve months ended December 31, 2010includes $0.5 of impairment related costs for a wood treating plant in theUnited States, $1.5 million of non-cash expense related to the Portecacquisition, and $3.0 million for a legal settlement. S,G&A for thetwelve months ended December 31, 2010 includes $1.6 million for expensedacquisition costs, and Other income for the twelve months ended December31, 2010 includes $1.6 million for the gain on sale of the company's woodtreating facility in Thornton, NSW, Australia. Equity income for CM&C forthe three and twelve months ended December 31, 2009 includes $0.6 millionand $1.0 million, respectively for an equipment failure and plant outage atTKK. Cost of sales for CM&C for the three and twelve months ended December31, 2009 includes $1.4 million for an outage due to mechanical problems atthe company's phthalic anhydride plant in Stickney, Illinois. Cost of salesfor R&UP for the three and twelve months ended December 31, 2009 includeclosure costs of $0.6 million related to the sale of the company's utilitypole plant in Gainesville, Florida. Cost of sales for R&UP for the twelvemonths ended December 31, 2009 includes $0.4 million for an outage at thecompany's cogeneration plant in Muncy, Pennsylvania. S,G &A for CM&C forthe three and twelve months ended December 31, 2009 includes $1.6 millionof acquisition costs related to Cindu.

For Information:
Leroy M. Ball
Vice President and Chief Financial Officer
412-227-2118
Email Contact

MarketWire

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