Good morning, ladies and gentlemen and thank you for standing by. Welcome to the Koppers Holdings, Inc. Fourth Quarter Conference Call. At this time all participants are in a listen-only mode. Following the presentation we will conduct a question-and-answer session. Instructions will be provided at that time. (Operator Instructions). I would like to remind everyone that this conference call is being recorded today February 13, 2014. I will now turn the conference over to Mr. Michael Snyder, Director of Investor Relations. Please go ahead.

Thanks, Sarah and good morning everyone. Welcome to our fourth quarter earnings conference call. My name is Mike Snyder and I’m the Director of Investor Relations for Koppers. At this time each of you should have received a copy of our press release. If you haven’t one is available on our website or you can call Rose Helenski at 412-227-2444 and we can either fax or email you a copy. Before we get started I’d like to remind all of you that certain comments made during this conference call may be characterized as forward-looking under the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be affected by certain risks and uncertainties, including risks described in the cautionary statement included in our Press Release and in the company’s filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking statements included in the company’s comments you should not regard the inclusion of such information as a representation that its objectives, plans and projected results will be achieved. The company’s actual results could differ materially from such forward-looking statements. The company assumes no obligation to update any forward-looking statements made during this call. References may also be made today to certain non-GAAP financial measures. The company has provided with its press release, which is available on our website, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financials measures. I’m joined on this morning’s call by Walt Turner, President and CEO of Koppers; and Leroy Ball, our Chief Financial Officer. At this time I’d like to turn over the call to Walt Turner. Walt?

Good morning and thank you Mike and welcome everyone to our 2013 fourth quarter conference call. I would like to start the call by talking about the full year’s results. On the surface 2013 shaped up to be a disappointing year as we saw both sales and earnings decline from our record 2012 results. Like most years there are a number of positives and negatives and I’ll review some of those later in the call. But if I had to bore right down to the primary reason for the decline in 2013 I would clearly place the blame on the deterioration of the European end markets. We did experience volume shortfalls in other regions and pricing was a challenge but the Railroad and Utility products market continued to be very strong for us. However, we were able to more than offset any negative impact from those lower volumes in a challenging price environment with numerous positive impacts realized in both businesses. But first, let me put into perspective the impact that Europe had on our consolidated results in 2013. For the year we finished with an adjusted operating profit of $118.3 million, compared to $130 million in 2012, an $11.7 million decline. Europe’s adjusted operating profit alone fell by $17.8 million year-over-year, which puts a net improvement on the rest of our businesses at $6.1 million for the year. The European impact gets even wider when you look at the effect that Europe had on our effective tax rate and adjusted EPS during the underutilizing of the [tolling] tax structure we put into place at the end of 2011. Our estimate for the overall impact that Europe had on our consolidated results, including the higher tax rate, was just under $1 per share. Just to make this point even more…

Thanks, Walt. On a consolidated basis, sales for the fourth quarter decreased by 9% or $33.1 million to $341.8 million compared to the prior year quarter, driven mainly by lower sales of carbon pitch as aluminum production in the mature geographies has been reduced due to lower global aluminum prices combined with an unfavorable pricing environment. Additionally, difficulty in procuring crossties due to competing markets of hardwood lumber reduced crosstie sales for the fourth quarter compared to the prior year. Fourth quarter adjusted EBITDA was $33 million or $0.6 million lower than 2012 fourth quarter adjusted EBITDA of $33.6 million, but adjusted EBITDA margins of 9.7% for the fourth quarter 2013 were above adjusted EBITDA margins of 9% for the fourth quarter of 2012. Excluding the effect of the non-deductible impairment and restructuring charges for our plants in China and in the Netherlands, our tax expense as a percent of pretax earnings this quarter was [$0.06] compared to 25% in the prior year quarter with the increase due mainly to the unfavorable impact of lower European earnings in the fourth quarter of 2013. The negative impact of the higher tax rate on fourth quarter results amounted to about $0.20 a share. We anticipate an overall tax rate for 2014, excluding discrete items and European restructuring charges of around 40% compared to our 2013 rates excluding restructuring charges and discrete items of approximately 46%. Adjusted net income and adjusted earnings per share for the fourth quarter of 2013 were $9 million and $0.44 a share compared to $13.9 million and $0.66 per share for the fourth quarter of 2012. Items excluded from the adjusted results for the quarter included pretax charges of $14.1 million related to plant closures and rationalization, and $2.9 million related to our tank and tank car cleaning…

Thanks, Leroy. Now I would like to give you an update on the status of our key end markets and how we see these markets impacting our results for 2014. First, I’d like to talk about our Railroad and Utility products business. Our fourth quarter sales volumes for crossties were down compared to the fourth quarter of last year as sales volumes for untreated ties were lower due to a difficult lumber market. Our sales volumes for treated ties were also lower mainly due to the timing related to the completion of annual insertion programs through some of the Class I customers. As we mentioned in the previous calls we expected a headwind from the second half of the year and into 2014, due to the increased competition for hardwood lumber from the flooring and [crane net] markets that would provide a challenge in obtaining adequate supplies of raw material. We have had to draw down on our untreated tie inventories this year for both Koppers owned and Railroad owned ties to be able to meet our customer commitments. As a result our untreated tie inventories were reduced from 6.2 million ties at the end of 2012 to 5.2 million ties at the end of 2013. While we see continued challenges for crosstie procurement, we expect to be able to manage through this temporary shortage and we believe we are in a stronger position than our competitors due to the size of our procurement buying network. The shortage we are currently experiencing will likely result in fewer air seasoned crossties available for treatment next year, but fortunately we have the option of using an accelerated drying process referred to as boltonizing that should help mitigate most if not all of the shortfall. The commercial crosstie business in 2014 is expected…

Thank you. Ladies and gentlemen we will now conduct the question-and-answer session. (Operator Instructions). Your first question comes from the line of [Ivan Matthews] of KeyBanc Capital Market. Please go ahead.

Hi guys. Thanks for taking my questions. Real quick to your last comment and your extending the goals up to 2017, that is the 12% EBITDA margin goal that you’re referring to?

Ivan, no what we mean is the 12% EBITDA margin goal is still a 2015 goal and we think it’s still realistically achievable. I think what we’re just trying to say is we’re halfway through that it’s time to refresh the numbers and extend it out another couple of years.

Got you. And if you look at all the detail you gave so, I understand you are having about $13 million dollars in cost savings and profitability and everything you just went through, but if the environment in the carbon pitch business continues as it is and phthalic continues to be pressured are you going to be able to grow earnings next year?

Yes, very frankly, that’s what with we’re saying with all the things we’re doing Ivan, we definitely increase our earnings in 2014 and 2015 for sure.

Yeah the expectation is I think even in the challenged markets that with the initiatives that are in progress and that we’ve been pretty successful on getting results on so far that we were able to offset any reductions that would come from those challenged markets.

Great, and two more quick questions, one which is sort of tax – what’s your tax rate expectations for 2014 and then if you look at your…?

Tax rate expectation for 2014 is 40% excluding the restructuring items and any discrete items that might be there.

Got you, but for modeling expectations you’d put it at 40%?

Yes.

Got you. And then the last question on acquisition you talked about three, were they – these were all very similar in the railroad business or are they both in the carbon – the chemical business or how would you split up?

Well, actually they reflect both core businesses, Ivan.

Okay great. Thanks for taking my questions.

Your next question comes from the line of Laurence Alexander of Jeffries. Please go ahead. Laurence Alexander – Jefferies & Co.: Good morning.

Good morning, Laurence. Laurence Alexander – Jefferies & Co.: Couple of quick questions, how much of a headwind if any was the inventory reduction in Q4? And as I think about the bridge into 2014 if we do see better volumes in either the crosstie business later in the year or CMC, how would you think about incremental margins, they are probably a little bit stronger than historically is that fair?

Well, on the railroad ties as you heard we reduced our inventory on the sort of the seasoned ties by a 1 million ties and we continue to struggle a little bit, it’s a challenge out there with the flooring and the train mats competing with as lumber but we still expect shortly the class ones to be raising prices here and sort of get this turned around a little bit. But at the moment we have to as I mentioned if we have to use vulcanizing as the way to dry the ties that’s what we’ll do. But going forward, yeah at this time I think we’re going to be all right with –

Not all right, but it will be a challenge, but we’re going to be looking at sort of increase in procurement through higher prices. At the moment the difference between the tie and what the flooring and crane mat are paying is almost $5 a tie. So the railroads have got to catch up with what that equivalent is from a cost side contribution. On the carbon and chemicals inventory we’re sort of status quo, I guess, we’ve not see much reductions of our raw materials. We’ve been managing that pretty well throughout the region. As I also mentioned the coal tar supplies I think we’re pretty stable in the U.S. and we continue to bring coal tar in from Russia and Ukraine and then once we close distillation and release the Netherland plant we’ll continue to have that coal tar that we are using here into both Denmark and the UK. Laurence Alexander – Jefferies & Co.: And then speaking of pricing are you seeing any shift in your carbon pitch customers to tie-in contracts to coal tar pass-through?

No, none at this point. When you’ve got sort of the mature markets still operating at fairly low rate in regards to aluminum smelting it’s a been challenge from a very weak pricing environment. Laurence Alexander – Jefferies & Co.: And then lastly how much of a headwind do you think you have on the incentive comp and just overall cost inflation that’s here?

Well we had a reduction this year from the prior year Laurence of close to $5 million overall…. Laurence Alexander – Jefferies & Co.: Thank you.

Your next question comes from the line of Chris Shaw of Monness, Crespi Hardt. Please go ahead. Christopher Shaw – Monness, Crespi Hardt: Hey good morning guys. How are you doing?

Hey good morning Chris. Christopher Shaw – Monness, Crespi Hardt: I want to just talk about I guess Europe and carbon [materials] specifically and with shutdown or the planned shutdown of your Dutch plant now, how do you think that’s going to change, I guess the overall industry utilization rates, I mean how’s the change for, with the utilization rates that you’ve seen at your other two plants and what do you think that, that market can – how much more rationalization should we think there is required to get better pricing or stable pricing, your thoughts maybe on sort European I guess probably pitch market?

Well, there are a couple of things there. First of all, when we were operating the three plants we were probably operating about 60% of capacity. Now we’re going from three plants to two plants now we are going to do 85 plus percent of operating capacity so that will obviously incrementally help our cost side. What others are doing in the industry I really don’t know but when you see over high cost aluminum smelters closing and not returning the industry which includes us as well as others industry must adapt to these markets, so we had no choice but to rationalize our capacity and focus on two plants which will give us much higher rates. But beyond that I really don’t know what others might be doing? Christopher Shaw – Monness, Crespi Hardt: I mean I see like even in the past when conditions were – margins were better in Europe even then I thought some of smaller plans that are operating there might be losing or not be making much money, probably going to be shut down but is there any sign, I know there are lot of small like one in Czechoslovakia, one in Spain, I mean is there any signs from those or any other every big guy, [Rain or Ruetgers] those plants they might be taking some capacity off?

Well actually as you say that based on the Czech Republic and you got one other in Spain, I thought by now that there would something that would happen. They are definitely operating at very low rates. If you do the math, we keep knocking on the doors but they want to continue to operate these facilities even low rates and as you say even I think losing money as well but nothing has really happened there and then you got [Rain] operating those two plans one in Belgium, one in Germany and I have not seen any signs of any cut backs there. Christopher Shaw – Monness, Crespi Hardt: Thanks. And I was curious on the on the Norfolk Southern contract renewal is there any pricing indication you give there in terms of they are up significantly or is it sort of a normal increase that you would see for a class one contract?

I mean as you’ve heard us talk in the past, that when we renew contracts there’s always adjustments on pricing and so forth and so there is about three year extension of those contracts and then also includes us having capability to also have the creosote-borate treatment. So it was a good contract for us to extend out three years. Christopher Shaw – Monness, Crespi Hardt: Okay, thank you.

Your next question comes from the line of Liam Burke of Janney Capital. Please go ahead. Liam Burke – Janney Montgomery Scott LLC: Thank you, good morning. Walt, good morning, Leroy.

Good morning. Liam Burke – Janney Montgomery Scott LLC: Walt I apologize for asking this question again you stated that you are going to hold the line on the 12% EBITDA margin for your goals of ‘15 have your EPS targets changed?

EPS targets – Liam, that right now will be part of the revision that we would be preparing to take out at the end of the first quarter beginning the second quarter. So it’s a little premature for us to say anything on that at this point. Liam Burke – Janney Montgomery Scott LLC: Okay. Thanks Leroy. And then I understand in the U.S. plasticizers they’re using less phthalic anhydride and using different processes. Do you anticipate that to affect the overall long-term demand for naphthalene?

Naphthalene would only impact on us Liam, that will be only of the three phthalic producers we were only producers using Naphthalene versus Orthoxylene. There is some decline in plasticizers using phthalic anhydride but the most we can get is looking at may be a 5% per year decline on net – but we do see sort of offsets on the [inaudible]. So there is a decline as you say but no more than may be 5% annually for the next three or four years but most of that if not all is being offset by the resins and the paints. Liam Burke – Janney Montgomery Scott LLC: Great and then Leroy could you give a split on CapEx for 2015 between the joint venture and just the normal maintenance?

For which year? Liam Burke – Janney Montgomery Scott LLC: For 2014.

2014, I think we are expecting something in range of probably about $48 million. Liam Burke – Janney Montgomery Scott LLC: Okay, and with that would there be any spill over from the JV.

There would be spill over from the JV. And that would be something actually in probably the $25 million range. So the 23 as I said so the difference between that 48 and 25 would essentially be more along the line of maintenance and [inaudible] capital and we would have some sort of extrapolation over that. Liam Burke – Janney Montgomery Scott LLC: And then lastly Walt are you going to be able to revive the export program that you had on the rail tie business in Latin America?

Yes, I mean that’s something that’s definitely a growth area for us Liam we have people on the ground there and actually getting some RFQs in the last two weeks. So yes it’s definitely a market that we plan to extend our tie treating business. Liam Burke – Janney Montgomery Scott LLC: Great thank you very much.

Welcome.

Your next question comes from the line of Steve Schwartz of First Analysis. Please go head. Steven Schwartz – First Analysis: Hi, good morning guys.

Good morning Steve. Steven Schwartz – First Analysis: If we could go back Walt in your response to Chris’ question about Europe so one time you had an acquisition strategy that revolved around consolidation in that market, but given that demand is so weak you mentioned you are still knocking on some doors there but so you are in fact still think of acquiring to consolidate there or are you now starting to think that it’s better just to walk away from that region altogether?

No, we are definitely not walking away from that region at all, Steve. But if we have the opportunity to take out capacity what we are still [someone will be] taking out we would definitely take a hard look at. Steven Schwartz – First Analysis: Okay. So there is an opportunity to still do some good business in Europe?

I think so. It’s not going to be what it was two years ago, three years ago but this is an important region for us. We’re not by closing – we’re not walking away from that region. We’re just trying to adapt to what’s happened in the past two years and make it more profitable for us. Steven Schwartz – First Analysis: If we could expand this discussion to the global perspective I mean certainly in the Middle East you are getting pressure from Asian pitch suppliers and so as you think about what you are doing with your capacity how do you think that compares to what global pitch capacity is doing?

Well it’s still a bit of a difficult market but when you look at production from ‘12 to ‘13 increased by about 5.5%-6% but 65%, 70% of that increase was in China and the rest of it was in Middle East. Meanwhile you have got the mature markets U.S., Europe even few other places in Australia even, it’s actually reduced. So here we’re shooting in the wrong geographies with these higher cost smelters and as you know in China it’s increased the smelters an area that we just have not been able to supply because of logistics. So now with our third plant that we are building in China which we can add on to eventually we are much, much closer to the aluminum industry there. It’s been a – we’re adapting it’s just unfortunate it takes time to adapt to these mature market conditions that we’re seeing. Steven Schwartz – First Analysis: Okay and then just on my last question Walt did you mention that there was a capacity built out in the industry for naphthalene in China?

That continues to get – the market continues to grow because of the phthalic plants that are being built and even construction, even though GDP might be in the 7% range now China there’s still a fair amount of naphthalene consumed in the surfactant for concrete but also as you correctly say naphthalene pricing was up 30% from last year again because of the demand for the product throughout China. Steven Schwartz – First Analysis: So Chinese producers generally have been known to sometimes be over zealous and over build capacity and then they get irrational with dumping that globally. It doesn’t sound like you see that those – built outs as a risk to the currently strong pricing and may be even volume?

Seriously not over the next – let’s say next three years or even longer perhaps that you’ll see that. But you are right though it seems like they do have a tendency to overbuild in certain markets but phthalic continues to grow in China and what’s happening now with construction of phthalic plants there is a market there internally for us. Steven Schwartz – First Analysis: Okay. Thank you, Walt.

Sure, Sarah?

Sorry, Mr. Turner there are no further questions at this time.

Okay. Thank you very much everyone for participating in today’s call. And we appreciate your continued interest in Koppers. So we continue to do the right things by pursuing growth opportunities that we talked at length about today that makes sense for us as well as looking for ways to improve our profitability within our existing businesses. Despite facing challenges in 2013 and ‘14 due to the European economy and lower aluminum pricing we do believe the diversity of our business along with our margin improvement and growth initiatives will continue to provide us with relative stability in both strong and weak economic climates. And finally we remain firmly committed to enhancing our shareholder value while maintaining our strategy of providing our customers with the highest quality products and services while continuing to focus on our safety health and [inaudible] initiatives. Thank you.