Koppers Holdings ( KOP ) today announced that it has closed its manufacturing operations at its carbon black manufacturing facility in Kurnell, New South Wales, Australia.
The company expects a non-cash impairment charge of $22 million, as well as a total after-tax charge to earnings for the closure costs of $7 million to $9 million, of which about $6 million to $8 million is expected to be incurred in the fourth quarter of 2011.
It also expects pre-tax charge to earnings of $14 million to $18 million over two years. About $12 million to $16 million of the pre-tax charges is expected to negatively impact cash flow, of which about $1 million is estimated to be paid during the fourth quarter of 2011. However, net cash impact of the closure is expected to be minimal due to the positive effect of reduced working capital combined with tax deductions that are expected to reduce future income tax payments.
Shares are up 2.4% to $34.88.
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