1981

• economy. Inside, • • of • condition

management • effective improve technological and

a continuing

reduction

scalebacks,

a

dividend

difficult

precise

Annual

expanded

some

our

marketing

strong.

Report

year

as

strategy of

strength competitive

measures—including

divestitures base words

debt

we

markets.

for

and

kept

and

as Koppers

strategies—to

to

Form

in

about:

we

our

upgrade

maintenance cash

position.

aim

and

10-K

financial

and

flow.

for

other

our

the

new -

•

• • Total • Capital Cash • • • • — • cial The Noppers funds—4n Our Dividends Earnings Net specifIc Return Shareholder we Backlog Operating Letter Koppers Chief 10-Year Management’s

InsIde Board Description General Index

($

activities Concentration as Cash-f Concomitant A each Generation with capabilities Average Analysis Above Capital and long-range Timely management healthy risks Limitation industries,

The

Millions,

must

income

major stability,

mission

dividends

sales

Financial

flow to

to

of Results

Koppers

Koppers

commitments

This

on

Financial

investment

of

involved.

Financial

Subject

Koppers

Future

Directors

at

long-term

low

per

and

satisfy

all, Company,

and

of

Investments

per

average

and the

of order

upgrading year

except

annual

Information

and

Financial 1981

share

Koppers dedication

of

Market of growth Is

return ‘-

with Officer’s

Discussion

share /

strategic

aggressive

of

market

will

growing.

Index

Operations

to

end Highlights

to

debt

Shareholders

with Statements

strategies

performance

other

and

our to

net Annual

of

employ

per

common

make a

common

net

of

goals

achieve

Summaries

of

to Capital

solid

inc./1981

Officers

insIde Condition

Business income

basic

these

to at

common

Mission -

Letter

of to share

segments

common

areas income

Investors

;

In

a

and

near

plans. ,

to

the Internal

it

Report

rate

high-technology

we

reputation divestiture

corporate

the

back

function

our needed

new

equity

funds

figures)

shareholders.

a

Company’s

whose 35%

sufficient

have

balanced

at at

objectives, stock

low-cost

growth

stock

role

cover

directions,

a

least

It

and

and

of

in

Glance

serves.

set

22 24

10 19

to

6 S 1 as

of

payoff

areas total

assets—people,

for

external

opportunity

of

equal

keep

as -

greater

the meeting

to

producer combination

assets

scientific quality

The we

of Analysis presented Discussion The Annual than engineering day, manufacturing BusIness.” the Headquartered of has

capitalization. Pennsylvania.

pay listed

outstanding

where

ventures,

potentials

Operations” unremitting

the The

to

Company

carry

293

Company’s annual April

100

approximately

research

than

that

Company’s that the William

here, and

Meeting

operating

of

types

the

and 26,

for

and

in

out

of Financial In of

needs

meeting that

and

no

vaiue.

1982

emerging of ‘Management’s

brief, the

will Company’s

employees,

set

the facilIties,

net corporation

greatly

Penn

of

and

our

technoioglcai

in

longer

performer

and

construction Company

$ attention $ $ $2,018.6 $ $ $

Business achieved

products. be Company’s

Pittsburgh,

in

locations

down

income. potential

Koppers

of

“Description

mission:

518.0

182.1 132.1

the of Hotel,

held 1981

Condition

core

51.6

1.58 1.40

development.

7.2%

society.

the

25%

outweigh

Pittsburgh

fit

research-based at

technology

once

shareholders with

Pittsburgh, businesses

Into

and

various

11

to

is

in

in growth,

of

in

Pennsylvania,

business

capabilities. Discussion

leader

a

am.

and

the

doing specialized the

our

cash

makes

strengths,

diversified

more

of

Koppers

$ $ $ $ $ $ $1,929.2

Room

Koppers

Results the

on

1970s.

various

230.9 526.0

134.6

1980

flow

54.0

1.40 1.98 In finan

Mori so, is

the more

9.0%

and

of

and

it - C - ..- -

‘-ii

I

•Cash •We •We further the tive To from and environment that actions depress strong through to satisfy production productive ries pects turnaround, Added synthetic contribution slightly indicated some by realized ber in nesses Koppers. along an realized 1981 per inhibit performances In Financial Materials by in

operations; of was of is—good.

The Those These The There

Weak

Unusual motion Little By a Earnings

write-offs Engineering

these the

eye

economy

of

share

year.

of company much

capital

the

activity:

Our

Operating 1980.

no

aggressively

reduced

as

initial a

areas

growth American

Company’s

prudent steel progress

enough the

strengthening

to to

of

improved,

flow as to

number

year.

strong

demand

on on was means activity

we and two

in

fuel

Inflation,

Officer’s

On

operating benefiting by before higher

this

further of

had

Company’s market

expenses,

exercise

fell

charge

spending—that

were the the Shareholders:

benefits

industry.

and for

to

accepted remained

over the formulation

the

in

factors the

other no

that

projects.

and

of was

as

throughout

our throughout

been earnings

and

management. that

operating which sale sale

discontinued

could

$40 in in

of foreign-owned impairment cold

a

Performance the income economy

other

diversified

further

in

Koppers

the

had

this

conditions

investment although strengthening

the debt, each letter accomplishments

fronts. new.

of

pursued

measures

dividends

Construction

major

income. of of

future

in in achieved year

and

per

figures year

Koppers our

they

mostly

three was 1981 previously

short-term

the our

high,

the long-term hand,

1981.

Income

Many

from area

on and

penalized

of

in

share

the

operations

margins

began.

end

Engineered the Company’s

before. management

Canadian took earnings growth

suffered

not

appropriate Forest

be page

account

abating

a major as

and

of

These

Road that

interest

unusual the

operations, from worsened,

in

unusual

paid brought comprehensive

in

year.

of

in

considered

markets,

financial

reflected our

tax Koppers,

difference

place.

1981. businesses

new

the

combating the Company’s

reflected

in growth

showed

shown Nevertheless, 19.

penalties

Products Although

potential and

discontinued end

Materials

to capacity credits

by

factors new

High

unmistakable

in growth.

for

Company’s

economic

expense exerted

lumber

products, in

our

items.

expenses

income,

degree, us

Metal

Canadian

profits

markets—construction,

three-fourths

business 1981

and

as

orders

in

of

participating strength.

objectives

interest

annual

produced to shareholders

a

between

were the

a earnings,

well adversity.” are

to

in

decline

wood-treating

the

for

Koppers the

in

Most

operational

Similar

good

maintained business.

Products

should

performance

firm

from

earnings the

continued was

growth

Canada.

which

discussed remained

circumstances

growth,

processes raised

as end

the

effect

lower

businesses,

results associated financial

lumber

rates

strategies;

control years

of

These recession

year

nonrecurring

on overseas

the

close

a

in under

expenses

of

the

be

which

of

profit

included significant

in

plan

of earnings the

than

the

launched

began 1981

This

two

stayed

in for

measured

no

represent Koppers ahead.

expenses what

capabilities.

a

lower

business.

low

high

sweeping

of

of

exchange position

decline

in

year-end

the

high

businesses

and was

slackening the

encompassing

at

in

declined

years

operation the

showing

with

more 1981

for

divestiture

construction more level

the

one

1980. to

rates

nationalistic

incurred

that

US,

the well

business

technologies.

level automotive

better

Cash

Company’s

per

the

expenses

hurt

its decline

the

sales.

operating

brought

was

in

observer

the

detail

of

was—and

in

were large

than

confronted

Improved

expected

within

On economy—or

share. also second in

backlog.

the

for

of

development by

capital the

some

gains

flow

than

sum extent.

could

accounted

of

was

balance,

income

in $40 of

planned

offset

second

incurred capital

in

in continued context

levels

our

the

confirmation

1980

certain projects. remained

three

trends the

Organic due

of

might

sectors

equipment

in the

level called consecu

busi

spending

no

per

pros-

The

There operating

activities Industrial

a bounda

the

Chief

us

and

gain

led mostly

num longer

gain

half

$.24

share kinds

of

was

with be

were

loss that for

for

of

‘a

to

to the

of

in A comprehensive strategic growth plan set into motion in 1981 has given Koppers firm direction for the future. For the short range, our goal is to advance the Company’s return on common shareholders’ equity toward our target of 18% as rapidly as possi ble. For the longer term, our goals are twofold: •To grow in the 1980s even more than we did in the 1970s. •To upgrade our technological base. Measures taken to achieve this objective are discussed in the section that follows. Behind Koppers approximately $1 billion in fixed investment stand specific business strategies. Of that total: •We have 28% in businesses that offer opportunities for rapid, sizable growth. •We have 54% in businesses that we will manage for profit—solid, thriving businesses in which we will invest additional funds to maintain market shares and reduce costs. •We have 18% in businesses targeted for correction—those in which we are not meeting our returns or that no longer fit into our long-range strategic plans. These willbe turned around or disposed of by mid-1983. The Outlook In our 1980 annual report, we cited certain indicators that pointed to “a potential recurrence of recession in 1981,” saying: “As of now, there are no signs of improvement-in many of the areas that depressed Koppers 1980 performance, and it is not realistic to expect significant changes quickly.” We are currently caught up in that recession whose recurrence we foresaw. Com Charles R. Pullin, Fletcher L. Byrom bined with the severe winter weather experienced in the opening weeks of 1982, this is likely to result in a first-half performance even lower than in 1981. Ifour spirits seem somewhat brighter at this writing, it is in some measure due to the lessons we have Management Actions learned and the actions we have carried out over the past 12 months. this with a reference to “the management of adversity.’ That We began message We take heart, too, from certain developments discussed in the section that follows: not a policy of retrenchment or a shift in long-term strat phrase does mean to imply new national policies to move us away from the consumption bias that has damaged it we instituted in order to keep the enterprise egy. Rather, describes the measures our economy—tax legislation beneficial to industries important to Koppers—and until business demand returns to a reasonable level of activity in the areas that strong above all, mounting acknowledgment of the need to rebuild the nation’s infrastructure, us. most affect with which Koppers activities are so intertwined. businesses because they did not meetour growth expec We discontinued certain On the last point, we need only remark that the alternative to such rebuilding—an of others in order to bring them into line with tations, and we scaled back a number uninterrupted downhill slide—is unthinkable. Nevertheless, we must temper our opti market activities. mism with the realization that federal fiscal policies are currently stimulative and there We set out at midyear to lower our capital expenditures, which had been planned fore in possible conflict with the more conservative monetary policies now in effect. million. The figure for the year was approximately $147 million, excluding for $200 total This could lead to further escalation of high interest rates, slowing those recovery nearly million invested in Richmond Tank Car Company. This should be the $35 trends that would be favorable to the economy in general and to Koppers in particular. had been at historically high levels in viewed against the fact that such expenditures Meanwhile, recognizing that we must operate with the “givens” available to us, we total of almost $750 million for the period. the five previous years—a do not propose to mark time until external conditions provide a more congenial envi also by holding down inventories and receivables. This We also conserved cash ronment for our activities. Rather, we willcontinue to exert every effort to strengthen in our ability to reduce total debt and cut interest expenses was an important factor this enterprise, especially under the currently depressed state of the economy. In over the second half of the year. making that pledge, we wish to express our gratitude for the indispensable support of were directed toward strengthening our competitive Other management actions our employee associates and shareholders. so that can be some progress in our operating and earnings perform positions there We do not expect that these pages 12 months from now will bring news of a dra even while the current business weakness persists. ance matic change in our fortunes. What we do expect is that we will be able to report fur A number of these actions are discussed on page 19. Their full benefit has not yet ther progress in coping with difficulty and in preparing for opportunity. In the final anal plans to streamline costs and operations are being carried been felt, and additional ysis, we are determined to prove that we are equipped to manage long-term in control of the direction of our operating performance and out. We do believe we are prosperity as well as temporary adversity. that this will be demonstrated through 1982 and beyond.

Where We Stand Today Koppers ended 1981 in excellent corporate health. remains strong. We maintained a high level of cash flow, Our financial condition Fletcher L. Byrom Charles R. Pullin permitted us to (3 $132.1 million in 1981 versus $134.6 million in the prior year. This Chairman of the Board Vice Chairman of the Board reduce debt and to maintain the common dividend. is the most modern in our history, thanks to a five-year pro Our manufacturing base February 22, 1982 gram of continually upgrading plants and equipment. Not only has this strengthened our ability to compete within the current climate of reduced demand, but any upswing in the economy will find us exceptionally well prepared to meet new demands. 4 Koppers Future: A Long and Winding Highway

Ifwe are to talk about where Koppers is • The automotive industry, which had upsurge in demand for Koppers products to pilot plant production and recently sold the from what itwas a relatively short time ago. • Our 23% share of Richmond Tank Car going, it does not serve our purpose to think fallen to a 20-year low in 1980, sank to that and services. first commercial quantities of a chemical it has Although most of our basic businesses Company enlarges our prospects in the rail of the road ahead as a straight line to a pre level again in 1981. developed. remain firmly in place, recent developments road industry, with which we have had a dictable horizon. What we have, rather, is • Capital spending, when the figures This is not to suggest that we have pulied From that strong start, we have broadened have begun to change the fundamental char mutually rewarding association for half a likely to be a long and winding highway along for the automotive and petroleum industries off the road, waiting for the economic our participation in this field through two acter of the Company as they expand its century. We expect a considerable increase which we willfind a number of branches as were subtracted from the overall total, con “potholes” to be repaired in our long and recent investments. range of competence even further. in demand for tank and hopper cars when we proceed. tinued to show the weakness that had winding highway. • Engenics, Inc. concentrates on process • Construction is well under way on two the economy approaches normalcy again Some of those branches, inevitably, may begun early in 1980. Some of the measures we have taken to development, whereby laboratory results plants for the manufacture of our phenolic a state that willserve to highlight the advan lead us into unrewarding areas, with little deal with our immediate problems are de are translated into larger-scale manufac foam board and should be completed by tages inherent in Richmond’s low-cost gained for us but the lessons of exploration. Just when the economy may turn up again tailed in the message to shareholders and in ture, an activity that seems likelyto be the mid-1982. This product offers superior insu manufacturing position. Some willlead to areas rich and profitable. is not certain, What is certain is that—in an era other sections of this report. controlling factor in the time required to lating qualities, and fire-resistant capabili Meanwhile, our corporate horizon—like all otherwise characterized by widespread dis A discussion of the measures we are pur. commercialize products developed through ties. Designed initiallyfor use in commercial Other projects are at earlier stages of horizons—will constantly change shape as agreement on methods and objectives—one suing in order to ensure Koppers vitalityover genetic engineering. Much of the funded buildings, it can be adapted for applications development, but no less exciting in their we move toward it, drawing us on with its potential. These include the Koppers-funded promise of new and growing opportunities. high-technology university research projects, in which we would hold proprietary rights to It may be useful, before we embark upon technological breakthroughs. our highway to the future, to examine where we have been. The overall view down the highway is for In the mid-1960s, we launched a new capi tal investment strategy that was to shape the Company as we know it today. Its purpose was to establish a solid base for diversity in manufacturing businesses. In the decade of the 1970s, Koppers not only withstood the shocks of four recessions, but grew and prospered. of the mate • Our sales quadrupled, rising at an national goal has aroused enthusiastic sup the long term constitutes the bulk research is being conducted at Stanford in the appliance, transportation, tank, pipe average rate of 13% per year. port: the ‘reindustrialization of America.” rial that follows. University and the University of California and residential construction markets. • Our net income grew at an average There is near-unanimous acceptance of the at Berkeley. • Our coal holdings, which now include annual rate of 17%. need to rebuild the country’s commercial and An important part of the strategy involves a • DNAP puts us into agricultural appli 180,000contiguous acres of land with more new Office of Science and Techno • Our growth rate for the important industrial infrastructure. Koppers cations as itworks to develop hardier and than 200 milliontons of reserves, should measurement known as cash flow This is the goal toward which, conscious of ogy, created to work with existing units. more versatile plant varieties to help push a make a growing contribution to our income averaged 15% per year. its mission in a free society, Koppers has Among the responsibilities assigned to it are a new “Green Revolution” for a world still through revenues derived from the leasing equipped itself to make a major contribution. rejuvenation of the Company’s existing tech short of food in many areas. of mining rights. Now the nation is bogged down in still nology and the removal of all barriers to the • For a number of years, Koppers has ac another recession, which began in mid-1981, Underlying the new consensus is recogni flow of ideas, knowledge and methodologies Two other investments have involved us in tively participated in the development of barely half a year after the conclusion of the tion of the damage that has been done by a among the Company’s many elements. This new and revolutionary applications for two of what is now known as the KBWcoal gasifi preceding slump. persistent consumption bias in past eco process encompasses the program under civilization’s oldest materials. cation process, a commercially proven Both of these latest recessions, triggered nomic, fiscal, regulatory and social policies. which we augment our internal resources by • EOTec Corporation, in which we hold technology basic to the conversion of coal and sustained by high interest rates, have That bias is now in the process of being set funding research projects at universities a substantial equity position, is active in into methanol and ultimately into premium displayed a difference most important to aside in favor of an emphasis upon restora already working on problems related to our fiber optic communications, sensors and gasoline. Recent developments have led to Koppers: a simultaneous drop, severe and tion of productivity through greater invest commercial interests. specialty glass. Incorporated in 1979, it is increasing recognition of the long-range prolonged, in the three markets—construc ment, an area in which the U.S. has been Parallel with this activity has been a Iive’y now seeing a flow of repeat orders from its advantages of methanol as a transportation tion, automotive and capital equipment—that falling behind its trading partners by far too program under which we employ venture cap customers, a sign that it is perceived as fuel. Accordingly, Koppers interest in this account for more than 75% of our current much and for far too long. ital not only to widen our technological base. technologically equal or superior to its emerging technology has evolved toward mar sales. That had not happened in previous We are particularly encouraged by certain but to provide us with greater access to competitors. equity participation in projects to supply recessions. trends in tax policy at the federal level. As for kets, some of which we have never enterec • Ceramatec, Inc. is situated in a market alternative fuels. We now have behind us • Office buildings aside, nonresidential the new tax provisions that affect capital for before. that has been estimated at billions of dollars most of the investment needed so far to construction has been weak since early in mation, we expect that their benefits willmani Genex Corporation, which gave us a s:gn annually in advanced ceramic technology pursue our interests in three synthetic fuels 1980, while the number of housing starts, fest themselves only gradually, but that the cant presence in the world of genetic eng for use in space, microelectronics, internal projects. Those three are among only 11 after a four-year decline, is at its lowest cumulative effect will be significant in the neering and in which we have a sizable pos combustion engines, batteries and other recently selected by the U.S. Synthetic point in 35 years. capital-intensive industries with which tion, is concentrating its efforts on chernicaS applications. Fuels Corporation for further consideration, Koppers has its most important business rela and pharmaceuticals. Genex has progressed with the decision on federal loan and price tionships. Improved cash flow among compa Whatever the outcome of these and similar guarantees to be made by mid-1982. If nies in certain markets—construction, trans undertakings, it is obvious that Koppers approved and carried out, they would portation, steel, paper, electric utilities and has become an enterprise markedly different engage a wide assortment of Koppers capital equipment—promise a healthy activities in design, construction and the supply of raw and processed materials. and Organic Construction Metal Materials Products Products Engineering Engineered Forest Road Total Materials Koppers Miscellaneous

6

($

Millions)

Operating

81 80 80 80 81 80 81 81

81 80

81 80 81 80 81 81 80 80

$ $ $ $ $ $ $ $ $

$

$ $ $2,018.6 $1,929.2

Sales

678.1 358.1 379.8 380.9 531.7 342.5 541.9 577.2

58.6 64.6

17.7

16.7

Operating

Results

Income

$ $ $ $ $ $ $ $ $

$ $ $

$142.1 $129.0 $119.6 $

$104.9 $

42.9 21.3 57.2 29.2 57.9 47.2

12.7

22.5 (1.1) 24.1

(7.5)

6.9 4.8

(.4)

tinued. other weak Creosote doubled. construction orders and chemicals, Construction During equipment offsetting pleted sales. pitch in Unusual showed level. Sale Improved polyester income struction processing products materials income. Nearly hardwood was using 15%; increased development Coal Prolonged materials Synthetic contributed price Interest, General Income

1980.

by

seals,

developed

of

operations was

plant capacity guarantees

Railroad

U.S.

KBW

Geographic

in

were all

Efficiencies

Canadian

drop. 1981

Marginal

Wood-treating

major Business

equity expenses,

Before Colorado, caused

Roofing

operated Corporate

weaknesses sales

processing

resins

handling strong product Fuels prices,

for

construction

lumber. power

downturn

efficiencies transmission

improved

Gasification

equipment,

to

particularly

contributed

services

synthetic Chemical costs

earnings.

crossties, utilization

strengths.

income were

for Corporation

income

increased

earnings

in

Interest

chemical operating

for transmission

materials

lumber

lines

New expansions

at systems.

first electric improved.

weak

Florida,

penalized

three in

strong.

significantly. Overhead

equipment

loss.

constituted

in

fuel steel

were

from business

environmental half.

improved. markets.

unit Systems, energy

strong

rose Synthetic

poles

was sig

wood-treating

utility

Environmental business

end

loss.

Expense

Segments projects.

Mineral

lines income furnace

plant

income

efficiencies Wyoming.

nificantly.

sales

Coatings, industry

considering investments

instituted,

52% substantially.

Coke

markets

income,

were

poles, were

couplings,

in Potential conservation,

were

construction

was

business Overseas

with

materials 37% declined

New

fuel Piston

versus

processing

boosted significantly.

fell. building,

unit

Capability

strong,

and com-

con-

at

piling,

discon-

U.S.

lines.

caused

project

of

offset

Binder

high sales

loan,

rings also

Income

63%

Changes construction. enue marginal cycles construction, become exists dramatic. recession, expected of determine States costs New demand revenues maintenance. Major Crosstie Near-Term struction should upturn Renovation, awards favorable Increase interest maintain A come New New High could should development review Depressed be Koppers negotiation

Taxes

number

treating

lower

phenolic

capacity tax

backlog

sources

should

in markets

reach

to

will

improve,

In

by have continue

on

rate

1982,

available

for

legislation

sales

meet upward businesses in

coal,

as in

diesel volume

for Modern, to

to

U.S. of

continue

recovery steelmaking

interest

chemicals. Outlook

1981 industry

fuel

treated

stages. projects

approval continue

expansion

capital Immediate, trends.

synfuels

roadbuilding. be

but

should

Growth worldwide costs

Interest is for foam

other turnaround

should Synfuels will

taxes

piston backlog

to

income

lower.

to

competition pace

at

street,

in

efficient

remain

be

rates

grow. should

low roof

wood are goods

to

capital in 1982. Sales

resource

will reach aid

stage. completed moderate Is

will

Construction continue projects

rate

in

housing, need

Absence ring

projects

markets

level. expected

Corporation likely gains

positive

will

insulation highway,

1982

abate.

benefit sales, markets.

Synthetic

Coke

create

will depressed

to at

trend markets. prove

final

demands.

capacity

spending

keep new

any

utilities

Contract results.

will

in

depend

business could

under

volumes

operating

strong. As

other

Increase. general

could should of

Income.

added will effect.

rev-

to time.

Intensify. con-

to

bridge

market

will

fuels

meet

be

are

until

Any

on

Koppers

Architectural Engineered Construction Construction Chemicals, Rubber Plastics Transportation and Iron Nonferrous Metals Telephone, Lumber Sewer, ($Mflions)

Electric, Packaging Paper Machinery UtIlities: Agriculture, Food, Processing

Mining

and

Grain and

Water

and

Steel

Gas,

Sales ‘

81 81 80 80 80 80 81 80 81 81 81

80 81 80 80 81 81 80 81 80 80 81 80 81 80 81

$ $ $ $ $ $ $ $ $ $ $ $ $

$ $ $ $ $ $

$ $ $ $ $1,929.2 $ $2,018.6

by

Sales

540.5 280.5 516.3

218.7 269.2 224.2 211.8

189.7 161.2 125.2 109.9 177.0 102.0 108.8 112.1

92.7 40.6 88.7 43.8 42.8 89.4 36.2 91.7 74.8

Major

%

100.0

100.0

26.8

26.8

13.9 10.8 10.5

14.0 11.6

Total

8.4 9.4 9.2 6.2

5.6 5.4 5,8 4.4 4.8 4.6 5.1 2.3 2.0 2.2

4.7 1.8 3.7

End

tion declined. expansions During declined Highway eling but for High After ports Aluminum, deliveries sated ment-tire profits. capital new-car Low overseas sales. industry operating crosstie Canadian as High capital levels; Softwood expenditures Capital in Corrugated reached Electric spending Power expanded industry Pulp, Capital duction Nonelectrical expanded Total All Production

third

housing,

industrial

weakened. Markets

Other

declined

operating

interest

interest strong held

increased.

paper,

for

Sales

Imports

use

hardwood spending

spending Export quarter.

1981

spending

spending

utility

dropped

activity

replacements. tire

declined,

for

high spending

weak

demand

Price

demand

even.

fell

by

rates softwood lumber

5%. 3%-4%

increased.

other

of

aided first auto

other

box market

paperboard

plants,

rates

7%. machinery rates

14%. capital

declined, level.

machinery grain

sales

leveled

rates

Other

markets.

improvements,

Engine,

were

was

Spending

half,

shipments

New

metals fell

markets

increased

moderately.

Sewer, by by fell was

building

sales.

improved;

hurt

weakened. depressed

was

after

Railroads

Sewer,

weakened.

mill office

were operations

pressured

moderately.

weak. food pulp

spending steel

nonbuilding slightly cut

accounts

off.

Pipeline

about

new

farm strong

products

output

industry

inflation Steel

to

output water

output,

and

weak. continued

and

Heavy

buildings,

was demand

construction.

water

70%.

rose

housing.

15%.

equipment from even.

increased

paper

feed auto, industry

Aluminum

early

geographic

construction

increased. up

dropped

prices,

projects

were

compen-

increased.

Replace-

2%-3%.

capital adjustment.

each Foundry truck

Mining

held

construc-

low sharply

fell. industry

truck

in

low,

Remod-

sold

1980 even.

year,

Im-

pro-

with New revenue Bridge local Near-Term total export weaken Housing Sluggish even. Remodeling Steel Tax Steel pace capital Prices, trend continued sales, Industry market. recovery may In Excessive deregulation num Is rates. Prospects will Ing mining slide. business. more Pulp, Domestic Machinery Electric spending Interest incentives rates, mill Moderate

expected

auto,

starts

cut, pick

products.

emphasis

highway

hold

rebound. 1982 projects

with

output Industry

paper,

Nonresidential

efficient in Capital

moderate Hardwood

sluggish

repair markets

spending

profits

capital

housing

with Heavy business diesels.

utility

growth,

rates.

starts up

rebound.

housing,

will

industry

up

depend

inflation.

should

Modest pipeline

increase

strength

inventories

for Outlook

will

production

in

to

paperboard

expenditures

well.

may

high

preclude will

could expenditures

spending

late will

mild plans are Food rate Containers,

expenditures

match on

production trucks

be

will

market

are

second-half markets,

reduced

Increase.

grow.

use

not improve.

Gradual recovery

interest be offset malntenance.State,

on 1982. not

growth auto,

output.

installations

rise

relief

recovery

No

expected.

is spur

in

industry

eventual

curtailed

spending

lower

match

for

or

expected

will

likely raIlroad

gain

may strong

will

outlook,

slowly.

Operating

will

agriculture,

exceed

by

will

new

consumption

railroad

federal continue

small

is

rates.

Improvement

will

equipment.

decline. defense Slow

should will

low remain mortgage

delay is

to

1981.

expected.

are

improve

in

capital

gain

projects.

major

expected

foundry

by

stay

keep crosstle

new

will

be

operating

gain

may

for

high

1981.

expected.

slower

crossties

grants.

alumi

in

rates

limited

lead weak

about upward Tax

grain

hous

auto

slow; in

real

to

for

will

to Shareholder 8

Market

Related

principally and Exchange Koppers every below dividends prices, of

vertible

clude gate and among par

ted specified

sion,

than out cash ment retained

Koppers

Common

Volume

% Quarterly

Quarter

2nd 3rd

4th

1st

Long-term

Koppers

NYSE/Composite:

of

value,

$170,534,000

by

Pacific

distributions

Close High Low amounts

the

contained

dividends. that

year

certain shares

present

and

Koppers

other

for

preference

traded

Security

common

total

in

stock

levels.

have

matures

and

traded

4%

Common

since

the

stock

dividend

cumulative Koppers

Common

outstanding

debt

things,

restrictive

dividends

of

its

is

(in

price Series,

business

been

in

in

This

The

the

listed

on 1944.

exchanges. high

thousands) on

agreements

stock,

Holder

a

of

in

1981.

stock,

ranges

its long-term

Company’s

prohibit the

information.

most

consolidated Stock the

paid

is

Common

High

$27½

and

and

Stock

also preferred

24½ 27¼

stock

18¾

substantially

Information covenants.

of

New to

$1.25

year

no

on

Information

on $46,653,000

restrictive

low

Koppers

be

on

Statistics

certain

par

from

these

Price

The

York

2000,

available and debt

the market

par

Stock

dividends

stock,

value, Cash

1981

Low

$20¾ tables

earnings exceeding

Midwest the

22½ These, Stock value,

17¼

16¼

shares agree

Ranges

$10

aggre

greater

permit

provi

8,781

terms

and

S27½

$100

1981

in

for

paid

con

16¼ 32% 17

is

Dividend

and

$.35

.35 .35

.35

Cumulative ferred The

fixed accrued pany, not may also notice,

The shares. Board $10 no preferred verted

deemed, preference Company events. and per able Company less per each Title Equity

Cumulative Common

Convertible

Dividends

7,780

$1.25

$100

current

less

$351/4

1980

outstanding share,

share

outstanding Convertible

after be of has

than

25

29% 19 prior for

year

as

stock,

of

Class into at

Par

redeemed The Security

than

Par

and

redemption.

the

a

. Stock, Directors,

at $107.75

shares such

30

at

to

at

and

plans through whole

Preferred

subject

Preference

Value shares

stock,

Value

the

preference

Preferred

right,

any

$100

a unpaid December

days’ 30

High

$31¾

4,183

declining price

date,

251/2 351/4 33½

conversion

shares $27%

nor 1979

shares

to

time, in

or 27

17/e Holders

Preference 16%

no

with

of per at

par to

notice

1990. redeem to

the

Stock,

in

more dividends

beginning

is

the

Although common

par

Stock

adjustment

repurchase

share,

value, unless part,

the

redeemable open

Stock

of

stock

of

15, Shareholders

by

option

value,

at

1980 than cumulative

Low

$10

approval

$23/e

4,684

price

or $1

at

1983 231/4 231/2

19 the

$24%

1978 market,

4% together

previously

is

201/8

at

18¾

19% Stock

repurchase any

stock the to

per

at convertible

60

of

may

option not

March

of in

the

$107.00

Series, and,

cumulative

the

Company days’

time

share

certain

$28.75 on

redeem

Number of

Dividend of

of

be

date

it

pre

$35

Com

with

5,163

8,

the

on

not of has

.35 .35 the Record

18,910 35

upon

$26¾ con

re

1,348

20

1977 1982 22¾ 21%

the

373

of

Continuing

The Over Dividend than pated I 2,300. Reinvestment/Cash 37,000 nearly plans B basis,

tion

Mellon N.A.,

15230.

Elect common preferred of stock Purchase

Shareholders

number

on

$25

14%

12%

Attention:

enable

in

to:

$660,000

Participating

Square, additional

these to

by

the

to

Reinvestment

during

invest

of

making

$1,000 stock;

dividends Growth

additional Company’s

of

shareholders, Koppers

plans

participants

Corporate

Pittsburgh,

may

common

to

the

shares

and/or

in

voluntary

purchase

shareholders

by

Payment

of

year,

any

obtain

in

shareowners

Koppers

writing

Participation

cost-free

shares

during

month.

Plans

and/or

Trust

to

Pennsylvania grew

on

further

cash

Plan more more

to

a

common

Division.,

of

1981,

cost-free Mellon

by

investec

Dividenc

in

payme-’:s

Koppers

tt’ar: thar

informa

part:c’

more

1981.

in

These

Bank

___

$700 Common

(S

The This the of doubled. the common cent outgrew

Common

600 500

400 300 200 (Per

100

i-Ill”

Millions)

Koppers

5 0

past

common

series

years Share)

Zj]

Shareholders’

72

Shareholders’

inflation

72 10

The equity

Stock

111111111

and,

of 73

common

years.

73

stock

dividend

charts

74

Price has

74 despite

by

IIIlI

Value

75

fluctuated

75

a

substantially

-1II

illustrates

111111 stock

Trend

wide

76

Equity

has

76

the

-nI

of

77

have

77 been

margin. the

1981

widely

78

Scorecard

how

78

Company’s

fared

tripled

more

79

decline,

79

owners

Price

in

80

80

over

than re

and

81

of

81

$1.40 The Annual

dividends continues

shareholders shows grown mon

(Per

400 Common

350

250 300

200 (1971 1.20 1.00

150 100

.80 .60 .40

.20 50

0

0

total

Share)

stock

=

to

that

Common

72

100)

return 72

$3,064

Stock ahead

reinvested)

111111111 111111111

at

$1,000

73

73

ahead the

“/

74

(stock

vs.

Dividend

74

of ______

at

start

Koppers

invested

75

leading Market the

75

of

111111

also

.-1 of

appreciation

76

inflation.

close

76

1972

Growth Common

77 has

Indices

market 77

in

1 ‘II’.

Standard

Price of

78

Koppers

would

kept

78

This Industrial

III 1981. I

79

Stock

Index

79

indices.

plus

Dow

Koppers I

500 chart

have

&

80

80

Poors com I I

Jones

Index

Index

81

81

Dividends 400 500

300

200 (1971

100

Annual 400 500

300

200

(1971

100

0

0

=

=

Koppers

Dividend Koppers

Total

100)

72

100)

72

Outgrew

73

73

Returns

Index

Common 74

Index

•

74

inflation

75

75

of

Consumer

.

to

Consumer

Total 76

to

76

Stock

Shareholders —.

Investors

77

77

Return

78

Price

78

Price

79

79

Index

Index

80

80

81

81 Condition

Management’s

10

and

Results

Discussion

of

Operations

three volumes coming this of second of overall groups. Company the year begin less ness of Net fourth Usually, upward lines. Results effects ance sales year, Financial reduce unusual Koppers

and

the the seasonal

year

pattern,

Sales

than

Normally,

Following

is

segments

as

of

years.

Higher volumes.

sales past to

quarter.

typically

sales

exerted

costs

from and each

trend

the Product

well

income

and decline

were

Analysis gross

5%

Data

sales

three

gain Company’s

influences.

which

third

as

of prices growth reached the

to

of and

and

This lower Koppers

are

below.

profit

by

more

the management’s

Koppers increased Koppers

and

in

price years,

four

in

Operations

quarters

to

reach

recession

discussions

is-shown the

was

1979.

lowest

accounted

counter

in

in

expenses

rose

largest than

the In

increases

fourth

numerous

1981

with The

sales

due

income

1981,

a

Acquisitions

operating sales

highest

moderately

of

accounted peak of

moderately

in

first

most and

in

to

the

operating

any

upon quarter sales

are

however,

the

the

for

of in

during

Financial

efforts

also quarter during

unfavorable

in 1980

year,

each on the of level

product

Quarterly

nearly

effect

product

volume. these

groups.

the

an

follows because

perform

for

as

added

during

the

to

then

in

in

of

the

gain

of

of

unit each the

the busi 50%

the

a

the Operating for Organic declined industries. number Sales on due to weakness in began In rials ued overall three 63% investment. markets, which plants income lion ble energy years. ity well recovery cal ($ for expected income 1981, results

ing

these

mid-1979,

increase

Millions)

utilization

insurance chemicals

discontinued

automotive, to

businesses;

expenses.

that

operations

largely

as

Unit business;

in

following years

aggressive

benefited

sank

to Added

decline fell

the

increased and

in

substantially

of

markets

resulted

Materials

sharply. sales

nearly feel

in

in

income 1980

spread Organic Through

below

prior

to

unit

demand. failed This

to labor.

chemical prior

at

the

claims.

worsened

to

unusual

a

Additional

income

of

in

the

a

of

and

steel, sales

offset

this

52%

from year

this

contrasted

operations failed

from

effect

19%

break-even chemicals Improved

1981 to efforts

to

$3.5

costs

Consequently, to

other

Company’s

Materials

1981

a

the

will

offset

the

loss

less $678.1 $

Improved

and average

a in housing

write-down

this operations

write-offs

decline

expenses

million operating

in to 1981

of

29.2 strong

the 1980 of product

reduce

group’s

to in

and

both were

consolidations

improve.

than weakening

from

reduction.

raw high

1981,

reduce

face performances

with

in fell

product recesson,

in 1980,

from

and businesses in

$ in $577.2 second-half certain

in

write-offs materials,

chemica 71%

prices fixed

future

by

1981, for

1980

lines,

of and nonrecurring 47.2 roofing 1980. 1981, income

chemica of the

will

of

reated costs

Demand recoveries 15%

weakened condtio’-s

$12.3 discontin

an

in

The prio”

costs, the

increase tre”os

with

ines

chem

operat tracea

over

Capac from

1979,

$ $5566

a

in

mate

a’d taken was

mil

1979

two

55.6

r

the

as - ii

ther Activity the applied prior excellent. in This duced reroofing ness be near superior ued break-even ucts. mal declines 1981 keting unit were Company’s inventory than pletely were coke ating half,

specialty also increase

sales, to pitch for half industry helped the and 1981, ered efited activity cantly and and the specialty moved cialty slowed

Sales

the

improve

in

use

railroad

qualities

third sales during reducing

prior Income

of

Income phenolic

versus

the polyester from Steady following original improved Aggressive 50%. two fell

full Initial

weak put and not since sales group’s

reversing

coating,

from

programs a cost

and

from

1981 sold

in of

roofing income

in Koppers

after

close after new

to commercial

declined.

in

consecutive

years.

was

sufficient into

markets

year,

resins accumulated the

almost start-up

internally polyester new

underground

Although

market

those the

the

income

also

demand reductions moderately

good 1979 after crossties.

in customer an

earlier as

from

demand in

and

equipment

roof

a operation nonresidential foam substantial operating

in

processing

1981, two

of

resins.

coke recent markets prior during in

earlier sealant production

long system,

in the Sales

rose. and blast

began a significantly marketing

1980, doubled of total the fire-resistant

the

international

insulation

this began

costs.

acceptance

Creosote years

significant

to

years.

insulation improved

declines generated competitively

resins

and

two

operations period prices for

other

face

production roofing

offset growth

furnace year. year.

Sales which Income operating base. volume Continued of

business

and and

and

in

as

opened

during to costs. protective KMM,

pipeline

markets.

years.

all

Koppers The

of

to increases

operations, 1980 Coatings

of

in

falter

demand foundry

continued in

improved, this Koppers higher adhesive coke of rapid

higher decline strategies

product A

and construction

sales a growth

1981

of

the for

materials

greatest

expanded

also

board loss

expansion.

coke. rose

were

large 14% weak properties

and

the raw

was has

Vigorous

prior trend

rose

to

in in

carbon

level

construction income in aluminum

facilities

high growlh.

High

after priced

cold-

the prices the continued in coatings in

improve

second coal,

products

domestic mid-1982. materials

signifi been

was ahead

sales in

noticeably

com

flat

coke

has Foundry had

market that

years. has

other

to

1980,

lines contin and

of

thus the

they

volume defense second unit

count

busi

sales

near

in

oper binder strong less the

ther

in prod will intro

mar

and

ben

of

spe as

fur

for

in

of

year. to Weakening Road cies declined slight Construction which Road seas remained Road Operating contributor ary markets Sales three as Overthrust November, from construction sales of have to ($ growing for sales recent Making 26%

and aggregates company, and panies, of and that cialize and struction

the

aggregates

Road

was Millions)

aggregates

approximately

involved

The largely

produce produce bituminous Acquisitions companies 1979

Improved construction

50

depressed in

years Materials effect

weak Materials and

in

Materials continued

expansions.

in The

1979.

up which million

each

Materials rose

importance noticeably modest

highway services.

weak,

included

operating

income

Iwo

Belt

for

to

which second-half

offset on U.S. reflect Sterling

producer

in

market.

activity

from

aggregates aggregates,

of Road

this

fell

provide

that Virginia

a income

in prices

of 1981

income.

concrete. the

as

construction in

joint to the

gains

1980 in

drops

the operates

to

projects total 37%

somewhat and how

depressed

Colorado

a

account is

in

These

in Materials

1981 past Companies,

income 49 nationwide performance in

of

North

$541.9 Koppers $

also

venture

the Rocky

and

the and

construction and

1981 in

companies bridge in Southern

sales

construction

million high 57.9

of

market

Results

in

two

Western included

Road prior

and second

Road a Acquisitions

ready-mix The operating

services

sales

was

Carolina 54

in

for

large

interest over

Mountains.

and

as

years,

has market, income on the

construction, million 1980 provide

total

tons $531.7 $

year.

Sterling

the

Materials trends

a

engineered the

in Materials

1980

volume.

57.2 purchased several markets

Oklahoma

the Western significant

earthmoving

been

half

operations,

ran

a

Eastern

that

majority

shipments

levels.

in

accounted

result

services

up

A

producer

Florida services

rates

efficien

concrete

past

in

gain, which

1981, counter

of

subsidi

con had

from

spe

Com in

the

$454.1 1979. $

the

over

1979

1980

of

55.0

a

of

in

each other wood-treating Strong Operating similar construction ucts the areas Sales

helped ing of operations, efficiencies 1980. ($ ily transmission remained 1981 log sion, improve Programs roads

electric reduced high ments gradually of demand alteration gration serve chemicals were

and in but

the

Millions)

the in

increased

product

basic

at

losses,

major

Sales

consolidation Sales

Conditions operating interest 1979 of

wood

however, The

substantially Company’s affected

year

domestic will

this

during

performance demand

to

the

in

utility

income.

sales in

domestic

offset

large

strong over the market. carry and

income

implemented

fast-growing

of

business

of has end

the past

products

which

and although businesses

industry

rates

railroad market

poles wood-treating

construction.

production 1982.

chemical

1980 by

of

makes the

residential

income

raised

was

increase

for declines

out

three

hardwood reduce

remained

through

Demand

utility

the

Canadian

added

Increased

that

past

lower,

railroad

wood-treating

was

Strong planned

and

high.

line, in

penetration

$ they $379.8 has

since

depressed

crossties

years

Koppers

it

the

1981

dampened

poles

resulted

42.9

three market.

improved operations

energy

to

uncertain

largely

leveled

in

in

wood

$20.2

of boosted

thanks

1981,

The

continued

renovation

group’s

severely for

increase

demand lumber

other

Forest crossties 1979.

these

chemicaIsrose in

track spruce

raw

and

years

crossties

current

$380.9 $

Forest

climbed million. and treating.

capacity

offset costs

from

off

1980

21.3

to activity

and

product

Income

material

piling

and 20%

specialty that

improve Products income

activity

business,

specialty

has

disposal in

depressed

the

becaue

operating for

lumber

in

and the growing

and

Prod

helped

1981. by

reces

build

rail

1981,

over

back

$368.8 $ due

stead

A

to in

sale

in

1979

inte 31.9

in

in

the

to ______12 Management’s Discussion and Analysis 13

was due to technical innovations in the Com Peat Methanol Associates—a North Carolina Financial Results pany’s line of thermomechanical pulping project to produce methanol from peat, and Engineered Metal Products Engineering and Construction Sales and machinery. The new design willallow makers Miscellaneous Hampshire Energy—a project in Wyoming to Operating Expenses Operating Income ($ Millions) 1981 1980 1979 of pulp products to recover steam for use in ($ Millions) 1981 1980 1979 produce gasoline and other products from The trends in sales and profitabilityin the reducing plant energy costs. Orders in the ($Millions) 1981 1980 1979 coal. Miscellaneous income declined in 1980 Company’s major product lines over the past $342.5 $358.1 $328.2 Sales 58.6 64.6 Sales Company’s feed and grain mill business also $ $ $113$ because of lower interest and equity income three years were discussed in the preceding Sales $17.7 $16.7 $6.8 Operating income $ 12.7 $ (1.1) $ 11.4 improved. Operating income $ (7.5) $ (.4) $ 105 from Koppers investments. section. The combined effect of these numer In spite of lower demand in the corru Operating income $ 6.9 $ 4.8 $5.7 ous individual trends on Koppers overall profit gated box industry, 1981 results in corrugated performance is generally reflected in the rela Income improved in 1981 in almost all seg Prolonged recession in the steel industry’s container machinery continued to be profit tionship between the Company’s Sales and ments of Engineered Metal Products, revers major end markets has brought about a sub Miscellaneous sales and operating income able, as in the prior two years. Concentration Cost of sales, shown in Operating expenses ing a downward trend that had begun in 1979. stantial contraction in domestic steel procLc includes revenues received by Koppers that on new, higher-margin products as well as on the income statement (page 25). Part of the income gain came from a reduction tion capacity over the past three years. The are not the result of group operations. Sales cost reductions enabled the division to remain As a percentage of Koppers Sales, Cost in write-offs and other unusual expenses to low level of steel industry capital spendir.c growth in the past several years reflects the profitable. Overcapacity continues throughout of sales has moved within a range of less than $1.3 million in 1981, from the $12.8 millionthat during this period has pushed Koppers con Company’s increasing investment in energy this business. 1.0 percentage point over the past three caused the group’s loss in 1980. struction activity below the break-even eve. resources. Revenues and income from The near absence of unusual expenses Net Income years. There was some deterioration in the After a slow start, sales of piston rings The group’s 1981 results were further pena’ Koppers investment in coal lands in Ten Millions) in mineral processing equipment resulted in a ($ margin in 1980 with modest recovery in 1981. and seals grew by more than 20% in 1981 as ized by unusual expenses of more than $2.7 nessee come under this heading and account $100 slightly better than break-even performance in This gives an indication of the progress oper demand rose in the replacement market for million, primarily from an unfavorable law for the great majority of its 1981 and 1980 1981, versus a large loss in 1980. Unusual ating managers made during recent years to piston rings for diesel trucks. Greater volume suit settlement. results and nearly half of its 1979 income. expenses totaled $11.2 million in 1980 as reduce costs and improve prices wherever plus capacity additions that improved operat In 1980, Koppers and the Babcock & Koppers offers these lands for lease to inde reserves were established for plant closings, 80 possible in order to offset declining unit sales ing efficiencies resulted in higher income. Wilcox operating unit of McDermott Incorpo pendent coal operators. The increase in for replacement and repair of equipment pre and the effects of cost inflation. Nonrecurring Sales of shaft seals went up as a result of rated formed KBWGasification Systems, Inc. income from coal operations, as well as viously installed on ore processing projects, factors influenced Cost of sales in each of the strong industrial demand in the compressor to carry out engineering and construction of higher interest and equity income from and for losses arising from a customer bank 60 past three years. Costs were reduced in 1981 industry. At year-end 1981, markets for piston coal gasification projects on a worldwide Koppers investments, offset $6.9 millionof the ruptcy. The world recession in mineral mar mainly through adjustments that lowered pen rings had slowed considerably. Despite these scale. A number of projects involving the Company’s expenses incurred in connection kets, which has depressed demand for proc sion expenses, through a recovery on an current conditions, construction is continuing KBWprocess are nearing the final stages o’ with the development of synthetic fuels proj essing machinery, caused a loss in 1979 also. insurance claim, and through reductions of new plant that, by 1983, willsignificantly consideration by the U.S. Synthetic Fuels Cor ects. Koppers is participating in three projects 40 on a HHrM certain inventories that resulted in a liquida There was littlepickup in orders in 1981. To increase Koppers capacity to supply rings to poration. Several other projects that would currently being considered by the U.S. Syn cope with this prolonged recession, the divi tion of LIFO inventory quantities. These fac the diesel engine market. use the KBWprocess are in the feasibility thetic Fuels Corporation for loan and price sion is marketing processing machinery tors were somewhat offset by an unfavorable Sales and income improved also in study stage. These could result in contract guarantees: Tennessee Synfuels Associ adapted to new end uses and has formulated 20 I I II lawsuit settlement. A cost increase of $8.3 mil power transmission couplings as the result of awards in the coming year if suitable loan and ates—a plant to produce gasoline from coal, plans to introduce new products that will lion in 1980 represented reserves established greater demand for maintenance work in the price guarantees can be negotiated with the reduce its dependency on the mineral for plant closings and equipment replacement steel and petrochemical industries. Height Synthetic Fuels Corporation. processing industry. 0 guarantees that were not totally matched by ened manufacturing efficiencies along with Preliminary work is under way also on IIIIIIIII Environmental Elements incurred a small 72 73 74 75 76 77 78 79 80 81 insurance claim recoveries. Nonrecurring material cost reductions provided by a new various steel plant projects that could be loss in 1981, after a profitable 1980 perform forge shop helped to raise margins in this line. awarded in 1982. ance, due to the depressed level of new In spite of a sales decline, income was up Actions were taken in 1981 to expand tt’e orders during 1979 and 1980. A good perform in the Sprout-Waldron materials processing potential markets for Koppers engineering Foreign Operations* ance in the division’s air handling products equipment business in 1981 as the result of and construction services. The group ac line was not enough to offset the low operat Year ended December 31, Millions) 1981 1980 1979 manufacturing and other cost reductions and quired an exclusive U.S. license for electric ($ ing levels in electrostatic precipitators, water more favorable product mix. A substantial arc furnace steelmaking technology and fo a and sewage treatment systems, and sound Koppers Identifiable assets: increase in new orders during the second half bulk reclaimer systems that willdecrease control equipment. New orders were strong Foreign operations $79.1 $109.2 $70.1 dependence on traditional construction. during the second half of 1981 and backlog at % of consolidated identifiable assets 6% 8% 6% year end was up by 61%. Most of the gain Canadian identifiable assets included in above $23.5 $ 58.9 $60.9 was in precipitator projects. % of foreign operations identifiable assets 30% 54% 87% Koppers revenues (net sales): From foreign operations p0.6 $103.9 $88.0 % of consolidated revenues 4°’ 5% From Canadian operations included in above $62.8 $ 74.7 $78.0 % of foreign revenues 69% 72% 89% Koppers income (after foreign and applicable u.s.income taxes): From foreign operations $ 9.3 $ 2.3 $ 9.3 %of total net income 18% 11% From Canadian operations included in above $ 1.4 $ 0.5 $ 8.7 % of foreign income 15% 22% 94%

‘Koppers export sales are not included inthis presentation as they constitute less than 6% of the Company’s total sales and are not material of expenses

from lion

of than pressures profit. increases ried during the to and not greatly

over in Koppers the taxes. asset 14 estate, each resulting growth trative

sales, recent

increased

Operating Koppers

At

Cash

($millions,exceptpersharedata) *

Restated

sales

1981. operations.

high

Total

Net

Income Total Income

Redeemable Long-term

per

directly

year

Company

result

in

through

The Managements

amortization,

One

Taxes,

Selling, 31%,

the

7,3%

—per

preference

redeemable year

base

Declining

1979.

from

dividends

expenses

years. sales

1979-1981

common

expanded levels

personal

in

to

assets

long-term

same

relatively

Operating

in such end:

of sales.

increased

in

made to

Selected Sales compared

more

selling in

from from

related

the

in common

other 8.5%

results:

other to

higher

reflect

research,

1979

of

recent

lowered debt

These

expense

period.

the

smallest

unit

operations capital

operations

This

than

convertible

it

share in

property

stock declared

also

than was

in

and

up

the stable

operating

to preference impossible

Company’s

debt

compliance

to

recent

wages

profit

Discussion

1979

sales

Cost

years.

5.0% increases

Financial

by share was

the twice

with

Company’s

went

Depreciation,

research

This

income

its

general

investment

and that

$20

rise

relationship

Company’s to

margin

capital

of

due and

years

and

a

in

and

increase

as

up

9.4% In

million, 10% sales

rose

costs

in

1980

with

to

stock

1981

to fast

social

taxes increasing

in

depreciation Operating

salaries and

reduced

Data

and

expenses.

was

offset

rising

investment,

on

relation

sales significantly

in

Statement depreciable

by

and

that

as

that

adminis

however, or

1981,

sales

depletion

Analysis

was

increased

security

not

of $3.2

volume

the

more 4.9%

were

$2,018.6

real $ $ $1,328.2

$ $

gain $

$ have

and Cost

car

to

due

cost

as

mil

288.9

363.9

1981

51.6

1.58

75.0

1.40

of

in

Pinancial

than Other • Other

reasons:

$3.50 Earnings

2.50 3.00 2.00

1.50

1.00

$1,929.2

$ $1,389.5 $

$ A $ Company’s $6.5 than disposal which $

in $ .50

0

capital

1980*

Organic

in

Accounting

308.7

383.7

income

54.0

75.0 1.98

1.40

Income

_-1Ii1Il million

the offset

72

added

Per

prior

111111111 111111111

of

gain

73

$13.2

Materials.

Common

discontinued

loss in

$1,828.3 Canadian

$ $ $1,140.7 $

$

$

$20.2 Standards

two

74

realized

1981

1979*

224.2

224.2

flit,

84.9

3.21

incurred

1.25

million

75

years —

was

million

Share

This

76

lumber

on

in substantially

for

$1,581.9

$

$1,036.1 $ $

$

$

operations,

77 for

the

compared

write-offs

in

1978*

a

233.6

233.6

1.125

76.0 3.01 similar

1981

78

number

sale

business, —

I

79

and

of

______

from

80

$1,355.7 $ the

$ $ $ mostly with $ higher

$

of

more

870.3

152.0

152.0

81

1977

66.4

2.64

a

.95 —

•

I

•

of

Interest past commercial 8¼% interest issued capital Interest year working pleted raised 1980

and increased 11¼

Income than grew Provision high 1981 factors sales Canadian were lower the factors tion credits, tive

shown

disposals earnings An equipment sus assets, Higher ized rials ects. largely participating development rials A in

ing higher projects. 1981

Other

gain

lower

Table expenses

long-term tax

three over %

the

as

tax

Koppers increase

after

1981 by the

increased

substantially

industrial

capital

business. subsidiary, in

a

its

and

as This requirements.

promissory

in rates expense in

that

borrowings

rate

from

income $100

capital

use

rate

a Taxes

levels Expense in 1979

income due

primarily

two

use

cost

Table for

the it tax 6

falling years.

only

lumber

greater

than

of

interest costs

more

in

improvement

influenced paper (page

for

of

by

encountered

escalated. income

the

to

investments affiliates

prior of million rate lower

from

pretax in 1980

depletion,

representing debt

in

of slightly

short-term

costs

in the development 5 needs.

Road income

commercial

by benefits

the

in rose from

overseas effect

increased

than

short-term

acquired (page

operations the

on

margin

from to

33)

years.

reduced the the income notes

business and

past fell

tax went

Company’s

private

taxes cover

income

capital for

In

prior

sharply Materials

the

overcame in

in shows

sale

prior

the Interest by

of

rates

with

increased

from 1980,

In

three 32).

the three

from

and

1981 up

and

was

percentage sale

in $20 and

debt

on

1979, Company’s

constructor two

generated

rose in

peak

of

for

part

tax

two placement

the

a in past

gain

paper

investment

segments

in a

from and because

bonds the

Koppers

substantially 1980, the

in

years investment a

million. net as substantia

weaker synthetc of

each

the expense Road

years. was

1979

credits. in

Road

recent

$15 sharply years. equity of 1979

working

cap;a $6.3

sale during two

income

distributon

because

gain

1981

sa:es

the

use

Kopoers

to

tha’.

reduced

year are

were

minion

anc

Mate

years, and

meet

mif

deple

o Mate

by effect

of exporf

com rea effec year of

Taxes in

ver. for of

Major is

proj fje’

djr

the o in

the

1980 and

tax

on

in

The

the -

of

of

Financial shareholders expansions, This how Liquidity funds port three been Total 1981, years dend funds $45 payments generated of total of ing mon Term graph the have out Car vertible the (8

40 25 35 20 30

15 10

The

The U 5 The

convertible

Millions) 1980

1981, high during Company’s

sales, Company discussion

Koppers

financial

stock

used. met years debt making

Dividends

payout

generated

of

paid

accompanying

period below. accompanying

—.-1IIIlII

produced

preference

72

capital

levels

but

a

in

was

to 111111111 from

did 1979-1980. to

and

high

73

to

Koppers

for the

repay

encompassed through it holders

provided

needs

preference

11111111

not and

provide of

possible

increased Condition

expenditures

has

74

the investment show

Paid

the

proportion

issuance by

capital

a

increase

the

debt

75

issue Company’s

significant

Koppers

been year,

over _nil

of

tables history. dividend

how The

table

reduction

funds

liquidity

76

the to

and

expenditures

as went prepared the

stock 11111

in

funds of

finance

these

77

in

substantially shows of

Company’s

1980

the shown

summarize

750,000

to over

needed

and past The liii

Richmond

the

rise

largely 78

payments.

during compensate

near

operations

three

from

funds of

to

rn

dividend Company’s level

the

three

capital

that

79 in

debt. to

in

finance

the

shares

total

to

the

past highest

report the

toward

carried 80

1979-

funds

have of

com years. sup

the

close Tank

dur

con

divi

81

flow of Cash Company’s pany’s Cash ing strength

reached past Company’s Koppers business past expected growth of 11% Depreciation rise Funds

Funds

Other ($

Koppers Capital Term Total Common Investment Other

($

Koppers ‘Depreciation

• performance

capital

Other Net Deferred

Plant Term Equity Sale Common

Preference

are Compensated Restated Millions)

Dividends

capacity.

Millions)

so

generation,

three

Total 10 Total

in less per

flow

Flow

capital

debt

already

income

liquidity.

sources value

long

Total Generated from portion years

Total

of

dispositions

expenditures debt

underlying

a

year, cash

in conditions

dividends spending.

to

cash

funds serves

fixed

years

dividends

plateau

Use

management

to and

earnings debt/equity

taxes

net

as

in

increase paid

stock

investments

of

and Operations: has

accounted reflect

at

compounded. flow

stock to

Richmond

“ of

Koppers

of

flow These

criteria income

capital

investment assets

Absences,

an

working from

because of

on

common

as

cash been

capital

Funds

and

issued

has average

funds: compliance the preference by

received

Koppers

in a

issued

and

paid”

of

operations moderately

measure include

major

flow; declined leases to Koppers the

increased Company’s

due affiliates, for

position

maintains

capital

employs

lease

decline

Tank

measure

of

and

stock

in

most

to

rate

the

it

net

This

end

depreciation

and will reclassified

trends

retired

weakening

with

Car

obligations

of

income

decline

slightly used

consistent

and of

in

trend markets.

continue over preferred

a

the

a

Statement

Company

the

more

liquidity.

number

1982.

high

borrow

in

and

Com

the

to

cash-

in

in

to

than

common

level

the the

the

is

shares

conform

to

of

Financial

$150 Cash

($

are

stock.

125 100

with

75 25 50

Millions)

not

Flow

Accounting

____

1981

$

$132.1

$143.8 $

$189.5

shown $147.3

$182.1

$244.1

1981 72

1981 83.6 43.8

38.3

34.8

38.8 21.3

3.5 7.1

1.2 4.6

5.8 1.6

classifications IIIIIHII 1.9 “I’ll” —

73

here

Ill”

74

Standards

______

as n

75

a

$

$134.6

$133.8 $ use

$378.3

$216.9

$230.9

$321.4

1980*

76

134.6

78.9 53.4

1980

26.4

72.6

10.9

37.8 50.1

14.0

2.3 ‘II” 11111

of — (.8) —

2.6

No

77

funds;

43.

78

Ii

Accounting

they

79

$

$141.5

$141.0 $

$218.0

$177.1

$177.1

1979* $249.7

60

63.6 84.2 1979

32.2 29

15.2 (6.3)

32.6 39.0 — (.5) —

1.0 — —

81

6

for years. from efforts within tion Working declining ther, tal

at to stock priate funds Koppers Working reduction use increase payments assets Richmond rary up way amount million. withstand 16

build

of been the costs in sales

effect prevents accounting result of ($

sheet). its

ment

Company’s

support.

Working

year

Shareholders

LIFO meet

1974,

inventory

the

at

Millions)

Company

value

overpayment to

in

Managements

condition

management

in

the

the

plants.

affected

in

temporarily to of

a

of

from This (on completing

of accounts

Company’s to

which over

end.

accounting

narrow

day-to-day

of This,

December of

weakening the

issuance labor Capital

this, close has

in

reduce

of

Capital business

the

of

due adversity,

the

financial Tank

the

capital

has

1980 the

inventories

during current

These

level

corporate

accounting.

working

funds maintained overstatement

therefore, the

however,

income that

and

last-in, from by

of

use

resulted

range

Car

receivable

working

should

inventories

level

of the

1980

of

held the

of

is

has

resulted

current

materials

funds

and

inflationary

of

excessively. business

of

flexibility

recognizes

customers

day-to-day liabilities

Discussion

Company business

income to

the

convertible

Company’s capital

$270.7

first-out

purchase

first-in, 1980

over statement),

of

would maintained

debt.

pay

in

1981

is financial

(on

leads

be

from

surplus

its working

were capital

cash,

an

assets,

was the

dividends

cognizant when

so

the

working

of taxes

to

can

Excluding understatement in

a

obligations,

and

first-out management’s have

conditions.

to

(LIFO)

that,

and

times.

$325.0

earnings company

intended past

levels the

would

working balance the

business

and

held

of

The

of

understate was environment,

preference 1980

realistically

$53

use,

indicates

capital

specifically

that

and

close stock

cost

current for been

current

in

three

Analysis

capital

large

in

a The appro

million

method and

a of

not

(FIFO)

the

starting

would

thereby

tempo

these cash

of

$265.3 capi

and the for

atten

$272

in

has

the has

to

tie Fur

to 1979

the

for value and Inventories: This value) the the Excess would since the power tially short-term more working accounting presents term ($ current LIFD, and

Working including within stated inventory the maintain generally liabilities years, can been rent ($ trates comparison

using Current

Inventory

cost

Comparison LIFO FIFO The

In Millions)

the Millions) FIFO LIED

growing

Company’s

additional

reasons

FIFO

would

disparity

have

the

ratio

funding

increased

over closely the of

were

on

fact

the be both this

that past

that and

and

of

liabilities.

the

capital. past, ratio

capital

what LIED

a of adoption

methods

if

of FIFO value

FIFO applicable a

business

value:

LIFO is point.

business

have the

ratio a the

FIFO it included types three

after

approximately Company’s strong

disparity

less

just

of that

prudently to should

approximates

has

tax

a

accounting the

Company

of

value

the

the

balance

maintain widely

of

required

discussed,

1974 inventory

than

the

2.40-to-i years, 1.99-to-i the

Continued

of

liability

grown

Company’s

current

of of

liquidity

Company’s

Company’s

and

inventory

obligations.

be

in

of $340.6 FIFO $126.8 to Company’s

the

accounting, between

$391.0

1981

2-to-i.

would

213.8

accepted 1981

current

run

1981

inventories

companies recognized

inventories using

financial sheet

the wider

would actually

LIFO

greater

for

value

assets

values,

2-to-i,

corporation

position

the

2.34-to-i 2,02-to-i

this

use current

have The

a

valuation

both

$349.6 working $109.3

the method

(LIED assets

$432.0

every

current

number tax purchasing 240.3

be

1980

1980

of

is The

of

1980

rule

following

community

inventories

has

use to

or

illustrates

substan

current

rather

no

inventories

reflected

liabilities carried the

FIFO

that

that

with

(FlED

current

level

better,

value).

following

year

of

to

of

longer and

2

1.98-to-i in

LIED capital

ratio

should

$305.0 $ illus of have thumb

they

30-to-i $354.8 meet

long

a

211.9

than

1974.

of 1979

93.1 1979

cur

if

1979

on

For

in

As commercial gations was annual to Borrowed commercial During working the operations, at in ance net result

Koppers issuance vided connection Company. number to issued 1980, issuance obligations preference 10% debt Although pany three debt capitalization within Financial Company’s past

Koppers

year In cover Dyer 1981,

repay

shown

term year

significantly the

$9.8

level, by 10 of

reduced Koppers

years of

net

Koppers

the

2.8 interest

end.

remains the

with

industrial

years.

$19.2 period of

capital. at an

peak

borrowings

indebtedness.

obtained

of

of

additional million

proceeds

in

Structure course million

During shares $43

the

ability

Funds three-year

increase stock

with

primarily by

750,000 The have paper 11.25% paper

debt the the

working

has million.

term

$19.7

debt

million. received

rate

1979-1981,

self-imposed

chart

maximum excellent.

acquisitions,

use

term

lower

level on to increased development

common

1980, of outstanding

remained

$15

and

bearing

was

debt

portion

of

financings promissory meet shares

million

any by

of December in

from

on

loan.

period,

$72.6

million

capital averaged None

than

cash revolving

commercial

$55.3

During

$20

$100

used

and

year, the

its

a

Koppers

outstanding

a

shares,

of

of and

in

million

the reduction

million near generated short-term

was opposing

17.3%

capital

million million. from limit boosting

at

the

requirements.

Koppers convertible

Koppers

1980

by

1981, in

bonds.

Company’s

23,

notes short-term various

30% bank

outstanding

the

30%,

Company

11%.

of

the

was

primarily

to

as 1980

paper

increased average

from lease

35%.

the

past In

the

over and in

the credit

issu

the page,

During

during

total well The from

obli

uses

used 1979,

times

Com

pro

the

The

a

the

in

the vides expanded should highly cussions has Moreover, ing To improvement working maintain ment generated expenditures, atively million tunities arrangements. Koppers could ing in ing however, looking

At

Unless

Koppers

maintain

various

the the 1982.

invested

the

was

for

elect flexible

low until

be

coming options

and,

ahead

close

capital

capital

expects revolving

could In

no market

unused

redeployed.

management

bank

funds

level

financial businesses to

addition, September

liquidity

therefore,

immediate

to

during

secure position along

of

to

The

available year,

determine lead

required,

credit expenditures of

and i981,the

conditions

possible

to

at

just

credit

Company

be and

to with

structure, the

the

or

the

the

external

agreement

to

the over

is Several

able

30, in

beyond.

plans

close continually

year,

the Company

for

fund

any constantly loans use

through

which

whether

investment Company

sale

1986.

$100

future to show

flexibility

of

increase

is Koppers for

in

future

financing

of

management finance

of

current

of

current

continually

There the

1982

The

1981.

million. doing

up

that internally assets

significant

financing.

any has

reviews

examin Company

growth.

was

to

agree

at

desired

oppor

pro

in are, those

dis will

assets an

$200

so. credit

a dur

dur

in

rel

a

$400

Debt

*Does (S Total Koppers December

Equity Total * 350

*Restated

*SEC

Millions)

Compensated included being

6% Term Pollution 8.95% Capital 8% Industrial Total Dther

5.8% Common Revolving Debt 11.25% Total Preterence** Preferred

Used

Debt

Capitalization

not

regulations

t • • • • R

Notes 62.5%. Notes

due

loans include

Notes

31,

Total Bank Commercial Long-Term Revolving Short Pollution

to

in

to Note

lease

Promissory

control

debt. development

within

Support reflect

credit

payable

Term

Term Absences.

Capitalization obligations

obligations

require

On

Control

one

loans

loans compliance Credit

Debt

Loans

Debt

this

Paper

Operations*

to notes

year

that

banks

basis, bonds

Loans

under

capitalzation

with

1981

S

certain

$

$1,030.3 $

$ $

Millions

Financial

debt

629.1 311.2 100.0

719.1

60.0 25.4 40.0 32.0

22.2

10.8 16.0 75.0

15.0

2.2 2.6 — —

leases.

1981

raIns

would

Accounting

Total

100.0% %of

61.1% 30.2% 69.8%

also

9.7% 2.5 3.9 3.1 5.8

2.2

7.3 1.0 1.5 be

1.4 — —

.2 .3

37.5%

be

shown

Standards

$

$

$1,040.0 $

$ $

Millions of

619.5 330.5 100.0 709.5

total

40.0

26.0 60.0 35.0

21.9 75.0

12.5

17.6

15.0

with

4.4 9.8 3.3 —

1980*

capitalization,

No.

redeemable

100.0%

Total

%of

31.8%

43, 59.6% 68

9.6%

3.9

2.5 5.8 3.4

2.1

1.2 7.2

1.7

1.4 —

.4 .9

.3

2%

Accounting

$

preference

with

Millions

$

$582.2 $241.6 $597.2

$838.8

40.0

26.0 60.0

38.0 24.4

equity 126

12.6

17.4 15.0

6.6

4.0

for — — —

1979*

stOck

100.0%

Total

%of

69.4% 28.8%

71.2%

4.5 3.1 4.8 7.2 2.9 2.1

1.5

1.5

1.8

—% — —

.7 .5 Capital were

the continue the

new because Koppers gram pany’s pany’s no Total equipment. product capital Company. reported Koppers investment 1981 order

18

Expenditures

$250 Capital Investment

ing Investment

($

($

The Capital

Car

Richmond

millions)

meaningful Millions)

foreseeable

common

group

Managements

or

were

consciously

to

to Capital

capital

Company

major expenditures

history.

rapidly

Expenditures

improve

lines

illustrate

total

on

of

include has

investments

is The at

from

continued

in of

several

Expenditures

shown

the

stock

Tank

ample

to end

capital

investment

these

Expenditures

growing

impact

The

following

supply

future.

total

highest

the

plant

better

reduced

markets.

of

lower

in

capacity projects Discussion

expenditures

Company’s

for

expenditures

capital $182.1 $147.3

Richmond

weakness on

Table

in

operating

customer 1981

products.

34.8 the

property,

table

the levels

the

figures

1981

by

Investments

three-year

6

two

expenditures

associated

Company’s

in

on management

separates

level

$216.9 $230.9

in

virtually

and

Tank

years

efficiencies.

1980 that

in

investment

page

14.0 the needs

plant

by

in

the

will

Analysis

operat are Com

1981

Car

trend

33. prior

Com

and

have

all did

for $177.1 $177.1

with

that

pro

1979

As

in

to —

in

in

was was capital duction erty, shown Company ranged period, ment major pleted nate summarized produce 1981—Road nies struction grams aggregate ready-mix several facilities rials was phenolic plant, treating improved wastes ucts

ther completely modernized expansion Baltimore In

high-speed pleted ing pany’s in

mond neering increasing 23%. Koppers

vices, 1980—Road aggregates North group izing eral reserves

at

Major

A

In

addition,

A

a

crushing

and

devoted used project

plant

company in or to

increase active small

started

Engineered

in expansion

and

portion

in

in

Tank

at in investments. Carolina Florida

during

modernize and

the bring from

also

order

coal capacity, as expansion

chemical

handling expenditures

highway that

research aggregates

each

foam services.

various

(SEC

purchased to

and facilities.

its

in piston concrete construction

fuel addition

reserves

Company’s

on

in

two its

construction

new was

Car

diesel

increased up purchase

4.5% properties,

Los Materials

and

plants. will below.

and

raw to

pollution

the to

Materials of

Koppers

the

equipment.

ownership several of and

associated

insulation

and

Schedule

a

increases

companies

and

modernize, each

Company

and

under plant

Angeles produce

the

Metal ring expanded or crushing

material plant supply group’s

and operations

year. operations.

was

to

an

The

Colorado-Wyoming piston and

was

reduce During

to

and

in

Colorado

past

and modernization

10% additional

and

important

year’s

bridge

or in to

projects improve

machinery acquired

Denver

completed, sand about

way group

expenditures Products, capacity

modernization was

acquired

a made

that

Georgia

civil

satisfactory

was

acquisitions

board.

bituminous

three

of V) rings.

and the materials

modest shaft in position

with The of

the

plants. early

plant

in

in the to that

started

Koppers

and

expenditures the supply

on

also

construction construction.

mid-1981

Company’s started

also

The

Virginia

Organic completed

three-year to and that

increase great

genetic

to efficiency

years

seal

stock

Company’s

A tar

three page

to Forest in total company

energy

the gravel

companies

that

two

and

use

was foundry

investment

group

increased

the in

completed produce and

produce

processing

process

on

programs civil

facilities.

majority

Com

its and to levels

on

spent

are will com

projects prop

in 34,

compa

wood

equip

special year,

pro

com

engi two Mate

that

that

Prod

elimi

wood-

pro

Rich

costs. a

con

also

a

fur at

sev

new

ser

to

The

for

in

to out cal plant genetic projects and burning

batteries investment capacity, 1979—Organic increased. by by KMM of reinforcing and and plier toward services. cies to A couplings new following changing Effects product

20% Returns Equity

4 2 0

Expenditures the Forest

discussion Road

Forest a Engineered

provide

25%,

100%.

and

in

its

Tulsa

ready-mix moved

at

forge of

to

Organic

cold-applied Company’s

coal

the

and

aggregates

tar

modernizing

engineering produce

wood

Materials

that

lines.

polyester of

on

Products

that 72

Products and

page.

supplier

prices

operations

shop gray

Company’s

processing Koppers

in

products

Inflation on

reserves, into

Average

will

73

added

of

Richmond expanded

wastes.

Materials.

Metal

Average

concrete,

Materials

to

iron

Oklahoma the

to

74 reduce treating

and

Canadian purchased

modernize

had

resin

of

serve

investments

roofing

as

effects

established

castings 40% research

75

and

Products

in

Common

aggregates,

inflation,

and

and

Additions well

facilities

work

treating

South-eastern

Total

capacity

76 plant

Tank

resorcinol

chemicals

power

and

improving completed

to

an

acquired

materials

with as

on

77

foundry

lumber

under

investment

used a

construction several

Car Investment company energy

steel

the completed

begins

Shareholders’

plants. leading

were were

the

78 transmission

an

were

by

Company.

bituminous business

way

in

capacity

concrete- initial purchase

79

and a efficien

facilities

25%

two coke capacity

carried

directed

several

costs

chemi foundry

on

states

made

sup

80

on

was

on

coke

in

the

and

a

a

a

81

by

of

To

throughout declined an Most operating that intense. sales, did Upward Management relationship efficiencies; Koppers number pay ing stepped plish in enjoys unit Chief ments. most sively ket Letter fied sales the brunt

tions Koppers operations.

1981. of used number ating 1981, decline. ings This more $50 versus thetic reduced

Koppers spite First, Second, Third,

Work-force

The Koppers already The

1980

and not

shares.

sale

sales. management’s off. Our

the

this of

per per pushed

important will

to

fell, This of level

produced

than discussed in

fuel

fall unusual leadership Company’s We

of we

Koppers a

overhead

was

$.24

of In

pressures

the lower

of we of

1981 up

even

performance

share. share.

in

earnings shed

earnings $

costs

it

weak

spite

resulted from

businesses

Shareholders: projects poor

the

was used

half Company adjusted we Financial 1981

management

15 was several Even

capacity

modest

of drop. However, discontinued

in

cut

per

the

to

per reductions further

the 1981

Actions

Company’s other capitalized $34

of

businesses, items

not were

of

Four demand, 1980.

business

$6 our maintain from by

that

share

major

decline on

in

the

costs,

share

Company’s

in significant

of

by on

million

expenses million in

ways. carried some 11%

lowered operating efforts

improvement

competition pages

plant product

major

position

utilization factors

$.26

employees $40 unremitting, as

weak mentioned This a

$05

the raw

at

to

capital

end

charge

the

reduction

during and

the for

increase worked

or were

were

five cases

discontinued environment,

per

operations

in

per on

materials

in can

per to

Canadian

end

through 13-14.

demand,

markets

the

year increase the

earnings

sales

operating accounted

operating

to lines,

reduce

deterioration

more the

Officer’s to

share costs. product

share gain

sales

share

be

through another

against beginning

increase

market

1981. Company

year

develop where

that

above

fact

at went

to

It

at and seen

that,

operating

in

we

aggres realized

indicates

to the

accom

and and to

the The

suffered

earnings

in operat

to

bore which

1980.

lumber

our that, in

by

earn

lines at

on.

cost

level

losses.

seg unit 1981, close in tool opera

higher in

a

for

oper

other nulli

$15 times total sales

syn

mar

to the

the

for

in

of in

on

sales was share, per due share

per Operations ment tion costs accounted advanced approach customer large future coatings, higher further chemical businesses tional essing this that internally resins

competitive sustained market product making Overthrust acquisition Koppers income plant

The

Reductions

Some Aggressive

Actions In

We

Numerous

Innovations

share

share

to

significantly

is

has responsible

Organic

of

cut coke

are

productivity in

reductions

introduced

years.

from expected net

and lower

income

are operations

acceptance

the

adjustments

1980.

thermal in

of

the

into

summarized

polyester business produced

in

difference base.

the effect

that from

a

a

for

designed adhesives. the

inventory,

Belt

convertible

$49

near

as

products 1981, high

few capital Strengthened

total

Plans

Materials,

the Road

break-even

in

marketing the

that penalized

foundry in major

a

in

Unit

of

Koppers

to per

and

for the qualities years.

such level in

active serious a

1981

compared

balance. contributed Colorado-Wyoming.

and

these

become cut

to

in

new

operating

Materials resins,

$.24 investment raw has

share

close

from sales

to

for greatly

steps

raised

1981 consolidate

in

of

fuel other

here.

should tax

resins,

preference

increase

coke

Rocky

its

roof

been

lower materials

of

tactics

nonrecurring

income the

loss income

superior

year point.

of of credits

in

will

and costs

price

the

taken

a

capacity

expanded Organic

insulation earnings

with the the coke

operations

operations

high-volume

costs.

excellent,

to

position

lead

protective demand.

lower

to $40

Mountain

other

and

produced We

higher year prior range. the

and

in

year.

to

tax $02

to

operations

in

doubled.

to

dividend

to

1981 earnings

reduced export

reduce

$.28

use

our

costs

those specialty Materials credits

raised

utiliza

moved addi

year.

of

per

factors

to

Pay

board

our

Initial

An

and

proc after

of our

per

in

of

a of of the effects Some The adjusted income ings Table income been purchasing income

Changing

Operating For Operating 20 Other

Net

Average Income Income Interest Provision Gain Net Dividends

($ Earnings Effect Increase

Increase *

*Currentcost

*At

the

Taxes, Cost

Selling, Depreciation, of Cumulative

measured outstanding Redeemable

power over plant

Inflation

Thousands,

Company’s

the

sales Company’s

income

Chief

have

administrative

property,

December31

seriously

from

more

income

A

of Conclusions

of

of Year

tax taxes taxes

increase

expense

and before

(loss)

for

increase

number other

of

inflation

in

per

for sales

(decrease) risen

Financial

Consolidated

research,

expenses:

profit

decline on:

Prices

purposes

power

obvious

current

by net

general on

equipment

(loss) Ended

plant

income

share

are, as

and

preferred

the

during

eroded than

from

except

income

considerably.

earnings

amounts

Koppers

convertible

results

depletion

a

in

of

are

1981,

Consumer constant-dollar and

in

in

of

percentage

in

applicable

general expenses

cost December

of

shares income Officer’s

effects

operations

general

effect,

inflation, general

Concerning the

purchasing

taxes

and

not year

equipment,

in

common

per

by

the

taxes

of

held

stock

specific

of

doHar.

is

owed

deductible

Statement

a

inflation, operations,

and current

share

inventory a

confiscating

(thousands)

of

of

price preference

larger

Price

taxes

and

during

return price

Letter

Because illustrate

common

the

to

amortization of

31,

Profits

amounts stock

net

figures) prices

common

Index.

pretax cost

level

declining

portion

the

1981

level

while

of

the of

for

and

of

of

as

capital,

accumulated

have

some

Effect

the

stock

stock

year”

inventories

capi

earn are

Income

property,

of

stock

expressed

As

1981

adjusted taken zation adversely shows cash severe tal. impact and its performance

From

was

depreciation,

Reported

Statements

Koppers

operating

Consequently,

Historical $2,018,562

$ $ in $

the Dollars

FinancIal

$337,263,

1,597,556

1,919,633 flow

alone,

average

Operations and

that

189,358

of

as

potential 49,155 83,564 98,929 20,660 34,061 85,528 33,886 51,642 43,757 27,667

depreciation, Cost)

7,285

inflation

considerations.

the affected.

1.58

net

600

cash

does

of

in

would

was and

and

and

inflation-adjusted

1981

Current

income

flow

$924,748. .

not for

investment the

financial

on the

for

dollars.

Adjusted

$2,023,902

indicate.

$

$ $ $

(Constant

growth

2,000,004 current 1,625,317 Adjusted believe,

the

on

General

maintenance

Inflation

189,358 with 136,174 Purchasing

Dollars) depletion (28,866)

(36,751)

49,155

23,898 34,061 33,886

27,667 15,183 21,365

an

5,020

7,285 Company’s

(1.33)

Changes

Combining

600

condition

deferred

cost

inflation-adjusted

continue

Koppers

decisions

however,

for

(Current income

and

for

are

Power*

in $2,023,902

$

$

$ $ $

of

1,619,248 Changes Adjusted $ 1,990,805

taxes

was

to amorti 1981 Specific

inflation-

bases

133,044 capital 189,358

(18,762) 150,803 (26,647) 131,475

that

49,155 on 33,097 34,061 33,886 Prices

27,667 15,124 16,088 21,365

19,328

be

data,

7,285

Cost)

as

(.96)

600

the

fore, gain eral with inflation ties historical-cost over etary ing basis tion ing accordingly inflation continuing power. $1,094.4 close assets tor, faster change ment, million. ingly, Company’s slight reflect be inflation recognizes because substantial method This, the historical-cost in materials 1981 could current-cost prevailing inventory constant-dollar rent

amount. disposition by ognition and required current-cost

A This

At Table

Within

1981

For

increased

$9.2

operations.

net

cost

cost in

on purchasing purchasing

dollars

of costs equipment the the the

than

liabilities

in

the

was

of

impact

and

excess

pace

not assets

Koppers represents

adjusted

$21.4 monetary In

inventory,

The

resulted

turn,

million,

only A

on permits

of

the increased

of

effect close holding of million.

that

This operating the

value for

1981,

in quantities

be during

indicates

approximately

net

of in

inventory operations,

sales,

1981 nonmonetary

increase

of current during possessing

current

assets recent

cost

included

the

slightly, or

increased rate prior million amount

sales

even from recognized

involved

by

results of

monetary

operations,

basis

of is of

earnings

of Koppers

the and

from basis.

seasonal power power

the

for from

In reduction purchases. monetary

period

the

excluded

of the

1981, liabilities inflation

would of

property,

shareholders’

years, an

inflation each

under the the

year

over

by constant-dollar expenses,

sales. the costs

cost

that

from repayment inflation by

carried

in

same

costing

in since

last

principally to

its unrealized

in the

nearly

first

adjusted in whereas

the 1981.

gain $11.4 of

adjusted

effects

inflation-adjusted

of

its income

reduced was constant-dollar

historical-cost of adjusted normally case,

items

of

experienced

the three as

assets

constant-dollar the under 20% beneficial

of net

upon

patterns,

However,

the

a

of assets)

lower margin. Company’s

liquidating from

(monetary actual nine

because plant net

compared at results write-down employment

These

increased

used

consolidation

approximately

million decline property, 50%.

amounts

assets

the the were

lower

of less assets

months.

of

such

either

from months

value the

income from

equity is gain. cost

and

recoverable

purchasing

general

show

sales

1981

borrowings

effect

major

by

recognized

Accord

because approach.

benefits

and than from

effect

effect

$1,072.3

on the

the

costs

net

in equip and continu

the Koppers of

LIFO

liabili a at

the There of

owed. plant

sales

figures net

with at would

a

gen

only would

only

net or of sales more is

of LIFO

on of

the

fac the hold

mon

or

rec

and

a cur infla is

on

of

or

a

a

value amounts. should current-cost average dollar sidering recorded not on Mineral B Information lower A. Chief Senior February

Table

Net

Historical-cost

($

similarly

The

William

Adjusted

page

Thousands,

at

Sales

Financial

of

level inflated and

five-year

B

be

Vice

certain

for

Reserves

40.

1981

22, on

Recognition

shown

Capone current-cost

show

Comparison

of

on disposition

President

accounting,

the

1982

for

other

current-cost dollar

Koppers

Officer

information:

except comparisons assets

books

restated

general

at

income

net

values.

of and

the

per accounting. of

in

realizable

mineral

the

assets

of

dollar

the

1982

Company or

share

under

Selected

reduction

constant-dollar

Company shown

resulted

information

held

reserves

figures)

constant- value

in for

is

Supplementary

of

Table

con

in

and

as

sale

the

is

the

in

years, current-cost adjusted The with Methods or shown equipment statements anticipated amount could historical-cost pared accounting was dollar quantities both We prior-year Current-Cost Constant-Dollar Consumers arriving 1981 Under approach and published rent nizations

In

its

used

(Historical

adjusted

equipment purchasing

As cost required

1981,

the

dollars

equivalent,

1981

not

or

by

Financial as

the

at

to

at

Reported

constant-dollar Statements

current-cost

for

the

converting was

compared net $2,018,562 and

be

of

carried

two statements:

most current-cost its the by

from

Financial

in

sale

methods,

‘changes (CPI-U) method).

(the

Computation Consumer recognized

realizable

lower

information the

for

comparison

estimated internal

constant-dollar

earnings

items

Method

closely

(including

Cost) of its power

expected the

federal

constant-dollar

at

Method

Data

the

current-cost

in recoverable

lower

with

had historical reduction

to

assets approach;

sources.

asset.

(1)

in

approach,

equivalent

measure

reflects value,

of

Price

and

by

Adjusted

government,

under significant

the

specific shown

with costs liquidating

the

mineral $2,023,902

to

using

current-cost

held cost

be

Index—All

restatement.

the amounts

beneficial

of

historical

The

either

reproduction

or

amount.

prevailing

derived

in

(2) general

method)

property,

1981 various for of

prices”

amount

property, to

constant-dollar

resources)

Table

indexing effects

1981

for a

that

sale

LIFO the

private

write-down

into

effect

cost

from

A Effects Urban

Under of

inflation

constant- financial

purchases

indices should

of (the

or

inventory plant

in was

upon

average

plant

dollars

$2,124,956

cash,

cost

prior

and

orga

the

cur

on

pre

both

and

be

in 1980

of

Years

(In

Changing

ciencies and ods depletion any and assets and depreciation restatement cific or Inventory the tories involves using restatements under and already mined between require standard produced occurred and adjusted recognize purposes reflecting

Average

Cost The Other

decreases

Ended

year.

technological

as does current

thus when

price (2)

the $2,283,326

with

the

actual

by

are

used

of

adjustment,

approximate

a

income

two that

the

was FIFO

since

costs

same

and proportionately restatement

combining average not sales

LIFO time-lag

and indices.

end-of-year

Prices any

FIFO-based used

1979*

December31, 1981

cost,

of

time in types

may allocated

provision

of

necessarily

in

only

amortization,

inventories

average

general

historically

the

companies

in inventory

useful on

property,

other

to

and

was Dollars)

the

effect

be

changes

adjusted primary

adjustment 1981 of replace a

as

current-cost

certain the

experienced

the

inventories adjustments:

cost

based

on

lives

inventory

to

inflation they

for

inventories $2,197,585

costs

at

dollars.

cost

current

method a

inventories

over plant take

were

reported

the

taxes

components

existing

are financial

current-cost

and

and

to

are

into

other

1978*

on

for of

time

both

into

the to

and not

effects

considered adjusted

associated

depreciation

the

LIFO-based

average

was on

cost the

are

reflect

was

basis

expenses when

year,

consideration permitted

sales

constant

(1) assets. depreciation,

equipment Cost

income above

statements.

year

acquired

at

produced.

at

assumed

for

to

current was

thus

occurring

increases basis date

$2,029,969

modern

of

were

to

dollars

reflect using

tax

The

sales

cost

reflect

is to

deter

dollar inven

do already

to

of

meth

not

have

or

made

cost,

1977

sale spe

not

to

effi

for

21 Koppers

22

Sales

Business ($milhons,exceptpersharedata) Corporate

Operating Expenses

P0rte

Corporateincome By

At Financial

Share

Data Other

December

Business

Per by

Statistics

Group

Common

Position

Income

Operating

Group

31,

I

OYear

ces :pebng

Organic

Total Engineered Miscellaneous Engineering Road Totalcorporateoperating WaQes, Forest

4ncômE! come Other Depreciation. Organic Total Road

Forest Preference EngineerIng Corporateoverhead Current

Net Current Interestexpense

Income Working Common Total Property,

Total Long

Earnings

Capital Shareholders’equity

Cash Current

Average Average

Return * Shareholdersatyearend

Absences, Restated

Income

corporate

operating

Financial

assets debt—% MateraIs

income

term

flow

Products

other

Products

salaries

on

to expenditures Materials

assets

Materials

ratio

capital

common

plant number

shareholders

pro1I_

common

average

to

debt

pnd

Metal

and

than

and

and

reflect

depletion

of sales and

income

preferred

and

and

Construction

reclassified

Construction

income

total

Prod

of

shares

compliance

equipment—net

commonqii1y

shareholders

pension employ-..4

capital

includedinaboveex

capitalization

and

Highlights

eqLj

expenses

dtvlden

to

lease amortization

expense

conform

with

$Q’j

obli

Statement

with

1981

of

and

nses .

classification Financial

1,,

Operating ...

I

Accounting

S $ S $ S S $2,018.6 1.99-to-i $1,919.6 S S $ $ S S S S S S $

S $ $ $ $ $

$ $ $1,328.2

$ $ $ $

27,997

678.1 541 20,113 20,326 342 379.8 *.* 449.6

177

2889 142.1

542.8 270.7 1981 829

182.1 132

58.6

83.6 42.9 20.7 29.2

22.5 51.6 34.1

43.7

(7.5)

22.58

6

79

1.40 1.58 87%

7.2%

30%

9 5

9

1

1

Standards

Statistics

No

43,

$ $ $ $ $ $ $1 $1,929.2

$ $ $7.3 $1,831.9 $ s $ $ $ $ $ $ $ $ $

2.02-to-i $ $ $1,389.5 $ $ $ $ $

$ $

1980*

577.2 26,989 Accounting 21,029 280 531 428 358 380.9

18,362

3199 129.0 667 644.9 308 io 325.0 619

:4

230,9

134 64.6

78.9

47.2 167 57 21.3 24.1

332 540

177 53 (11)

2241

7

(.4)

1,40 1,98

9.0% 77%

32%

7 3 4

6 1

2

8

6 4

0

7 5

6

for

Compensated

$ $ $ $ $1,828.3 $ $ $ $ $16949 $

$ $ $ $ $ $ $ $

$ $ $ $

$ $ $ $1,140.7

1 $ $

$ $

$

98-to-i

1979*

454 328 556.6 26,228 368.8 22,087 427.0

18,115 113.8

133.4 147

265.3 270 170.1 535.3 224

582

141 177.1 40

63

55 55.6 31.9 42 22.2 20.6 14 84.9 114 84 10.5

2181

68

15.8%

5

3.21

1.25

29%

2 2

6 5 1 0 1

7

6

3 0

8 2

2

5

iL

-.—.Y’

: -.

j

.

-2i%

1

3

$ $ $ $ $1,581.9 $ $ $

$ $1,464.9 $ $ $ $ $ $

$ $ $

$ $ $

2.14-to-i $ $ $ $ $1,036.1

$

$ $

$

1978*

482.5 313.7 304 285 020

359.1 25,031 20,858 p136 192

17,729 1

141

247 530.4 159.8 457

282.7 4983

144.5 52

43.5 24 26.2 36

17.0

527

76.0 18.2 17.9

75.4 13.2

20.12

40

16.2%

3.01

1.125

32%

6

0 0 1çj 7 9

1 2

9 6

7 7

i

“

j

.

1 ‘

?!

‘4E’866

$ s $ $1,355.7 (3 $ $

$ $1,239.7 $ $ $ $ $ $ $ $ $ $

$ 2.11-to-i $ $ $ $

$

$ $ $

$ $ $

427.8

296.3

304.1 24,886 174

189.8

17,553 18,168 1

125Y1 438.9 208 138.0 1977

230.7 454 870.3

15j

114 26 104.5 42

49 21 47 25.8 16.0 20.1

175

66.4 128 65.8 11

1821

124% 9 15.6%

264

26%

2 1 6 2 0 8

8

.95’ 6 8

3

1 8

j

$ $ $ $ $ $ $ $1,189.2 $

$ $10824

$ $

$ $ $ $ $ $

$

$ $ 2.55-to-i $ $ $ $ $ $ $ $ $] $

$ $

-

267 384.4 261,2

24,809 276.0 134

138,8 16,729 17,880

1597 427.1 133.8 1976 259.3 3255 783.6 167

41

107

22 37

55.8 208

15 18.6

67.5 66.9 13.0 12.6 11.9

90.6

1650 26

134% 176%

8

2.70

28%

7 5

2 8

5 i 6 1

3 ‘

‘H35

$ $ $ $

$ $ $ $ $1,075.5

S $ $ $ $ $ $ $ $ $ $

$ $ $

$ $ 245-to-i $ $

$ $ $

$

$ $

323.3 240 1!594 24,002 244.7

248.5 1 973.6

15,352 153

17,549 i

101

369.4 123.1 1975 255 218.8 679.7

1 30.3

49.4 200 25.4 19

10.8 12

60.3 59 11.8 10.4

94 62.2

14.57

1 136%22% 18.5% 1

7

2.49

27%

.9

8 3 6 8

7 0 6

7

7

3

$297

2.35-to-i

$ $285.8 $158 $270.4 $1 $ $ $914.2

$202 $

$ $ $841.2

$ $ $ $ $ $ $104 $284 $ $

$ $ $339.1

$226 $1666 $195.1 $ $647.9

$

$ $

23,141

15,164 15,763

1974

80.5

17

27

73.0

48.8 16

14 15.8

478 47.2 13 17.6

12.6 16.0

72 80.3

1281

171%

1

84

2.8

204

35%

4 4

7

7 2 5 8

.53S

0

8 B tTZ

0

1

5

12 .. * -

2.38-to-i

$ $173.4 $1 $193

$ $ $ $189.6 $723.9 $

$666.0

$

$ $ $ $ $

$ $

$ $ $ $520.2 $255.1 $148.0

$

$ $ $

22,531

15639 15,921

1973

92 829

62.2

28 19

14 21 20

61 216 12

72.2 29.5 28.9 13

11.0 10 (2,7)

590

61.7

59

11.39

11,8%

3.3

1.28 91%

30%

2 5 7

7

9

! .45 2 7

6 1

0

1 3

8

8

- -

4’

f105 ‘-

335-to-i

‘ -‘

$

$3682 $139 $1674

$ $166.0 $ $ $6128

$ S $571.3

$ $ $ $ $

$ $ $ $432 $ $ $

$

$ $236.0 $165.6 $4708 $210

$238 $ $1208 $

$

$ $

22,502

15,456 15,755

1972

72

654

627 41:

24.5

126

488 11 14.0 134 23.1

22.5 12.6 704 (1.2)

47 51

10.58

.415 56 59

1 5.5 7.5

99% 1 75%

33%

0 6

7

7

1

4$

00

1 3

1

‘ The

Statement

Company

consolidated Company, Principles Koppers dated Company Policies eliminated. “Company”

Inventories—Inventories intercompany

out) lower dard mately

finished inventories equity net Consolidated Consolidated FIFO Koppers 20% replacement Index Investments—Companies Statement 1980 of 24

Notes Report investments Schedules For

required is Schedules

not

December

repatriation

realizable

the

major

Consolidated Consolidated

Schedule Schedule Schedule Schedule Schedule Schedule

method.

is

costs,

and

present

(first-in,

of statements

to

than

method

67% of

determined

years

is

goods.

cost

Company,

financial

Company,

Certified

50% are

I, and

included

Inc. accounting

of

for

of

to

represents

redeemable II,

which

of

as

accounted

in

cost accounting entities 31,

or statement

Cost balance

set ended first-out) transactions IV,

value

Consolidation—The

the VI—Accumulated all VIlI—Valuation V—Property, X—Supplementary Ill—Investments

IX—Short-term regulations.

except amounts

inventories

are

used

Financial

market.

VII,

1981,

of

of forth

include

for statements

statement statement

years

in

approximate

Public for

accounted

by Inc.

for

its

Xl,

the

as

December

in

Inc.

raw

Accounting

policies sheet

the

for

the

average

below.

subsidiaries.

sufficient

basis. XII

work this

and

for 1980

well financial of

convertible

Cost ended

policies

the

Accountants

certain

materials

are

Covered

and

remainder

for LIFO income

have

at

owned

report

plant

Subsidiaries at

of

as of

in

accounts and

for

The cost valued and Market

both

XIII

borrowings

for

of

December

in

changes

shareholders’

costs actual December to

Koppers process

statements

31,

(last-in,

been

depreciation,

the

approxi

foreign

are affiliated

and

on

require 1979

income

word

qualifying

Statements

for includes

because

between

1981

and

preference

consoli

by

1981,

All

the of

not

at

is

or

the

equipment

on

of

Report

the

the

first-

and and stan given, in

submission

the

the

years

31,

or statement

companies

1980

31,

financial

the

accounts

equity

1981

depletion

as

1981,

stock

of

notes ended

and

Fixed equipment line nary charged properties completion on as produced. accounted Long-Term units price soon lated The plans to Pension tax expense unfunded

the Earnings Income standing. have from average stock

Certified

of

40

and

position

Other

long-term other

information subject

credit

method 1979:

1980

When thereto.

Company

the maintenance

at

are

depreciation the and as

years

been

covering

is Assets—Buildings,

and

1980

equity

schedules

they

to antidilutive

Taxes—Benefits

number

income. sold, assumed into

Plans—The

and

The

cost,

are prior

Per are

matter

land,

are

for

operations.

computed

amortization basis;

Public and

over

Contracts—Sales

construction

are trust

reflected

effect

on depleted 1979:

the

provides

depreciated Share—Earnings

service substantially

after

standing

pays

thereof

their

of

determined.

the

or

and losses

difference

and funds

conversion Accountants

common

because

on

recognition

percentage-of-

provisions

Company

on

useful

repair

depletion,

Timber

costs

currently

either

earnings on

for

annually.

are

the

timber

from contracts

machinery

the

on

amortization

all

the

lives.

between basis expenses over recognized is

shares

the

of and

basis

employees. not

investment and

information

has

of

or

for

in

per

resulting

preference is

straight- periods

All

present

of accumu

mineral

income. property

reflected

are income

pension

pension

out

of share

and

the

ordi

selling

are units

Page

of

as

25 24 24 28 26 or 34 30 29 35 34 36 35 36

up

Accountants Certified Arthur The Report

financial Certified the accordingly, examinations Koppers accounting generally nying financial Inc. tions each listed procedures and Statements erally on we statements December restatement compensated retroactive 1980 Note January

2400 Pittsburgh,

a

circumstances. concur,

and

Board We

subsidiaries In

consistent

and

of

and

1 in

Index

accepted

Koppers

Young

our

to

have the

the

subsidiaries

statements

22, position

Company, Public

accepted

changes

the the

of opinion,

31,

effect

of

for records

Pennsylvania

in present

as three to

accompanying

of

included

1982

& were

examined Directors

financial consolidated

the

absences

Financial

Public years

the we

1981,

Building

Accountants

Company

accounting

basis

at

of

to

years

method

considered

consolidated

in

made

the auditing

December Inc.:

and

fairly

Koppers the

of

prior listed

in financial

such

during

Koppers

statements.

and

financial

change,

conformity in the

Statements. such

as

the

15219

in

of

the to

tests in

results Index

principles Shareholders described consolidated

accordance

standards

accounting

the

Company, consolidated

1981

the

other

period

necessary position

31,

Company,

financial statements

of with

period

accompa

to

of

1981 to

with

the

auditing

Financial

Our

which ended opera

give

applied

in

and,

for

gen

after Inc.

and for

with

in

f

Consolidated

$2,018,562

S

S

1,597,556

1,919,633

($

189,358

119,589

83,564 49,155

98,929

20,660

28,578 (3,023) 34,061 33,886 85,528

51,642

43,757 27,667

Thousands,

7,019 5,207 5,369 4,698

1,390 1981 5,483

7,285

$1.58

600

Years

$1,929,190 .

$

$

except

1,534,150

1,831,930

ended

174,600

104,871

44,320 78,860

97,260

23,192

(6,499) 71,681 33,190 1980*

53,960

26,989 17,721 53,360

3,795 5,138

3,526 Statement 7,611

9,998 1,651

$1.98

600

per

December — —

share

$1,828,268

$

$

1,436,267

1,694,885

figures)

31,

154,935 133,383

147,942 127346

63,599 40,084

20,596 42,496 14,559 1979*

17,800 84,850

84,250 26,228

3,928 2,527 3,221

3,850

2,796 1,033

$3.21

600 —

of —

Income

Operating

Net

Operating Other

Koppers Income

*Restated Interest

Income

Net Average Provision Dividends

Net

Earnings

classifications

notes

(See

for

outstanding

sales

Taxes,

Cost

Depreciation,

Selling,

Profit Equity Profit income Provision Miscellaneous Term Interest

income Other

Cumulative Redeemable

income

income:

accompanying

administrative

to

discontinued

received:

1980—$4,328;

before expense:

before

financial

Company,

of number

(Note

per

expenses: for

debt on

profit

(loss)

on:

other

in

sales

research,

for

applicable income

sales

income

earnings taxes

share

for

(Note

during

interest

1) provision

the

preferred

1981—$8,304;

statements.) than

on

decline of

and depletion

convertible

of

year

statement Inc.

10). operations

of

shares disposal

expenses

1979—$1,994)

taxes

reclassified year capital income

general

common

of

expense

to

and

for

in affiliates

common

stock

(in

of

and (Note

value

Subsidiaries income

of

assets

of

preference

taxes

common

and

thousands)

accounting

(Note

net

stock

amortization

and

to

of

11)

(dividends

conform

stock

assets

taxes

investment

provision

10)

stock

stock

policies

with

of

1981

and

10 11

12

14 13

16 15 15

4 2 1 3 6 5

9 7 8

3. 2. 1. customers Explanations wages, operations 4.

energy, supplies ot against ment

5. plants, 6. levels: franchise costs ployment

expenses. 7. research Company pensions, porate

9. 8. included write-off ness ties, business

earnings ing 10.

has 11. ment 12.Cost

and 13. was holders. 15. 14. ence dividends, 16. available in

in

Total Costs

Directly

Related

the Not Salesmen’s

Gain Not

Protit

Koppers 1981,

Total Represents operations. Realized This

This In

20%-50%

foreign etc.

in paid

segments;

to

of

original

shareholders

closely

resulting 1981,

social

etc staff

received,

salaries,

transportation,

the

tixed

or

related

on support

and cash.

of was

$388

portion

of in

no income

activities

of taxes,

lines and

to related

and

products, to to

loss

has

assets year’s the

operating

sales

borrowed and

companies

$7.9

operations

longer

common

the

preferred

services

from

assets—this security

earned

related

cost real

compensation,

other

million

or

ownership

remainder realized

been

directly

Koppers to

state

officers’ raw

see

of

Company’s operations

or

miflion taxes:

of

to

facilities.

income

the short-term of

and estate

of

net

needed

receivable,

equipment, although operating

general

materials,

page

discontinued

for allocated

to

machinery,

and

and income

was

funds.

shareholders; year’s

pensions,

and

income such

from

in federal,

from

operating in

all

portion

salaries,

taxes.

portion interest. reinvested which local unem

33.

paid dividends

prefer

share

in

as

other

invest

sale

sale

invest-

most

of

ongo

levels.

was

cor

from

in

facili

state

busi

of

it

of

or —J

is Assets

26 Consolidated

$1,328,175

S

1,030,880

493,955 907,211 542,750 213,755 340,591 536,925 264,874 679,077

126,836 129,492 123,669 160,367

90,120 83,304

87,597 50,732 46,824 41,558

17,297

12,997 16,228

6,816

1981

($

December

Thousands)

$

$1,389,486

240,339 438,900 644,855 973,262 298,370 857,413 349,644

534362 667,015

109,305 122,020 177,512

115849

31,

50,780 50,112 84,377 21,769 81,795 53,477

24,139

34,420

16,438

1980*

2,697

Balance ,

Current

Fixed Investments: Other Koppers

Restated—Note notes

(See

Sheet

Accounts Affiliated Affiliated

Cash, Assets Buildings Inventories Machinery Prepaid

Depletable Land

accompanying

to

assets,

assets

allowance and

and of of

financial

assets:

At

Less Less

Company,

$10,316 $14,826

including

$-4,875

$64,755

cost—FIFO

under

expenses

Total Work

Raw Product

and companies,

at

excess accumulated receivable,

1.

and

statements.)

properties,

(Note

cost:

for

in in

other, in

capital

materials

current

statement

in

in

Inc.

equipment

1981 1981

short-term

1980 doubtful

process

1980

of

3):

(first-in, and

at

FIFO

and and

leases,

at

principally

(Note

assets

cost

less

depreciation

of

and

equity

Subsidiaries

accounts

$19,667 $9,609

cost

accounting

investments

accumulated

first-out)

2)

supplies

net

over

(Note

in

trade,

of

in

of 1980

accumulated

LIFO

1980

policies

basis:

4)

$4,720

less

of

(Note

depletion

(last-in,

$41,458

and

in

6)

1981

amortization

first-out)

in

1981

12 11 10 13

4 7 6 3 2 9 8 5 1

Explanations This 2. what 4. within for 3. for 5. customers short-term 1. 6. cost od, the 9. eliminating is normal 8. to 7. the Company-owned on Insurance See understatement most to ery companies. and value 11. ries assets were 10. 12. everything 13. ber, exhaustible

Amounts

Company Amounts based Goods Likely Primarily

See LIFO Koppers

be operating

page sale.

substantially

Accumulation The The Cost process which original

and

to

coal rents.

discussion portion

of

Koppers

recent

purchased.

rendered

of

one

charge

that discussion

goods.

business

value

original

total

equipment.

Value

to

resources

of

16. on

and

being

reflects premiums,

year. notes.

and

Koppers illusory be

properties has

equity kept owed amount

paid

resources,

of

the of

costs

uses

costs

net

of

stone,

owned.

current converted

of

balance

manufacturing

others.

in

been on

stockpiled amount of

all FIFO

inventory

in

cost

in use

these

buildings, of

to

the

LIFO

the ownership

of of

Company

since

inventory page bank

domestic

used advance

paid

owns. the

Company

reduced

working goods,

or

allocated property

accounting

assigned

future,

most

income

having

such

accounting sheet

inventories

invested paid portion

accounts the

in for

16.

into

results

or

the

recent

machin

fixed

thus assets for

as profits. such assets.

invento

for

in

cash for capital shows used

or

with

taxes

by

past.

to

other of tim-

items

held

in

meth

in

as

for

in

r

Liabilities

Consolidated

S

$1,328,175

278,090 272,076

461,298

132,935

per 49,733 28,901 75,699

22,227 38,576 17,414 18,608 15,168 34,170 13,948 75,000 10,839 ($

34,819 15,000

5,750

1981

Thousands,

share

December

figures) .

$ and

$1,389,486

except

296,151 319,876

456,309

128,608

31,

32,191 96,717 22,805 21,874 39,931 59,029 25,294

39,129 15,271 75,000 12,519 34,558 12,336

15,000

1980*

6,764

Balance

Shareholders’

Current

Term Koppers

Obligations

Deferred Cumulative Deferred Redeemable Common

Capital Aestated—Note notes Earnings

(See

value, 750,000

and 27,646,563 redemption), issued

Sheet

Accounts Accrued Term Advance

Short-term

debt, accompanying

to

due

outstanding

in liabilities:

financial

stated Other Pensions Insurance Income Company, Payroll

compensation

income

27,857,138;

retained

stock,

debt

excess

shares,

within due

preferred under

convertible shares

Total liabilities:

payments

Equity

payable,

1.

accruals and

value after debt

$100 statements.)

and

$1.25

taxes

taxes

one

of

capital

in 10%

current

(Note

statement

150,000

obligations

Inc.

par

in the one other

and

par

$100 stock

year

par

1980

principally series

and

received

(Note

value business

preference

5)

value: year

leases outstanding

value:

liabilities compensation

per

shares,

(not

of

Subsidiaries

accounting 9)

(Note (Note

share:

under

authorized

subject

authorized

(Note

on

trade

(Note

4%

stock,

contracts

8)

7)

capital

27,855,478

issued

6)

series

to

7)

policies

costs

no 300,000

mandatory

60,000,000

leases

and

par

(Note

and

shares

outstanding

shares;

1)

shares;

in

1981

issued

and

10 10 10

3

2 4 1 6

8 7

everything This 4. services 2. Explanations 3. one

7. during capital 1. 6. be As excess 5. 9. 8. a end provide by added discussion Company’s will obligation Koppers and buildings, Shareholders end at reports income of was 10. reports leases close shareholders’ ence represents present million,

current

These

Amounts

The Amounts For Due

Repayment Borrowings

Differences the

common

customers,

paid

with

The

be

year

tax

1981 of portion

equal

that

of

services

close

Company coming

to

capital each lease

made

1980.

of

represents that

in

and total

long-term in value

at

regulations

provided.

1981, are

income-producing

suppliers

ratio covered

will

the

to machinery interest

the

year

Koppers

to

on

the

owed

payable

current

stock

are of

of

expenses

year.

of liabilities

pay

obligations

in $22.58

can be same

of

generates of

near

ownership in page used

versus which

of

balance

year.

taxes

1981 and

these

end.

the

not

lease

accounting long-term

leases

paid

off

1.99-to-i.

but

This

outstanding debt,

costs

these benefit

the

for

future.

assets

future. products

result owed.

to

included

year.

16.

within

for

portions

Common

on Koppers

and

items, not

$22.41

payable

in

expand

goods

total

in

payments

represents

sheet

there

each

land, on the

liabilities required

future

earnings

financial

in

This required

equipment. as

in

at one

debt See

the

common

base.

Koppers

differ $629.1

certain rules

this

at

in paid

year-

of

shows

share

and is

wili

at total

equity within

years

year; debt. the

tax

these

an

and

the

that

by

for the in

to Consolidated

28

5(54,305) 5(37,553)

5(54,305)

S

(102,105)

251,982

182,106 197,677

151,910

(26,584)

(21,018) (33,496) (19,544) (47,800)

46,653

38,344 21,343

83,564

51,642

(4,472)

(7,637)

5,821 4,615 1,233

7,114 4,975

1,602

1981

647 353 —

46

Years

($

$ ended $ $

$

321,923 230,871 381,644

Thousands)

137,184 109,600 134,558

28,459 59,721 38,387 26,413 73,665 50,065 72,590 49,879 25,269 20,128 78,860 59,721 53960

10,899

(2,713)

1980*

2,347

4,521 4,313 3,163 2,674 5,174 -.

(810)

253 —

Statement December .

$

$(17,510) $

$

31,

232,813 250,323

177,125

155,758

(52,452) (17,510)

33,174 32,243 48,927 29,565 39,018

22,322 84,850 63,599

15,247

16,337

(4,767)

1979*

4,812 8,432

7,583 3,144 7,842

1,006

(533)

(95) — — —

25

of

Changes

Changes Increase Disposition notes Restated—Note Increase Source Koppers

(See

Treasury Term Capital Term Other Common Increase Dividends Book Operations: Increase Preference

accompanying

to

other expenses leases

financial

of

Accounts Accounts Advance Term Cash Accrued Inventories Prepaid Equity Provision Depreciation, Short-term Deferred Net

Company,

(decrease)

in (decrease)

debt debt

value

funds:

less decline due expenses

of

components

investments

noncurrent

income

Funds

stock

issued (decrease)

(decrease)

funds: stock

in

debt

1.

and

paid

and and

statements.) within in

dividends

stock

of

expenses

liabilities

Financial earnings

payments income

statement

for

fixed receivable payable

in short-term

capital obligations

and

acquired Inc.

debt issued

provided

in

in

value

issued,

one

plant

depletion

working

working

assets

and

obligations

assets

of

in in

received

taxes

year

leases

working of

of

dispositions

of

current current

Subsidiaries

received

net from

affiliated investments

accounting investment

disposed

under

and

capital and capital

and

of

Position

retired

operations

under

assets:

liabilities: capital: associated

other

amortization

capital

on

companies,

and

policies

of

contracts

capital

or

sold

and

leases

14 12 16 13 15 10

9 8 6 5 2 7 4 3

1

9. ership further etc. tax 7. ing and sources. contnbuted 8. 6. funds 4. 3. items out lease common acquired affiliated flow 5. liabilities. 16. 15. 14. 13. 11. 10. See exceeded income Explanations 12. income 2. business. of operations are ment require paid ment 1. Explanations

Disposal Taxes This Borrowings Where Negotiated Income Plant From

investment

Total Capital This Where

Result Repayment Returns regulations. capital from

retained

no

preferred

page

of

currently,

on becomes

in obligations.

retained

Plan

growth.

operating

funds

longer

the

was but write-otis

is line current

of

and

funds companies page

stock,

in

the

of

25.

dividends actually

the how

at

investments

until cash

payment of

to did as exchange to

reduced for 14

subtracting

other

14 funds year

value

reduced The

shareholders equipment,

Employee common, funds explained needed

25.

available

determined for

generated.

of the due.

of not

plus the

assets

use and

generated

cost

and

debt

the

use

end amount

received

expenses

change

result

came

time

of

greatly in

went:

value of in

15

represents

income

does for

write-down

companies

in in

the

affected Company

and

and

funds, 1981.

to

on

for

preference

funds when

on

Stock

the

Operations.

in

shares

from:

facilities,

provide

by of business by

page

in

capital from

current use

not

per from

page an

shares not

work which

federal state

which

pay paid

out Own

the

in

25.

all

of

16.

Adjustment Koppers Balance Common Cash Balance Balance Net Consolidated Cash Common Net Convertible Expenses Cash Common Purchase Balance Net Common Common Purchase Balance

reported

Acquisitions On Acquisition retroactive On Contributed On

Acquisitions On Contributed preference On On Savings Acquisitions On

Contributed Savings

income income

income

dividends common

dividends preferred preferred common dividends

common preference preferred

Company,

at

at

at

at

at

stock

stock

stock

stock stock of

of

assocated

and

and

for

January January

December for

December

for

December for

common

common

accrual

shares accounted

to

to

to

accounted

accounted

accounted stock, cumulative

stock,

stock,

the Profit stock, Profit issued stock, issued

stock, issued paid: issued

the the paid: issued

paid:

Employee

Employee

Employee

stock,

year

Inc.

Preference

year

year

issued

of Sharing

1, Sharing 1,

with $1.25

$1.40

$1.40

stock Statement

$4.00 stock $4.00

$4.00

during

during

during from

from

and

1979 1979 31, vacation $10.00

31,

31,

1981

for

1979

1980

for

for

for

redeemable

effect

Stock per 1979 per Stock 1980

per

1981 Stock

for

for per per as

Subsidiaries

per treasury

treasury

as

as

as

as

as

Plan

Plan

1979:

1980:

1981:

per

(restated, a (restated, treasury

treasury share

share

share

share share

share previously restated purchases

purchases

purchases on

earned

pooling

Ownership Ownership

Ownership

share

prior

to

to

convertible Stock

of

Employee

Employee

(Note

years

Note

Note

Shareholders’

Plan

Plan

Plan

1) 1)

1)

of

notes

(See

Cumulative

Preferred

accompanying

to

150,000 150,000 150,000

150,000 Outstanding

150,000

financial

Stock

statements.)

(Amounts

25,087,492

26698,328 25,087,492

27,646,563

27,855,478

Shares

1,383,551

statement

Equity

Common

201,309

905,546

166,499

(95,374)

(58,443)

25,976

42,689 95,374 44,076

56,783

Stock

in

thousands,

of

accounting Other

Cumulative

Preferred

$15,000

$15,000

15,000

15,000

15,000

Stock

except — — — — — — — — — — — — — — — — — — — — —

Than

policies

outstanding

Common

$31,359

$34,819

31,359

33,373

34,558

Stock

and 1,730

1,132

(119)

Redeemable

252

208

119

(73) — — — — — — — 32 — — —

— 53 — 55

71

shares

Excess $

Capital Par

$132,935

108,137

128,608

80,476

80,476 27,097

21,657

(2,410) (2,228) (1,160)

2,304 3,532 Value

1,148

1,140

and

564

815 — — — — — — — — — — — —

of

in

per

share

$392,822

$461,298

Business

Retained Earnings

386,492

440,736 456,309

(32,574)

(37,787)

(38,768)

84,850

53,960

51,642

(6330)

(7,285)

2,568

in

(600)

(600)

(600)

figures)

the — — — — — — — — — — —

$519,657

$644,052

513,327

597,246

634,475

(32,574)

(37787)

(38,768)

84,850

28,827

53,960

22,789 51,642

(6,330)

(2,410) (2,347) (1,233) (7,285)

2,820

2,423

3,740 1,201

1,211

(600) Total

(600)

(600)

596

870 2. for

3. the this Absences, dards or with earnings Total was Financial $.50 which restated December31, tion tory 1. revenue, Billed long-term Notes Retainage: include inventory per method) effect share. lower pared reduced. 1 by 1978 1979

(S ($

4.

end $14,000,000 23%). pany Company’s mond

underlying

980

Due Due

Thousands) Thousands)

$01

Compensated

Accounts

Inventories—The

the

approximately

Investments—In

LIFO

change

share

of

methods. and as Statement

During in

1980

or

increased after costs within

No. of

current

with

accrual

Tank

LIFO

per

1979.

follows:

After

the

billable

prior

to

which

method

than and

reduced

This

method

to 43, construction

by$.31

one

the

reflect share.

the

following

to

net

one

reduced Car

prevailing 1981, inventory

$48,825,000

total

this

(500,000 years

current Accounting

Receivable—Receivables

costs

The

it

reduction

1981, year

financial

of

cost

of

increased

assets

year

would

Company

its

additional

for

all

investment

certain the Financial

in For

$3,769,000, Statements

the

(compared

effect Absences—In

equity

of

vacation are

1980

1981,$.32in

and

most

net

amounts

tax

Company’s

Decrease

prior

February,

Company Company’s quantities shares, Net

1981

by in by

contracts:

statements

charged

Retained

resulted Earnings

income

of

prior

liabilities

(1,550,000

inventories

and

$26,096,000, $26,659 $13,431 $ using Income for

net

inventories, investment

common $6,330

11,930

years,

Accounting using

purchase,

purchases,

1,501

1,029 1621

1981

Compensated

exceeded

earned.

earnings

or

1979

or

with

years

applicable

in

other

1981,

carried $14

reports

9%)

by

to

in 1980

the

obligation

the

net

by

compliance

the

Earnings

have

a current Decrease

$289,000,

shares,

stock

as

were

per

LIFO

liquida using

effect inven the in

In

income

at the

through

and

which

FIFO

in

the

com

Stan

$34,827 $19,937 $ the

Rich at

1981,

lower

year-

been

16,463

Share

Com

to 1981

3,474

from

1980

$06

Per

NA

.04

or

in

is

$20,538,000 $31,192,000 considers years. Actuarial Company investment 5. being 4% represent The 8% respectively. and earnings its $14 pension 31, plan Net pany’s 1981

($ was present the employees tax Ownership

the $6,301,000 time expense Multiemployer

as tively,

ing Company benefits 6. and plans

covering entered equipment.

Vested benefits: of

Nonvested

benefits

Thousands)

investment Retirement

assets determined 1981

Leases—The

to and credit.

ESOP accumulated

Company net agreements. increase

per

The

The

benefits

was 10%

is

employees

amortized

6% The

for

is

defined

not

effect

present

value increased

expense

share.

and

not

Company experience into rate and

$27,727,000,

for

available

contributions a for

this

Plans—Total land, to

are

quoted

regarding

included at

in temporary

Plan

upon and

($13.25

The determinable

In the reflect

1980

various and

1981

net

plan December used

1981, of

return

reduced of offset

had

A

value benefit 1981,

Plans—In

by Plans buildings,

plan

$28,301,000

these against

Company-sponsored

accumulated

following of (ESOP)

income

The

comparison

retirement. for

plan

Company, for is

market

and net various

the

pension

in

$5,444,000,

has

current

1980

per

in

presented by assumption

the

the

and

the lease

determining

relative

assets

as

salary the changes

decline, net

plans

8%

market

pension

additional to

an

share).

$189,331 $217,410 income $258,794 year

Company 31,

and

accumulated

by

compared salary

for

addition value machinery multiemployer

assets above

by collective 1981 28,079 is

Employee for

arrangements

pension expense

$3,738,000,

1981

in

as the an Contributions

as

scale

of

the 1979,

by position

of

plan 1980.

value

$5,704,000

1980

below.

of was multiemployer of analysis lessee, Management expense

increases.

over accumulated

benefit $7,524,000

from

Company information.

was for

the investment

December this

to

changed

respec rate

benefits

fund and

with

to

bargain for to the

the

and

30 Stock

actuarial

6%

of

$205,227 $234,770 $258,976 plans,

plan

reduce

from

has

or

full- of

Com

the 29,543 1980 1979, of

plans

in

to and

to

Machinery Land Less Total of

December

1983 1982 ($ Less 1984 Net 1986 1985 Less 1987 Additional $11,312,000 years 7. sidered Present $20,176,000, obligations and ($ loan Company legal consists

amortization ment

payments senting senting fied payments

obligations minimum ing Thousands) future capital payments

Thousands)

Term

minimum

The

accumulated and guaranteed minimum

amount and The amount Debts

agreement.

$2,051

form

as

1982

value

lease

later

current buildings following leases) minimum

executory

of interest aggregate

Debt—Term

and

amended

of

lease

31,

Debt

issued

through the

classi

(includ are

repre repre

and lease

under

of

$10,365,000,

the

lease

equip

agreements

1981.

net

items

classified

Information—In

$17,974,000. by

transaction

The

is costs by lease

the

1986, term

a

its

shown

agreement

municipal

debt

schedule

Company

revolving

payments

debt

$12,997 $16,813

$ $23,004

$11,532,000, as respectively,

Leases $12,890

Capital

23,313 1981

10,316

22,927 even 14,214

10,037

due

6,500

3,121 2,424

1,253 1,058

in term

is

934

maturity 77

Table

a

after authorities

by though

lease.

as

1981,

credit

are debt.

as

years

amended

1. one

Operating

not

of

$16,804 $16,438

$

$12,003

the

is

in

Such 26,047

bank

the Leases

9,243 9,609

1980 3,931 2,647 2,214

1,512

the year

con

922

777

provides of tember years. credit credit under deposit those of September rowed contain loans 1983. $170,534,000

ber 7/ ings approximately indebtedness. payments payment under corporations of could 1981 retained

8. Stock—On

issued ence share pany’s share

annually to redeem

ing 1983 1990,

three

1% the

retire

Redeemable

of

30,

fund

The

The

under

and

This

at

stock payable

that being the loans the 1%

incur indebtedness the

The per

convertible each

amounts.

750,000 1985. 30,

common

various

$107 rate

options

the

37,500

in Company’s

the Company

payments

of

except

1980.

old Company

added

most

annum agreement would and

agreement

this the 1986.

30,

cash additional

year of (preference the

or

preference

December

Company

The

per of

as

agreement

during

up

As

incurrence $158,523,000. business the

agreement 1986

shares

shares restrictive

consolidated restrictions prime

chosen

of

Any

that Commitment

stock. to not through share,

dividends,

Company

Convertible

to

are

of

into

Eurorate,

December

has

at

these

$200,000,000 is

may

of

December

have

term

prior loans

the

required

provides $100

indebtedness rate,

calls required

3.48

affiliated of with

of

guaranteed The 23,

shares declining

by

was

stock),

until be succeeding

convertible

preference 1990,

rates

provisions, debt of

been

redemptions

at

the outstanding shares

per 1980, the

for as $100,000,000

had

Company

and

converted

with

additional

available

December

earnings

December

31,

fees

to

on

Company,

interest certificate Preference

for share

agreements

after Beginning beginning to

31,

available and

no with

the

the

dividend

factors

1981. until

by

any make

revolving

of

of

1981,

borrow

$9,885,000

Company

other of

Septem

Company

$1

each

the

stock prefer

sufficient

three

up

unbor

may Sep

for

at

to

on or

per

sink

31,

to up Com

28,

of

one

of

term

the in

in 3/

to

fund conversions 9. equal preference two stock ments tive $1,881,000 expense officers unissued holders has preference There Incentive Deferred that expense benefits expense upon respectively. a invested insufficient each shares Performance 1980 pany’s

Performance

Employee

directors.

Plan a

The

The provides

payments

or

the equivalent

dividends

to Deferred

was

at

common

(up and

of 1981

accrued more

Company

Company

the for

capital

was has and

attainment

Compensation an

Plans—The

preference

and

no

stock return

stock.

to

other

key

additional Company’s may

because

been

for income

Share

charged

charge

than a Compensation

$1,504,000 are

Compensation Share

maximum

are

using

employees to

stock

an

during dividends

be

on

key

one charged

may

has six not

award in

of

Plan—The applied

investment.

taxes.

to

stock Plan

Company employees.

of income arrears

quarterly

with and

a made.

250,000

authorized share

not

operating

1981,

specific option.

the

Plan—The

to

of

of for

cash.

$2,430,000

if pay

with

that

may Operating

Company’s

to

provide

500,000

required performance

of

If

for

key 1980 before

Unit

Plans shares such

preference

Company

common

the dividends,

is

$2,139,000,

has

then

return

Distribution

an

employees Operating expense

but based

Plan

and

Com

Company

amount

require

an

for

shares),

interest

elect

sinking

in of

on

1979,

Incen

for

the

1979.

or

has

the

in

fair Savings awarded ance growth operating January sion Company the specified of employees. performance made elect $1,923,000 ings cash Company’s Company equal December Company’s butions and

the

plan

market

the

Currently, In

and

has

to

shares or

common to

at

1980,

rate.

contribute

to

Company

common

were

a the and

1,

been

Profit

in

earnings

expenses

did

earnings,

a specified

31, 1980, in

value

1981

contributions contribution

Participating limit end

The

$2,418,000

expired

Profit

for

1981

not credited

made

74,050 1983

Sharing

stock

the

that of

for related of

of

stock

expect

contributes

up and

are

Sharing

designated

$6,000

the

are

the

percentage, of

Company

in

in

year. on

plus to performance

the

attained

against 1979

$4,375,000

1981 common

Plan

of

outstanding.

previously

award

6%

December

1979

amounted

to

employees

may

the

cash

per employees’

reach Plan—Effective

for

of

for

based

cycle

Company.

an

employee.

be their

initiated period expense

periods

benefits

all

equal

stock

based

amount

made

the

eligible

charged

shares

31, on

to

perform

salaries,

No

may

required

to ending

profit

contri will

1981.

a

if

on

under

as

in provi

the

The

Sav

The

be

the

to ii $806,000, or $435,000 after tax ($02 per ii. Income Taxes_Income before provision The provisions for income taxes for the share). Operations discontinued in 1980 for income taxes and the Table 6. Operations by Business Segments components of years 1981, 1980and 1979have been reduced resulted in a loss of $4,125,000, or $2,228,000 income tax expense are shown in Table 3. by $6,423,000,$11,066,000and $14,435,000, ($ Thousands) Engineered Engineering after tax ($08 per share). The components of deferred tax expense respectively, for investment tax Year ended December 31, 1981: Organic Road Forest Metal and Road Materials. The bituminous liquids oper and related tax credit. effect are Shown in Table Materials Materials Products Products Construction Misc. Consolidated in 1979 4. At December 31, 1981,1980and 1979, ation was sold at a profit of $5,866,000, The differences between Net sales $678,099 $541,920 $379,823 $342,464 $ 58,567 $ 17,689 $2,018,562 the statutory consolidated earnings retained in the busi or $3,140,000 after tax ($.12 per share). and effective income tax rates are shown in ness included approximately $25,230,000, Operating profit before general corporate overhead $ 42,238 $ 46,647 $ 19,652 $ 12,941 $ (6,601) $ 6,583 $ 121,460 Table 5. $25,041,000and $19,494,000,respectively, on Other income (expense) (Note 10) (15,030) 3,334 22,209 (157) 28 4,907 15,291 Equity in earnings (loss) of affiliates 2,023 7,908 1,048 (50) (1,000) (4,560) 5,369 which federal income tax has not been pro Table 3. Components of Income Taxes vided since the Company has reinvested such Operating income (loss) $ 29,231 $ 57,889 $ 42,909 $ 12,734 $ (7,573) $ 6,930 $ 142,120 1981 1980 1979 earnings and intends to continue such General corporate overhead 22,531 ($ Thousands) (restated’ investment permanently in export activities. Interest expense 34,061 Income before provision for income taxes: tated) Income before provision for income taxes $ 85,528 Domestic operations $71,290 $61,354 Foreign operations* $109,625 12. Acquisitions—In 1981,the Company’s Identifiable assets as of December 31, 1981 $377,156 $346,701 $203,077 $195,620 $ 22,596 $124,873 $1,270,023 1438 10 327 17 721 Road Materials Group acquired three compa Total $85,528 General corporate assets 58,152 $71,681 $127,346 nies for a total of 166,499shares of Company Income tax expense: common stock and $21,213,000in cash. The Total assets $1,328,175 Current: acquisitions were accounted for using the Depreciation, depletion and amortization $ 29,932 $ 29,077 $ 14,274 $ 8,259 $ 264 $ 721 $ 82,527 Federal $25,550 purchase method of $ 8,607 $ 33,825 accounting, and results Depreciation and amortization of general corporate assets 1,037 Foreign 2,964 2,353 of operations have been included from the State 6,594 $ 83,564 respective dates of these acquisitions. Capital investment $ 37,895 $ 52,770 $ 23,798 $ 18,795 $ 588 $48,260 $ 182,106 415 15,3 In 1980,the Company’s Road Materials Deferred: 5E Group acquired five companies for a total of Federal 4,044 1,478 905,546shares of Company common stock Year ended December 31, 1980 (restated): Foreign (573) (6940) 893 596 and $594,000 in cash. The acquisitions were Net sales $577,196 $531,729 $380,862 $358,067 $ 64,601 $ 16,735 $1,929,190 2371 accounted for using the purchase method of Operating profit before general corporate overhead $ 47,598 $ 52,096 $ 17,223 $ 2,032 $ (1,854) $ 4,289 S 121,384 Total accounting, and results of operations have Other income (expense) (Note 10) (2,432) 2,620 3,257 (3,293) 1,403 918 2,473 , 86 $17,721 $ 42,496 been included from the respective dates of Equityin earnings (loss) of affiliates 2,016 2,533 842 164 — (417) 5,138 * Foreign operations (6,344) income before the provision for income taxes includes equity income (451) 4,790 128,995 from foreign these acquisitions. One of the acquisitions Operating income (Joss) $ 47,182 $ 57,249 $ 21,322 $ (1,097) $ $ $ investments of $11,178,000, $5,683,000 and $2,579,000for 1981, 1980 and 1979, respectively provides for the issuance of up to 250,000 General corporate overhead 24,124 additional shares of Company common stock Interest expense 33,190 Table 4. Deferred Tax Expense if and when a net recovery is received from Income before provision for income taxes $ 71,681 1981 1980 1979 claims on certain construction contracts that ($ Thousands) Identifiable assets as of December 31, 1980 $410,229 $334,963 $225,316 $206,218 $ 29,523 $ 85,369 $1,291,618 (restated) are in litigation. Excess of tax over book depreciation $ $ 7,991 Pro forma results of operations for acqui General corporate assets 97,868 Anticipated expenses provided in $ 7,838 advance $1,389,486 of deductibility for tax sitions made in 1981 and 1980 have not been Total assets purposes (4,303) (4,358) Difference in book and tax income recognition: (3,150) reflected because the effects are not material. Depreciation, depletion and amortization $ 27,364 $ 27,289 $ 13,655 $ 7,509 $ 227 $ 746 $ 76,790 —Sale of in — investment Cutler-Hammer, Inc. Depreciation and amortization of general corporate assets 2,070 —Construction contracts — (8,706) 13. Operations by Business Segments— 1,308 (399) $ 78,860 —Inventory timing difference (1,303) The Company operates principally in five (857) (451) Other—net (386) business segments. Financial information Capital investment $ 40,955 $ 78,614 $ 31,705 $ 14,302 $ 42 $ 65,253 $ 230,871 (1 713) (1 476) about each segment is provided inTable 6 on $3,471 $ 2,371 $(6,344) the following page. Information relating to the Year ended December 31, 1979 (restated): products and services provided by these seg Net sales $556,583 $454,102 $368,858 $328,181 $113,790 $ 6,754 $1,828,268 ments is located on pages 41 through 45 of TableS. Statutory and Effective Operating profit before general corporate overhead $ 54,619 $ 46,818 $ 29,476 $ 10,768 $ 10,409 $ 3,450 $ 155,540 Income Tax Rates this annual report and 10-K.Intersegment Other income (expense) (Note 10) (1,278) 7,724 2,048 810 153 2,575 12,032 iei 1980 1979 (restated) sales are not disclosed because of Equity in earnings (loss) of affiliates 2,230 455 374 (182) — (350) 2,527 immateriality. Statutory tax rate: ated) Operating income $ 55,571 $ 54,997 $ 31,898 $ 11,396 $ 10,562 $ 5,675 $ 170,099 Federal 46.0% 46.0% General corporate overhead 22,157 State, net of 46.0% 14. Litigation—Inland Steel Company has federal tax benefit 1.2% 3.3% Interest expense 20,596 Effect of additional taxes on gain from the sale of a 3.6% asserted a claim against the Company in the Income before provision for income taxes $ 127,346 Canadian subsidiary 3.8% amount of $100 millionfor delay damages Investment tax credit (7.3%) (14.8%) under a construction contract. The Company Identifiable assets as of December 31, 1979 $386,511 $256,291 $199,053 $205,342 $ 38,599 $ 26,511 $1,112,307 Nontaxable earnings of Domestic (108°,,) International and its legal advisors believe there are sound General corporate assets 28,404 Sales Corporation (1.2%) (2.1%) (1.0%) defenses against Inland’s claim. The Com Total assets $1,140,711 Effect of percentage over cost depletion (3.6%) (4.5%) of (2.4%) pany has filed a claim against Inland to Effect lower statutory tax rate applicable Depreciation, depletion and amortization $ 22,576 $ 18,580 $ 13,143 $ 6,640 $ 810 $ 397 $ 62,146 to capital gain income (1.5%) recover $17 million,representing fees on the (1.8%) (.8°! Depreciation and amortization of general corporate assets 1,453 Other—net 2.2% (14%) °) contract. $ 63,599 24.7% Capital investment $ 64,136 $ 63,091 $ 28,228 $ 16,929 $ 113 $ 4,628 $ 177,125 Year Additional Year Classification Year Property, Capitalized Capitalized Schedules Capitalized Buildings Land Depletable Machinery Depletable Buildings Machinery Land Balance Dividends Balance Investments Land Depletable Machinery Depletable Buildings Provision Depletable Equity Koppers Depletable

34

($

(1) (2) *

lag Includes Because

Thousands)

Includes Property

ended ended

ended

basis.

in

at

at

earnings

for

$6,362,000

of

received Plant investments

Company,

and

and For and

timber December December timber

mineral timber mineral

mineral December

December December

leases leases $44,650,000

leases

acquired

the

decline

in

additional

equipment

equipment equipment

time

Affiliated

and

for

properties

properties properties

of

properties properties

properties

of

through

lag

in

investments

Equipment

expenses

31, 31, 31,

31, 31,

from

Form

value

in

Inc. information

1981 1980

1979

receiving

1981 1980

discontinued Companies

acquisitions,

and

incurred

10-K

Subsidiaries

(SEC

on

Richmond

Richmond

for

operations.

1981—$26,899,000;

at

Schedule

synthetic

Equity

Tank

Tank

Car

fuel

(SEC

V)

Car

Company’s

projects.

Company,

1980—$34,979,000,

Schedule -

Company(RTC)

statements,

see

$ $ $1,135,191 $ $ $

Balance

Richmond

beginning

Ill)

Tank

$14000

$49,172 857,413 Note 745,924 957,433 115,849 811,092 626,548

Classified

34,825 34,420 25,598 31,289 40,941 87,581 26,047 70,173 of 26,812 30,577 32,784 73,428 24,855 23,980 29,497 (1,162)

1,509

year

Car

4 —

the

1979—$34.329,000.

at *

to

financial Company

as

investments

Long-Term

$ $ $108,425 $159,013

$ $136,783 Additions

$34,132 $36,780

112,598 101,562

85,447

26,405

15,385 (2,241) at (3,023) (3,540)**

10,914

statements.

4,242 6,156 2,827 6,917 8,869

7,817 7,707 Other 9,336

1,050 1,921

is

cost

964 123

137

recording

Assets

($

Retirements

equity

Thousands)

$83,304 $50,780

$ $ $76,271(1)

$ $16,137 $24,898

or

40,981

52,792

12,348 (3,403) 10,588 (2,031) 13,666 (3,023)

7,486

2,894 6,702 1,927 1,152

2,395 1,106

1,190

1,618

sales

Total

income 566 313

517

46 —

on

Transfers

(deductions)

a

one-month

$ additions

current

$ $ $ $30,829

$34,882 $

$34,456

joint

20,515

20,444 13,989 17,143 classified

(4,901)

(3,477)

4,352

2,716 6,437 7,400 5,463 2,873 1,853 4,857 7,193 2,425 1,318

other

(930)

(336) (661)

and

198

ventures — Contract — —

assets

(2)

as

$ $1,198,174 $

$ $1,135,191 $

$50,780 $87,656

907,211 857,413

957,433 745,924 123,669 115,849

Balance

at

41,558 42,834 25,858

34,420 23,313 76,565 of 70,173 40,941 25,598 31,289 26,812 87,581 26,047 30,577

(8,304) (3,023)

5,369

close

Total

year

Accumulated

Year Amortization Description Amortization Year Depreciation Depletion Year

Amortization Depletion Depreciation

Depreciation Valuation Depletion

Year Description Allowance Allowance Allowance Allowance Year Allowance (1) Year Allowance

(1)

Includes

Accounts ended

ended

ended

ended

ended

ended

and

for for for for for

December for December

December

$20,739,000

December

December

December

of

of and

of and

and written

doubtful decline Depreciation, doubtful

doubtful doubtful doubtful

capital

capital

Qualifying

capital

amortization

amortization

amortization

off,

31,

31,

31,

31,

31, from 31, in

leases

leases

leases

less

accounts

accounts notes

accounts notes

value

1981

1980

1979

1981

1980

1979

discontinued

Accounts recoveries.

receivable

receivable

Depletion

of

investment

(SEC

operations.

and

Schedule

Amortization

VIII)

(SEC

Balance

Schedule

beginning

$438,900

$468,176 $373,461

$401,662 $353,440 $327,591

of

19,667

15,865

12,997 12,336 12,852

9,609

year

at

VI)

charged

Balance

Additions

beginning

$75,182 $82,156

$70,234 $76,820 $55,656 $62,389

income

$4,875

$4,295 $7,875 of

$3,907 $4,295

4,869

2,105 4,391 2,195

5,021

1,712

3,000

year —

— to

at

($

Retirements

Thousands)

to

Additions

$29,827 $40,699(1) $

$ $10,375 $14,756

charged

income

$2,555

$1,235 $8,507 $2,027

$4,235

9,814

5,019 7,076

1,058 2,153 2,228

1,065

3,023 2,929

3,000

($

992

Thousands)

Deductions(1)

additions

$

$ $

$(3,230)

$ $

$2,710

(3,930) $8,639 $

$1,639 $

9,464 9,700

Other

5,929

(340)

476

224

104

589 589

655

655 — — — —

$493,955

$519,097

$438,900

$468,176

$373,461 $401,662

Balance

at

Balance

at

o

14,826 10,316

19,667

$4,720 12,336 15,865 $7,743 $4,875 of $4,295 $7,875

9,609

close

3,023

3,000

close

year

year — 36 Schedules Koppers Board of Directors And Officers

Short-Term Borrowings (SEC Schedule IX) Category of Short-Term Borrowings ($ Thousands) Directors Corporate Officers Weighted Maximum Average average Charles F. Barber 65 Fletcher L. Byrom 63 amount out- amount out- interest Chairman and Chief Executive Officer, Chairman of the Board (Chief Executive Officer) Balance Weighted standing standing rate dur ASARCO in 1947 at end of average during the during the ing the Inc. since 1970.Joined Koppers period interest rate period periodt periodt Nonferrous metals producer 3 3 Charles A. Pullin 58 Year ended December 31, 1981 i i Evelyn Berezin 56 Vice Chairman of the Board since 1981;formerly Amounts payable to banks $ — — $ 5,914 $ 2,036 18.5% President, Greenhouse President (Chief Operating Officer)—Road Management Corporation, Materials Group since 1978;formerlyVice Presi Commercial paper $ — — $43,000 $10,360 17.3% venture capital investment, dent and General Manager. Joined Koppers in $ 5,75Qtli 15.2% $24,000 7,917 15.4% Other $ and Potech Corporation. 1946. consulting; former Director— Year ended December 31, 1980 G. Jr. 57 Long-Range Planning for Burnett Bartley, Deputy Chairman since 1978;formerly Group Amounts payable to banks $ 1,294 18.3% $ 7,192 $ 3,075 14.6% Office Automation Systems, Koppers in 1949. Commercial paper $ — — $96,000 $50,540 11.4% Burroughs Corporation; Vice President, Joined Other $2400012) 10.8% $24,000 $ 5,063 10.5% former President, William B. Jackson 60 Redactron Corporation DeputyChairman since 1978;formerlyGroup Year ended December 31, 1979 Vice President. Joined Koppers in 1943. tFletcher L. Byrom 63 Amounts payable to banks $ — — $ 4,518 $ 1,112 12.9% Chairman of the Board, B. Otto Wheeley 60 8,956 11.1% Commercial paper $ — — $29,000 $ Koppers Company, Inc. DeputyChairmansince 1978;formerlySenior Other $ 25 — $ 25 $ 13 — VicePresident—MarketingJoined Koppers *Dr Richard M. Cyert 60 in 1943 ( 1) Includes $5,650,000payable on demand to Genex Corporation upon prior notification. President, (2) Includes $10,000,000payable on demand to Genex Corporation upon prior notification.$14,000,000is payable to a third party for the 500,000 Carnegie-Mellon University Edward D. Losch 53 shares of common stock of Richmond Tank Car Company purchased on December 5, 1980. President (Chief Operating Officer).—Organic t*Douglas Grymes 68 (3) The average amount outstanding for each period was computed by using a daily average during the year. The weighted average interest rate Materials Group since 1978;formerlyVice Presi for each period was computed by weighing the effective interest rate over the year. Retired Vice Chairman of the Board, dent and General Manager. Joined Koppers in Koppers Company, Inc. 1949. Supplementary Income Statement Information (SEC Schedule X) Terrance Hanold 69 Thomas M. St. Clair 46 President and Director, ($ Thousands) President (Chief Operating Officer)— Charged to expenses The Arter Company Item Engineered Metal Products Group since 1978; Capital management and investment Years ended December 31, 1981 1980 1979 formerly Corporate Comptroller. Joined Koppers Maintenance and repairs $110,320 $108,014 $97,112 t*Curtis E. Jones 63 in 1958. Retired President and Director, Richard E. Spatz 56 Rents $ 23,611 $ 28,428 $28,153 Mellon Bank N. A. President (Chief Operating Officer)—Forest Research and development $ 18,286 $ 16,411 $13,693 William H. Knoell 57 Products Group since 1978;formerly Vice Presi President, Chief Executive Officer dent and General Manager. Joined Koppers in and Director, Cyclops Corporation 1951. Basic and specialty steels L.Wilks 63 and steel products Jack President (Chief Operating Officer)—Road t*Andrew W. Mathieson 53 Materials Group since 1981;formerly Vice ExecutiveVicePresident, President and Manager—Operations. Joined RichardK.Mellonand Sons Koppers in 1941 Investment management Robert G. Wilson 59 t*Nathan W. Pearson 70 President (Chief Operating Officer) Financial Advisor, Engineering and Construction Group since 1978; Paul Mellon family interests formerly Vice President and General Manager. Joined Koppers in 1952. tCharles R. Pullin 58 Vice Chairman of the Board, A. William Capone 62 Koppers Company, Inc. Senior Vice President since 1978,Chief Finan cial Officer; formerly Vice President and Trea surer. Joined Koppers in 1946 tExecutive Committee AuditCommittee Thomas C. Cochran, Jr. 61 Senior Vice President since 1978;Secretary and General Counsel; formerly Vice President, Sec retary and General Counsel. Joined Koppers in 1956.

This list reflects all title changes as of February 28, 1982. 38 Koppers Group and Corporate Staff officers

J. Paul Martin 56 Robert G. Hamilton 37 Lester L. Murray 53 John P. McCarthy 55 President and General Manager—Lycoming Vice President and General Manager— Vice President and General Manager—Sprout Vice President; Co-ordinator, Product Safety Organic Materials Group Road Materials Group Silica Sand Company, acquired by Koppers Timberlands and Hardwood Lumber Division Waidron Divisionsince 1978;formerly Vice and Regulatory Affairsfor Organic Materials in 1966; formerly Vice President and Manager since 1979; formerly Assistant Vice President. President and Chief Executive Officer—Sprout Group since 1981;formerly Vice President L.Bost 58 R. Kenneth MacGregor 59 Paul —Pennsylvania for The General Crushed Stone Joined Koppers in 1969. Waldron and Company, Inc., acquired by Joined Koppers in 1947. President and General Manager—Industrial Vice President and Manager—West Coast Oper Vice Company. Koppers in 1975.Joined Sprout-Waldron Division 1978, formerly Vice ations, and President and General Manager— Andrew C. Middleton 33 Products since John 0. Hite, Jr. 44 in 1956. President. Joined Koppers in 1948. Sully-Miller Contracting Company, acquired by Jack W. McMichael, Jr. 58 Vice President and General Manager— Vice President and Manager—Environmenta Koppers in 1978. President and General Manager—The Specialty Wood Chemicals Division since 1978, Resources Department since 1981;formerly Charles P. Dorsey 54 McMichael Company, acquired by Koppers formerly Manager. Joined Koppers in 1960. Manager. Joined Koppers in 1978 Vice President and General Manager—Coatings Frederick C. Moore 48 in 1979; formerly Vice President. . and Resins Division since 1978; formerly Vice Assistant to the Road Materials Group President. Gerald L. Reynolds 54 Engineering and Construction Andrew J. Pepper 58 of the Board—The General President. Joined Koppers in 1966. and Chairman Sidney E. Smith, Jr. 56 — Vice President and Manager—Raw Materials Group Vice President—Management Information Crushed Stone Company; formerly President President and General Manager—Erie Sand Department since 1975;formerly Manager Systems, Finance Department since 1980;for Thomas M.June 53 James A. Harris 47 and General Manager—The General Crushed and Gravel Company and Erie Sand Steamship Joined Koppers in 1951. merly Assistant Vice President and Director— Vice President and General Manager—Building Vice President and General Manager since Stone Company, acquired by Koppers in 1970. Company, both acquired by Koppers in 1967; Systems, Methods and Data Processing. Joined Materials Division since 1978; formerly Manager. K. 50 1981;formerly Vice President—Executive formerly Vice President—Erie Sand Steamship Robert Wagner Koppers in 1950 Joined Koppers in 1951. AlvinL.Walters 53 Manager—Treated Department. Joined Koppers in 1965. Company, Vice President and General Vice President and Manager—Western Opera Wood Products Divisionsince 1978;formerly John F. Ramser 49 Lawrence L. Nagel 58 Jack D. Rice 60 tions; formerly President and General Manager Nello L.Teer, Jr. 67 Vice President. Joined Koppers in 1953. Vice President and Manager—Human Vice President and Manager—Operations, Vice President and Assistant General Manager —Western Paving Construction Company, President and General Manager—Nello L.Teer Resources Department since 1980;formerly Industrial Products Division since 1978; formerly since 1966.Joined Koppers in 1946. acquired by Koppers in 1976. Company, acquired by Koppers in 1980. Subsidiary Officers Assistant Secretary—Law Department. Joined Manager—Foundry Products, then Vice Presi Koppers in 1970. dent and Manager—Technical Services Joined Subsidiary Officers Carl L.Todd 60 C. R. MallorySmith 51 Koppers in 1949. President—The Sterling Companies, acquired President—Koppers International Canada Ltd., Walter R. Vogler 58 Lloyd D. Ahnstedt 49 by Koppers in 1981. a wholly owned subsidiary since 1969. Joined Corporate Staff Officers Treasurer since 1978; formerly Director— Dr. Randall L.C. Russell 37 President and General Manager—Western Pav Koppers in 1957. Financial and Administrative Services, and General Manager— Vice President ing Construction Company, acquired by Raymond C. Wiley 56 J. Roger Beidler 46 Finance Department. Joined Koppers in 1951. 1978; formerly General Chemical Division since Koppers in 1976. President and General Manager—Eastern Rock - Vice President—Investor Relations since 1980; Purchasing Agent, Purchasing and Traffic Products, Inc. and The Buffalo Slag Company, formerly Manager. Joined Koppers in 1960. Raymond R. Wingard 51 Department. Joined Koppers in 1970. Marvin E. Browning 56 Inc., both acquired by Koppers in 1967;formerly Vice President and Manager—Marketing Ser Engineered Metal Products 48 President and General Manager—Sim J. Harris Vice President and General Manager—Eastern JayA.Best vices and Corporate Growth Planning since Francis J. Sullivan 57 Group Vice President and Manager—Traffic and Company, acquired by Koppers in 1976; for Rock Products, Inc. 1980;formerly Vice President and Manager— Vice President and Manager—Marketing, Transportation Department since 1978; merly Vice President. Donald L. DeVries 64 Human Resources Department. Joined Koppers Industrial Products Division since 1978; formerly General Traffic Manager. A. Gordon Willis,Jr. 60 Senior Vice President and consultant—advisor formerly in 1952. Manager—Foundry Products Group Broadus N. Davidson 57 in 1956. Sales President and General Manager—Culpeper to the President since 1978;formerly Vice Joined Koppers Joined Koppers in 1955. President and General Manager—The Kentucky Stone Company, Inc., acquired by Koppers in President and General Manager—Engineered Fitzhugh L. Brown 49 Stone Company, acquired by Koppers in 1977: 1974; Vice formerly Executive President. Metal Products. Joined Koppers in 1940. Charles H. Teller,Jr. 39 formerly Vice President—Engineering, then Comptroller and Assistant Treasurer since 1978; President Marketing Manager— Engineering Vice and Executive Vice President and Assistant General Walter C. Arnold 57 formerly Manager—Administration, Division since 1980; formerly Man Construction Group. Joined Koppers in Chemical Manager. Vice President and General Manager— and ager. Joined Koppers in 1970. Container Machinery Divisionsince 1978;for 1962. Bernard E. Elmer 54 Forest Products Group merly Manager. Joined Koppers in 1962. Glen C.Tenley 54 President and General Manager—The General Arthur W. Cowles 63 President and General Manager—Foundry James R. Batchelder 46 Vice President—Executive Department since Vice Crushed Stone Company; formerly Executive Hugh J. Blecki 51 1980; for Vice President and General Manager—Western and Industrial Supply Division since Vice President. Vice President and General Manager—Piston joining Koppers in 1965. merly Vice President and Manager—Purchasing Wood Products Division since 1978;formerly Ring and Seal Division since 1978;formerly Vice 57 in 1955. Roger W. Farris 39 Manager—Plant Services. Joined Koppers Frank E. Davis, Jr. Department. Joined Koppers President—Marketing and Sales, Engineered President and General Manager—Fairfield in 1959. Vice President and Manager—Advertising and Metal Products. Joined Koppers in 1956. Company, Inc., Koppers in Public Relations Department since 1972.Joined Subsidiary and Other Officers Bridge acquired by Earl A. Clendaniel 51 Koppers in 1962. 1980. Vice President and Manager—Utility and Heavy Gerald Champness 43 Peter Barry 54 Vice President and General Manager—Mineral President—Thiem Corporation, acquired by Robert A. Good 45 Construction Department, Treated Wood Prod William T. Hawkins 55 Division 1979; formerly Manager. Processing Systems Division since 1980; for- and General Manager—Natural Koppers in 1976. President and General Manager—Kaiser Sand ucts since Vice President — merly Operations Manager—Sprout-Waldron. and Gravel Company, acquired by Koppers in Joined Koppers in 1949. Resources Divisionsince 1978;formerly Man Joined Koppers in 1956. Edward C. Hills 60 1977; formerly Executive Vice President. ager. Joined Koppers in 1950 President—Parr, Inc., acquired by Koppers Robert B. Dehls 57 — Richard E. Hug 47 1977. W.Ansel Gower 57 Vice President and Manager—Transportation Dr.Alonzo Wm. Lawrence 44 in Vice President—Koppers since 1973; and General Manager—Broderick Sales and Planning since 1978;formerly Man Vice President—Science and Technology since President President—Environmental Elements Joseph M. Madeira 45 and Gibbons, Inc., acquired by Koppers in 1980 ager Joined Koppers in 1950. 1981;formerly Vice President—Environmental President—U.S Plastic and Chemical Corpora. Corporation, a subsidiary. since 1974. Resources and Occupational Health Dingman 40 tion, acquired by Koppers in 1965. George V. LaBonte, Jr. 57 Robert J. Joined Koppers in 1957. Department Joined Koppers in 1976 President and General Manager—Echols Broth Vice President and General Manager— Samuel W. Koster 62 Brooks C. Wilson 48 Koppers ‘n 1980. Architectural Building Products Division since Dr.WilliamN. Maclay 57 ers, Inc., acquired by Vice Generai Managing Director—Koppers Australia Pty. Ltd. 1979;formerly Assistant Vice President President and Manager—Power Vice President and Manager—Research and Transmission 1978;formerly Joined Koppers ir 1965. Pierce E. Marks, Jr. 53 Joined Koppers in 1966. Division since Development Department since 1981,formerly President and General Manager—Ivy Manager, Joined Koppers in 1974. Vice President and Director—Research. Joined Donald G. Hallahan 51 Corporation, acquired by Koppers in 1979, Koppers in 1959. Vice President and Manager—Marketing since 1978, formerly Manager. Joined Koppers in 1958. General on Business

Mineral chemical-recovery grew for dent can ness, predecessor merger Koppers disconcerting today Company’s earnings.

tion business duce manufacturing industry Description reduce Koppers 40

September

as

steel

offering

Prior In

upon

logically

consistent

established

much is

1965,

to

Koppers

a

Assets

capital

Company,

Development

for

industry.

to

It

the

diversified

its

was

prospects

as

1965,

specialized

the earnings

companies.

original

properties

roller-coaster out

30,

organization

40%

investment

a

Company

earnings

dependence Business

in

of

cyclical

Koppers

1944.

coke

Inc.

1907,

of

Koppers

manufacturing

steel

growth.

for

of the

was

It

of

engineering

plants and

Those

succeeded

growth

growth. to

business

Company’s

began plant

Koppers cycle. was

that

effect

design

incorporated

business

original

upon This

for

highly companies

construction

would

and

to

Koppers

on

the

accounted

that

the

and

build

corpora

and

the

by

thereby

busi

Ameri

depen

of

annual

pro

steel

had

build

four

con-

a

a

than struction The characterized expand its the the achieve has nearly from Employment Headquartered the investment. employees in expire lective

1980.

manufacturing

total Company

close

293

average

Approximately This Pursuit

100

$190

95%

at

bargaining

its operating

consistent

investment

types

capabilities.

expansion various

of

million

manufacturing

are

of

of

1981.

number

was

by its the

of

covered

in

total

times

rising products.

in

groups

Pittsburgh,

Company’s

locations agreements,

20,113

earnings

8,100

1964 in

program

of

Over

operating

Koppers

during

levels

persons

by

to

have

of in

businesses

the

$1,030

146

and the

1981

growth

Pennsylvania,

has

of

objective the

past

provided

different

operations

scheduled

Company’s

income. capital

makes

employed

and

increased

course

million

five

has

21,029

to

years, more

to

col

been

at of

to

by

it

the

were The at Research sylvania a lacturing advanced ration. was Company’s tions as new perform ries million spent neering By Financial cial Koppers appears period Selected Segments”

The Patents technology esses. States patents Koppers

they The respect the under license

Properties include: rials, Metal neering Engineering, are ment nia.

duction required ness significantly

number

two

pollution

next Industry

Company at information Company’s

Successful

approximately

products Company headquartered

Company’s

Field

of completed have

In

on

156;

segments

and locations

several

The

Products,

licenses

in

appears

patents

Some

the

the

support,

is three

covering studies

to as

and capacities in

Organic and operating research processes.

financial owns 1980

for

of

forces technologies, considered

Information

scheduling Forest supplied. and

corporate

patents

the

Company. well

opinion

control

business are

on

universities

particular Segment Construction higher

drafting,

of Licensing years.

and

conducts

locations and

table

makes

and

page

more Development

from

on

licensed on as labor in

aimed

overall

the

at

are

293 are

14;

are

Products,

many

Materials,

suburban

information the

and

$13.7 42

they the through

page

groups

$18.3 and

of

a

in

Company’s in volume

and

adequate No “Operations

provided other

Special

operating 33.

employed than

research

large

segments.

contract

locations

management, Koppers Development few improvement

personnel material

Pittsburgh,

estimating, operating

at

development

projects.

performance.

products own analytical

single

support

its

and the

million

22.

to Natural

million the

900

of

companies

business

for

research

number

special

other

82;

than 39; development

Additional

Pittsburgh,

or

at

its exploration services,

for existing to

a

negotiations

to

patent

laboratories

in

Genex various Engineered locations technology

in

Road as in products

patents

10-year in each

The

all Resources, groups for

operate

companies.

and relation

by

each

n

Pennsylva and 1981.

procure 1979.

they

1981,

projects

of

1981. opera

of

laborato

the segment

the

activities Business

activities

amount

or

Mate

proc

of

foreign

with engi

Corpo

manu

such United

finan

of

busi

are

Penn

Engi

pro

and

$16.4 the

of

to

at

of

at a

2. — — —

Organic Organic Organic tive from wholly mix manufacture group using tar Other

of and

cals, in

chemicals half tions. one operates

for metal largest

ing coatings well metal and poration, and to chemicals); of

tires primarily production and

glass-reinforced tions); ing bituminous lines,

on (used

the

such

processing produce

plasticizers

reducing

products is

in

swimming for

commercial

Industrial supplier Coal

of Creosote,

Chemical

coal. steel. A is as

Chemical a

Foundry used

Coatings

and the

lines

manufacture

manufactured

Other

rock in has

smelting

owned tanks

the group subsidiary

a

in Forest

merchant

coal

refractory

and Materials

foundries

Materials

major

technology

for three

tar

rubber, produces to

laminated

Over

five

principal primarily operations.

serve

wool

of

phthalic

grades

coatings produce chemical-based tar

and and

molding

pitches

iron of

phthalic as

of

and

subsidiaries.

Products

Products

alkyd operating

oil,

plants a and pools, for

Division coke

supplier

and

Materials polyester half

derivatives

intermediate

coal

operations, carbon

complex

severe

specialty use

ore

plastics

producers

and

has in

systems a

plastics);

Industrial

and

of

Resins

Business

in of of products binder as

raw

the

wood);

and from anhydride

plants used

tar associated

in adhesives of and metal water anhydride electrodes;

(for

sugar interrelated nonreinforced

the

coke

other a

operates steelmaking,

Division

operations; products division, of

and

material industries

industrial

divisions

wood

polyester

resins

and coal

is

mixture underground present

by

naphthalene

Division

markets.

for systems

as:

and

in

storage

are

a

Supply

antioxidants

resorcinol for

beet

of

naphthalene.

industrial

chemicals.

coatings

the

used

foundries,

major

other

casting

or

foundry preservative,

and

nonferrous manufactured is

operates

used

(used with

(used

Thiem

for

aluminum

four

such

derived

refining.

among of businesses and applica

product

Group

as

resins

for

is

agricultural

and and tanks, products); The Division

Koppers producer

chemi

plastics); for

the

a

binders plants

in

iron melting

three opera

(used deriva

in

in

grow

coke, (used

Cor

pipe (used

rubber

melt

as

the

and

the

six

sewage

industrial applied supplement waterproofing

fire-retardant division

commercial waterproofing related button

Organic (primarily coal Raw materials. chased contract and from such

commitments benzene, sources

Organic

Chemicals, 1981

Architectural Iron Transportation Nonferrous Engineered Lumber Other Utilities

Building

Other

conditions. and

and

Sales

the Materials

other

blanks

to

roofing

treatment

also from

and

Steel

Materials

Materials

of arrangements

petrochemical applications).

coal-derived

protective

commercial orthoxylene

Most

subsidiaries

by

Plastics

Metals important supply

Construction

high-performance Wood

plant.

Construction

produces

Materials

steelmaking

insulation

and End

products for

systems.

and

coal and

Purchasing

and Products raw facilities

Market depends and buttons

have

maintenance

coatings,

Fuel tar

raw

Mining

materials

Rubber

products and and

Division

a

manufacture

with board

based

processed industry.

been

new

materials

operations,

and

and

additional industrial).

heavily

agreements varying

phenolic

made

in

roofing

on roofing

(S other

marine

makes

from

for

a

$205.0

Millions) Long-term

$678.1 products

pitches

semi- 109.1 122.4

939

27.3 21.0 59.5

23 raw

is

162 upon

as

in periods

polyester

lines

various

materials

pur

7 and

under

and

The

the

coal, cold- and foam

cover

100%

past 30%

16 18 14

to

4

9 4 3 2

%

arrangements, and group’s ness gas, shortages Competitive tain in

Most six

and ness native

of rial. price product because advantage because markets affected requirements Koppers does ing wide

dent Certain

ries tomer

ucts, tially $88.0 Backlog Organic

$305.7 close lier. ysis earlier. to

the requirements.

unfilled

highly

cases,

suppliers

be

will

and

proprietary The

a

fuel

option

The

of

in

Most

The Products

areas, of

of

distributors

and

through

during reduce

but

substantial

materials

million,

shipped

of

inventories

critical

1982

continue Organic

million, each energy

This

lines other

lines,

principal

competitive oil,

orders

it

by

backlog

January,

of it Materials operations.

group

service

it

product

of

of

serves.

has

because is

of

multiple

seasonal as

coal,

is

raw

the Organic

is

of

customer’s volume

are

not and

within the the construction

versus

Koppers

raw

are expected

no

well

derived

manufacturing

during The

versus

needs identical items,

are

maintains

performing

Materials

month

to

materials

the and

marketed

also quantity and

factors

buyer. group’s

normally major

Seasonal performance. In 1982, generally

or

materials

1981

be

as

total

subject

production the

of

others,

markets.

practice

to

$115.3

in

Materials variations,

agents.

coke

there

are is

1982, competition

made.

$300.8

continuing

from

of

has

certain provide

the

group

disruption year-end

important. products

backlog as

expected

in

January,

of

sales products supplied

substantial

or

increases

product

through

oven a competition an

to backlog the are

although

Koppers

marketed million the

and

imported

Conditions

With

energy. result

to

million

Except

cancellation

plants

or advantage

roofing, business

same

locations

at

financing. organization.

detailed carry

In

but

finished

gas.

is other

backlog

in

internal

least

existing

of from

a

and

In

by

1982

expected lines. of

a

are

indepen

winter

all

was

number

a

near

busi year The

substan

has for certain most function

invento

cus

mate

natural nation

year

busi

at coat five

sold

are

alter

anal

is cer

or

prod

an

the

the

ear

was

at

not

or tion

from facilities from aggregates account slag), Road crete the etc.). Road construction in when bridge product products. Colorado, residential Middle building. Oklahoma, wire and privately and miles.

forming product Aggregate localized, Kentucky, plies gravel,

Raw

Road

42

Central

construction

markets

The

Wyoming.

About Transportation

Southwest

fabric

welded

publicly

markets

and

Materials

Materials

Among

crushed

Materials

bituminous

Aggregate

building,

East.

granite,

cost

that cost. for

accessories.

group’s

funded

and

paving

and

New

Materials

Florida,

building

50%

and

raw

Pennsylvania, 37%

(crushed

About in serve

wire

projects.

(paving

funded

these The

near

South

the

stone

18

Six

is

York,

other

produce

materials limestone,

other

and

of

work

market.

Business

of

civil

services.

made

fabric markets,

states concrete,

delivered

Company

Georgia,

roadbuilding

facilities Road

85% its

construction

total

services

is

America,

is

Fuel road

North

concrete-reinforcing

materials, construction

stone,

paving

quarries

a

The in

transported

major

up and

sales

of as

many

and

Materials

consist

Tennessee,

maintenance

trap remainder

The

therefore,

sales

of

Carolina, well

in

ready-mix price Indiana,

sand, related generally

are

distribute

activities,

Group

156

the

factor including

Africa

segments

in

balance

rock

as concrete,

and

and

road

are

California,

of

doubles domestic

Southeast

gravel sales services

operations

20

sand

specialty

and

construc

Kansas, in from

and dam

Ohio,

are

is

and Virginia

to

sup

con

total

welded

non

from

is and

some

result

sand-

30

of

the

and

and

and

Great Acquisition stone, aggregates the years strengthened Koppers roadbuliding It suppliers. and satisfies companies, raw and each requirements;

Architectural Agriculture Road 1981 Other Engineered

is

Company

estimated

materials steel fuel

Sales

about

Materials at Lakes

which

current

are

nearly

quarries

rod,

Adequate

by

Construction

20%. will

of

Construction

steel

expected

dredging

come

activities.

End

or

include

that which Colorado

natural

The

half

be

production

held

producers

are

Market

the

sufficient

Sterling from

of

supplies are

under

on

asphalt,

gas

present operations. Road

to

and

quarries,

purchased

continue. land

and

Companies rates.

long-term

Materials

for

and

Wyoming

of

either

slag, reserves ($

diesel

more

raw

$440.5 $541.9 Millions)

cement

Other

mines

Most

Fuel 89.4

cement

3.9 from 8.1

owned

materials

fuel,

than

energy

leases.

oil of of

major

or

oil

100%

81%

16

25

2

1

%

by

Competitive within diversified, Road share mineral competes. areas, to and demand, mined from service-oriented, sonal, during Increasingly,

volumes May financing most stantially of peak was however, year Backlog

Road the backlog than of to

wide

high

the

result

backlog

service.

Principal

Road Product

$100.8

ito a

95% earlier.

efficient

Materials demand.

ot

individual

Materials

year the with

by

the guaranteed

summer fluctuations

reserves

those

to

in that

November

supply

during

local to

for

Company

of

Materials

peak

with

more

1982 increase and

million,

carry

The

are Prices

this the

inventories

customers.

reflect

and

factors

production

regional

conditions

Inventories

operations

limited to

backlog

regional construction

demand,

spring sales. considered and

year-end

than normal are

business

calling

inventories

Seasonal

decline

source

versus for

created

a

30.

business

commonly

during

limited capacity

in

70%

balance

aggregates

vertical

months markets

competition

for tendency

at are

markets.

level

It

and

thereafter.

backlog

of

has are $106.4

normally

the

of

the is

on-time

within by

firm,

controlled

Conditions

supply.

period

or

sales

not

is

factors.

are

geographically

and between end

integration become

nationwide

first

in

holds

in

highly

provide

and customary,

anticipation

million

not which Because

is regional

are

supplying is

of

occurring

six

are

delivery grow

from

for

Orders

expected

a

1981

more subject

sea deter

months at

high

price the this

a it

sub

in — —

treated cals Forest pressure both Koppers timbers; transmission, invasion and Products piling; for construction

also creosote, Conventional these tary salt Forest under NCX tures trademarks. marks using range tions, ment,

industrial, wholly dards, columns, duce Timber nated pipe est hardwood Raw pallets, Eastern

industrial

preservatives.

Products. accessory Chemical and

processes

The provides U.S.

Koppers U.S.

and

for

glue-laminated

Materials

railroad

such proprietary Koppers

primarily

such of red wood

and

and wood, owned

Products

is

paneling

fence

sewer

by

laminated and

is

chemicals

Company

results

include

and WOLMAN.

sawmills,

pentachlorophenol girders,

the

commercial cedar

a

lumber

produces

as

power

insects trademarks

products lumber and

major

Products Southern

wood distribution

Canadian

contract main specialty

The International

crossties, treatment

structural

subsidiary,

posts;

equipment;

and

wood-treating

to using

in and

shakes

railroad

commercial

and

processes

the Business

trusses

transmission

major

sold Koppers resistance

wood

producer and

engineers

raw

operated drainage

used

pressure

and

Koppers

wood Fuel

foundation

and

specialty

more

other

and

wood-treating

and

hardwood

wood-treating for

to

material as

markets.

wood also of

and

plywood.

requirements

and products, in crossties;

supplies

manufactures

and

damage

corrugated

CELLON,

flooring, wood

Canada building

residential

than products

end

pressure

also

and

shingles; of

lines. treatments manufacture primarily and

customers. to

lighting

processes

also and

lighting

beams,

chemicals

Group

chemically

structures.

products.

decay,

80 used

and

has

their under

to waterborne

manufac

Koppers

a licenses

from

licensees supplying

furniture, Ltd., poles

utility,

supply

broad DRICON,

for proprie

treat marine

services

poles

chemi by

trade

applica

stan metal

to and

arches,

are

to

fire.

lami

a

use

and

For-

pro

and

pressure-treated Stronger markets

softwood railroad timberlands poles pine needs

cessing influenced 10% of Demand chase fully from growth materials. hardwood

preservatives. raw accounts

Transportation Forest 1981

Lumber Architectural Utilities Other Engineered

Koppers

material

and

integrated Preservative On

of

Sales

both

and

the are

Products the

rate

crossties

and

the

plants,

resulted

West and

remodeling

timber,

for

The Company construction necessary

met

is

by

by

group’s

Construction

product

Wood

basis currently

or

Construction

adequate,

stability

about

price

housing. End

Coast

long-term from

by

arsenic the

primarily

In

and wood.

Products

raw

of negotiated

Market

for

Company

40% hardwood

in

Company-owned mix

Btu

and

species,

for timber

exceeds and

creased

furniture

materials

softwood

Thanks

lumber.

acid

since

and

quantities,

WOLMAN

of

availability

outside

home

Southern

Forest

and plant

location

cutting

the is

to

and

the use

(S

products; to

Approximately

able

are

addition

are

supply

finished

$144.2

sources. $379.8 Millions)

timber

the

provides

Products rate

softwood

of

82.6

29.4 55.1 53.0 wood

natural

15.5

supplied

yellow

of

directly

rights.

to

of

breadth

Eastern

of

pur

pro

utility

and

raw

cut.

100%

A

22

38%

14 14

gas

8 4

%

fuel,

developed all major down The order native Competitive

treated wide tion petitive the

concrete

gic pete Koppers petitive

group’s ucts for through related business about reduced

conditions. lumber dependable some in total Sizable Backlog the ered Forest time million, ing approximately process.

cases.

the

the

plant principal

wood-preserving from

first

wood

1982

Most

against are

Inventory

supplier,

backlog except

to firm,

due

plants

types

total

30%,

product

most

Products

and

and

to advantage

are

versus

lower

inventories sales quarter,

summer

sold

locations during broad

regional and

and,

In

is

Forest

the to

products

waste

cancellation

wood-waste

investment

relatively

seasonal, fragmented. laminated

recent

from of

are

on lack part, such

requirements

service.

directly

and

aluminum.

building

is

force.

Koppers costs

although

fuel.

represents

areas

$74.3

50%

range

finished

winter expected

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controlled

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other

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provide

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supplied

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of

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materials

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high Price

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business. be

and

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a

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production by

products

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point

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sales

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prompt,

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of

systems Forest

Products. user

highly

for

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plants

products

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represents

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steel,

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are

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43

in 44

Engineered trol Products

designed Engineered ally cessing chemical, crushers ufactures and precision-engineered, machine Engineered

industries. builds trial industrial also container

hard-rock paper ufactured and board shaft producers.

industrial

hydraulic

drives power p1

conveyors, corn power

steel include

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The Mineral Koppers

pensate manufactures

Koppers

Environmental

seals

rolling

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disposal. from

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machinery

high-speed

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paper

components

aircraft

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manufacture, rings

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as in

refiners, machinery containers

for

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paper,

business

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products,

products

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aircraft

installations. machinery which mills,

a

water

pulping

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for

high-quality

board.

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for Metal

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air

formula

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include as

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and material

designs

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treatment and

converts

corrugated

of engines,

cleaning,

lines boiler

seal

The

producer

plants

erection Business to

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including

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range

other

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systems,

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packaging

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rings

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products

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Piston facilities control precipitators, engineered critical and ing

systems; pal nisms compact hazardous

large-size use Groups, outside Products

Engineered 1981

Transportation Paper Architectural Machinery Iron

Agriculture Utilities Nonferrous Chemicals,

Other Engineered

systems and

wastewater

in

and The

Sales

and

and

various

rings

tolerances.

systems

industrial

customers.

and Steel

as

group

refuse

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and

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gray

control

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materials Plastics Metals

Construction

well

to

Metal

for

Construction

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gas

baghouses

waste

End

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areas

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diesel for

and as

treatment

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plants;

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units

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aircraft, Rubber

engines

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the

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ductile

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in activity ment construction. activities, tive parts as trol hand tory retainages end $169.7 Backlog Engineered expected seasonal believed

premium commercial

electrostatic

natural

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and

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products,

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performance Working of Materials

quantities

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shipped

year

bars,

$215.0

environmental required

as

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the

business

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machines Products

competition and

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receivable suppliers.

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the

amounts

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performance,

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products

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billets,

capital

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Koppers the

million,

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installation.

backed

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winter

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are

produced

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lines

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1982. the group’s

lines

business

services

fuels

backlog

in-plant

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as to

Conditions

and

plates,

purchased

field

amounts

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parts

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for produce use capital reclaimer reduction sales small steel fuels est various replacement

price steel, Raw

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plants

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production

volume

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guarantees. volume

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contracts, group

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to

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basic

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group’s market

work

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oxygen

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actions

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synthetic

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chased construction versely contractors. to

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construction

engineering Competition Several been

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expected

industrial

and

Sales

wire

intensified

companies

affected

from

Steel

large

with

competes companies

in

and

by

Metals

1982

that a

No expansion. and

and work.

and

for others

of

U.S.

End broad

and

steel

conduit

domestic

material

North operations adequate

by

Construction

and construction

construction

and

builders Market

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currently

producers

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against or

range

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lack

American are

supplied

shortages

against

steel

materials

of used

supplies

on

of

other in

working

capital

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expertise

engineering

1981, capabilities.

have

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capabilities

plant

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business

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foreign

$55.8 U.S. $586

the

sub

ad

are

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ance although in contractor significant tion sales

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currently ered pected for is struction ment

the

year

totally billings

services

contracts

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construction Engineering Working

during are

world organization.

firm,

plans

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the

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subject

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weather. at

This

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factor.

rendered

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steel

the

of periods

a synthetic

be

amount willing customers

1981,

are

capital

performed

involving

depressed

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varies

nearly

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subcontracted

extent way

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sold

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to

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financial

engineering contracts

made

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industry, to

of

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backlog

level.

basically

Price the

the increase

was

most

portions

the

plants.

1982.

interest

in

with

by

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capital

has on

work

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competition,

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and

from

planning

risk

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million

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exists

the yet

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a

at

is On directors ated Legal Additional 46 further ferent was owned acy Koppers entrench Inc. New Of ket” their for damages these prejudice Hammer.

emissions October in defenses coverage. alternatively, since to remaining petition Koppers

spiracy States 1981, tion conviction litigation June having Koppers Court

collusive 30, Koppers and road $100,000

denied

out

Koppers Connecticut. of

United

Allegheny

Koppers.

Connecticut

July

its

The

with

1981,

of

voluntarily

of Commencing

for

a

On

Castle its

husbands,

Koppers

tar

a

29,

claims, customers

Koppers

lawsuits Proceedings

of

complaint

the

purchases

Section for or

total

engaged

political

States 13, Cutler-Hammer

to

Koppers

in complaint

September

Koppers,

29,

and

Appeals

in

will

of

the

insurance

1981 management

On

and

the

controlled agreed to

in bidding to

in

review the same restraint

three from

Koppers

was

sales

1979,

Cutler-Hammer,

County,

a connection

the of 1981

plaintiffs.

County,

not existing

March

that the

United

24

another

companion

Supreme

and

District

27

in

dismissed

never

1

on

affirmed

coke

allegedly

subdivisions. remaining

suits

were

result

investigation

Tyco of in directors

to

in

the

petition. between

it with

to

of

women for

and

by

attempted

in

alleged

August involved

has the

of

a

the

the

carrier

Delaware believes 2,

a

Koppers 17,

by Description

States

Court

Pennsylvania

the 1976 Tyco

combination

management

ovens

operated

with

interstate

consent

prejudice

finally Business

company Court

geographic

1981,

Laboratories,

in

Court

Sherman holds

State

insurance Tyco

1981,

with common

Court

by

Second

any

induced

On had

civil

and

by

reservations

of

and 1918 claims essentially 14,

is

of

the

Supreme

charges

built the

in

for

dismissed

the

that

Cutler-Hammer,

in to of of

defending Tyco

the

October conviction material

Koppers

Common

On

filed

filed against

1979

of

action judgment

a

continuing

thus

the

order United

trade Connecticut Chancery

the and “chill

complaint

to

engaged

deaths civil

the

by Act.

view

Circuit

November it

stock

coverage.

(particularly

and

by

allocation

with

plaintiffs. by claiming

ovens) has seven

of

in

District

to

Koppers

1958.

United

Inc.

that

conspir

arising

to Court This the

in

the

Cutler- the

that

8, liability

that

States filed

con

valid

of

on

Pleas

viola of

the

deter

of

on

for

1981,

initi

mar

State

dif into

in

of Of

the

this

or,

of

a

of

tion

Lake oven The Safety Venue alleging are Inland Environmental, management Inland’s tional quality (or tions; million Porte local $100,000. plants. blast About impacts exceed proceedings Koppers governmental and Koppers, rial went in satisfactory investments ments Koppers expenses rable able equivalent new capital equipment

to ronmental material facilities tion mental ment, potential enterprises, precision. under

any

require

construction

to

sound filed

Company On

its

Koppers

and

facilities

for

Superior

Koppers, furnace. regulations battery

to

Circuit

proportion

toxic the health

damages $4

such replace

in

are

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These impacts

subsidiaries

base Regulations

action August

elimnate

10% that

Indiana subsequent

of

an

adverse this

operation

and has

has

million, costs

nor business

attributable defenses the federal

expected

unpaid

solid regulations

to

substance are

action

proceedings

levels.

delay for Court,

and

and

is of action

at of

counterclalmed

no

may the in and will

is

in

Company

Court, has authority

is

or

in

subject

increasing 7, the

cannot of a

the

plant involved of

1982. the

waste Harbor

in

reason

subject of

on

Occupational safety or

blast common

abandon increases

small their

pollution effect

1981,

legal

its

Occupational

by delay against

required the in

the

of Company. Environmental the or La

current

4.5%, has

aggregate on

the

against

to years.

construction

manufacturing

East

Inland

and

new

No

financial

to coke control; total Porte,

amount furnace

have

disposal;

total a to be account

percentage

advisors

Inland

of will

on environmental Works

been to

or

to

to

pollution consolidated

in

in estimates

evolving

equipment

Chicago,

of forecast its

Koppers

at facilities.

or believe

with

equipment operations,

modify, federal, impede assets

environmental cost

Operating

impose excess

and in

oven funds

on

not

Inland’s

Koppers

Indiana. a

employees.

to

to

moved

Although

the

Steel

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rate

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the

many

for

bring yet

to recover

may

Safety

Health

air

believe

$100

battery

cumulative

of Koppers

control

improve invested

of

that

regulations Koppers not

contract

supple with occupa

a caused roughly

construc state

of of

sanctions had are in

Indiana, and These

Corpora

opera

a

claim.

Koppers

compa continue

to

in

Koppers

other

it

the

its capital

and

coke

million. basis. mate

govern any

and within

avail

envi

the 1981

a

water and

$17

there

and of

and

at

in

La

tions Health certain chemical not cantly more

ness Protection ing gation chemicals chemical ing health

and add water Resource disposal mental ber being pesticides, against which duced during ufacturing Presumption that phenol tions

settled. reregistered, of that on the tial. preservatives. will

on

reregistration

materially

of premarket

the

the

of

final

may substantially Some be these Thus

As

the

While

will in

stringent,

of

some

quality conducted

in

Koppers

and

Act. was

of

of by

the manufacturers cleanup

1982.

Company’s

small and

part three

that

It

the costs

be

EPA sites.

stringent also

processors

solid

Koppers

is the

Conservation Koppers—creosote,

Agency

wood

and

sites

environmental aspects

the past.

Health

begun

the

arsenicals. affected existing

future. expected

of

reregistration

Against

investigations and

regulations affected

the wood market

require

disclosure

associated

EPA

waste In

its environmental

EPA these However,

chemically

as at

If

will preservatives

related

to

conditions

at

will continuing

the and

in existing federal

well businesses

(EPA)

of has

earnings.

has operating

a preservatives

chemicals.

impose by

1978,

continue

impact

disposal regulations

Re-registration”

some not

number the standards

that

the

and

safety

The as

tentatively

U.S.

and issued

matters,

will Koppers of

have

Company’s

regulations impact

Company’s

with

regulations

the inactive

have may

Company

users related

have the review

remedial

and

Recovery Environmental

additional on

review

not regulations

and

costs final of

to

under

implementing

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should

pentachloro

“Rebuttable be

potential

these The

not

applicable

current

material

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of could

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ground

used

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plant

conditions

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made

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the

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notice

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man

test

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will

to

—

Exhibits The exhibits required Shareholders part request pany, Pa. Exhibit vertible 4.1 ting Resolution, poration,

by Exhibit ment quarter amended exhibit the rated Exhibit tive of has the vision officers the deducting $1.6 shall defined incentive income common stock of not will fled

Plan ipants ment

uty Groups bution

whom

the this

and

following Board 15219. Company’s

forth to

Chairmen

be payments: been

following

of

public

million and No.

be

herein

except

Inc.,

below

for

amount reduce

are 3.1 reference.

to

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ended

preference

A—3.1

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in

to: are

credited

not

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22 by

fund

2-70 stock

the to distribution

authorized incentive

of

the

12% to

determined

dated

accountants. Koppers

1981 to

Secretary,

amended,

directors and determined February

are

by

Item

an

Directors presented

that method

Chairman, Koppers

and the

and 174

Plan

an

Koppers March may

needed

There exhibits

this for cash Koppers

total Koppers

amount of

officers on terms

thereafter,

An

to

Form

amount participation December

net

7

extraordinary and

the invested

stock,

payments,

until

by

reference.

obtain the

of

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income

by dividends.

of

Building, of shall

31,

of income

23,

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for Presidents

Form

the to by of and

incorporated

Regulation

fund. Registration

Koppers the determining

equivalent 10-K the unanimous

are by the

Vice and

Certificate

Participation here

By-Laws

cover Koppers

filed

1981 equal

Company

92

1981,

Company’s

be

the

the

copies

fund capital

1.5%

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included

before

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credited

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interest,

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Pittsburgh,

the

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common filed

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to 1980,

reaches

others

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employees,

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as for

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1982 to

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subsidiaries Exhibit sation which Company cant them, its Subsidiary gle of

participate

consolidated

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subsidiary,

in

subsidiary.

considered

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the

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also

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for

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in

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financial

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Koppers

Board

key

in

Committee

46

Plan. accounts

the

here

not

employees

other

of

aggregate

statements. The

constitute

has

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because

subsidiaries,

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in A. Signatures of Chief Koppers undersigned, Pursuant Senior Chairman capacities 48 has Pursuant Comptroller

Fitzh Richard

Dougl7/Gryrr, (Chief

etcher

William 1934,

been

Financial

gh

Vice

Executive

Koppers

M. L. Company,

to

to L.

signed

of Capone

indicated

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the

Cyert, the

President

the

thereunto rown

Officer

requirements

requirements

Board

Officer) below has

Direct Direr

Required

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on

duly

and

duly of

February

by

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caused

the

authorized,

of

of

following

Section

the

22,

this

for

Securities

1982.

Form

on

13

persons

Curtis Andrew

Form

Nathan

or

February

10-K

15(d)

Exchange

E.

on

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to

W.

Jones,

10-K

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Pearson,

22,

Mathieson,

the

signed

1982.

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Securities

of

of

Director Koppers

on

1934,

Director

its

behalf

this Exchange

and

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in

by

the

the

10-K

Act

Area Koppers Common Symbol: Pittsburgh, Koppers

Transfer Exchange Midwest New

Pacific 2 Mellon Bradford Pittsburgh, Mellon New Chicago, Harris 55 Bank Stock San Savings 111

Pittsburgh of Pittsburgh, P. Trust 30 Morgan Continental 231 New 420 Wells Chicago,

Dividend San Mellon Pittsburgh, Mellon

Broadway

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III.

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Listings:

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National Pa.

Pa. 412/227-2000 LaSalle

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Pa.

Pa.

and Illinois 60690

60601

Bank, N.A.

Exchange

N.A.

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15230

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General To

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Assets Information Competitive Backlog

Description Energy End groups, New For Seasonal Fuel Raw

they Organic Engineered Engineering A. Forest Road

C. B.

D.

E.

F.

judgment

aid

in

Accounting Auditors’ Annual

Capital Capitalization Balance Cash Board Ceramic Chief Changing Coal Coal Compensation Markets Common

Description Debt

Dividend Dividend Dividends Employment Directors relate End Engineered Environmental Engineering Facilities Financial Fiber Financial Foreign Forest Orders Materials Future

formation

Materials

the

Products

index

consult

Materials

Markets

Gasification

Properties

Factors

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Financial

Optics

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Products Outlook

Metal Conditions

as

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Technology

individual

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Stock

Business Statements Condition

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Metal

Construction

and

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Products those

the

report

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following:

Plans alphabetical Regulations

Officer’s

Information

Information

Construction

above

Products

Koppers

Agent

Items

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Plan

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subjects

Letter

Index

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Page

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to

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of in Pursuant Scurities A Commission December For Form IRS Koppers $1 Common Securities Form 4% Cumulative Koppers THESE $10 SECURITIES Yes tIled SENTATION PASSED As No aggregate Indicate 12 are closing this directors held has Mellon Annual tents Documents

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price SECURITIES

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the 10-K Commission.) 10-K Act

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THIS

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on

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DISAPPROVED

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10-Year Board Index Description General

economy:

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Charles

Chairman

February

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point

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base

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the or

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the

and

the

to

from

out has

operating

and

process-

adjusted

money pro

United

seg The

interest

has local

fallen.

indus

indus

held years

sell

diver

need

of and end

Wide

past

for

are build-

and

more

in

con

the

for

the

of

the

Company to and ing for market determined its foundry cal recession quality —are capacity and producing competition as roofing uct tion businesses

(5 $70

0

Organic With The

The

Two

With

more

leadership

a

coal

Billion)

equipment Company lines,

quality.

financial

slashed at

supplier

78

designed

group

group -=—-—

actual Inflation-adjusted

less major

and depressed

modern positions

system

tar

coke

internally

in

shifted

assets.

began.

stiff

Materials

Weak

certain

efficient, pitches, than to

eliminated

continue.

plant

has shape has

new

of market

has

position

emerge

79

businesses,

price

and

plants,

to

premium

50%, from

of

demand eliminated

increased

generated

fought

products—a

operating

businesses

strengthen

commodity

its

thanks phenolic than

well-located

competition.

continued

through

petroleum

in Organic

core

in and

certain 80

major

when to

better

building

and

as to

capacity

strengthen operations,

its

marginal

costs.

raw

foam

superior

high

Koppers

well

streamlined,

unprofitable

chemicals

intense

share

the Materials cold-applied to

end

81

operating

feedstocks

plants. materials,

enhance

materials.

as insulation product current

Over

markets

utiliza

of

chemi

other

prod

price

the

lead

the

82

has

is

the fit ating turnaround from struction tional from opportunities supplier available than spruce helped wood-waste Hardwood integration ship Plant being chemicals. ing investment, competitive other

The

Road Forest

Forest its

0

potential eight

in

$4

four the

strategies

costs

productivity

78 companies materials

disposed

group

wood

to

lumber

million

Materials—This

of

Canadian contracting

Products

U.S.

Products—To

business.

geographic

expand

timberlands of

crushed That

during and

this

or

for burning

has

treatment

in

certain

treating

79

environmental

operations annually

and processing

competed

group new, of. a

position

withdraw withdrawn

has

dramatic

Koppers

an

has

wood-treating

Internally

Emphasis

aggregates

will

services.

systems

fast-growing regional

economic

markets

steadily

plants,

has

80

maintained

and

improve

and

continue in

group

could

and

plant strenuously

closed

in

and position

earnings

sawmills

wood-treating

in

developed

the

problems sold

operations on now

improved. that

withdrawn

recent

improve

has

81

into

into

fuel recovery.

its

greater to

face

market.

or regions.

Canadian

its

save

no

return

cut

from

explore

con addi

costs.

are

is

leader

years

longer

of

for

oper

sell

and

as

82

more

a has

on

with

products. being closed

equipment business. process

ery mental technological ply group’s all the industry. $220 couplings ($ of and

world

improved industry

depression has With ects,

0

Engineered

A

Sprout-Waldron Billio

Engineering

materials

efficiencies

spare

business

value

the

new

expanded been

78

virtually

the streamlined.

actual ,

inflation-adjusted

leadership.

several

systems

favorable

strongest

of

has

Backward

piston

group

As added parts

technology

hard operations.

operations.

negotiating

in

processing

firmly

noted has

no 79

lead

Metal

the

and

plants

and its

and hit

and ring

has

in

backlog

been

acceptance

product facilities

domestic

The

has by

in

established help our

earlier,

integration

Construction—This

selected

mineral cut plant Products—This —

the

and

the

for

80

to The

greatly

Company

scaled

power

to equipment. employment

diesel

the

sell

prolonged of

will disposed

lines

we

advance for

container

steel

steelmaking

processing --

pulp machinery.

the

improve

of the transmission

modernized

are back

has 81

Koppers

engine

are

new

environ

has

industry.

and production

in

increased

intact.

of

to

Its

Koppers

group

the

machin

by

sold

one

paper over sup

82

group

The

proj

or

is

330 Koppers (1 ject about equity now In more leadership production strong

itable favorable uncertain, and in

discussed total in in Initially, tion neering preparation convert

methanol gasoline. as

0 972=100)_,..mhhhuIII..I...

The the

Also

which a 1983

an

in

synthetic if concentrated

scheduled

78

$200

concentrated actual Inflated

company, 60% short

trends

position. which

Company

additive

market

promising

if

Koppers

and

peat

Koppers

interest Prospects

in

annually

million potentially

derives

in

costs, index

in

run,

was

index certain

construction

Koppers

currently

the

79 into

the

fuels

shares.

to

to

well-armed

Koppers

could

will started charts

in past rates

raise high about

is

begin on is

from

for

in project

the of

the

positioned.

receive

volatile

the

businesses

80

will

year. It

the use

in product

resume

the continue

next

above. 60 possible efficient

will

in

in

motion

synthetic will

revenues

hold

economic

as

octane 1986. in

million 1982,

to

Capabilities

be

three

economy.

design,

be

North

a

81 compete

quality a

its

a

motor

These

downward

continue plants,

smaller The

with

investment major

more

in

gallons profitability

years.

rating

fuels

that

Carolina.

which

sectors

engi

unit

opera

fuel and

82 are

prof

could low

in

are pro

and

of

Site

will

of

an

or

its

Venture our For tion ported businesses development physical

growth. ture bring

logical

share, in

production nization. under varieties tobacco panies is

and ratory production, aided fuel engines. high-technology industry range

glass. cables in ogy networking.

electronics acclaim motor its

cal ess electrical temperature, to metallic

continue

We

Genex,

DNAP,

carrying Engenics 1982.

Ceramatec,

EOTec

American

communications,

METCAL

We

some

strength

reduce

modular,

for

capital

materials

cells scale-ups

for

control

forth

are

way.

by

results

from is by

scope.

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remain drive

to

quality

for

In

telecommunication

plant

Capital

and Genex and develops

of a after

materials

years

continuous active still

the

develop and

with

is

addition,

connections

opportunities

leading

on process and power.

we

operations

tomatoes,

microelectronics moving

and

and

concentrates

a

efficiencies.

It

robots expandable

produces

of Robot other

government

convinced

most

in

in

with sense These its

high-temperature research leader and

confident also

Koppers a

into

have

has to

our

has

in

genetic

our

auto

growth ceramics,

researcher-manufacturer

Investments

commercial

come,

and new, agricultural

into unique

genetic market

plants.

full-scale

modern

offers we

for controls

existing

through

a

is

two

sensors

history

in

it,

continued

analytical

in

industries.

high coffee,

a

to

space-age

place sells the

have

that and heating

disease-resistant for fiber

owning

will

engineering for developer

that

that

products

It

the

robot expand

proprietary

projects on

energy

leadership.

combines

engineering high-precision level

carries

major

and can then

networks.

long-term

and

capabilities derive

short-range

process and

invested

manufacturing

and energetic Koppers

optics to largest

translating today,

sugar introduction.

biotechnology,

hardware. elements line,

to

aerospace

a

efficient reach diesel

of

by

“MERLIN,’

self-regulate

computer-

specialty our

food

and major

in

metallurgi progress

covering

out

research

from

of

a

sup research

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pilot

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reputa

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a

5 and OrganIc Construction Products Road Materials Engineered Koppers Engineering Metal Materials Products Miscellaneous Forest

($ Total

Millions) .

Operating

Year

82 81

82 81

81 82 81 82

82 81

82 81

81 82 81 82 82 81

$ $

$ $

$ $ $ $

$ $

$ $

$1,585.2 $1,909.7

Sales

535.3 678.1

485.9 541.9 297.1 379.8 233.6 215.5

32.9 58.6

18.5 17.7

Operating

Results

Income

(Loss)

$ $

$ $

$ $ $ $

$(16.3) $

$(46.0) $

$ $142.7 $ $(25.2) $22.5 $120.2

29.2

38.9 57.9 42.9

10.3

13.4

(7.6) 8.5 25.5

4.9

6.9

0.3

volume sales. able coke income Income During ity tions. demand product improved Severe Weak construction ings. recurring treated-wood Income

components. cals helped markets try. disposal Demand income, closings, Depressed advanced Sprout-Waldron nonrecurring

machinery Depressed costs. even. Sales resulted potential Slack reduced costs Richmond resulted General

Income

by

utilization

Piston

mix

began

sales Intense

Shipments

Nonrecurring demand

Much on fell

demand

Capabilities

1982 offset weather was in declined

also Business

was

lowered in

in in of fell from

expenses income synthetic other

(Loss) Corporate income. synthetic

each

to

rings, pulping

nonbuilding deepened

Tank operated coatings,

lack demand

businesses, to conditions

off

fell

for of volume. was

substantially introduced.

competition

charges.

Income lower

business.

write-down improve

in

loss nonrecurring 38%;

in year.

to industrial of in as

Car

couplings, as

of

sales

from reduced Before railroad,

utility,

New

Western 42%. systems

new

fuels

are

fuels

demand

aggregates crosstie resulted expenses weak

was

for

at Company,

polyester Chemical

Overhead creosote,

was

losses.

in coal

Results

now near and

construction,

lower foam

contracts wood-treating

Cost

severance, other

project. Drop

from project.

steel

offset

Interest Segments

less capital demand

of

utility, penalized by

markets,

for operations. container income

concentrated

was shipments. year in

expenses investment

reductions insulation

lower Binder

levels.

severance markets lowered in

than

industry

rose lower resins paper plant

21%.

cost

development fell

construction

furnace

equipment, high

end.

in

Expense

reduced

10%, break-

overseas

other in

in

1982.

reduc-

weak also capac- pitch non-

earn-

Favor-

indus-

for

the chemi-

Plant

cut

Loss

in

by

on

and

annually Gains and Gasoline other begin consumer Major Near-Term interest tribute tion upturn, rates Improving visible Actions tinued demand ance. cost Lower treating tions, With improvements Impact construction essing, aircraft In 1983 Anticipated Intense Low volume synluels

antees coal. Recovery seen result

Income

such

road

products.

Improvement reductions capacity

backlogs

would

Agreement nonbuilding as income end Lower In

moderate

in low railroad of to

of introduction

for

petroleum,

engines, industries rates competition during to

chemicals.

housing

for to Taxes

emerging

tax

equity

project Improvements

improving recovery.

disposals, durabies markets signs

should Outlook

close crosstie

synthetic federal

aid start treated

increase interest

volume

should

turnaround.

utilization

Cost

low will carloadings

1983-1985.

building

investment.

should

in demand

marginal food could construction,

on

of

improve

construction.

as

will

auto, transportation

result funds in continue

steel.

sales. production reductions

lumber,

North of railroad

are loan

other

fuels rates lead

at

paper, most

will

and

rely

new

help

benefit

a

starting

in materials tire, expected

upturn.

for from

and

add low

Early to

plants, Lower

Carolina

project demand grain steel cost should

on

product

point

foam

wood-

construction diesel Methanol

depressed.

shipments. pickup

highway aluminum,

price level.

$4.4 favorable

recoveries

lower will

could

perform

signs

reduc

industry, proc

in

Future

to interest

other

insula

fuel.

renew to could

billion

and

con- 1983.

for

guar

lines,

con- -

in

hold

are

As Koppers specific

Construction Nonbuilding

services bridges, ($ infrastructure iron railroads,

(Products

Architectural Construction commercial, residential

( Capital Manufacturers’ Equipment transportation, food used steel, ProductIon of industrIal (Components ferrous rubber, metals, Total Building (

Millions) the

Products

chemicals,

and

following

and

in

pipelines)

Sales end

streets steel) used paper

and lumber

mineral

utilities

materials

grain and

structures)

markets used

industrial

nonferrous

facilities

in

construction

plastics, and

table and

and

processing, agriculture, Sales

highways,

and

ores) and

by .

packaging,

for machinery

such

producers within

wood,

shows,

pipelines;

as

and

other

each

roads,

to

Koppers

Major

segment

Year

82

81

82 81

82 81

81 82

81 82

sales

that

go

Economic

$711.4 are $824.3 Sales

$217.2 $273.9 to

$1,585.2 $233.7 $215.6 $1,909.7

$441.0 $577.8

four

most

broad

important

%

44.9 43.2

13.7

Total 14.3

100% 13.6

100% 12.2

27.8 30.3

segments

Sectors

to

Koppers

During

Total struction spending low inflation-adjusted ening industry and primary higher utilities sales nance

Housing Office expenditures levels with homes,

most building lion previous

Company’s resulting activity to weak investments Businesses

throughout profits. Total and

for incentives foundries, but mobiles, vious tors utilities ment,

most industrial of

the

level

the

cancellations.

a

sales

declines in

a

borrowing

declined. of demand other

number

industrial

for

30% than end-market and

Company building lowest

architectural

1982 year’s

metal curtailed

U.S.

are

was production treated Capacity expenditures additions

sector held as

activity starts

continued

year’s

in most

basic

in

new sector.

in listed to areas the

aluminum, rise

general

economy.

the the

construction more reduced

mining. by

about

were

output, level down 1981,

expand.

of

for

were of construction previous fell

Prices

facilities, wood

output

year, during

costs chemicals, nonbuilding 6%

declined levels. spending

key

products

dollars.

in the

utilization

of aggregates.

and

than

Railroads

demand by

in

even

met but

parentheses. even

construction near

to weakness nonresidential 16%

at

markets:

Coal year,

further nearly but

new nearly were were products,

were

alterations.

The

7%

dropped railroad

the depressed

projects 7% Overall

with

year,

more

all the reduced with for

Highway

from

products.

mining for equipment with year,

sold because

in

slightly

steel high dropped weaker and other

40

delays peaked new eroding 5%

same con-

and

1982, the mainte- weak-

auto-

severe

Steel

the years for

equip- reduc-

to

8%, in but lower

in

mills,

pre-

sec-

and the

for

of

The Near-Term

fuels structlon local

the investment last low are ating cial cutbacks recovery New demand. to deferred lower with office improving

by This nonresidential

stores, in lower

types

not Major and rates Real 2% to expected Industry markets Recovery tic late castings one for back crate rubber, recovery is

rise

new

10% greater

improve, likely expected weakness because half newly

production.

be

paper, to

financing housing tax activity

cash

Is

1983

million rates.

interest

mortgage

from climb after

building of

25%

capacity

improvement

3%

factory expected

triggered

or schools,

of

will

lumber

buildings. and

to demand

stimulates

in

Is

or output

markets enacted flow,

Outlook more. 1983.

in real

in to

effect in

chemicals, will to Railroads

adjusting depressed expenditures lag. not

Improve substantially

units, 1984.

of is expected

the 1983.

starts maintenance, increase capital to

30% rates

and

for

still

boom incomes. construction,

remain continued building

though

foreseen

Steel

expansions make

Steel

and

rates

The machinery hospitals, Is

to

until

to

supported

highway

Auto

mostly marginal

in transportation

should sluggish.

forecast

are remain Include

start

an

coal, equipment

Is

total 1983, state

has Industry

for and

and further

and

operating

tires extremely by to

expected levels.

expected

upturn

forecast sales

will

The

inflation.

before drop in

ended, about

before higher.

but domes- utilities finan

iron of bounce wIth

and

con-

high other

with and a the

be oper

sector

to wiil

by

are drop

Mod

In

rise Shareholder

8 vertible of and Market every dividends below principally Related ted and gate clude prices, Koppers among pany cash sion, specified par Exchange ment retained

Common Koppers Volume uarteriy

Quarter 4th 2nd 3rd 9”o

1st

Long-term

Koppers

NYSE/Composite:

of

$110,035,000 value,

Pacific

distributions

High Low Close amounts

was

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year

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present

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other for

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in

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levels.

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traded

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since

the stock

cumulative dividend Koppers

Common

outstanding

debt

things,

restrictive

of

its

is (in Series, price

business

been

in in

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the

listed on 1944,

exchanges.

high thousands) on

stock, agreements

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a

1982. of

in

stock,

ranges

long-term its

Company’s prohibit the

information.

most

Stock consolidated the paid

Common

$17¾

and and

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High

also preferred

stock the 16¾ Information 18¾ 14¾

covenants.

to New

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year

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on Information

on restrictive

low Koppers

year be

on

Statistics

certain

par from

these

Price The

York

1998,

and available debt

the market

par

Stock the

dividends

stock,

Cash

value,

tables 1982

$14

exceeding Low earnings

Midwest the

Stock These, value,

13 11¾ 12¾ shares agree

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$10

aggre

permit

11,445 provi

terms

and

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$100

1982

in for

con

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and

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0.35 0.35 0.35

The ferred Cumulative

accrued not may fixed notice, pany, also

shares. preferred Board The no verted $10 Company deemed, preference per able events. Company and each per less

Title Equity

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Dividends

8,781

$100 $1.25

current

less

$27/8

outstanding 1981

share,

share outstanding Convertible be

after has of than

for 32% 16¼ prior 17

as

year

stock,

of

at into Class

redeemed Par The than Security

and Par

redemption.

the a

Directors,

Stock,

$107.75 at shares

such 30

at

at to

and

plans whole

through

Preferred subject

shares

Preference Value stock,

Value

the

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preference

right,

any $100

unpaid a 30 December days’

$27/s

7,780

price declining

date,

High

27¼ 247/e conversion

18¾ shares

$35’/ nor

1980

shares to

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no

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of par

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notice to

redeem the 1990,

Stock,

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is the Although

common

par

adjustment Stock

repurchase

share, value, unless part,

the

open Stock

redeemable

of

stock

of

15,

Shareholders

by option

value,

at

than cumulative

$10

1981 approval

$20¾

4,183

price

or

$1 at

Low

1983 221/2

171/4 the 16¼

$27/8

market, 1979

4%

together

on previously is

27

17¾ 16% Stock repurchase any

to stock the

per at convertible 60

of

may

not option

March

of the in

Series,

$107.00 and,

cumulative

the

Company days’

time

share

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$28.75 on

redeem

of

Number

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$0.35 pre

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with

0.35 0.35 4,684 0.35 the

7, on has

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20,491 upon

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re

1,286

1978 20¼ 1983 18¾

19% the

501

of

Continuing

dend Dividend • to: more participated More 3,000. enable additional nearly • tion 1982. N.A., Pittsburgh,

stock common preferred Elect of Shareholders Purchase

on

$25

than Reinvestment/Cash than Stock

The

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shareholders,

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to

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Transfer

dividends in Growth

additional

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during of

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and/or Company’s

in Koppers

of

voluntary

purchase

by shareholders

of Section, any

obtain

on participants

in

Koppers

writing

the

Participation

a shares 1982.

15230.

month.

Plans Payment

and/or

cost-free

year,

shareowners

further

cash

almost

P.O.

to cost-free

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Koppers

Plan nearly informa

basis,

70,000

plans

in

444,

by

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______iH______

Scorecard The

This of the three the common doubled. and ___

$700 Common

($

$35 Common

600 r’sCIosi 500 (Per 400

& 300 i 200

30 Koppers

Millions)

past

1982

5 0 0

increased series

years,

Share)

Shareholders’

10

73 equity, The

loss,

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73

Stock

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250 1.20 200 (1972 1.00

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100

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1973

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1982.

74

the

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Koppers 74 continues shareholders

I

shows

The

years

75

vs. common

Dividend

75

miii 1111111

total have

76 Market

common

76

Common

.- reinvested) 111111 and,

in

77

ahead

effect

77 return

grown

500 Standard stock

despite

Indices 78 ahead

78

Industrial Dow

Index—

stock

Stock

that

of

79

(stock

fluctuated

79

to

Ill

-

also leading

jones

of

&

80

$3,059 the

$1,000

I at

80 -

Poor’s

infla _:::

Index

1.1 appre

the

81 has

198

81

82

at _

1-

82

— ._

500 Dividends

400 (1972 300

200

100

Annual

500

(1972

0

0

=

=

100) Total

73

100)

Koppers 73 Dividend

Outgrew .

74

•

74

Returns

“

75

75 -

Common

Index

Inflation

76

76 Consumer

to

77

77

Shareholders

,.a’

Stock

78

78

79 Price

79

80

80

Index

81

81

a

82

82 financial

close effect that ance Condition The factors cover, use

Management’s

of

materially discussion

of

of

on

for

capital

in

Koppers

1982.

results,

Koppers

the

the

income

period

resources

influenced

and

and

business

financial

and

analysis

1980-1982,

changes

statement

that

the

segments,

Results condition

in Discussion had

Company’s

in

this

the

(page

liquidity

a

meaningful section

perform

at

other

25)

the

and

of

Operations

Operations

Company and all Net Results

caused sales accounted business market product product anticipating each marginal Company sizable quarterly then which restated Company’s nesses. ings 1980 because peak various lowest end. unusually the

formance Data groups. income improve

and

operating

1981

Sales

1980,

Normally,

Following per

begin added Gross

below. of

during total

is

in

demand

acquisitions

increased

write-offs the

and lines, lines.

Analysis

to

share

shown operating

fourth operations.

of segments,

sales,

the

sales

when

large businesses

of

were

and

for

to exclude

profit seasonal the

past

income

about

In the expenses

of groups

each

first

decline

Added divestitures,

overall

Koppers

are

1982,

in

quarter income

discontinuation

fourth-quarter declined profit,

price in lowered discontinuation

second

three

Continuing

the

quarter remained

and

pricing

the of 5%

discussions

efficiencies.

the

also in

compared

had

however, Acquisitions

table Koppers

factors

influences.

sales

in

increases

at

net

write-downs

Quarterly

years;

1982. to

and

as

annual results

the

and the

follows unit

lower

by

Koppers

and of

pressures

income

a

and

below

of

growth

at

fourth

As 17% end

result

in third

volumes

there

efforts reach

loss Financial

a

operating there

of

sales with cutbacks sales. of

the

of

the

of

largely

high Financial

this

Usually, of

those in

in have

the

and two

quarters,

quarter certain sales

of

due

at lower were in

result

1982,

1981

1982

was 1981

their in

pattern,

are to

level

unusual

Weak year many per

and

major

earn

most

been

to

busi

in

in no

an

the as

the

and

of

in

with

to product Sales trend cals Only slump motive, down. as addition of and Demand each sharp recoveries. lion effects ated million included 1982,

chemical after ($ performance as improvements improve energy added

exceed $14.1

Millions)

compared

increased

from

write-offs In

Chemical lower and

Chemical

favorable

coatings

a

of

with

in

drop

in

In

1980 was

small of

burden

steel,

and

the lines

1982

to million

for profitability

roofing nonrecurring

1981,

1980, the

operations

nonrecurring

resulting

volumes 1981

weaker

in Inventory

received

past

and

labor. nearly

gain shutdown

felt

by in

housing

with costs

of 1982 and

operations

prices

were

in of LIFO nonrecurring

for

income

1980.

pitches,

1981, materials, two intangible

the

1981

higher

in

Chemical similar

polyester

write-offs

business all

operating

income and

of

in joined reserve

$535.3

1981

impact in from

years

weakened reductions

Write-offs

products

and

Organic most 1982 expenses

and

this

expenses.

of

1982

levels

income

fixed

creosote

declined

expenses

and

marginal

insurance

related

business. which

and

1980,

in

partly

declines.

raw

of

income plant adjustments resins and performances, and

income,

$678.1 the

costs, in

strong

the

Materials

worsened

other

1981

of

from

materials,

in

that

1982. of

with

a

1981

downward offset began

capacity

markets. and

certain

recession,

in

1982

write-

were

$14.3

facilities

in

of

as claim

gener

Chemi

income auto assets,

1982

the

in

The should

1981 $577.2

coke.

$3.5

the well

after

to

1980

able

mil in

in

tion utilization steadily in the ued lagging

which second in recede and nonresidential production insulation sidewall mal that kets the foundry LIFO

1982 the 56% petition. 1982 small 1981. specialty ing pitch Creosote production 38% ued

industry volume reported below 1981, continued by cialty reductions. original sales pipeline volumes 1982 in

the

roofing

1981,

end

a

continuing

the markets. The weak

1981 and

The

benefited 1982.

The are throughout

Protective

after

as

liquidations.

in

in more demand prior Weak

sales

gain

but began

coating,

declined

the

in

construction consecutive

in

1981 of

1982;

coke, 1982,

against

decline, roofing fire-resistant insulation. Blast commercial equipment

coke

which cutbacks

weakening construction level;

was

foundry

higher mid-1982; materials

in board, The

as felt

had

near

1980

1982.

for 1981 year strong in

favorable

fell.

and

industry

Coatings specialty

performance a

Interest in

the foundry 1982

following

42%

furnace significantly

construction

operations resulted Company

good that

1982.

problem

sealant

and result

coatings break-even and had

late

Unit 11%

and

materials an level.

income 1982

Income

income

as which

effects

Unit products

demand

as

of

began

impressive in sales

industrial

markets.

however, benefited 1980, 1982

year 1981

Sales sales

sales demand, 63% trend demand,

roofing in

rates, of

as its sales properties.

polyester business

1982

coke 1982, and

coke

sales

and

in

a

offers

1982 of

depressed

also

dropped new

aluminum despite and

began

of

and as was results 2%

intense loss

continued

business in

in

gains of overcapacity

from improvement.

in in and

in

sales

and

which adhesive declined,

results mix railroad volume

down

sales

dropped declines

mid-1981 1980. and

after

carbon defense pitch

occurred

Polyester polyester coke phenolic

underground

decline

improvement

contributed from superior began combined

not

worsened

83%

income

benefited

resins. and reroofing,

commercial inventory

were in

a

Initial were

residential

price

for

from

dropped rose evident a

dropped

13% in

showed

industry

1980 construc

high

contin

was

and

14% inventory rise

in

binder

to

the lines.

revers

1981 in

in 33%

and

contin

aided

foam

20%

in mar ther

Lower resin 1981

resins

com 52% in

in sales

1981.

and

near utility

in with

in

from spe rise

to

at

in

a

After

Operating Sales because with Materials Sales U.S. Western the tion foreign income ($ ued 1980. overseas Income of reduced ginia, charges severance fell expenses 1981 tons

35% struction in

work slightly cost-cutting

essary restricted 1980. levels. of ing in Colorado. Florida

Millions)

volume certain

the

road

year to

slowdown

business. during

increases

nonresidential Koppers

improvements

in

level.

of

In

schedules

declined

equipment

Responding 44

Western

Capital

subsidiaries

to 1981

near

less in

aggregates

Road 1982,

materials

operations

that

hindered

of also

services, million

1982

construction

income operations

to maintain

in

in 1982

costs. Operating

widespread 1982,

than

measures

the

and

replacement recent 1981

resulted

total by

Eastern

Materials

In

sales

that of

expenditures

10%

Overthrust

suffered

tons

two

were

$3.2

1981,

write-offs and

50 2%

the

There

and Western

levels

to shipments

which

construction began capacity

declined.

in

years, producer

declined

million for $ $485.9

and

prior

37% decreased in in

in

million income bad from

operations

1982

reduced 1981

work construction

acquisitions

38.9

lowered

the weaknesses New

sales

1982,

were

1981

as

while

income

have

equipment

weather years.

in

Belt

in accounted

operations.

and losses

tons

and the

year,

carried

or

in

mid-1981 in

York

both

from and

The

$ $541.9

of from in

no total and

Southern

been of 1982

support and nonrecurring volume 1981

employment

break-even 57.9

1980, market.

aggregates 1982

in

demand,

comparable dipped compared

maintained

Wyoming-

construc 17%

on and

a

1981

a

in 49

early

1980.

included

services

other

out

supplier were

high

growing

in

nec was

1982, the

Road for

million

contin

$ $531.7 Vir

in

the

of

exist and

by

and

1980 in

Con

57.2

sale

a

Operating

and business Forest wood-treating crossties, in Sales

near building

facilities. charges businesses. $20.2 expected reduced

lumber ($ 25% improvement

also capacity nues resulted 1980, of energy for not through set rials sales

fourth struction. activity its good new construction in

partly hardwood

1982

Millions)

unit

production

efforts

treated

the

fall

wood-treating

Railroad

After

were

costs, 1981

Losses

fire-retardant

in

declined.

million leveled

of

initial

Products

offset quarter,

sales

as

operations. proportionately

lower

and

1982.

levels

products

that

much

in by wood-treating

in Income lines

closing

utility

income

Activity

levels, to gradual

unit lower

severe operations, wood

the

improved

$5.1

market Operating

other

continued

by increase declines, resulted by

was

crosstie

off Railroads programs

volumes.

chemical

of

in

because

sales

of

however.

Utility

industry

poles,

the

sales

income

as million

these housing

in

in helping

products of 1982

and

picked

cost

introduced

rises services.

price

for

1981,

acceptance. excess

sale 1981

several

$297.1

$

were

pole

from

plant

and

sales

raw

use 1982

construction

hardwood

operating

income

because 10.3

reductions

specialty although

chemicals as

The in

cut of

in unit

and during in

competition.

of

Koppers

was

to and

up and

timberland

nonrecurring weak

lower

lower and

income

primarily material

1981

the

was

efficiencies Canadian

back

production

year-end offset

rose

The performed

plants

lower

noticeably

during

$ $379.8

dropped increased

light-frame

sale

in

piling

1982

1981

and

42.9

lower.

of

they demand

chemicals. raw in specialty

income

on steadily

lumber

1982

continued

leveled losses

partly

declined

demand

very

and

most

integration

products

or

in

track

as 1980,

1982

mate sales

and

In were

backlog spruce

the interior

was $ $380.9

by

and at

other

in reve

low spite

by

off

1980

did

21.3

con in for

in

with

off the

A 12

Operating Engineered tions Sales

$3.7 deteriorated from severance on charges low 1982, 1981. seals inventories, ($ operations in more 1982 engine marine, facility sized capacity in military 1980 have for With Koppers with the petrochemical income plings technology equipment demand convert systems,

increase

the Millions)

Georgia

the

Managements

couplings industry

Operating

Sprout-Waldron Sales million A

decline fell Power the

Sales level. gains

reversing the Markets

than dropped good

diesel truck,

curtailment

new

backlog also

production

markets.

and

declined from

in

bankruptcy wood

for

exception

overall for

income

reversed used

of 20% costs,

almost

Demand

remained in of and

growth primarily

manufacturing transmission lines Income

will

as Metal capacity in construction

oil piston was engines,

the

diesel

losses

1982, for

16% was

income

thermomechanical

by

chips the industry, a

and

was by income significantly in

unit’s efficiency

as

and result

increased industrial

in

11% of all

1981 Products Discussion continued

weak. paper group’s

in

in rings

an increased of

piston in

gas was $215.5 $ the 1982

down of

materials from anticipated

certain

to business high utilization.

coming

from 1981 a 1982

strong for 1981

innovative, 11%

a after

of

4.9

from

pulp. market improved result

end-market

industries.

depressed

couplings used

former

equipment, after The

manufacturers

continuing

losses the

as

rings plant, 27%,

in write-downs and capital

slight

was

drop by

operations, increase

growing

a

$233.6 $ sales strong aircraft The this

years.

recession year-end

of and Koppers

processing a

in segments

weakened

$5.3 1981

expected

11% 13.4

However,

and or reduced affiliate. gain

compared completed

strong

medium-

realized

recovery in

business.

pulping

12% cost-saving in

equipment

Analysis

to realized

sales Shaft

million

1981. for

demand in The

1982

shaft opera in jet farm,

by

in

the

$ $229.1

sales

1980. cou rings

of

1981. from 1980 and

to

in seal and to

for 9.5 the

in

in

capital nearly and New Income Waldron of plans prietary overcapacity year months Market backlog tal end intense ment amounts lion million included Engineering Operating Sales

extremely spending ing icantly most loss ($ areas, of group settlement. joint process 1981 metals, Wilcox) provide the ments struction technology, methanol. services

castings

systems Millions) $2.3

feed

A and

Container after on

Negotiations orders

synthetic Losses earlier.

resulted

The

businesses. venture to

loss

of equal

major

investment

and

acquired conditions

rose

begun reduced, for the

pricing of castings

million

expand

was was

construction automotive which

technology and

in relative tax

gasification control

KBW and continued in the

included loss

low

domestic

in

possible

Koppers the net

decreased and

Actions

Weak

totals

substantially deepened foundry

North

from completed engineering in reduced

grain

addition and with from

year

fuels

in machinery equipment

from levels.

were competition.

operating group

this

(Koppers-Babcock

mineral

into

an

line.

systems and 1981, to

were

Combined slowed

deteriorated Construction these market in a

Carolina

nonrecurring and

mill

plant a industry exclusive 1981 to and

an Japanese sale

to and commercial is steelmaking severance the

expansion

$ $(16.3)

$5.4 activity process

nonrecurring

Employment results, more to

enter were 1982

during in under decline, in 32.9 businesses. unfavorable

the

during processing

businesses

cement previous

the

and financing

of planned

losses in a operated and

with for Koppers demand in

million

position 1982

the to than

1982

pulp continued. have new

division’s

as sales

the

way

1980

nor U.S.

construction will the

convert application

company in

$58.6 $(7.6)

1982,

environmen

reaching costs. at

1981 steel

charges, of

year-end industries.

50% project. production from

the of and

projects. business

were two year for created

be

at Sprout

and arrange license included. of was engineer expense $3.1 at

and

the lawsuit to equip

were

year

final with

used con industry $90.2

a

paper

years.

from

The the

supply peat pro

as

The

signif loss. 1982

mil

$64.6 $(0.4)

will

1980

six not

in

for

in

a A

to

Operating Miscellaneous

come operations. income Operating Sales Koppers Koppers operations pendent leases majority ($ Car the utilities $5.8 employee resulted 1981 by nonrecurring investments. development interest arose olina Methanol fleets improve into in construction Construction Fuels build the price Corporation 1983,

(loss)

Millions)

excess

companies

Company’s

Miscellaneous Company. first

Most

methanol. Most

million,

levels

for

the under

guarantees assuming of from Corporation

these

and

includes

in

of

from coal

that half investment

automobiles. gasoline the

plant

of income Associates,

of

severances

of synfuels

income

in

1981

because Revenues

other Koppers

was this

the

construction the

of are $500 A lands

are was charge

operators.

of 1982 is the

in Other

Methanol

was portion Saies

the investment

scheduled

and synthetic

loss

expenses heading revenues efforts

completed

not related which

$39.3

industries.

from commenced

octane

million

dropped

in sales for

year. projects.

signed

in

$ $(46.O)

of

1980 equity the that amounts in

December,

and

and

a 1982 A

and production Tennessee

18.5

of

the low

million to this

Koppers

project

Income

letter to

result and is

and to arose

this or

of fuels

results. obtain

received income

to incurred

losses in Synthetic widely the with

demand

interest category

nearly convert as

to a

operating

Richmond accelerate

equity account

of facility

included write-down

$17.7 $

of fully

at Company’s

expected projects

1981

from in

the

from

intent 6.9 loan 1982 has

the group

to

coal Koppers

incurred

North used from

50%

in power by on Synthetic

peat

from inde loss,

Fuels

costing equity in

site.

coal

and

Peat and

for

to lands

the

a

$16.7 1982 $ to

from

Tank 1980 Car

in

in

the

4.8

of

Operating Financial The

discussed major individual Koppers most sales, between year: the income is

materials; supplies provides expressed Gross

Gross

operating of Company’s row the expenses the had

1982

made

profit

continued

Company’s various

far past Subtracting

As

range accurately

on

wages,

product

shown by operating

operating

margin

statement

right

shown

Cost up

the overall

and

the certain three

performances

in energy;

profit Expenses

influenced

as

over

trends of

Company’s the

business

column. Gross

in services. salaries

declines of

lines

a expenses

Results

years,

above, operating

Operating

profit

reflected

percentage preceding sales margin the

Cost

of profit

(page transportation

in

the during

operating

21.3%

past

1982

profitability

Costs and performance, of Cost and

lines.

is

in margin:

the

nonrecurring

combine stayed

sales directly Sales shown

25).

unit three

in

units

pensions; expenses

the 1980-1982

Company’s

section.

of

the

were

Nonrecurring

of

21.2%

sales

Cost

1981 sales profit,

net from

and

sales,

years in

within

relationship

in

in incurred

and

to

a

increased

effect

the

of

Koppers

Cost in These

given

which Sales

in form

which,

raw in charges

were

other in is

sales

the a

21.3% table

each

Gross

1980

the

the nar spite

these

of

by

is

in of

in

taken severance nonfixed expenses by an ance cost not recoveries. ment

adjustments

unfavorable

totally

Also

increase

claim,

replacement at

year

assets.

shown

and

matched

costs

which

end

resulted

by

lawsuit that

Costs and

in

a

related

were

guarantees

the

recovery by

lowered

write-offs

primarily

insurance were

settlement.

table

somewhat

to

employment

reduced

pension

in

on

that

of

the

from

an

claim

several

The

were

third offset

insur

equip

in

1980

1981 col

by

umn

ance margin

clearly nonrecurring have to plants ures

recession

Adjusted Nonoperating

($

sales efforts

tory page are

plant raw that In market (LIFO)

Gross inventory

three ried unit recent ment entrenched directly

expenses operating

margin

offset

Millions)

order

is

older,

to

In

costs in

material progressed

increases

sales The

through

30.) has

production and

the

how years. that to

to each

reduce each

operating

years, inventory

demand,

gross the

to

related

proportionately

improving reduce

and

Adjusted benefited

therefore reduction The

discontinuing charged

profit

and reflects (income)

Koppers

reduce

combined

of expenses.

year

operating

With costs.

to

inflation.

it costs,

liquidation

the

unit

increasing

Operating

was to

in

inventories. is

profit usually quantities

before

the

past the

the

inventories,

recent cost against

held gross This

trend lower from

$ 1982 was

operating

not including 21.8%

significant 8.4

effects

Company’s

Company’s

costs

margin This

two

of businesses,

at lowers

reduce the

possible not at

the

of

in operating

than years

cost

profit

sales.

a

current

an

results

years,

shows

the last-in,

impact

a

that Company’s

lower

1981

(See ($2.7)

of

21.0%

managers

was factor. inefficient closing

however, current

pressures

Cost

Company’s

a other, over in

decline

were

In

for

severe

perform

Cost meas

in Note sales

level more

first-out not

of 1980, profit

in

of

manage the inven

$ 1980

more the

actual not

order

car

21.7%

sales.

of

8.3

than 1 in

level

that

past

in 13

on — The

Other from operations, Other in equity sions they number pany’s as

At gin total expenses salaries. Cash trative last the Koppers rose taxes. expenses because increase Operatlng plished in estate,

in

($Millions,exceptpersharedata) 14

from

the operations, closing change

ing Provisions in

Total

Total each Net

Income Long-term Income Redeemable relation per 1982.

well

year

on growth

three

Company

Selling, Management’s

In

—per

1981,

continued dollars.

preference redeemable

by

5.2%

group.

disposal to

dividends

income

sales Each common

in

expenses

Income

sales, spite

personal

these Other

as

assets

even

long-term

of

$6

of

dispose

end:

earnings

of

in

or

categories

Selected

from

were rose

when

to

the

(loss)

(loss) losses

factors. common

in

million, in

1981.

and a

of

of

research,

results: disposal

The

The were

sales

though debt

which

actions

income 1981 sales

reduction

including

in

past

incurred

these

of

the

to

more

the

convertible share down

declared stock

to

a

property

1982

also

of,

from from reduction

$21.5

preference

General

operations

debt

incurred

reduce

$12.8 of

made

and write control or

in

$7.4

three

because

Discussion

declined

Financial

share

or

taxes research

of affiliates.

than

was

has 1982,

34%,

of

continued

as

in

operations operations

general

and

close,

million 5.8%

units a

Operating

in

million

million numerous down

1982,

the

in

years

sizable

and Koppers

varied

a and

twice

wages

exercised

in

declined

was

but

after

1982

substantial

stock

was

result of

in

to the in

numerous

Social

Data loss The expenditures primarily

an administrative

and

gain

declined

and write-off each

because

rising

2.2% 1980.

accom

as

to

for

another significantly

Company’s

loss

and more

investment,

expenses,

profit

Com of increase

plant incurred

fast

adminis

Analysis

realized $ $1,585.2 the

$1,192.9 $ (from

$ $ $ $ modestly

in

operat

Security

deci

in real

in

275.7

350.7

(1.41) (31.1)

than these

as

1982

from

75.0

1982

1.40 in

of mar

continuing

a

Operations • Earnings

—1.00 —2.00

$ $4.00 $1,909.7 $ $ $1,328.2 $ $ $

the $39.3 The 2.00 write-off of detailed offset 3.00 subsidiary. losses information million Richmond investment ber 1980.

1.

(page

1981* .1l

288.9

363.9

0

or

52.1

75.0 1.60

1.40

sale

operations) business.

large

closed.

Note million

73

by

30).

incurred loss

(Loss)

of

information 11111111

of

a

(Per

74

Provision

Tank

$ $ $1,800.2 $1,389.5 the $ $ $20.2 $ 8 $ an

resulted

The

on on

r1l write-down

1980* 75 (page

308.7 383.7 This Share)

From

investment

this Company’s 2.19 59.7 disposal

75.0

1.40

from

Car IIIIIi

1981

76

million

compared

write-down

for from

31)

Continuing

on Company.

77

operations

loss

$ $ $1,828.3 $1,140.7 $ $ $

decline

the

of

gain provides

of 78

the

in 224.2 224.2 was

1979

operations

Canadian 3.21 84.9

its

1.25 operating

79

a —

Company’s

realized

with

investment

dyestuffs

from

is Additional

in

80

disposed

in

more

value

a

_ $1,581.9 $1,036.1 $ $ $ $ $

81

Note

a

$2.4

lum

on

in 233.6

233.6

1.125

1978

3.01

76.0

82 —

of —

2

in -

-period,

• taken from working when credit of from $4.1 the the expenses order income credit, Koppers debt notes spending. eral fits credits had result Koppers lowered use million Koppers Canadian significantly Income long-term borrowings Interest sales income benefited lower lower million.

(page

Tank companies. the The ects

earnings

a

from

past

high

of

years. The

no

rising

million,

was

continuing

1981,

Company’s

$100 substantially to

of was tax capital near

in

large

33). and commercial net

decline

Car

were

Koppers In income,

by taxes,

finance capital

three Taxes by tax numerous

distribution investment 1982

Expense has had 1982

reduced

rate income

debt

lumber 1981, moderated The

trend operating as

placed

as

individual

year of million in

Company,

$20

were

loss

from or

rate

carried

reduced investments

the a

various

affiliates

on

both

years

Interest in

and

last

in

12.1%,

by

$23.8

needs. the million.

the operations,

end.

in

its

also

in

1980 encountered

the

average

Company reduced. the

investments operations

in

privately. $68.8 in

and

reduced

debt interest its

paper short-term the

nonrecurring

high

Company’s

1982

tax

the

of

is back

loss

$54.9

11¼%

business

prior million Since

substantially venture

in

effective

was in

its expense

as

resulted

shown

Company’s The

Koppers long-term

In

credits,

current issue

million. 1981

level

synthetic

total

investment

and

to the

and

the

debt to

year

from This million expense

growth

the used tax During

incurred

meet

promissory

income

prior

and

as

result

of

capital

past foreign was

and

on short- in in weaker

segment

tax

outstanding

primarily

credits.

declined Company

because Provision is year from

higher

Other capital

short-term

Table

charges Richmond

debt the

debt

because

increased pretax

fuels a

years

raised long-term.

two rate, in

this

Equity

in

of

for reversal

tax

tax and

as

by

the sale

1980,

tax

Interest

a

export

in

was 6

years,

bene

The

sev prod

rose the for $13.7

$43

and

from

by

of loss

its

for

in of

$50 Total

($

effect tors depletion tax rate The

pose Discontinued Note equipment neered of expected mental

and Koppers statement, million and ued 40 same 1980, 31). quarter loss 30 20

10

0

Millions)

$7.5

rate

that

Company on

These

$5.8 operations

Dividends 1980.

on

9

_____

of

of

respectively.

three

and

million systems

(page

capital 73

Metal

for

two

of disposal

percentage

influenced

sales

million.

and

111111111

losses

Sales

1982,

these

74 businesses.

operations

the

$128.9

years

major

Products

32). from

was

decided

gain

Operations 75 Paid

and

past

were

and

_

discussed applicable i

on

In

was

units

of

76

million

operations As

set

the

the

addition,

income income.

three these

depletion

mineral 111111 $3.1

$90.2

provided

shown

77

are

had

up

effect

in group: Company’s

A

Ill

million, for total

late

years

at 78

disposals.

not

losses

million,

in

to for

The

year processing

a

of

1982,

in

79

Note

in

the 1982

over included the

pretax $4.3

1982,

in Ill

the the

are

the

various

$0.4

80

end

the

discontin

in environ

$108.8

1981

effective 8 to

cost

million

lower

income

shown

Engi

the

1981 81

(page

fourth reserve

dis

million for

I

in

and

fac

82

the

tax

in

This Financial

agement

and capital dividend ital these the 1980-1982 maintaining past the expenditures

period, passed only shares

Sources Funds

Funds

($

Term Common

Sale

Preference Net

Net

Deferred Depreciation,

Equity Provisions

Loss Depreciation, Deferred

needed

Millions)

funds

Company’s

to

The

The

is

three

modestly,

and Total decrease less Total

Funds

funds of

debt

a income compensate

expenditures,

from

of

the Generated

the

from

fixed

table discussion

first

payments, has

decline

in

dividends generated

of

convertible

in

years stock

from

from

to and level

highest

a

taxes earnings were provided

taxes

operations stock

order

cash:

two

conducted

in discontinued for

strong

support

assets

below

but

in (loss) Condition

common

capital Company

depletion

issued of depletion and

contInuing operations

discontinued

years in working

used.

and

and

issued

to

the

funds

annual

shareholders value by

all

of

received

by

financial

is to

the finance

from

(losses) preference from

sales,

issuance other how

with

other

leases

Koppers

a

in provide

Koppers

its

ways

stock

summary

paid

of

the capital,

history.

and

and

operations

operations

levels continuing

affairs

the Koppers

disposed

expenses investment

expenses to

the

operations

position.

period

to

of

amortization in

amortization

increased

objective

repay

working

operations

of

over

Company’s

stock holders

through affiliates, which of

excluding

During

during

750,000

showing

capital

man

encom

debt

the

operations

of

near

cap

or

of

the

of

closed

cash

the period,

in three generated have

years. pany’s of ried

Car Company’s preference of 1980

ity strong.

important in

total

the

components

criteria

to

close

As

Company

out

Koppers

and

provided

years.

maintain

high

Funds

dividend total

as

indicated

Cash

during

of

has

to

indicator.

shown from

levels

issue

investment financial

Term 1980

ensure

flow

received

management

been

$(31.1)

and

$109.1 the

$ a

1982

1980

of

the

S

106.2

payout

82.2 high

50.0

15.0 (7.0)

23.2 20.5

55.0 went in (2.9) (7.4) produced

in of

debt,

2.1 2.4 working from

2.2

required — to — Company’s

reduced

the

The

the

that capital

and

needs

the

proportion

from

largely

in

operations table

used over

graph

levels

the

1981,

reduction

Richmond

capital

$

$150.3

$ follows

expenditures

liquidity a

over

1981

the

Company’s

in

$

the

152.7

to

below,

81.6 52.1

significant

39.3

(0.4)

16.7 toward

to 4.9

4.6 7.1

of 2.0

2.4 0.8

peaked

5.8

the

1.6 —

operations

finance

3.7

convertible

three-year

of

the

the

investment

are

is past

a

the

of

remains

funds

Tank

past

left.

number an

the

debt.

in

Com

$

part two $140.7

$

rise 1980

abil

car

$22.8

141,3

134.6

59.7 76.7

26.4 72.6 (0.8)

(5.8)

15

5.1

4.2 2.2 0.6

7.8 — the Company’s another, the position over controlling flexibility Working of charges the of cial Cash and 16 tions bilities sistent ment,” positive spite page nonrecurring from Koppers remain reported funds reduced. has attention least business Koppers accounts of and receivable, 1982

Company or

investment

criteria.

line surplus

performance,

Management’s

moderated In

to Depreciation

financial Programs

the has

closed of

of customers in have

Flow

excessively.

order

component and

pay a

at

“Provisions a and

flow line and Funds

in

past in

capital management

a major been

has Depreciation

obligations, Capital

reported

approximately

receivable

its

been 1982 company Each

1982 liquidity. dividends. indicates

of so

with

borrowing and the

funds. to

of

charges

environment, three been

investment

current

in

that generated to assembled

remove cash

in portion

spending did Company’s

and would

consistently inventories weakening of decline

reduce the has

the

of

The loss,

Discussion in paid these years.

for

not

the in from the

has

cash table

to

a had past been assets

has in

capacity

of operations not

combined the 1982.

declining

result

the withstand

also

ts

amount Company’s in

1983 inventory to in

influences by the

Working levels on

1981 to

two flow,

tie concentrated on

payments value distortion

the working current

meet Company

debt-equity and business

Koppers

over show applied. to As

the

nonrecurring

in up the

is

and

years

most freed

accounts

Its round

any have is trade expected of

of cash Company business

day-to-day

reduction previous current

adversity

disposed

shown levels capital growth that, Analysis

level. financial

invest

capital the

finan outflow

con that

as

more due

Close condi

in been

had

out

flow

in

on

at

lia

in is

to

a

than accounts decline Working end lion, lion, funds vertible tal the when Company thumb would debt. 1980 community in ($ 2-to-i, assets ration the idly past the use LIFO cifically ment business ance accounting realistically understatement substantially Company’s capital. need companies maintain of a considering tained pany extended

cash, Millions)

strong

was

less

purchase

current Cost

was The applied and of however, $99 In

annual was It

accounting

Excluding $53 sheet). of were

for

that should

have

within the should, or

LIFO to

a Capital at in

preference

than

its working

the

large million

the increased

of payable

temporary

the liquidity increased current better. working a held million

a and

the

period past,

value

stated

costs intended

company’s sales,

support. been reasonably been

using Company’s to tax reports, accounting,

balance

the 2-to-i.

the

necessary increased

of This, maintain

as

increase current for

in therefore, companies

in

these

liability stock a of

As

financial

from funds capital

for investment cash of

liabilities

of continued $272 of position and the

widely cash that LIFO results capital

the therefore,

stock $243.7

by

It inventories has

long-term

condition 1982 labor time.

a

this

for Had

of

is reduction

funds

ratio the in $28 debt

number a a at

level

million. were

working

would in

stable accounting in together cash

more been at level current use

while prudently

ratio Richmond

rule

be year in accepted

was condition the in

The

and issuance

with 1980 1982.

that

of million. the

should

by

December

of an

since temporarily $270.7

recognized and

in

used

leads approximately cannot held 1981

of FIFO

of

important pointed that

funding following have end. only level

it materials close about day-to-day

of

a have

completing

understate working

(on of

The

assets, capital

working

recognizes current

with

current financial

years.

at to 1974, corporate resulted

be run

method

$27 to rule These can of Tank

of over the

been

overall been

of

be year $34

reduce

$325.0 the

main out a

con to

corpo 1980

of

can 1980 mil

bal

spe of have

corn- capi in com the rig that The held in

ratio Car an

mil

in

on

of

the

Current both parison Inventory obligations As to Borrowed this ing Koppers of the substantially less level heavily That loans parable years, notes lion rowings Throughout totaling million. has talization FinancIal 30%. capitalization. self-imposed maintained

FIFO LIFO

cover the

shown

significant

bank

maximum

type

from Koppers

eliminated than types During

was of

outstanding

This and year.

Ratio

term

during

of

commercial

In

$25.3 Value:

loans

peak by

of uses

credit

the the

within the

the

the in

Structure of two

is remains Funds

short-term

the In the i980, debt

its

the

lower

issuance ability inventory well

1981 last

variation limit Company’s million. same amount

were working commercial 1982, the

10%

recent during its

Company.

debt

a

chart

2.54-to-I

1.99-to-i

has

increase Koppers

within

narrow second short-term was

of average

1982

rates

to excellent. outstanding

the paper two $9.8

portion

debt

been

of on history, the debt meet

of capital valuation, $21 that

Company’s

the years,

of

million revolving

page ii.25%

range, current

course 2.41-to-i to In and

1.99-to-i

paper issued

in received

million. reduced interest. and can

occurs

its

Company’s 1981

of

the

35%

debt

term

Koppers requirements.

third

short-term

its the

17,

exist. was

term

for

past

about

and illustrates

promissory of ratio, was

total

of obligations

bor credit

No use

Company most

2.34-to-i 2.02-to-i

1981. average In quarters

$100

by

any

sold

total

loans. 1980

two

revolv

com 1982, 50%

capi

of has $26.4 using

year

mil at

At to Liquidity was of or highly approximately with assets, was until a of revolving ferred major equal approximately in assets held funds working any ahead ments. stantial and, expansion. economic options bility external however, plans beyond.

bank

fund $490.1

the early tax the

similar held increase

unused September Koppers

could

therefore,

desired

amount close refunds liquid Company’s and operations,

for stock.

to during future credit

The in

capacity 1983,

available

capital

financing There

million, in

credit

possible

doing management 1981.

structure the

lead

types

To Company such

of position

at

Other

in the agreement growth. expects in

in 1983. $46.8 receivable.

$11 use

maintain 1982,

the

are, is

In loans with capital to

30, so. Koppers

promissory

nearly

exists

highly

Company of for

constantly

expected

decision addition,

the investment during million of close

discussions

1986.

to however, funds million,

the

internally and

future

current

Of

of

is to

sale

finance

expenditures

within

$88

could

liquid liquidity

Company continually up

total

of be that

had

economic

The

the This in

that

of to the

financing.

to 1982. would or million, to

able

cash

examining notes

credit

provides

coming good current

no the forms elect additional dispose

agreement opportunities

generated $200

a be 9% compared accounted

Company

now

and

major

immediate to

As

Company’s

and concluded

receive and was

of

to or

arrange flexibility

finance million looking structure,

as

the being a and

assets current

year,

secure Sub

an

i8%, of

for result

pre cash in the

flexi

two

has

a

for

or

Debt $400

($

Total Koppers *Does December31,

Equity

Total

‘SEC

included being Millions)

8.95% 6% 8% Industrial Pollution Other 11.25% Capital Term 5.8% Used

Total Debt Common Total Preferred Preterence

Debt

Capitalization not

regulations

• • •

60.7%.

Notes Notes

due

loans include

Total to Notes Long-Term Pollution in Short-Term

Note

lease

Promissory

debt.

control

Support

development

within

payable

Capitalization

obligations

obligations

require

On

A

Control

one

loans

Debt

this Debt

Operations’

notes

to

year

that

basis,

bonds

banks

Notes

under

capitalization

1982

S

certain

Millions

$100.0

$287.0

$544.1

debt $634.1 $921.1

60.0 29.0 38.1 25.2

14.4

75.0 11.3

15.0

6.0 2.0

1.0

—

leases

ratios

would

1982

Total

%of

100.0%

also

10.9%

31.2%

59.1% 68.8%

be

6.5 4.1

3.2 0.1 2.7 0.2

0.7

1.6

8.1 1.2

1.6

—

39.3%

be

shown

$

$

$

$ of $1,030.3 $

Millions

total

100.0

311.2

629.1

719.1

40.0 60.0

25.4 32.0 with

22.2 10.8

16.0 75.0

15.0

2.2

2.6 —

capitalization,

1981

redeemable

Total %of

100.0%

30.2%

61.1%

69.8%

9.7%

5.8 3.1 3.9

2,5 0.2 0.3

22

1.5 1.0 7

1.4 —

3

preference

$

with

$

$

$

$1,040.0 $

Millions

100.0

330.5

619.5

709.5

equity

40.0 60.0

26.0 35.0

21.9

12.5 17.6

75.0

15.0

4.4

3.3

9

8

1980

stock

Total %ot

100.0%

31.8% 59.6%

68.2%

9.6%

3.9 5.8 2.5 3.4

0.3 0.4

0.9 2.1 1.2 7.2 1.7

1.4

17 tures, Capital were

cial ciencies acted the Capital ated reversed ing koppers expenditures sufficient Reduced equipment. Expenditures accompanying stock product Investment on reported needs in are expenditures rnent illustrate 18

or modernize, Koppers

($

Capital $250

($

200

Tank

the

Millions)

to

50

SEC

Millions) the

Company’s

Total

position

shown Managements

0

Through

Capital with

directed

from improve

to which

of

past

Car Expenditures

as

prolonged

1IIII[-L Expenditures

Expenditures

lines

and

Schedule assure

Richmond lower

the

capital the

expenditures

available

property, new

the

in

Co.

total

five

in

111111111 to

expenditures Richmond

and

peaked

three-year

increasing carrying

extensive

for to

economy

Table

are

toward

or

efficiency

increase

1982

years,

table

capital investment

the

supply

investment

maintain

property, rapidly

devoted

business

V

plant

capacity

Tank Discussion

6

Company’s

capital

$76.5

$76.7 1982 _Hh

in

separates

(page

improving

out

(page

Koppers

0.2

in

expenditures

1980,

increasing modernization improves. trend

production trend

and

growing at

Car

1982

projects

good by

to

plant

Company

in

expenditures

34), recession. figures

in

$147.3

$182.1

33).

as

equipment operating

Company.

increases

1981 in the

111 in

nearly 34.8

and

and

today

that

strong

liquidity

capital

management and plant

expendi

most

As

products.

common

The

associ

customer

capacity, 1981

include Analysis

invest

shown

to

all

facili

has $216.9

$230.9

effi

efforts

1980

finan

group

better

in

The

14.0

dur

to

4.5% ties. tions bring pany’s Company’s years at investments. ties 1982—Organic board; wood-waste-fired reserves plants. achieve of capacity Georgia foundry new castings castings

added industrial such Koppers optics

1981—Road nies produce struction ready-mix aggregate grams several

two essing that new Materials

wood-treating wood Products also costs.

ects

pany’s

one

this

and

Road Forest During Engineered

The

diesel facilities

improved in completed A

phenolic to it was

In

modernized areas

are

of product

the wastes expenditures

and

project to investments

Florida at

plant,

Engineered 8%

was

energy Baltimore expansion

equipment

during

for for

and

Company’s in

two aggregates

services. had

various summarized

satisfactory

robots

active started to

Materials

second

concrete

Products reserves piston

advanced California

the

new

as

of their customers.

modernize Major

expanded

Materials

that

improving

new

and

previously

foam

as

was and

the

its

chemical

line. Materials genetic

three-year

1982, savings.

in

on Metal

phenolic

and

fuel own

will

up crushing

boiler raw

construction and ring

piston

plants

total

each

opened The

Colorado-Wyoming

and expenditures

under

several at

The in Metal

insulation

and increased

in to

a

installed

and venture

produce

and metallurgical significantly

and

material levels ceramics.

several

manufacturers expanded products

plant

acquired manufacturing

Products Denver below.

group eliminate engineering,

modernization

spent to

an

the systems

Sprout-Waldron of

that

operations.

ring acquired

started

built

bituminous

way

foam

reduce Products,

added

manufacture

period,

plants.

important

the

in

projects

about overall

ranged

supply

and

capital

also early

additional for

board. to the in crushing

and

position

aggregate was

past

insulation

three in

completed

Organic

production

produce

pollution the or

at

capital

new

plant

shaft

Company’s

increasing the mid-1981

increased addition interests

completed

materials.

efficiency

started 1983.

plants

acquisi

two

three civil

to

The fiber

from

Com program

tar

and

Forest

of

compa

plant

Com

facili

pro

use

energy in that seal

proj proc

con

group

its

the

or

to

on

to

in

a in

facilities.

further on

high-speed in pany’s mond Koppers 23%. increasing 1980—Road vices, aggregates North group eral izing at chemical reserves carried

to a Tank burning projects and Genex established A research Effects and

begins

Returns Equity eturnonlnveslme

—10

plant

Genex

crushing

discussion

the

a 20%

15

10

A expansion

completely

its

Forest Expenditures

inflation

in

Car

Carolina Tank

and

Company’s small

also

increase

coal

Corporation, coal to

highway

and out

in

wood

that of In purchased

on

in Corporation

73

Company. and

company,

produce

the

two

its

I

addition, increased Car

in

Products diesel Los

plants.

inflation properties, and

on

addition

reserves, Average an

Materials

will on

74

ownership

of Organic

letter

tar

wastes.

companies

and

Average

and Company

initial

Angeles

Koppers

new

the the supply

and

reduce

75

processing

piston

to Canadian

treating

Colorado following.

modernization

Company’s effects Return was

additional

construction

a

was

76 plant bridge modernize

had investment

Common

was sand

and

genetic

Materials. acquired

Additions

a

civil

Total

plant 77 and of

increased. rings.

modest capacity

work

made

early

in

on completed, an in

chemicals that

of

and

construction. construction

78

Georgia lumber

Virginia

facilities completed

that

Equity

investment

changing

investment

energy

engineering

stock

Shareholders’

under

in

company

gravel to

companies

business

79 several

in

were

investment

was

produce the

to the

programs

Richmond

Koppers

80

facilities

produce in

special

year,

that

way

costs

were

and

Com

started

and

made

Rich

prices

81

sev

ser

in

to

The

will

on

on

1____—

82

by in

Chief

To Letter

taken Our

domestic able

of to we lie. try tions

for this continue depressed

gurated

tinue Chairman’s cial 1982 should maintain

our loss

accurate accomplishment not trols how than year Koppers

by $109.1 cash

million ence any reported against $50

depreciation, source

in meaningful

economic

recovery,

backward

We

our

would

$28 1982. Our

1981 enterprise,

truly

posture.

1982 conditions

As

Collectively,

reported

million actual provide began the The

on

sufficient end, thereafter. by

Of

from

is

recognized

activities.”

begin

we million, million

loss

a

of traceable investments the management

income, convey to annual high

Koppers

financial economy

table

operations,

is Shareholders: not

in

number

Financial

cash

cash.

state

continuing had

exert

outflow

could the

to

was

letter the other

from forces

These

were

a into

“mark to

level

in

worsen.

which over

to

especially more shows

in as

feared, table

held

income

be

report

our

of

the available

The

every

these

almost

support those recession.

continuing

on

just

Rather, sources

contrasted strong the results.

of then

to during

of the in felt

that,

of are

the

income Company’s

time

congenial

by page additional

the and

on

remained

same

funds which along

close as Company

also to

operations

economy.”

discussed in

In effort

economic

measures

close summarized a

sectors

the

statement.

while

page

none

cope nonrecurring

likely

operating 1983 precarious until

expenses,

the response,

we those

under

The

to

2.

of

that

effect

Company with

generated

our

controls

statement

We

Officer’s

operations the

Their

to

funds, said,

year.

with of

they external

15,

of

with fact and

push

the

environment at

measures strengthen

of

operations. end

1981.

the pledged

stringent funds. Company financial

which

which

totaled the occurs

a trends

penalized

the the

benefits

is “We

More will might

This

sources

unfavor

and

high

the currently

we

the markets

was

in

that balance

that

actions

$31.1

was

charges

by con condi

does the

Thus,

created

will

inau

most differ

finan

shows coun

level

in

that with lead

more the

con

to

up

as

of

At

a

and recaptured totaled decrease that reduce funds

1981’s capital use

Table use

Changing

For

Operating

Net

($ Operating Other

Interest Loss Provision

Loss

Cost Taxes,

Depreciation, Selling,

Thousands,

continuing

inventories.

of

1982’s of

the

The

sales

administrative

generated

before from

A. cash,

funds $216.1

$55

expense

investments debt

Year of

Company

expense

in

other

sales

for figure

$99 research, expenses: Consolidated million.

Prices

profit

continuing

working

and

A

to

Ended

income

million.

income

operations

cut

million

repay

than except

After

was accounts

depletion

of

of

This

significantly

far

$207.1

expenses

December

capital income

more

general

we

only taxes

debt

tax

from

operations

offset

per

was

used

benefit

slightly

Statement

than payable,

and

and million

share

trade

the

(excluding

taxes

the

and

some

support

amortization 31,

$105 reduced

major

increased

figures)

from receivables

lower for

1982

the

of

million

Total

reason

of

this

the cash) net

than

its

Income

to

in

As

issuance

million boosted spending will The tures

Effects

1982

selected

(FASB)

From

Reported

Statements

be

(Historical

Current

Financial

$1,585,206

Dollars

FInancial

and $

1,247,719

1,549,881

increase sufficient

Continuing

175,697

of our

(54,921) requires

(23,790)

44,242 82,223

of

historical 35,325 60,570 29,676

so

any

Cost)

Changing

long-term

liquidity. plans of

that

In

Accounting

increase

Current

in

to

internally

supplementary

cash

are

finance financial

for

Operations

$1,586,505

(Constant

Adjusted

1,273,941

1,643,969 receivables.

to

General Prices

Inflation

(153,128)

Purchasing

in

150,089

175,697

Dollars) at

(57,464)

(23,790)

44,242

65,988 29,676 control

working

Standards

year

generated

capital

data

end

capital

(Current

on

disclosure

Adjusted

for

expendi

capital.

The

Power*

further in

$1,586,505

an

Adjusted Changes Board

1,276,082

1,645,520 funds

Specific

(154,385)

149,499 $28

175,697

(59,015)

(23,790)

Prices 44,242

65,694 29,676

Cost)

for

of the tion the to

These adjusted tories; approximations desired

pany’s equipment, inflation. level and be in rnent

Restatement

20

Table

Net

Historical-cost

($

Adjusted

specific

present

Adjusted

Adjusted

misleading

Other Average

Thousands,

Company

present

in

Chief

depreciation,

Koppers,

Sales

(constant-dollar

Gain Net

Income Income

No. Income Netassetsatyearend Income

Excess

Cash

Market

times

areas sales;

B. reported

of per

as

per

specific price

basis

assets

33,

Financial

the

information:

net prices.

from

to

it

Comparison

state dividends

common net

common

of

involves

are

conform has

of cost

Consumer

price

for

for

level (loss) believes (loss)

(deficit)

(loss) effects (loss) amounts

in

in

change

to

of

other information:

except

decline and

financial

prices

at complying

most determining

of

elected

recognize

general

changes

Koppers

accumulated

of

depletion

year

per

the

Officers

from estimates.

from

sales; from from

with

share of

the share

accounts

method)

declared

affected

of

these

in

common

art

net per

owed

inflation

in

end

increase/decrease the

to use

1982 results.

Price

of

continuing continuing

continuing

continuing

purchasing

Inflation:

leaves

of

endorses

property,

share

in with

restate

the

and

Selected

general indicators

Letter

the of

increase

classifications

specific

and by

Consequently,

would

depreciation; per effect

Index

assumptions,

on

amortization. FASB

share

effects

However,

figures)

much

inflation.

only

a

changes

common

plant

operations operations

operations operations

attempts

price

com

ci’

not

power

State

in Supplementary

at

may

prices:

to

inven

infla

of

general

year

and

be

(Note

share

in

end

five-year

poses materially 8)

The Some of

of purchasing adjusted considerably. been are as and ings the growth effect, maintenance

the

Inflation

a

impact not

Company’s

(Historical a

As percentage Koppers

is

1982 eroded

more

larger of

Conclusions

confiscating

a Financial

deductible

continue

Reported

Statements

comparison.

summary return

for

$1,585,206 $

$ $

$ $

$ affect

$ $

Financial

of

power obvious

634,055

on general

634,055

(31,131) portion

(31,131)

by

of

inflation

does Because

(1.41)

Cost)

16.00 (1.41) of

Koppers the

capital

results

1.40 inflation,

to of

Data —

capital, — in

of for

also

pretax be

capital.

not

results,

effects of

inflation,

Concerning

the

income

on

adversely

the

Adjusted

the believe, and

of

are

$1,586,505

$ $ $ $

$ $ dollar. $

$ $ $ the

while

income

operations,

earnings

Company’s

(129,338)

(130,595) effects

(135364)

Consequently,

974,251 Other restated

of the 960,664

Company’s

illustrate

tax 3,186

the

(4.93)

289.1 1982 (4.98)

15.82

income

potential

Profits

1.40 however,

affected.

for

taxes purposes data

declining

of the

have

for

inflation

Effects

as

have

Effect

earn some

in

taxes

pur

are,

$2,031,990 $1,094,005

$ $

$ $1,117,410 $

$

$ $ for $

the per-

risen

that

the

(29,087)

(18,408)

in

22,675

20,513

1981*

(1.35)

272.4

(0.97) of 17.46

Years

1.49

(In

Changing

adjusted formance

indicate. past

on Mineral A. Information

Senior Chief

February

Average

William

page

Ended

four

Financial $2,113,513

$1,053,940

$ $

$ $ $1,079,551 $

$ $ $

Vice

Reserves

40.

income years

(19,260)

15,

and

28,905

Capone 11,183 Prices

1980*

1982 December31,

8,133

(0.28) 27.97

on 246.8

President

0,39

1.66

1983

financial

Koppers

was

Officer

Dollars)

data,

as

$2,423,310

$ $ $

$ $ $ $

$ $ $

and

taken

severe

condition

mineral

883,043

933,325

60,784

22,244 60,160

20,731

34.01

217.4 1979

2.29

2,26

1.68

alone,

as

reserves

during.the

the

would

$2,332,313

$ $

inflation-

is

28.67

195.4

1978

1.68

The

Methods with

pared adjusted

current-cost

financial 1982 cost upon

effect inventory

the in purchases, write-down erty, constant-dollar amount.

value,

expected held the The Constant-Dollar

arriving Current-Cost

Under and

rent published (CPI-U) nizations approach and any cienoes

assets depletion and restatement

restatements using ods

Inventory involves depreciation and or

between produced cific

tories mined

under the already and In standard

and

prior require occurred reflecting adjusted

purposes. recognize

constant-dollar

adjusted

Cost asset. purchasing

decreases

1982

Other and

The dollars Consumer plant

for equipment technological cost

does

both

current

year. as

on

by

(2)

price thus

when

the

the the

years,

with

are

the

sale

by at used statements

for Under

converting prior-year

actual historical-cost

was

of

and of quantities

that

was a adjustment,

approximate

two to

and and the

amount

income the

not

and same the current-cost

FIFO most was restatement by

costs could combining was time-lag since sales

and indices. proportionately LIFO used

“changes average method).

Computation (the

end-of-year

FIFO-based be

information

any should

cost,

of

used

1981, constant-dollar

may as in the

types time

allocated estimated necessarily equipment internal constant-dollar

of

in amortization,

Method

both amount

provision Price derived only power

historically

required average the

inventories closely (including

constant-dollar

useful compared

general property,

inventory to

in companies on other

not federal

Method

of

was

and

be

changes or the

to statements:

two

effect carried

replace historical

primary in

of adjustment be

accounting adjusted

a

cash,

1982

Index—All be

current-cost measure

experienced

as

comparison current-cost in

the sources. equivalent

adjustments:

inventories certain

the

based

cost

shown earnings on

to approach, lives items

from

reflects to

recognized shown

inventory specific

by

inventories. costs they

for

for government, inflation

from

at

dollars. its

cost

take

plant a inventories

current or

method mineral

reported

at

over

with were existing using

components

the financial and

current-cost the

taxes

and to

the lower

are

and

amounts

its

had

into lower are

on

restatement.

other

at

its for

of general

both into

The (1)

in

time to reproduction

and methods, reduction

Urban method) equivalent,

the

the associated anticipated

of

depreciation the net prices” not

to

adjusted

effects LIFO-based current-cost considered

current-cost various average Table significant

the

was are approach; property, cost reflect on

with

when resources) recoverable was basis

liquidating the

consideration

costs that

expenses indexing

cost year, constant assets. depreciation,

under equipment (1)

realizable sales above permitted

Cost

statements.

income

year

at acquired

private

into

Consumers

produced. beneficial

at inflation

historical

assumed

A

of to

current

for was of

basis occurring modern

increases

(the

or thus

date prevailing

indices was assets

of of

were

average to dollars either reflect

using dollars

1981

The

plant

tax cost

sale

prop effects sales

reflect

dollar cost

to (2)

deter is

orga inven

meth LIFO

or

do already

pre of

to cur

or in

not

have made

cost,

spe eff of

sale a

to not

for

i

Table

Form

Koppers

Part

Item

Part

1.

Part

2.

4. 3.

Part

5. 14.

6.

7.

8. 9.

Business

(a) I No.

(b)

Properties (c)

(d) fourth Submission Security Legal

(e)

Stock

Market Selected Holder Analysis Management’s

and

Financial

and II Disagreements

to Part

March to Koppers its See

Ill

(a) (b)

IV

(c) (d)

Supplementary

pages

be

10-K of

General annual

Financial Koppers

Business

Business Foreign Narrative

Operations

and Koppers

Results

Financial

Ill

also Financial

Financial Reports quarter

Proceedings

Exhibits Schedules

(none

quarter

and

held

Matters for

Contents

is

18,

Officers Company,

Holders

of

Financial

incorporated Proxy

3 Statements

Item

Related

Registrant’s

meeting 1983,

on

to

Financial

of Report

and

Development

filed

of

Business

Board

of Information Segments

Description

of

6 on

Filed

April Disclosure Matters

Statement

Statements

Operations

1

and

Discussion

and

Statement,

1982)

on

Domestic

1982)

in

Filed

(none

during (e).

Form

Data

connection

Security

Data Accounting

25,

of

of

Export

pages

Condition

and

shareholders

Directors

to

1983. 8-K by

Common

during

fourth

Inc.!

a

About

of

reference

of

8

Vote

Sales and

dated

to

with

13

of

10-21,24

1982

(none)

of

Page

33

37 40

46

14

10

24

47 8

34 : Koppers

‘: “-‘

(Loss) Salesby Corporate BusinessGroup

Operating Expenses

overhead) BustnessGr Corporateincome

($

At Financial

Share (before

Other Data . ..,. . .

Millionsexcepipersharedata) . .

December . , . .

PerCommon .

Statistics

corporate ‘

Position

income Operating

31, 10-Year

OrganicMaterias Total RoadMateri&s Engineered Forest Miscellaneous Engineering Taxes, Wages, Total Depreciation, Materials,

Organic Other Operating

Total Forest Road Corporateoverhead Engineering Engineered Miscellaneous Income Inlerestexpense Income Current Preference Net Working Current Income Total Total Property, Common Long-term Common Earnings Shareholders’ Cash Capital Current Average Return Return Average Shareholders

Reclassified

income

sales corporate

operating

Financial

assets debt—% Materials

income

Products

other flow

Products

salaries

on taxes on

assets expenditures (loss) Materials liabilities

(loss)

ratio

capital

common plant supplies number

profit shareholders’ (loss) stock from

average average debt

Met&

and

Metal and

than

(loss) and to

depletion

(expense)

(benefit)

conform

beforetaxes to at operating

income of and equity

continuing

and

preferred

dividends and Construction

Construction from

income

year common Products

total

Products

of

and

from

shares

equipment—net

common invested

pension

employees capital (includedinaboveexpenses)

continuing

end

capitalization with

from services

and

Highlights

continuing

equity

taxes

expenses

dividends

outstanding operations

shareholders

1982

amortization

lease and

continuing

expense capital

equity

classifications

interestexpense

operations

obligations

operations

(thousands)

operations

and

Operating

S 5 $ $ $ $1,053.7 $ $1,585.2 $ $ $1,549.9 $ $ $ $ $ $ $ $ $ 1.99-to-i $ $ $ $ $ $ $ $ $ $ $ $ $1,192.9 $

$ $ $ $ $

485.9 535.3 215.5 297.1

369.8

27,854 22,489 1982 17,334 (60.5)

(16.3) 246.4 490.1 (46.0) 633.6 243.7 (25.2)

275.7 (31 (23.8) 544.1 (39.2) 32.9

18.5 19.49 44.2 82.2

(1.41) 35.3 38.9

10.3 25.5 29.7

76.7 1.40 18.6 8.5 4.9

0.3 (7.8%) (2

8.1

31%

1)

4%)

Statistics

$ $

$ $ $ $ $1,265.7 $ $1909.7 $ $ $ $1,810.4 $ $ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $ $ $1,328.2 1.99-to-i $ $ $ $ $ $

1981*

541.9 678.1 233.6 379.8

416.8

27 20,326 20113

142.7 272.1 542.8 120.2 679.1 270.7

288.9 58.6 629.1 46.3 81.6 17.7 99.3 29.2 20.9 132.8 182.1 42.9 57.9

22.5 13.4 34.4 33.7 44.2 52 (7.6)

22.58

6.9

7.9 667

67% 1.40 1.60 7.2%

30%

1

$ $ $ $ $ $ $1800.2 $ $ $1,188.0 $ $1,696.4 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

$ $ $ 2.02-to-i $ $ $ $1,389.5 $ $ $ $ $ $

1980*

229.1 380,9 531.7 577.2

390.6

26 21,029 103.8

18362

139.6 644.9 115.5 319.9 667.0 325.0

308.7 64.6 619.5 41.1 2309 16.7 76.7 47.2 57.2 134.6 21.3

24.1 11.7 22.9 32.9 59 59.1 (0.4)

22.41

9.5 4.8

0.6

989

2.19

9.0% 1.40 77%

32%

7

•

$ $ $ $

$ $

$ $1,828.3

$ $1,164.2 $ $1,694.9 $

1 $ $ $ $ $ $ $ $ $

$ $

$ $

$ $ $

$ $ $1,140.7 $

$ $ $

$

1.98-to-i $ $ 454.1 556.6 328.2 368.8

427.0 113.8

1979

133.4

170.1

147.9 40.1 63,6

270.0 535,3

555.8 265.3 26 55.0 55,6 224.2 14.5 22,087 31.9

18,115 582.2 10.5 11.4 22.2 6.8 42.4 20.6 849

843

177.1 141.5

5.7

21.81

0.6

15.8% 120%

3.21

228 1.25

29%

$ $ $ $ $ $ $1,581.9 $ $1,020.1 $ $ $1,464.9 $

$ $ $ $ $ $ $ $

$ $ $ $ $ $ $

$ $ $ $ $1,036.1 $

$ $ $

2.14-to-i $

482.5

$ $ 304.1 285.6 313.7

359.1 192.0

1978

117.0

159.8

141.9

33.0 52.7

247.7 530.4

282.7 24.9 25 457.7 36.2 43.5

233.6 26.2 20,858 498.3 17,729 22.1

18.2 13.6 4.0

52.7 17.9

760 75.4 13.2

144.5

141.7

20.12

0.6

12

16.2% 3.01

031 1.125

32%

1%

$

$ $ $ $ $ $1,355.7

$ $

$ $

$ $1,239.7 $

$ $ $ $ $ $ $ $ $ $ $

$ $

$ $ $ $ $ $ $

$ $ $ 2.11-to-i $

427.8 $ $ 265.4 296.3 174.1

189.8 866.2 304.7

1977

116.0

138.0 125.2

42.6 26.2 438.9 208.3 230.7 24 378.1 21.0 49.8 870.3 25.8

454.8 20.1 17,553 152.0 18,168 17.5 2.3

47.0

664 12,8

65.8 11.8

104.5 9.2 114.8

3.8

18.21 0.6

124% 15.6%

2.64 0.95

886

26%

$ $ $ S

$ $ $1189.2 $ $

$ $

$ $1082.4 $ $ $ $ $

$ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $

$ $ 2.55-to-i $ $

$ 384,4 $ 267.5 261.2

134.7

276.0 138.8 746.4

1976

106.8

133.8 121.9 37.8 22.2 427.1

24 325.5 259.3 167.7 783.6 55.8 15.1 410.2 20.8 16,729 17.1 17,880 18.6 159.7 13.0 2.6

41.8

67 11.9

66.9 12.6

107.3

8.5

90.6 16.50 0.6

134% 17.6%

0.80 2.70

809

28%

5

$ $ $ $ $ $ $1,075.5 $ $ $ $

$ $ $

$ $

$ $

$ $

$

$ $ $ $

$ $ $ $

$ $ $

$ $ $

$ 2.45-to-i $ $

$ 323.3 $ 244.7 240.3 111.8

248.5 153.8 675.1 1975

973.6

101.9

123.1

112.7 30.3

24 369.4 19.7

255.3 218.8 49.4 679.7 150.6 20.0 10.8 15,352 25.4 17,549 353.3 12.0 132.6

10.4 40.6 1,6 603 11.8 59.7

8.6 7.7

62.2 94.3 14.57 0.6

13 18.5%

2.49 0.65 002

27%

5%

$285.8 $1174 $270.4 $158.4

$ $

$202.2 $914.2 $594.7

$ $

$ $841.2 2.35-to-i $

$ $ $ $ $ $104.8 $

$ $

$ $ $ $ $ $339.1 1974 $144.0 $195.1 $226.7 $166.6 $647.9

$297.1 $ $ 80.5 $

$

$ 27.8

73.0 23 16.5 48.8

15,164 15.8 15,763 14.0 17.6

88.8 13.2

478 28.4 16.0 1.7

12.6 47.2

8.4 2.8

80.3 12.81 72.5 0.6

122% 17.1%

0.535 2.04

141

35%

$173.4

$ $193.7 $119.5 $

$ $723.9 $432.8 $189.6

$ $ $666.0 2.38-to-i $ $ $ $ $ $

$ $

$ $ $ $ $ 1973 $ $

$255.1 $ $107.0 $148.0

$240.3 $520.2 92.2 $112.8 $259.0 $ 62.2 $ 82.9 $

$ $ 28,7

57.9 14.9

22 21.1

20,7 15,639 15,921 12.9

72.2 61.2 13.2 11.0 (2.7) 21.6 29 10.1 28.9

33

7.0

11.39 59.8 61.7 0.6

11.8%

0.45 531 1.28

9 30%

5

1°1’ 24

Index Koppers Consolidated Consolidated Statement Report

For Notes Schedules

or

required Schedules

Statement

The Policies

Company Koppers consolidated Company, Company dated Principles eliminated. and intercompany Inventories—Inventories mately lower age remainder LIFO mate process basis. 20% materials equity investments—Companies of investments

‘Company’

December

is

the

repatriation

Consolidated Consolidated

Schedule Schedule Schedule Schedule Schedule not

major

costs 1981,

to

than

of and

actual (last-in,

of statements

years

Market

present

is

method 65%

financial

Company,

Certified

Company, cost

I, and of included

to

are for

and and 50%

respectively, Inc. accounting redeemable

or Il,

of

of

accounting 31,

statement balance as

on and ended

III,

accounted entities

the

Vl—Accumulated V—Property, VIII—Valuation finished standard the X—Supplementary or IX—Short-term

first-out) set

transactions

Consolidation—The

in

is net Consolidated all

regulations.

except

are used

IV,

the

1982,

amounts

market.

statements

replacement statement statement

years 67% of

Public in inventories forth of

include

realizable

VII,

Inc. accounted the

December FIFO

Inc.

its

as sheet

in Accounting

goods. XI, policies

of 1981

of

for below.

financial costs, convertible subsidiaries. method. ended is policies this and

well

Accountants for

Covered

Cost

sufficient

XII

inventories

operations

(first-in, the

determined

are

certain

have plant at

of of

at

report and

and owned Subsidiaries

as

value

and

represents borrowings

accounts

which

December The

cost for

valued shareholders’ changes

cost

of December

for

31,

statements

depreciation,

Koppers

XIII

Cost

been and

1980

the income

to

approxi qualifying

first-out) foreign

on

word

includes by

for preference for 1982,

are because

require

between

consoli approxi

All for for

equipment

for the at

by

Report

work

raw

not

of in

the the

1982

aver

the Financial 31,

the

statement or

1981

31,

financial the

given,

submission

the accounts years

in

equity

1982

depletion

1982,

of stock

and notes

equipment Fixed line charged nary produced. properties

price units as lated on Long-Term accounted completion The soon Pension plans as to unfunded tax expense income Earnings the share from outstanding. stock

Certified

ended

and

position 40

Other the

other long-term

information method

1980:

credit When 1981 average

thereto. Company maintenance

are of

depreciation

and

as the years

Assets—Buildings,

covering subject

is have

and

1981

the

to

they

antidilutive, sold, Taxes—Benefits income.

into Plans—The assumed

and

cost,

prior are

are are land,

Per

schedules

operations. Statements for

Public

amortization basis; over

and

Contracts—Sales been

number The construction matter

are

trust

depleted reflected the depreciated on 1980:

provides

Share—Earnings

after

substantially service

standing

pays

their

determined.

the effect

computed and

losses difference and

Accountants funds

conversion thereof

or

recognition

of percentage-of-

useful provisions Company

repair

Timber depletion,

because

costs

on currently

on common for

annually.

timber are .

contracts machinery

either from

the

on

earnings

amortization

all

on lives.

between expenses

recognized over

the

and

basis

of

the

employees.

and investment the

is

of or has

for

in

is

shares (loss)

preference

straight- not

All

information periods

accumu mineral

property

income.

reflected basis

are income

pension

resulting

pension of

and

present

ordi

selling

26-27

are units

per

of

as

24

of 25

28 29 30 35 34 35 36 36

up

Accountants Certified Report

Arthur The Certified

financial Koppers

examinations Inc. generally nying accounting the procedures accordingly,

financial listed tions and Statements

erally each on December 1981

January 2400 Pittsburgh,

a

circumstances.

and Board We

subsidiaries In

consistent

and

of Index

and in

Young accepted

Koppers

our

have

the the subsidiaries

statements Public

Company,

position

21,

accepted

changes

the

of

opinion, of

31,

records

present as to Pennsylvania

three accompanying

included

&

Directors examined 1983 were

consolidated

Public

Financial

we

Accountants 1982, Company

Building

basis accounting

at

of

years

considered

made

in auditing Inc.: the

December and

fairly of

Koppers

listed

such in financial

during

Koppers

and

financial

the

conformity Statements. in such

the

in

15219

the

in

tests

Index consolidated Shareholders results

principles accordance standards

the Company, consolidated

the

other

period necessary

position 31,

Company,

statements

of

period. accompa

to

of

1982 the

with

auditing

Financial

Our

ended opera

applied

and,

for

gen Inc.

with and

in

Consolidated

$1,585,206

S 1,247,719

1,549,881

5

S

($

175,697

(21,506) (40,362)

(60,570) (25,245) 82,223 44,242

(54,921) 35,325 (23,790) (31,131)

(38,532) (7,722) (46,632) 26,907 29,676

Thousands,

4,187

(3,096) 1982 (4,305) 4,372

5(1.41) 27,854 $(1.67) 2,769

7,500

461

600

Years

$1,909,744

except .

$ 1,505,488

ended 1,810,411

$

$

177,083

120,261

46,270 81,570

99,333

1981* Statement 20,928 (3,023)

28,560 33,754 86,507 34,445 52,062

7,433

51,642 5,164

4,635 5,369 43,757

27,667 1,350

5,194

7,285

$1.60 $1.58

(420)

per

December

600 —

share

$1800250

$

1,417,084

1,696,440 figures)

$

31,

$

161,605

103,810

115,456

41,092 76,659

1980’

(2,374)

23,164 11,646

82,592 32,864 22,867 59,725

53,960 3,792

(5,765) 5,138 53,360 3,458 26,989 1,632

9,700

$1.98 $2.19

of —

600 — —

Operations

Operating Net

Other Operating Koppers

Income Interest

Income Provision Income Discontinued

* Dividends Net

Average Net Earnings

classifications Results and

(See

provision

before

sales outstanding

Taxes, Cost Depreciation, Selling,

Profit Profit Provision

Equity Interest Miscellaneous

Term

Other

income

income

Cumulative Redeemable

income

notes

administrative

closed

1981—$8,304; (Note

accompanying (dividends

Loss

Loss

From Net expense:

(loss)

(loss) Company,

(loss) have of

applicable expenses: operations tax 1981—$559; provision

number on profit

debt (loss)

(benefit)

other (loss)

in

to on:

sales

research,

for earnings

income

from

on

2)

(loss) sales

(loss)

financial benefit earnings

been continuing

for operations (Note (expense):

(Note

before

from from

during income

disposal

than

on

preferred

decline

per depletion

discontinued received:

of

convertible

reclassified

of

for Inc.

for for

applicable operations 8)

8)

statement income continuing expenses continuing

of shares

1980—$4,328) (less

statements.) share income

(loss) capital

general

interest

year 1980—$5,146)

income

the (losses) income

$2,378) taxes and

operations

of

in

(Note

applicable

year stock

and

of discontinued value

(in 1982—$9,204; Subsidiaries

of

to tax

assets

to

taxes

of

expense and

preference common

taxes common common to

taxes thousands) operations disposed

operations

operations

conform 8): amortization

accounting of benefit:

common

of

affiliates

investment

(Note income

and

with

stock.

stock stock 1982—$2,633;

of

stock

policies

(less

stock

9) or 1982

10

12

1 3 2 4 14 13 15

7 6 8 16 9

17

Explanations

2. customers. 1. wages, operations 3. supplies energy,

of ment 4. against plants, levels, 5. franchise ployment corporate expenses. pensions, Company 6.

write-ott 7. ness included 8. or 9. ties, value value

which 10, earnings 10. 11. 12. federal, 13. tinue holders 14.

businesses. in 15.

was 17. 16. paid ducing loss holders, equity. against

Total

Directly

Related

the

Not

Salesmen’s

Gain Not

Profit Recognition facilities.

1982

page Represents Total Cost From

This

After-tax Aher This

etc.

in

segments;

applicabe original and

closely in to

carried of

resulting social etc.

received,

salaries, it

transportation,

the fixed

or

and

on

dividends, common not state of by be has an was

retained in no of taxes, portion and income

26) or related in including short-term and to staff products,

alt

loss Excludes

has

year’s

assets

operating

sales

businesses borrowed operated investment

to

1982, longer losses

the services

assets—this 20%-50% security

dividends

effect

earned has related cost

on real

and

other compensation,

and remain that

realized been

directly

Koppers state raw

see Company’s or

to

of

the to taxes

of

earnings,

income. shareholders’ $39.0 fallen

estate of

of foreign

receivable, common officers’ the needed. the al of net of operating

although equipment, general materials, discontinued

page

cash allocated

balance business

to machinery, and for and

income

in

pensions, companies funds decisions

operations. in

sum realizable

income and from was ownership.

that (Explanation from operating

million below future,

all taxes. certain portion

portion

local unem

investments. 33.

thus

share- credits’ salaries, of will charged invest-

share-

sale

sale

most sheet. of

levels;

lines the

the from was

(loss) facili

con

busi

made re

of

of

in or

net

is Consolidated

26

Assets

S

$1,192,924

1,071,122

207,529

268,911 134,604 490,127 171,658

940,961 130,161 498,786 572,336

633,602

74,858

98,271 36,036 13,102 97,253 22,980

35,756 42,645

43,446 84,444

26,550

1982 6,889

6,926

($

December

Thousands)

$

$1,328,175

1,030,880

264,874

340,591 160,367 213,755 129,492 542,750 126,836 31,

907,21

493,955 123,669 536,925 46,824

679,077

50,732

83,304 17,297 90,120

87,597 41,558 Balance 12,997

16,228

6,816 1981 —

1

Current Koppers

Investments:

Fixed

Other notes

(See

Sheet

Cash, Accounts

Refundable Inventories

Affiliated Prepaid Affiliated

Buildings Machinery

Assets

Depletable Land

accompanying

and allowance and to assets,

assets

of of assets;

Company,

At financial

Less

Less

$5,134 $14,584

including

$41,458

$4,720

cost—FIFO

under

expenses

Work

Product Raw

Total

companies, and receivable, at

excess

accumulated

and (Note federal

properties, cost: statements.)

in for

in

in

other, materials

current capital in

in Inc.

1982

statement

short-term

equipment doubtful

1981

1982

1981

process

of

1):

and

(first-in, income

at and FIFO

principally

and

at

leases,

assets

cost

less Subsidiaries

and

depreciation

equity

of

$10,316 accounts

cost

$14,826

investments

accounting

taxes first-out)

accumulated

supplies

net

over

(Note

trade,

in

of

(Note

in

of

1981

LIFO accumulated

1981 basis:

$5,015

policies

2)

less

of

9)

(Note

(last-in, $65,739 depletion

in

and

1982

4)

amortization first-out)

in

1982 .

10

11

12 2 1 4 13

14 6

8 9

Explanations

wht This 2. within 3. short-term normal 1.

overpayment 4. customers the 5. od, for 6. cost for is 7. eliminating ries most to 8. understatement 9. and insurance See on companies. 10. ery Company-owned 11. to the assets 12. exhaustible were value 13. ber, everything 14.

Likely Amounts Primarily

Goods Funds based Company

Amounts LIFO

See be

operating sale. substantially

process page which

The Accumulation Koppers portion

Cost to and The original

rents. of discussion Koppers

coal

recent

one

rendered

purchased.

of charge

business

goods discussion

that value

to

original Value

equipment. total to

on

resources 16. of being

and

reflects year. notes

premiums, and

be

kept illusory

owed be

of

Koppers

has paid of properties the

amount costs

uses

resources,

ownership of costs

net of owned.

converted

balance

current stone, of

manufacturing received

others.

in stockpiled taxes

on FIFO of all in

been amount inventory use

in these

cost to

LIFO buildings, the the of

of

of bank Company

inventory domestic

since page

advance

used

Company

paid

or the

owns. goods,

working reduced

accounting

property

most during future, allocated

income

assigned

having sheet

accounting inventories

invested

such

in in

accounts

paid portion into

16. the

for

in

results

other or 1983

recent

the

machin

thus

for profits. fixed invento such cash assets assets. 1982. shows

as used for or

capital

for with

by

taxes

from

past.

to

items of

tim- held

in

meth

in

for

as

in

Consolidated

Liabilities

S

$1,192,924

246,374

269,764

per

58,693 ($

29,446 40,553 28,021

54,001 19,883 11,292

133,501 375,665

21,153 15,619 4,485 75,000

1982 15,000

34,889

5,959

Thousands,

share

—

December

figures)

and $

except

$1,328,175

31,

272,076

278,090

75,699

28,901

49,733 38,576 17,414

22,227 18,608 15,168

461,298 132,935 34,170 10,839 13,948

75,000 Balance

1981 15,000 34,819 5,750

Shareholders’ .

Koppers

Current

Term

Obligations

Deferred

Deferred

Redeemable

Cumulative

Common

Capital

Earnings

notes

(See

Sheet

value, issued

redemption), and

issued issued .

Accounts Accrued

Term Advance

Short-term

debt,

due

accompanying

to

liabilities:

outstanding

Company,

Income Pensions Other Insurance Payroll

in

financial stated

compensation

debt income

and

and 27,857,138

stock, retained

within

due excess

under

preferred

liabilities:

Total Equity

payments convertible payable,

outstanding

accruals

and outstanding

debt

after

and

value

taxes

$100

$1.25 statements.)

one

taxes

(Note capital

current Inc.

of

obligations

in

150,000

statement other

one

and

par

year the

par

$100

stock

principally

and

par

received

(Note 3)

preference year

value leases business

outstanding value:

compensation

liabilities

750,000

value: 27,910,834

per Subsidiaries

shares,

(not

of

(Note

7) under

share:

accounting

authorized

(Note on

subject

trade

authorized

shares,

(Note

4%

contracts

stock,

5)

capital

27,855,478 shares

authorized

4)

series

costs

to

5)

policies

10%

no

300,000

mandatory

leases

60,000,000

in

par

1982; series

shares

and

1,000,000

,

shares;

(Note

shares;

in

1981

shares;

issued

6) .

2 1

4

5

10 6

10 8 .

Explanations

everything This

2. one 1.

services

4. 3. be

by 5. provide 6. capital during

end discussion a 7.

Koppers excess added 8. Shareholders

As buildings,

obligation leases will present -eports 9.

and income reports represents ence io.

was shareholders’ million, at of close end

cussed These

Due Amounls current

For

Repayment

Companys

Borrowings

The customers, paid

Differences

year

the with porton

common

1982 be The

tax

services o

equa

to

that

coming

lease

Company

capital -

of

close

each at

made in

of

provided are

long-term that

in 1981 value and represents

regulations totai suppiers

income-producing in

ratio covered

Koppers 1982, the year

machinery interest

to

will the

on

owec

of

explanation

to the

liabilities

obligations are

year. expenses

stock

of pay

of of baance near in

can current which The

generates page used

of $19.49 of be same year. and

in end

ownership

versus

taxes

1982.

the these

iong-term

not

lease leases 1.99-to-i. but

accounting

oft

paid

these costs

This debt, benefit for reduction

owed future

products outstanding

the

to

future. 16.

result

included Koppers

year. portions

not

payabie

and

for

assets Common on goods

sheet

items, expand

$22.58 in

payments represents in

17

total

there

required on land, liabilities

earnings requred each the

future

as financial equipment.

This on

in

in debt

See

the

base.

shows common is paid

Koppers differ- this at

and certain rules $544.1

page

of

in will withir

at is

share

dis

total

debt.

at year- equity

years. and

tax these an

the

that by for

the to

in

the

25. Consolidated

S(31,131)

$(26,921) S

5(26,921)

109,102 106,199

152,142

179,063

(42,097) (44,243) (52,623) (17,006) (10,935) (25,702)

82,223 50,037 23,232 14,988 20,546

47,101 76,677 (7,015) 33,157 (7,401) 17,839 (2,903) 28,034

(5,750)

2,059 2,165 2,439

2,760 1,529

1982 5,683 4,715 3,274

—

Years

($

ended $

$(54,305) $(37,553)

$(54,305) Thousands)

(102,105)

150,336 152,692

199,428 253,733 182,106

81,570 (26,584) (33,496) 52062

(21,018)

(47,800) (19,544) 39,313 46,653 21,343

1981*

4,975 4,615 (4,472) 7,114

(7,637) 2,356 5,821 1,994 1,602

1,751 1,233

(420)

782

Statement

647

353 December

—

46

$

$ $ 31,

$

140,748 382,682 230,871 134,558 141,309

322,961

109,600 76659 59,725

26,413 72,590

38,387 50,065 (5,765) 1980*

59,721

28,459 73,665

20,128 5,174 49,879 25,269 59,721 4,125 2,201 (2,713) 7,812

2,347

1,038 4,313 3,163

(810) 2,674 4,521

561

253 —

of

Changes

Koppers Source

Disposition

Changes Increase

Increase

notes classifications Results

(See

Operations:

Term Common Preference Term Book Treasury Capital Other Dividends Issuance

Increase

Increase

other

accompanying

to

of

Company, Income Deferred Depreciation, Equity Provision Loss Depreciation, Deferred have

Accounts Cash

financial Inventories Advance Accounts Prepaid Term Accrued

Short-term (decrease) debt funds: in

debt

value

(decrease)

expenses Total closed companies, Total

expenses

of

due

investments

components

noncurrent

in

Funds

been

stock

stock from

of funds:

(decrease)

(decrease)

(Note and

and paid debt and

in

stock

from

of from

within

(loss) receivables

Financial

statements.)

expenses income

(earnings) and income

for

liabilities

reclassified fixed

payments Inc.

discontinued receivable capital

payable short-term capital

acquired

issued provided

and statement 8).

debt

continuing discontinued

in operations

issued,

depletion in

depletion decline

one

less

and from

assets

working

assets

working

obligations

of

taxes

taxes

in

in

leases

leases

year

dividends Subsidiaries working

current continuing

due current

to losses received

from of

net

in investments

disposed

and

conform

and

accounting

and and

and operations

Position capital operations

value disposed

capital after

of

issued

retired

operations operations

associated

under other of assets: capital: amortization other liabilities:

amortization

received

one on

of

affiliated

with

operations

of

investments

contracts

policies

expenses

capital of

year

or

1982

or

sold

and

leases

io 12 11 14. 13 16 15

18 17

3 2 1

6 5

7 7 8 9

Explanations 2. 1. 3. 4. are require 5. operations paid The did ment of

6. for reduced Company’s from curred 7. result reduced did 9. 8. explained ment

acquired Ownership common contributed

10. ment, needed 11. 12. 14. 13. and 15. of 16. funds

the change in 17. 18.

rent

Where This Taxes From

Plant

Includes investments

Losses

Borrowings Negotiated

use

working certain retained not

not Total Received

To Where amount

Repayment Returns Includes This Subtracting

currently,

items

certain

preferred becomes

liabilities. include

in

facilities, operating

generated provide by the

result in

write-otis require line

and

an in

represents

Koppers the

in

funds section

stock, in

the

reported affiliated

in

in until investments payment operations.

cash the

working

Plan. outflow

portion capital

exchange for 14 to

by

to equity

funds other 3

current

notes

certain in

business

from

value

available

explained

Employee and reduced on

shareholders. funds due.

common, further

which

payment the from use

etc.

an

of

plus

funds

cost dividends

shows

and

results

income page

expenses

obligations. came

outflow disposal employed. 4 affiliates companies time

on

of

of received

funds in

no of of capital

all

expenses assets value

above.

went:

does

write-downs income

the

funds. the

for growth. income funds,

companies paid

and longer

income for sources. 25.

when

how

of

from: on

preference in

Stock

losses

shares but business retained

of

received

of use not funds,

affected

a

out assets. plus

of and page

not

on

the which

funds

change was

shares did

pay-

state-

that

equip-

that

in

but

from

sale

cur- the

in-

of

not

as 16.

Consolidated Convertible

Koppers

Balance Cash Net

Common Expenses Purchase Common Balance Cash Net

Common Common Purchase

Cash Balance Net

Common Purchase Common

Balance

On On Acquisitions preference Contributed

Savings

On On On

Acquisitions Contributed

Savings

On On On

Contributed Savings

income

income

loss

dividends common preferred

dividends

preference common preferred

dividends

common preference preferred

Company,

at

at for

stock

stock of

at stock associated

stock of at

stock

stock of and

and

for December

and

for

December common

December the common

December

common shares

to

to accounted

stock, the

to accounted

stock, Profit stock, the issued paid:

issued

stock, Profit stock,

issued

paid:

issued Profit stock,

year issued paid: issued

Employee

stock, Employee

Employee stock,

year Preference

Inc. year

issued

Statement Sharing

with $1.40

Sharing stock 1982

$1.40 $4.00

Sharing stock

$4.00 $1.40

during stock

$4.00

from

during

and

from 31,

during

from $10.00 31, 1980

$10.00 31, 1981

31,

for

redeemable

for

1979

per Stock

1980

for per Subsidiaries per Stock

1981 for treasury per Stock per

1982

treasury for

per

treasury as

Plan as

1980:

Plan

1981:

Plan

1982: per

treasury

share

per treasury

share share

treasury

share purchases share

purchases share

Ownership

Ownership

Ownership

share

share

to

to

Stock

to

convertible

of

Employee

Employee

Employee

Shareholders’

Plan

Plan

Plan

notes

(See

Cumulative

Preferred

150,000

Outstanding

accompanying

150,000

to

150,000

150,000

Stock

financial

(Amounts

statements.)

26,698,328

Shares

27,646,563

27,855,478

Equity

27,910,834

Common

statement

905,546

(101,804) (95,374)

166,499

(58,443)

42,689

95,374 103,464

44,076

56,783

Stock

53,696

in

thousands,

of

Other

Cumulative

accounting

Preferred

$15,000

$15,000

15,000

Stock

15,000

except — — — — — — — — — — — — — — — — —

— Than — — — —

policies

outstanding

Common

$33,373

$34,889

34,558

Stock 34,819

1,132

Redeemable

(119)

and

(127)

119

208 —

(73) — — —

53 — 130 — — —

55 — 71 — — —

67

shares

Excess

$108,137

Par Capital

$133,501

128,608

132,935

21,657

(2,410) (2,228)

(1,160)

Value

2,304

(1,402)

1,148

3,532

and 1,140

1,323

815 — — —

645

of — —

— in — — — — —

per

share

$440,736

Business

Earnings Retained

$375,665

(37,787) 456,309

461,298

(38,768)

53,960

(38,532)

(39,001)

51,642

(7,285)

in

(7,500)

(600)

figures)

(600)

(600)

the — — — — — — — — — — — —

$597,246

$559,055

(37,787)

634,475

644,052 (38,768) 53,960

22,789

(38,532)

(39,001) (2,410) 51,642 (2,347)

(7,285)

(1,233)

(7,500)

2,423

(1,529)

1,201

3,740 Total

(600)

1,211

1,453 (600)

(600)

870

712 30

cost of 2. per Tank prevailing inventory from respectively. inventory reduction 1. Financial Notes 23.6%) December31, $775,000 23.3%) subordinated ary increased Company 1981

The respectively, $5,316,000 an this down of investment. severe through of belief 1981, $576,000,000.

Corporation agreement through ates

peat-to-methanol ment 1983, tively, $4,582,000 synfuels (losses) Company been

ultimate

costs investments.

project. investment

which

the the

Inventories—During

Investments—During

estimated

of share,

investment

write-down

of

In

In

The by $48,825,000

Car

(PMA)

the

to

RLC

that to

RTC, its

investment.

Federal

will

of

purchases

December,

December,

financial

approximately to and

guarantee

expense

its

increased

loan

realization. investment

equity Company and of

Company’s projects Company

quantities quantities

resulted

in

this $48,975,000 its

be and

(RLC),

recognized filed

partnership, for to ($3375

$2,200,000

on

and ($4,518,000)

advanced

prior

and

(SFC) equity

secured

realizable realized

and $1,162,000

Any

demand

SFC

1982,

situation

Bankruptcy

terms

$3,769,000,

PMA)

for at

losses

was

problems

amortized

received

(1,550,000

years

all

Statements facility a

price

because

December in

recovery

The

in

1982,

1982, protection

up has net

per

were

carried

recognized investment nonconsolidated (RTC)

to

1981

During in current

costs

in a

with

and

accounting

as

a

to

$6,689,000 construct

liquidation quoted

note. $13,297,000, in

from

RTC earnings

(1,575,000

Richmond

recognition

share).

provided

has

guarantees.

value as

letter Peat

the

the

relative

$465,000,000

1982

the at

a

and

and

reduced.

the

$6,632,000,

1982,

or

and related

Code.

dividends

common compared

reduction

over

of

a at

of

impaired by

1982

their

Company

years, Company, shares, During

form

$0.14 Methanol

projected 31,

Synthetic $1,509,000,

of

under

1980 of uncertainty

lower and

SFC-approved

market

$39,304,000

the

On

in

equity

the

intent

the

in

$4,725,000.

to and

1982 and a

synthetic

policy

of

shares,

Richmond

Leasing of

(including

to

1981,

Company’s January

commit 1982 This

the

per of their

Company or

1982

life

costs

Chaper LIFO

or stock

a

its

operate of of

the

subsidi

respec

RTC’s 1981,

with

value

was

$0.48

of and

wrote 16% income

effect

Associ share,

of

Fuels cost

future

has and

this

and

value

or of

the

the

fuel an

to

the

7,

of

of 11

a

Company tively. $25,342,000, for 3. and to and investment effect Actuarial 31, ings sion per pany’s benefits increase

Net was accumulated ($ considered present future ences ments Ownership the employees tax the time expense Multiemployer

of Vested benefits: Nonvested

benefits 6%

Thousands)

Retirement

continuing

1982

assets

share.

credit. $28,068,000

ESOP

Company accumulated increased

experience expense

The

The

10%.

employees

of In

to

salaries,

in of

defined

value present 1981, these and

and

reflect

net rate

actuarial Company

the

for

available

Plans—Total

The A

are

return

Plan

upon

in

as

comparison

income

plan

the

1981 plan

used

plan

in the operations

of

offset calculating changes

had the

actuarial

compared benefit

Plans

value Plans—In wages current

1981 in plan

and

Company-sponsored

accumulated

of

(ESOP)

Company assumption retirement. net

partly

is

salary

assumptions for

benefits 1981

pension

in

$4,647,000,

has

presented

by

by salary

determining assets by

plans

and

pension pension

additional $3,738,000, was and

an

present

because $7,524,000

$210,499 $238,251 $307,409

scale

of in

for

the

addition

with

27,752

Employee

is

interest.

expense increases.

1982 accumulated

changed

1982

to 1980,

for

as

the

Contributions

less

funding

from

plan

$24,998,000

reduce rate

$5,327,000

below.

the of expense funds

relating

value

benefit was

of

the respec

than

investment

December

to

6%

benefits or from and Com

differ

for

the

its

Stock actuarial

require

$0.14

earn

The of

$189331 $217,410 pen $258,984 plans.

that

to

to

full- of

4% 28,079

plan

8%

and 1981

net

to

$5,577,000

tively, as Company ing and 4. plans benefits entered covering the equipment.

Machinery Land Less of ($

December31, Total

1983 1984 Less 1987 1985 1986 1988 ($ Present

amortization ment

payments Thousands) fied senting minimum obligations payments future ing capital determined Thousands)

Leases—The

agreements.

property

is

The

accumulated

and minimum and

amount

for

$1,575 is

as not

value

not

into

and

later buildings following current minimum contributions leases)

land,

interest

and

regarding

included

in

lease

The

determinable

classi

(includ

repre various

under plan

under

of 1982,

lease

equip

by buildings,

1982:

net

following

The

Company,

net various

is

lease

1981

capital

in

lease the

a relative

assets

the

to

schedule

and

accumulated

payments

machinery

multiemployer

above

by collective is $

S

$

$12,855

Leases $ arrangements leases: Capital

12,060

7,862 4,198 5,134 6,926 an

2,224 as

7,287 1,046

5,321

1982 of 7,534

the 1980,

position

845 732 721

multiemployer analysis

lessee,

information.

Company

by .

respec

as

years

bargain

and

of

Operating plan

of

$16,813

$12,997 has

$

$13,180

23,313 of the

10,316 plans

Leases

6,500

4,384

2,627 2.204

1,831 1,371

1981

763

sidered legal and obligations

5.

is years $9,717,000, $18,004,000 Additional that to Commitment has annum The amounts. three ber payable being $1,556,000, rate revolving annual during 1% amount 1985. ings had $110,035,000 contain payments 1981. indebtedness. under approximately could retained payment

6. Stock—On

ence issued share pany’s redeem

share to ing 1983 1990,

shown

Term $200,000,000

guaranteed Redeemable retire

Debts 30,

a

provides added The

agreement

or form

fund no

The

as

options

revolving In 1983

the at

stock

incur the the

convertible the

each

are 1982 lease

1986 interest

borrowings

of 750,000

common

various of

1982, Debt—Term

during $107 aggregate

in

the Company’s

in 37,500

Any

payments of of credit prime

issued

December Company

most Debt

and are revolving

Eurorate, through

to

Table $12,825,000, required

the

with

and

the additional

cash was

may

(preference

year

December preference

fees

agreements for

these

chosen of

per

the

loans

classified

As

incurrence

business $134,311,000.

rate the

credit

until calls by

transaction

shares restrictive

loans Information—The $16,881,000. rate, consolidated restrictions a shares

revolving

$21,000,000,

1.

be by

stock. average through dividends, share,

Convertible

of

daily

of

the

into

succeeding

1987, term

rates

under of

at outstanding on

September

converted municipal with up credit

for is December

the

term

debt

31,

by

bank

outstanding

Company

$100 16.2%.

indebtedness

3.48

required

any weighted of

to of

$11,322,000,

23, The

interest

shares declining

the debt

as

was

certificate

stock),

factors respectively,

1982. after

even

convertible

this preference 3/a

1990.

credit provisions, debt daily of due

loans

loan

term unborrowed shares 1980,

is

per

as

Company,

Company and

additional of

available

maturity with earnings The a

agreement

September

authorities

to The

after

to though

three Preference

agreements

1%

share lease.

amount

beginning

Beginning 31, to

30, at

agreement

on

are with loans up debt.

outstanding

the

the average

dividend

term

by maximum

Company was no make one

of

Company

of

1982, per 1986. Septem

to

one

not

Company

of

Company

$1 years.

each the

borrow prefer

stock

deposit

sufficient

is

Such in

of

the loans may

for of those

of

per con

year

the

sink

Com

up

in

of

30,

the

in

in

annually conversions ments for dividends required If 7. dividends, may Deferred officers $2,139,000 expense has benefits tive respectively.

Incentive expense invested upon charge return

a Performance 1980 that 500,000 shares

of equal

Distribution stock periods outstanding ending the December performance, January Savings

ings employees.

preference

Performance

Employee

the

an

a The Plan

years

then

provides

Currently,

because

and the

Deferred amount

at

will

to Company’s on

to

and

(up

December

accrued shares), Company except

the

sinking

if

for the has capital

and Compensation attainment elect and

1,

investment. on Plans—The

Profit

operating be

specified

the

1982

and

31,

1980,

to

other

Company’s of key may

fair

for stock

common

Participating

been

made

income

for

Profit Share

equal Compensation

holders

an

of

the no two

$1,881,000 Compensation 73,375

1983

Share

and that

Sharing

the

fund

using

employees

market

the

an be during

the

each aggregate

provision

key

common

common

may

charged dividends

directors.

31,

at

Sharing award

earnings prior

to 1981. award applied

and expense

of

Plan—The Company’s

Company

payments

taxes.

employees.

the

Company performance Plan of income or

more

1984. a

equivalent

not

value

Plan option 1982,

specific

preference Plan—The 134,650

preference

redemptions

end

employees

to

period

for of

pay

has

with

stock that

stock

There to

Plan—Effective than

Based maximum

provide

for are

are

performance in

of

1981

of

before

key Unit

such

Plans

initiated cash

are

Company been

1982,

is $2,300,000, all

the

has

designated

for

insufficient

in

return

attained.

six

ending

to plus

and

Operating

was employees

based

Plan

and eligible

arrears

on

not shares

Company

the common require

stock

one

stock

an

for quarterly

interest

made

may

1981

or cash.

profit

cash

of

no made.

on

a period Incen 1980, for

the

share

Sav

has

if

or

are

for

The elect

contributions a employee.

be

specified

made

Company

to

contribute

The

percentage

to

contributes

Companys

a

limit

up

to

of

of

6%

$6,000

the

an

contributions

of

amount

employees’

their

per

salaries.

equal

may

to .-..—

Income ($ Total Total rable

ncome 2

Total

Table

Anticipated Excess

Difference

Provisions ($ Other—net RTC

Table .

Statutory

* Effect * (Benefit)

Investment

Nontaxable before

Effect Other—net Effect

Thousands)

*

investments Reclassified Foreign

—Construction of —Inventory

Notes of

Reclassified Thousands)

Federal State, Domestic Canadian Foreign

Continuing

Sales Discontinued to Current:

Deferred:

3.

deductibility

or

investment

Federal Foreign State

4. Federal Foreign

capital tax (loss)

5.

of

provision closed of of

of

Components to

operations

net additional Corporation expense tax

percentage Deferred lower tax

in operations** Financial for Statutory

Rates expenses

tax of to operations

from

book

earnings of

gains

subsidiary over

rate: to

operations timing operations

$6,429, conform

federal

credit statutory conform

provision

operations

for for

contracts

continuing

book and income

(benefit): and

taxes

Tax tax income

Statements

difference -

$11,178 -

and provided

over

of

with

of tax

tax

equity

purposes

with depreciation

Expense

Domestic

tax

discontinued,

before

income on

Effective income

benefit

cost 1982

taxes: 1982

and

operations rate gain

investment

in classifications.

depletion

the

$5,683

classifications

applicable

advance

from

Taxes

recognition:

International (Benefit) provision

income

for

the

disposed

transactions 1982, (Benefit)

sale

for

Tax

1981 income

of

a

and

taxes

1980,

$(64,121)

$(54,921)

$ $(28,801)

$(13,745)

$(28,801)

includes

$

(23,790)

$(20,590)

(20,424) respectively.

(20,590)

(5,011)

(8,211) 9,200

(12,205) (11,025)

1982

4,049 (46.0%)

1,485

(12.9%) (4,876)

(43.3%) 7,292

(166)

1982

15.9% (1.1%) (5.7%)

(603) 1.5%

(123)

1982

5.0% 950

—

equity -

$71,873

$86,507

$34,445

$33,886

$24,781

income $33,886 14,634

$ 1981*

29,646

$

2,964

4,813 1,901

(1,303) 4,240

(3,065) (559)

46.0% 6,064

3,399

(573)

(7.1%) 4,240

39.8% 1981 (1.1%) (3.6%) (1.6%)

(469)

3.8% 1.2%

(386)

1981*

2.2% —

from

$71,778 foreign $82,592

$22,867 $17,721

$

$17,721

10,814

$ 1980

(5,146)

$ 15,350

8,607 2,353 4,390

(2,583) (12.6%)

2,371 1,478

(1,775) (1,713)

46.0%

7,991

1,308

2,371 27.7% 1980 (1.9%) (3.9%) (3.1%)

2.8% 893 (857)

1980*

0.4% — —

costs tions $2,720,000

tions, included $20,196,000,

share), in a

profit closed, shown 9. ($0.24 tinuing taxes

expense and

and continuing

years

by respectively, consolidated $25,230,000 ness which loss vided earnings

investment

The 10. Organic

business products this ments sales immateriality. 11. asserted amount and under

defenses pany income

contract. recover

In

$7,222,000, The

resulted

related The related effective

The which

or The

At Operations

of

and annual Company 1981,

Litigation—Inland per

included

in

its 1982, operations and

and since

federal

are loss

the has $12,371,000, effect December

is

a

components Table

are differences

provisions legal after

the Materials share).

of

construction and

located $17

and segments. Taxes—Income were operations operations a the

not similar or Canadian

tax to

filed against on

1981 in $100 permanently shown

the and claim report

income for components

on $6,757,000 earnings the

tax

2 million, a advisors intends

income significant $6,423,000 disclosed operations services approximately effect

operates

Company sold loss (page

a investment

operations $25,041,000,

and

million Company’s

before by

on ($0.10

disposals claim

against 31,

Group, and

in Inland’s

for

between or

of tax

Business are at

pages of spruce

Information 1980 Table

representing are closed

to

1982, tax

31). $6,573,000 contract.

retained income $5,037,000,

believe a

10-K. deferred

provided

against

for

rates continue provision after per

shown Steel because principally

in

gain dispositions

and shown

disposed has of

the

has which

have

export

3. delay (loss) tax

claim. 41 1981 and

in

share)

income lumber

the or Intersegment

closed

$27,019,000, respectively, tax

$11,066,000,

Company applicable of

not

Company prior reinvested through taxes

there

credit.

Segments—

in disposed

Inland The in been

the

tax in and statutory

resulted

by relating

damages ($0.24 such after

been of the

from The Table for

activities.

or

fees Table

in years of

related

these opera

Company expense

tax

opera

are for

1980,

income

busi reduced

five

and

to Com

tax

45

con

pro

on

4. the in per

sound has

to

5.

to

such of in

of is

seg

the on

the

the

Table Year

Operating Net Other Operating Equity ($ General Interest before Loss Total General Identifiable

Depreciation, Depreciation Capital Year

Operating Net Other Operating Equity General Interest Income

General Identifiable Total

Depreciation, Depreciation Capal Year

Operating Net Other Operating Equity General Thousands)

rterest Income

General Identifiable Total

Depreciation

Depreciation Capital

before

sales

before sales

ended

from

assets

income ended sales

in assets

6.

income

provision ended

in

assets expense expenditures

income

corporate

corporate in

expense from earnings

expenditures

corporate

from

corporate

earnings

expense from income profit expendit provision from corporate continuing

corporate

earnings Operations

income profit

assets

provision from

assets December income profit

December

assets and

depletion

continuing (expense)

December and continuing

depletion (expense)

continuing

continuing

and

depletion (expense)

(loss)

for

continuing

(loss)

amortization (loss) (loss) as overhead (loss)

assets

amortization (loss) as (lpss)

overhead

assets for

income

amortization (loss) (loss) as overhead

assets

for

operations of

of

before

income

of and

31, December

before

income

and

operations of

December 31, by

before (Notes

operations

and of operations

31, December (Note

operations

of

(Note affiliates 1982; operations

taxes

amortization

affiliates 1981

Business amortization

affiliates 1980

amortization general

taxes of

general

of taxes

8) 2 general

of

8)

general

(reciasslf

and

31,

general

(reclassified):

31,

general

31,

1982 corporate

8)

1981 corporate

Segments 1980 corporate

corporate

corporate

led):

corporate

overhead

overhead

overhead

assets

assets

assets

Materials

$535,323 $ $

$327,124 Organic

$

$

$678,099 $ $

$377,156

$

$

$577,196 $ $

15,506

$410,229 (15,030) (8,583)

$ 32,628

21,159 $

42,238

29,231 8,452 1,529

29,596

37,895

47,598

47,182 2,023

(2,432)

27,364

40,955

2,016

Materials

$485,833 $

$

$328,130

$

$

$541,920 $ $

$346,701

$

$

$531,729 $

$ 33,843 38,950

$334,963

$ 28,271

$ Road

46,647 15,485 4,032

57,889 1,075

28,997

52,770

3,334 52,096 7,908 57,249

27,289

78,614

2,533 2,620

Products

$297,089

$ $

$171,663

$

$ $379,823

$

$

$203,077

$

$

$380,862 $ Forest

$ 10,802

10,294 $225,316 (1,360)

$

11,931 $

12,097

22,209 42,909 19,652

14,094 23,798

21,322 17,223 1,048

. 852

13,655 31,705

3,257

842

Engineered

Products

$ $215,541 $

$177,264

$

$

$233,646 $ $

$195,620

$

$ $229,127 $ $

$206,218 (3,909)

$ Metal

$

17,164 8,715

4,926 13,345 —-.

13,406

7,138

18,795

6,077

120

14,302 8,582

9,488

5,308

111

(50)

742

164

Construction

Engineering .—-

$ $(10,868) 5(16,304)

$

$

$

$ $

$

$

$

$ $ 32,926

$ 5(7,573)

$ (4,573)

$ 18,393

$

58,567

—.. (6,601) (1,000) 22,596

(863) 64,601 and

(1,854) 29.523

352

1,403

(451)

264

588 59

28

227 —

42

$ $ $(45,991)

$

$

$ $ $

$

5124,873 (13,392) (35.498)

$

$

$ $

$ 18,494

$ 80,584

5

$ Misc.

10,713 2,899

17,689

(4,560)

48,260

4,907 6,583 16,735 6,930

85,369

65,253

4,289

596 4,790

(417)

721

918

746

Consolidated

$1,585,206 $

$

51,103,158 $

$1,192,924 $

$ $

$1,909,744 $

$

$1,270,023 $

$1,328,175 $ $

$ $1,800,250 $

$

$ $1,291,618 $1,389,486 s

$ $

(52,848)

(54,921)

60,897

121,864 29,676 25,572

142,792 (7,722) 89,766

80,916

82,223 76,677

182,106

127,934 15,559 22,531 139,580 33,754 86,507

58,152

79.749 230,871 81,570

1,307

5,369 32,864 24,124 82,592

97

74.589 76,659 327

1,821

6,508 5,138

2,070

868 Schedules

Classification Year Year Capitalized 34 Year Property, Koppers

Capitalized Capitalized

Machinery Land Machinery Land Depletable Buildings Depletable Buildings Land Depletable

Buildings Depletable Machinery Depletable Depletable

(1) (2) (3)

Property Primarily Includes

ended

ended

ended

Plant

Company,

and

and

and timber mineral

timber

mineral December

timber December

mineral

leases December

$14,058

leases

acquired leases

related

equipment

equipment

equipment

and

for

properties

properties

properties

to

in

properties

properties

properties

through

purchase

1982

Equipment

31,

31,

31,

Form

Inc.

1982

1981

1980

and

acquisitions,

and

$44,650

of

previously

I

Subsidiaries

(SEC

0-K

in

1981

1981—$26,899;

Schedule

leased

from

assets.

operations

V)

1980—$34,979.

disposed

$

$1,198,174 $

$ $1,135,191

$

Balance

beginning

of

907,211

857,413 123,669

115,849

957,433 745,924

41,558

76,565 of 23313 25,858 34,420

or 70,173 31,289 26,047 25,598 40,941 87,581

30,577 26,812

year

closed.

at

$

$ $

Additions

$108,425 $

$159,013

101,562

51,420

85,447 67,090 10,813

at

26,405

15,385

2,827 1,271 4,242 8,869 1,600 6,917 1,776

7,817 7,707

cost

210

123

137

($

Retirements

Thousands)

$

$43,753(1) $

or $76,271(1) $

$16,137

27,752

52,792

12,348

10,588

7,898 6,111

7,486 1,167

1,152 2,894 1,927

1,106 sales

1,190

825

566

313 —

46

Transfers

(deductions)

additions

$

$ $

$30,829 $

(10,296) $34,882

10,082

20,515 17,143

13,989

(3,477)

3,577

4,145

6,437 5,463 1,442 2,716

2,873

1,318 other

(660)

(930)

(336)

and — —

(2)

(3)

$

$1,225,656

$

$1,198,174

$

$1,135,191

940,961

130,161 907,211 Balance

857,413 at 123,669

115,849

43,446

77,505 21,523 of

41,558

23,313 76,565 25,858 12,060 70,173 26,047 34,420 31,289

close

year

Year Amortization Accumulated Description Amortization Year Amortization Depletion Year Depletion Depreciation Depreciation Depreciation Depletion Valuation Year (3) (1) (4) (2) Allowance Allowance Description Allowance Allowance Year Allowance Allowance Year Allowance Allowance

(1)

Includes Includes Primarily Includes

Accounts

ended

ended ended

ended

ended

ended

and

for for for

for for for

for for December $14,492 $5,770 December December

provision

December

related December

December

of of of

and and and

written

decline doubtful doubtful

doubtful doubtful decline doubtful Depreciation,

doubtful

capital capital capital QualIfying

amortization amortization amortization

in

to

in

off,

1982

relating

purchase

1982

31,

31, 31,

31, 31,

31, in

in

leases leases leases

less accounts

accounts notes

notes accounts

notes

and

value

value

1982

1981 1980

1982

1981 and

1980

to Accounts recoveries.

$20,739

receivable $4,091 receivable

both receivable of

DepletIon

of

of

previously

investment

investment

continuing

in in

1981

1981

(SEC

and

leased

of from

and

Schedule

valuation

Amortization

operations

discontinued

assets.

reserves

VIII)

disposed

operations.

(SEC

for

operations

of

Balance

Schedule

beginning

$519,097 $493,955 $373,461 $438,900 $468,176 $401,662

or

of

10,316 14,826 19,667 15,865 12,336

9,609

closed.

year

at

disposed

VI)

charged

income(1)

Balance

beginning

Additions

$80,589 $75,338 of $75,182 $82,156 $70,234 $76,820

$4,720

$4,875 $7,743 of

$7,875 $4,295

$4,295

3,737

4,869 4,391 2,105 or 2,195 1,514

3,023

3,000

year

closed. — — —

to

at

($

Retirements

to Thousands)

Additions

$30,552 $25,464

$29,827

$40,699(2) $ $

$

charged $ $44,086

$ $ $

income

40,362

3,979

9,814

5,019 1,109 7,076

1,058 3,589 1,065

2,555 8,507 2,929 3,023 4,235

3,000

1,235 ($

992

135

Thousands)

(2)

Deductions(1)

additions

$22,920 $28,507(3)

$ $ $

$(3,230)

$3,294

$6,317 $2,710 $8,639 (5,587) $ $

(3,930)

9,700(2) 9,464

Other

3,023

5,929

(340)

476 224

104

655

655 — — — —

(4)

$572,336 $592,054

$493,955

$438,900 $519,097

$468,176

Balance

$ at $45,512 $ $ $ $

Balance

at

of

14,584 14,826 10,316 40,362 19,667 of

5,134

9,609

5,015 close 4,720

3,023 4,875 7,743 7,875 3,000

close

year

year

135

35 — Short-Term 36 Category Amounts Year Amounts Year Other Commercial

‘Year Other ( Commercial (3) (2) Other Amounts Commercial

Supplementary

Taxes, Years Item

Maintenance Rents 1) Research

*

Reclassified

The Includes

Schedules

for shares Includes

ended

ended

ended

ended each

average

other of

payable

payable

payable

Short-Term of

December

and $5,650 December

December

$10,000 period

Borrowings

paper

paper

common paper

to December

than

and

amount

development conform

payable to

Income to

to

was

payroll repairs

payable

banks

banks

Borrowings banks

stock

31,

31,

31,

computed

outstanding

with

31,

1982

1981

on 1980

(SEC

and

of

Statement

on

1982 demand

Richmond

demand

income

Schedule by

classifications.

for

weighting

to

each

to

Tank Genex

Information taxes

Genex

period

IX)

Car

the

Corporation

Corporation

Company

effective

was

computed

(SEC

interest

upon

purchased

upon

Schedule

prior

by

rate prior

using

notification.

on

over

notification,

at

$ $ $ Balance $ $ $ $ $ $24,000(2)

December X)

a

end period

5,750(1) the

1,294

daily — — — — — — of

year.

average

$14,000

5,

interest

1980.

Weighted

average

during

15.2% $91,420 18.3% is 10.8% $19,222 $16908 $22,031 — — — — — —

payable rate

1982

the

year.

to

($

amount

a

during

Maximum Thousands)

The

third

standing

$31000 $ $

$ $43000 $24,000 $ $24,000 $96,000

period

5,750

5,914 1,133

7,192

weighted

out-

party

Charged

the

($

for

$108,908 Thousands) $ $

$

average

22701 the 17,516

16,466

to

1981* amount

expenses during

500000

standing Average

$ $ period)3) $ $ $10,360 $ $ $ $50,540

2,319 5,375

2,036

7,917 3,075

5,063 interest

out-

290

the

rate

Weighted

rate

average period)3)

interest

$106,224 $ $ ing 17.2% $ 12.5% 13.0% 18.5% 17.3% 15.4%

14.6% 11.4% 10.5%

26,879 14,127 dur

14,953

the

1980’

after On Board Koppers. addition, through pher, giants. ranking for tion

enterprise as wise his education he Board tioning

a industry, June

has

expertise

to

35

metallurgist,

with

he

since

Koppers of As

of

agreed among years its

defined as

1,

He

Directors.

their political

an

and to greatest

1982,

a he

1970,

had

health

to

articulate

world-renowned

of

own

challenged

brought

to the

far

embrace

outstanding

the

been

Fletcher

he

continue

systems. guiding

nation’s out

period

enterprises.

care

societal

extended

Chairman

of

business

honor

to

subjects

proportion

the

others of

L.

in

corporate Happily the

service

mission

growth.

service Byrom

and

Company spokesman

the

proper

Educated

philoso

of

to

recogni

from

range

the for

do

to

to

of

retired on In

func

its us,

like

this

the

of

As And Koppers Board Directors

t’Andrew fDr.

of * Charles Committee Director tCurtis *Terrance Chief

fWilliam Evelyn President,

Fletcher Koppers Retired

Carnegie-Mellon President, tNathan Chairman Edmund

Northern tCharles Retired Douglas Koppers The Retired

Retired Mellon and President, tExecuive

‘Audil

Executive Richard

ASARCO Paul Financial Chairman Nonferrous Koppers venture consulting, Management February Office and Long-Range Burroughs

Capital

Basic and

Investment Richard

Arter

Executive Officers

Director,

Potech Mellon

Committee

Chairman steel and Berezin

E. Bank Vice

President

Automation

President F.

Company, of

and

Company, Telecom

K.

H. capital

L. Greenhouse

Gommitiee Company Grymes B. of W. management and

W.

Jones Company, Advisor,

R. Hanold Barber

Chief Inc. Vice

of Chairman

Mellon 28,

Byrom

the Knoell products Chairman Corporation.

former Fitzgerald M. metals

family Corporation, specialty N.

Pearson

Mathieson Cyclops

Pullin Directors the

Planning retired

management Officer,

Corporation,

A. 1983.

President, Board, Cyert

investment,

Executive University

of

Board, and

and Inc.

57

and

Inc.

interests Inc.

the 64 Systems,

Director— producer

66

Inc.

69 Chairman 70

of

64 Director, 58 Director, Corporation

59 steels

of

Sons Board, for and

the

61

the

71

57

Officer

Finance investment

54

Board,

and

Corporate Charles Chairman

since Officer—Road since

in Burnett William Vice Deputy

Vice Deputy Vice B. Thomas Deputy in

formerly President Engineered in Richard President Jack dent Products

President 1951 Materials President Koppers President formerly Engineering Robert A. Joined

cial surer. Senior Thomas General Senior retary

1956. 1946.

1943.

1958 Otto

William

President.

President,

President—Marketing.

1982; Officer; 1981

and

L.

Chairman

Joined Chairman

Chairman

and

Vice Koppers Wheeley G. Vice B. R.

Corporate

Wilks

G. of

General Vice Group Counsel; in E. M.

and Group (Chief

and (Chief

formerly

(Chief

(Chief

C.

Jackson

PuIlin Bartley, the

General Metal

1941.

Wilson

Spatz

formerly Capone

President St. and President

Materials

Cochran,

Koppers President

President

Joined

Manager—Operations. Joined

Board

since

Operating

Clair since Operating

since

in Operating since

Operating since Construction

64

Products Manager.

Officers

formerly

Comptroller. Vice

1952.

59

Counse. Jr.

61

Vice 57

Koppers

Koppers (Chief

1978; 60

since 1981; 1978; since 1978; 61

in 1978; Group.

63 and Chairman

and

47

Jr.

58

1946.

President

Officer)—

Joined Officer) Group

Officer)

Vice Joined Officer)— formerly

Chief formerly formerly Executive General formerly

1978; formerly

1978;

Joined

62

Group Joined

in

in

Joined

President,

1949.

1943.

since Operating

of

Chief Koppers

Secretary —Forest

Koppers

—Road

and

Vice the

Koppers

Vice Manager. Group

since Group

Senior

Joined Koppers

Officer)

Koppers

1978;

Finan

Board

Trea

Presi

Sec

1978;

in

and

in

37 38 Organic Gioup

—Timberlands Vice Vice Charles Vice Paul Products Vice President. Chairman Specialty Joined Thomas Joined Vice Robert

Vice

dent Materials Vice

Manager—Foundry Koppers Industrial Lawrence Joined Vice Chemical

Dr. Purchasing Charles Department. Vice Francis

Vice Chemical Sales ager.

Industrial and Glen

merly

Department.

Randall

Koppers

President

President

President.

President

President

and Industrial President

L. President

President

President

President

Joined

Manager—Foundry

C.

Vice

Koppers

Koppers

Koppers Bost

G.

Division P.

in

J. Manager—Technical Systems

Division

Products

Tenley M.

since

H. Joined

Products Division

Division

Officers

Hamilton

1949.

Dorsey

President

Sullivan Agent, L. Materials

Joined Teller,

June

Koppers L.

Joined

and

Group

and

and

Nagel

Supply and

and and

Joined

and

and

and 59

and

1982;

C.

in

in

in

Koppers since

since

since 1969. Division

1951. General

General

since Assistant

General Purchasing Russell Division

1955. Manager—Operations, Hardwood

General

Division

Manager—Marketing,

55

Manager—Marketing,

General Products,

Jr.

Koppers

Koppers

54

formerly

and

Division 55

Koppers and

in

1978;

58

59

1978;

38

1978;

1980;

1970.

40

Manager—Purchasing

in

Products

since Group

Manager—Industrial

Manager—

Corporate since

Manager—Building

since

Manager—

to

Manager—Foundry

1948.

formerly

in

formerly

in 38 then

formerly

General

Lumber

Services. formerly

since

and

the

in

1970.

1955.

1978;

1978;

1978: 1966.

Deputy

Vice

Traffic

Group.

1980;

Vice

Manager.

formerly Division.

Manager

General

formerly

Man

formerly

Staff

Presi

Joined

for

Officers

Subsidiary Joseph tion, Koppers Peter President—Thiem Joined Francis President—U.S. President—Parr, Brooks in Managing

Vice ations Road Joined R. the Manager—Sully-Miller Vice the Frederick pany; Alvin Region dent Vice Koppers Subsidiary Construction Region

President Koppers ing Lloyd Marvin Company, merly President President formerly Broadus General Stone

Crushed Vice Bernard President

President Roger Bridge

1980.

1977.

Kenneth

Road Board—The

Construction

acquired

President

President

President and

President.

formerly

Barry

since L. Vice

Koppers Company,

D.

Koppers

Operations

Operations

Company,

Materials C.

W. M. W. in

E.

WaIters

in Manager.

Executive General in

Materials

Stone

Ahnstedt

Director—Koppers and

and

E. and

and

N.

and

acquired 1976.

C.

Wilson

President.

1970.

Browning

1976. Madeira

Farris

Neville

1982,

and

Company. MacGregor

Elmer

by

Officers

Davidson

Moore

General

General 55 and and General Vice

and General

General

in Plastic

Company;

General in Inc.,

Koppers

Company,

acquired

Corporation,

Manager—Western and

Other

1965.

1978. Inc.,

since Manager—West General Group since

General

Vice

President

54

by

40 acquired

49

President

59

55 Contracting

and 50 Group

Manager—Western

acquired Manager—Sim

Manager—The Koppers

Manager—The

46 Manager—Fairfield

Joined

49

President

Crushed

57

1983

1982;

in

Officers

President,

formerly by

58

Chemical

acquired Manager—Eastern

Manager—Western

1965.

60

Australia

and

Koppers

and

by

acquired

formerly

Koppers

and

in

by

Koppers

Stone

Assistant

and Chairman

Company.

1976;

Coast Koppers

Executive

General Joined

by

Corpora

Paving

Assistant Pty. J. Kentucky

General in

Presi

Com by

in

for

Harris

1977;

Oper

1976.

Ltd.

Pav

to

of

in

and and W. President Robert of President Daniel George ers, President President—Sterling 1977; J. Jack Corporation, President Pierce Silica President in

McMichael Assistant Homer in President President—Nello Koppers Sidney formerly and Company, President Company. Nello Officer—Nello Chairman Carl Koppers and Koppers President—Sterling

Raymond President Products,

Wyoming,

1966. Paul 1979;

Ansel

Gravel Gibbons,

Inc.,

Gravel

Sterling

formerly

L. W.

Sand

L.

A.

E.

A.

formerly Martin

Todd

L.

E. acquired

V.

Vice

in

and McMichael, and in and Teer, in and

Secretary. and

and

and

Gower

Hodge and of Marks, Inc.,

both

Good Company,

Riley

Company,

Smith,

Company 1980; Company,

LaBonte,

1980.

C. 1981.

acquired

acquired

the

Paving

Inc.,

General General

General General President—Erie General Executive

General

General

General

L.

Wiley

acquired

Jr.

acquired

61

Board Vice

Teer formerly

L.

57

by

acquired

Jr.

Jr. 60

Sand

Teer

46

58 Company,

Sand

42 68

Koppers

acquired

and President

acquired by

Company, by

acquired Manager—Kaiser Manager—Broderick

Manager—Echols

Manager—Ivy Manager—Lycoming Jr.

Manager—The

Manager—Erie Jr.

and

Manager—Eastern

54 57

Vice

Company, 57

by

Koppers

Koppers by

and

Vice

Erie and

by

Chief Koppers 58

Koppers 59

President.

Gravel

Sand in

Gravel Koppers

Sand

by both President

by

by

1980.

acquired

Executive

Koppers

in

in

Koppers

Koppers

acquired

acquired

Steamship

1981. Steamship

1979.

Company in

in

Company

Sand

1967.

in 1967;

Sand

and Broth

by 1980.

Rock

in

by

by

I

Vice James Forest

Wood

in Construction Manager—Plant Vice Earl Joined Vice ucts

Sales Robert Vice ager. John Donald since Vice

formerly Koppers Vice Specialty Joined Gerald

Vice Department

Subsidiary Vice Wood Robert

a Robert I President—Koppers Group Koppers Walter Engineered

Vice Container merly Vice Hugh

President—Marketing Ring

Metal

1959.

wholly

Division President

President

A.

President

President

President

President Joined

President

President.

Products

President 1978; and

President

and

D.

Products

Koppers

Manager.

Products.

Koppers R. Clendaniel J.

B.

L. G.

C.

K. Manager. A.

in

owned

Hite,

Products Wood in

Planning

Blecki

Seal

Batchelder

Dehls Machinery

Reynolds

1958. formerly

Wagner

Arnold

Cruise Hallahan

1973.

since

Koppers

since

Department,

Officers

and

and

and

and

and

and

Jr. Division and

Division

and Joined

in and Chemicals

Services. Division

subsidiary in

Joined

Joined

19’75; 1949.

General

Joined 1979; Manager—Utility

1951. Manager—Transportation

Metal Manager—Marketing

General

since

Manager—Raw

General

52

General

General 45 58 Manager.

International

in

53 58

Division 52

51

Koppers and

since

since

formerly 1950. Group

Koppers

formerly

Koppers since 55

52

Treated 1978;

47

Joined

Koppers

Manager—Western

Division

since

Sales,

Manager—

Manager—Treated Products

Manager—

Manager—Piston

1978;

1978;

Joined

since 1978;

formerly

in

Manager.

Manager. Koppers in

1969.

in Wood

Canada

Engineered

1953.

formerly in

since formerly Materials 1962.

and

1956.

formerly

1978;

1960.

Joined

Man

Prod

Heavy

1978;

for

Ltd.,

Vice

Vice Gerald Joined

merly Vice Processing Richard

President—Environmental Transmission Joined Vice Corporation, Samuel

Vice Manager. Waldron Waldron Lester

President in Koppers

I

Engineering James Group Vice I Science Department.

Vice 1981;

Dr. Resources Vice Department. and Dr. 1981;

Vice Research

Resources Dr. Department.

Manager.

1956.

President

Alonzo President—Koppers

William President

President Andrew

Operations Manager—Research

President

President—Science

President

President

formerly

formerly

Koppers

Koppers

Champness

L.

A.

and Division

W.

E. in

Joined

and

Murray

Joined Systems since

1975.

Harris

Hug

and

Koster Department a

Wm. Company,

Joined

and Division N. Joined

Joined

and Chief

C. subsidiary,

and

and

Vice

Vice

and

in

and in

and

Occupational

Maclay

Koppers Manager—Sprout-Waldron.

Joined since 1982;

Middleton

1956.

1957.

Koppers General

General

Lawrence General 48

and

General

Technology Executive

President—Executive Division

Manager—External

President—Environmental Manager—Environmental

Koppers

54

Koppers 48

Koppers

since

63

formerly

1978;

44 Inc.,

Sprout-Waldron

since

since

since

Construction in Elements

and

and

Manager—Mineral

58 Manager—Power

in

Manager—Sprout

1978;

Manager acquired

1974.

since

formerly

in

1978.

in

Officer—Sprout

Health in Technology

1981;

Development 34 1973:

Vice 1974.

1965.

1976.

45

1959.

formerly

1980;

formerly

President

Vice

by since

for

since

Corporate Vice J. formerly

Jay Vice

formerly Joined Transportation

Comptroller Fitzhugh formerly and

Vice Arthur Vice William Frank joining

Public Vice 1962. Koppers

ager. Resources

Vice Robert Andrew merly Koppers Vice

merly John Systems, Koppers Systems, Assistant Vice

Walter Resources

Treasurer Koppers

Financial Vice Finance vices Raymond

Human in

1980;

Roger

1952.

A.

Construction

President—Investor

President

President

President—Executive

President

President—Purchasing

President—Management

Joined

President

President

Manager—Raw

Assistant

Relations

and formerly Koppers

F.

E. Best

Koppers

W.

Manager.

General

Manager—Administration,

R. T.

R.

Resources

in

in Department. Ramser

Beidler in J.

in

Davis,

L.

Finance

Methods and Secretary—Law

Cowles

since Corporate

Division

1962. Hawkins

Moran 1947.

Vogler and

Department

1950.

Pepper 1970.

R.

Brown

Koppers

and

Department

Administrative and

49

and

Vice and

Wingard

and in

Vice in Assistant

Department

Traffic

1978;

Group.

Jr.

Joined

1956.

Department 1965. Staff

Manager—Traffic

Manager—Advertising

General

and

since

Manager—Human 47

Department.

Manager—Marketing

President

50

President

58

59

Growth

in 64

Joined

Materials.

formerly 58 50

59

Manager.

56

Data

since

1950.

Relations

Joined

Koppers

1978;

Treasurer

since

Department

Department.

52 Manager—Natural

since

since

Officers

Processing.

Services,

Koppers

Planning

1980;

and

Information

since

and

formerly

Director—

Koppers

Joined 1978;

Joined

since

in

1972.

1982;

Manager—

Engineering

Director—

formerly

since

and

1960. 1980;

in

since

since

Joined

Joined

Man for

1980; Koppers

in 1951.

Joined

and Ser 1978;

for .

40 Description General Koppers

on Business

grew merger Koppers chemical-recovery predecessor can ness, for dent earnings. disconcerting business Company’s today tion duce manufacturing

industry reduce

The

Mineral which proven of

(Volumes

September

tons;$ as

steel

Prior offering

In

table upon

logically

established

consistent

much

is

1965, range to

Koppers

and

Development Company, a

capital

Assets industry. for

to the

It

diversified below its are

are

was

prospects

as 1965,

earnings the probable specialized companies.

original

properties

from

out

roller-coaster 30,

per-ton

in organization 40%

investment Business a

earnings Company

dependence provides

thousands Price

in of

1944.

cyclical Koppers

coke

1967

Inc.

1907,

Koppers

of

steel

manufacturing

of growth.

values.) mineral

for

the

was

and It of

to

and

plants

engineering

Those

succeeded

to

growth

growth.

business

information the

plant Company’s Koppers

began

was

cycle.

effect incorporated that design Quantity

business

original

This

present.

upon reserves

for

companies highly

construction

would

and

to

Koppers

on the

accounted

and that

the

build

corpora

by

and the busi

thereby

Ameri

of relating Information depen

annual

pro

were steel

build had

four

con- a

1982

a

obtained

to

struction

expand nearly its achieve Koppers characterized

from the investment. the

The Employment the 20,113 drop weak during increase

employees

lective

manufacturing

total

close

Company

Pursuit This

average

$190 Years Approximately

at

in

1981

business 95%

in

the

bargaining

the its

1982 consistent

investment

capabilities.

mineral

expansion

in of 1981.

million

manufacturing

year.

Ended

times of

of

the

are 1982.

resulted

number

its was by the

While

number

conditions,

covered

total reserves.

rising

groups of in

Company’s

1980

December

earnings agreements. 17,334

1964 in acquisition

8,000 program

Over

most

of operating

from

Koppers

levels

of

persons

to by

have

businesses in

of

persons the

Estimates

of layoffs

it $1,071

150

growth 1982,

the

also

the has 31, of

objective

past

provided 1979

of operations

different income.

capital Successful Company’s

employed

employment

increased

the included down

related

million

five retiring

has

for

to reserves,

years,

to

from been

col

at

to

an

by

41 labor

Financial By Selected cial period Koppers

appears Segments” Patents

States Koppers The technology esses. patents

they under the respect license

The Properties

include: rials, Metal Engineering, neering ment Pittsburgh, duction ness significantly The Research at sylvania a

research ration,

such manufacturing nologies, engineering ations tories Company’s was spent locations million

industry

number

two information

Company’s

Company

Company’s contract

have

Company In

151;

segments and

appears licenses approximately

Products, patents

as Some

the locations is covering at on

to

of a

in

operating and

financial and capacities Organic owns

in

Information

pollution as major considered

several supplied.

Forest scheduling the patents

the laboratories

research develop

of opinion 1981 are in on

and Pennsylvania.

Segment

well

Construction higher Licensing of negotiations

drafting,

business universities 1982.

support,

table

Company. makes and page

more

from on on

licensed

conducts

overall the

biotechnology and processes. are 270

Development 12;

many

in Products, as Materials,

information

locations the

page

they groups

a control

of

Company’s suburban in

new

No volume and other through 33. adequate than and ‘Operations

operating

$15.0 large

$22.0

few

material Koppers management, operating

personnel

estimating,

are

products performance.

segments. explore own

single

22.

to

products

Natural

development

Development

800 its

and

of

companies

for were

and group number

million provided other

million

67; Additional

support 37;

than

Special or

research its

special

for a existing

Pittsburgh,

at patent

to in

technology

analytical locations Engineered firm. various

products

Road

advanced 10-year

patents completed

groups

Genex Resources, companies. and for each by relation

operate

in are

in

and procure

in The

of

1982.

Business

each the

Koppers to the 1980. services,

projects

1982,

or located proc

foreign Mate

activities with

United

finan

of

improve

activities amount

all

labora busi

and

Corpo Engi

pro

to

and

Penn

at

of oper

tech

$16.5

at

a

the

3.

in at

Organic

Organic Organic

from manufacture using tive Other mix wholly group tar

of

facture cial pitches

wood mixture material operates

tions. one largest for metal

ing metal duces ing systems

to and chemicals);

of production tires primarily

and

supplier

ground plastics); (used applications); tanks,

coatings, and (used

sealants (used applied such Waterproofing supplement

division fire-retardant

(primarily

processing

produce products is

plasticizers reducing

carbon

in Industrial

metal coal.

of

the A Foundry

is

Chemical lines

a manufactured

Specialty has and preservative;

marine Other in rock owned

smelting Building

the

subsidiary,

binder of a group merchant used coal Materials

of in

in water Materials

on

for foundries technology

major

pipelines, for three

Over electrodes;

of five

roofing rubber, to in chemicals, glass-reinforced laminated

also

principal serve

and

wool

swimming industries lubricants, bituminous

Koppers

of phthalic grades tar and

high-performance foundries, commercial

casting as produce

iron by

phthalic

and

subsidiaries. and Products of

operating systems

high-performance and plants Materials

alkyd

coke half adhesives. Materials produces for Division and derivatives supplier

coal Systems

insulation the

and

intermediate

use products operations, specialty

has ore

producers

and

plastics

industrial

Thiem Industrial

and

plastics); sewage Business

of tanks

and aluminum

in of products from

associated chemical-based tar iron wood); plants and anhydride of

chemicals and

in

creosote, interrelated as adhesives used the anhydride

maintenance pools, sugar

coke

rust

other

coatings and

as

Division products

steelmaking,

operates and

chemical

of divisions

binders

and and Division

Division polyester Corporation, coal a

and is present

board. and well based

markets.

naphthalene preventives, as:

new treatment primarily and and

coatings

applications), a

are

Supply naphthalene.

for of

beet

antioxidants resorcinol industrial water

industrial). steel. used chemicals.

major

severe

and or

other

coal

as

foundry

polyester

and

a

is nonreinforced operations. nonferrous manufactured operates with

phenolic

(for used

such derived (used in on roofing

four Group

complex businesses

makes is refining. oil, product refractory and

among

commer

for

resins storage the

tar The

products

a agricultural Division

producer

pitches

products);

the as for

under

for

coatings a

facilities industrial

growing

plants

three in deriva melting

pro opera

manu

raw

coke, in

a caulks, (used

mold

(used

melt

rubber and The

cold-

resins

foam

six

the the

and

roof

to

Survival

blanks tions specialized

Raw Organic coal

chased materials. contract such and orthoxylene

industry shortages business gas, group’s

Competitive Organic competitive

prietary Organic

1982 Economic Architectural Industrial Nonbuilding

Group

conditions.

and

Materials

fuel

other Sales

for

and

from

Materials

energy

materials. arrangements

capsules items, coal-derived

Materials

Materials

oil,

the

Production in

Most

of subsidiaries

buttons

raw Sectors by protective

1983

and Construction

markets. coal, Construction steelmaking

raw

Company’s

Major

and

there

materials and coal

Purchasing

needs

additional

is

materials

depends

and

products and Seasonal No

expected undergoing

Fuel tar

are

coatings.

Except products

major

coke

are

with

other

manufacture processed

suppliers

as

operations,

supplied

proprietary

petrochemical

or heavily

agreements varying

oven coal,

are

disruption

lines

for as

Conditions (S

energy.

for

Miliions) sold

$364.3 a

$535.3

certain

fire

gas. benzene,

result

93.3 related

77.7

of raw is

upon

periods

by

button

in pur

identical

tests

under

The

natural

highly of

pro fire-retardant of cover

to

100%

68%

17 15

%

for

offshore

forming competition products

tors ance

ple Koppers plants affected does other

wide

Certain dent

tomer ries ucts,

Backlog $96.6 Organic tially lier.

$215.8 close earlier. ysis

to requirements.

the unfilled

production

be

in

Most

of

The Products The

option and

distributors

through reduce

of

construction but

during

competition

near polyester

million,

shipped of inventories

critical

the

million, lines each

This

by oil

has in

orders

backlog group Materials January,

service.

it

Organic

-

all

is

same

major seasonal from -

of

rigs ..

the an

is volume

are

not

customer’s

the

business versus

raw are the

locations

derived

during The versus

maintains

advantage

are

month

alternative are

and the marketed

function. group’s

resins.

normally markets. In

buyer. generally

or 1983, are Materials materials

product

1982 ,.

total

subject

certain

practice

to in variations, among

$92.2

agents. -.

price,

1983, $305.7

from roofing, of areas, provide

the year-end

or

backlog

,‘

expected

sales

January, substantial

The

increases lines. manufacturing through million because

product

backlog materials to marketed

and

although business

the product

to new

million

as

cancellation

principal

organization. coating financing.

carry but

detailed

finished

well

is

backlog

a

applica and

1983 indepen

expected winter

year lines,

was of

a

perform

substan invento

per

most cus

is as

nation

year

multi

at

and

not fac

anal

ear prod

the

was

at 42 facilities Road tion Road aggregates Road from slag), in crete Middle account etc.). product products. from bridge the construction building. residential when privately product miles. Oklahoma, Colorado, plies localized, forming wire and and Aggregate Kentucky,

gravel, Raw the Great stone,

years aggregates Koppers and It raw

Central

is

construction markets

The

Company

About Transportation

estimated Wyoming. Southwest welded

materials fabric publicly and

steel Materials

markets

Among Materials

Materials

crushed bituminous

Aggregate

Lakes building, East.

at

which

that granite, cost

for cost.

group’s

accessories.

funded

current

and paving

quarries Materials

and

rod, New building Florida,

50%

and 35%

raw Pennsylvania, (crushed

serve About in

wire

will projects.

(paving

funded dredging these

The

come

South

near

the or

17 stone include is that which

Six

York,

other produce other materials limestone, of Business

and work market.

be of

civil services.

production made held fabric

states concrete,

markets,

delivered

Company roadbuilding

Road are Georgia, 90%

facilities

its total construction the

services

is sufficient from

America,

is road

Fuel construction materials, North stone,

concrete-reinforcing are paving

a

quarries The in under

on

asphalt,

present operations. transported

up and

major

sales, of as

many

Materials

and

quarries,

purchased

land consist

Tennessee,

maintenance

The remainder

sales of

trap therefore,

well

Carolina,

ready-mix

in

price Indiana, related sand,

generally are rates. Group

long-term

activities,

for distribute 154

Africa the factor

segments including either

in balance

slag, reserves

rock as and concrete,

and

road are

more

California, domestic

of

doubles

Southeast

gravel services

sales operations mines Other

Most

20

specialty

sand

construc

from

and and cement in dam Kansas,

owned from

Ohio,

are

is

and

Virginia

to con than sup

total

leases. non welded

is from

and

some

result of of 30

the major sand of

and

or

and

oil

and

25

by

companies, satisfies suppliers. Greater each and upgrading requirements; gasoline, Competitive

within diversified, Road mineral areas, competes. share

to and demand, mined from service-oriented, Increasingly,

Road 1982 Economic Architectural Nonbuilding

Industrial

wide

fuel

service.

Principal

about

Sales

a

Materials

of individual Materials

the

by

guaranteed

fluctuations reserves

are

nearly

national those

kerosene

Production supply Adequate

local

Company

Sectors

by

with

20%; of

steel

expected Construction

Constructior

Prices

this

and

factors Major

natural

the

regional

half

conditions

operations

limited

regional

and

producers

are the

business

calling

attention,

Seasonal

U.S.

and of

source

for

created supplies

commonly

remainder

limited capacity

in gas

Road to

aggregates vertical

markets propane. competition

InfrastrUcture,

continue.

for

markets.

and

and

are

of has

Materials

and

on-time within by

Conditions

of

supply.

evidenced

factors. diesel

are geographically (S

integration

become

nationwide

raw

holds includes

in cement

$400.6 Millions) $485.9

Fuel

Because not which

regional

77.6 are

materials are

7.7 delivery

fuel,

energy

a

subject

deter

oil

high

price

Initially

it

100%

by

82%

16

2

%

the

during sonal, volumes May most financing of stantially peak highways however, was Backlog Road the the earlier. than to log

federal

high

result

to year

backlog

Road

Product

$98.0 ito

95%

efficient demand.

Materials with

increase

the

summer The

that November gas in and

during

to

for

Materials

of peak

million,

more

and

1983

normal

carry

are

inventories the

customers.

reflect to

production tax

Inventories

during

decline backlog construction bridges. demand.

spring

sales. considered

year-end than

inventories Increase,

versus

tendency

a 30. business

70%

balance

the

months

thereafter.

are at

level

$100.8

It

backlog first

normally

the of

is

controlled

firm,

is

period

is or sales

not is

and between

six end

in going

for

highly

provide

million

customary,

and

anticipation

months

Orders

this supplying is

of

occurring

grow

from

expected

1982

more

sea to

back at

a the

year sub

in of

Forest

Forest chemicals plying cally Forest transmission, pressure timbers; invasion and Products construction for also piling; Conventional tary creosote, chemicals salt CELLON, esses supplies pressure Koppers cals licensees wood esses and niques) CLEAR glue-laminated under commercial as girders, Raw Timber est Eastern softwood railroad pine timberlands poles needs 10% influenced of breadth Demand chase

growth materials. hardwood

industrial

structural

accessory Chemical processing preservatives.

processes treated

Products. provides

decay.

The

(using

both and

Materials Products

red of

and and

and the Products

and

are the

and fence

by is

the is trusses results include a and rate also crossties

group treatment,

of pentachlorophenol DRICON, and

cedar

West using and trade

the

under timber, their other designed trademarks. broad U.S.

insects

construction

The necessary The met Products wood,

brush-on

is Koppers by

group’s WOLMAN

and lumber

and

distribution wood currently or Southern beams,

contract

treatment licenses

main The posts; laminated adequate,

price equipment;

housing and

is

plants and Coast trademarks wood engineers from long-term in chemicals by Koppers names

shakes surfaces and and

railroad commercial such

residential range Business

a

primarily

resistance

Koppers

specialty and major

and

negotiated

NCX major products pressure raw

foreign and primarily for

to hardwood

foundation lighting Company-owned

product Fuel arches,

or

species, products enables

trademarks wood-treating

timber these

exceeds

furniture GREEN.

to hardwood protect

A softwood RAINCOAT,

construction, of of

material

and dip

lumber. plywood.

and wood

and

since crosties;

requirements

wood-treating

new from damage

producer

chemicals availability

wood and

building

are

Southern

also markets.

and treatment

wood-treating

applications,

shingles;

proprietary

standards. WOLMAN. treatments

using and to

customers. lighting to

columns, and mix

Group

cutting line

the marketed manufactures untreated products, water the to

and for

decay,

the a

products;

produces and

Less has under used

are

supply waterborne

group

and to finished

Koppers

group of as from

timber

industrial,

specialty poles

utility,

WOLMAN

rate of

softwood

supply

proprie marine

services yellow damage chemi used

The poles of directly

than rights.

tech

by chemi location and

to

are

fire.

Eastern proc

of

of

use

proc

to utility sup

For and

such

and

and

raw

cut. in

pur

expansion Use

from fully raw fuel, preservatives. accounts native all major down developed electrical order tric energy Competitive The wide petitive

Forest 1982 Economic

Architectural Nonbuilding Industrial

cases.

power material

integrated Preservative of On

wood wood-preserving

both

Sales

supplier,

to

due plants

types

pressure-treated

Products

for

the

and

lower

for

Production

co-generation Company

In

to

waste sold

Sectors processing, by wood-waste

markets basis

Construction

recent fragmented. of

Constructor stability

about are

lack

Major

and

costs

Koppers arsenic fuel.

to

equipped

for raw

of

of

local

Seasonal

40%

years,

Fuel

Btu and

fuel.

and 30%

for

as

materials

industry

acid

with

utilities.

quantities, WOLMAN

usually burning

systems of

outside awareness supply

lessen Two

As

and

several

lumber

to Forest

plant

the

the

operate

Conditions plants

oil

(S is

are

has excess

is

risk major

systems sources.

highly for $200.2

$291 Millions) providing

provides

Products

plants

adequate

wood

natural

supplied continues 46.3 50.6

competi

operate of

25%.

of

on

I

nation

shut

elec

com

cost

have

alter

in

A

100/

All

gas

67%

17

16

%

in

benefits

to

tion treated pete the concrete

gic Koppers petitive group’s ucts related business through about reduced

in some Sizable dependable

Forest Backlog increase total million,

ered ing time the process

approximately

the

plant principal

from

1983 first Most are against

Inventory

except backlog

firm,

total

grows 30%,

product

and

Products

to advantage

versus

sales inventories

summer sold

quarter,

during locations broad and regional

and,

is

the Forest products

cancellation In

investment

laminated seasonal,

from

such requirements

on

service.

directly aluminum. housing,

building

among

is force.

although

represents

areas

$83.4

range 50%

finished winter

expected

year-end and Products

months. the

operators.

other

provide

in

supplied

must

Much

of

peak to this

million to the

of since wood

industry. consumers.

of

months,

annual can ensure

the materials renovation all

products Price material

high Forest

business.

be

a

to

backlog backlog for orders level of a

end

be significant

most

products a

maintained significant In by be

Forest

competition.

point year

and

sales. effected addition, prompt,

Sales usually

Forest user of shipped Products.

or

products as

are

and

sales

service

earlier. was peaks

represents

that

Products

and steel,

by

are

consid com

strate factor

Prod

by

com

at $73.7 the

in

in

dur

in

any

The 43

are

are trial to Applications drives, Engineered shaft container power and also and Products large-sized main sors, hydraulic paper chemical, are boiler plings p11 industrial producers. cations. added, use board cessing products ufactures Engineered industrial builds machine Engineered industries.

ngs,

another

generally

and

storage

compressors,

Sprout-Waidron in The

Koppers

Koppers The

manufactures

seals

drives pumps,

feed into complete

into

transmit

various

transmission

coupling torque

precision-engineered,

machinery

aircraft

Company components.

group designed

processing

processing

piston cylinders,

machinery,

pulp

corrugated finished

Sprout-Waldron and

for

pumps,

Metal

gray

in facilities,

Metal

include

characterized

conveyors,

manufactures

supplies

sensors

use

steel areas

and

compensate

power

also

applications. feed

rings

grease,

iron

Group

Products

in as

machinery

containers to

is for

paper,

Products paper

valves

rolling

products,

produces

products

of

high-speed aircraft

which

installations.

a mills, machinery

and

rigid

well pulping

for

from

board.

These

the

Metal

a

and

major

the

adjustable-speed

broad

diesel

cranes,

ductile

mill

formula

as and

customer

mills.

and

also

material

Engineered

forgings.

one designs

converts

by

corrugated

for

engines,

seal

business The

producer

plants

high-quality

refiners, to

for Business

include

including

medium-

other

high-value-

range

other

misalignment.

engines rotating

designs

systems

make

compres

castings

blowers,

packaging

Company

rings

feed,

handling

and

and

basic

specifi

Cou

krafl

indus

of

pumps

pro

the

and

lines

Metal of

for

food,

shaft

and cou

and

and

man

and

for

Advanced

Groups, systems outside for Products

sell business the Raw ment castings

Principal

Engineered 1982 Economic Manufacturers’

Equipment

group’s

U.S. both

Negotiations

Sales

Materials

business.

customers.

as

and

the

and

raw and

and

are

Sectors

by

well

energy-efficient

Metal facilities,

environmental

forgings,

Major materials,

overseas the Engineering

manufactured

Capita’

and as

mineral

are

Products

selling

Fuel

with

currently

are

such

paper

processing

some

castings

and

produced

control

as

wood

by

(S

Construction

under

producers.

quantities :A.

metal

Millions)

$215.5

Koppers

directly systems

pulping within

equip way

100% —

% to

to

There bars, Competitive are supplied supply house minum excellence at pane force, Certain tributed Engineered distributors. support ket tive affected tory trol activities, as parts

hand Backlog end retainages expected $137.4 Engineered seasonal believed

premium

electrostatic

position

the

products,

delivery

of performance Working Principal

stored billets,

for

inventories

is augmented

suppliers.

is

are

million 1982

major

of

mainly and

significant

by

standard by

to backed

as factors

the

to

purchased

that

in

seasonal

prices, be

commercial

Metal is

was

plates, Metal in-plant Most

other schedules.

be

well

capital

fuels design, and

group’s working products

a based

firm,

through

are

shipped precipitators

year

$102.9

Fuel

required

as up influence

business of

Products

in

specific

Products Seasonal machines

used, and competition

receivable

structural

and

inventory and the

in some amounts

earlier, upon

fluctuations.

performance,

oil,

products from

capital

some

and

the Koppers

million,

In

installation.

approximately producers.

in

in

and gas

for

certain

factors.

demonstrated lines

1983. the

reserve

group’s

lines mill

business

services

backlog

Total

to

and locations

Conditions

field and forms the

amounts

include

parts

upon

backlog.

meet

compared in and

generally

by

No

are strong

natural

sound

backlog

each electricity lines,

service

agents

storage.

technical

sales

and ware Steel

kept

significant satisfac

at not

are

competi

lines.

repair

by

the include

90%

of

such

mar

con alu

dis

gas on

sell

pro

is

and with

is

Construction

furnaces, Engineering Engineering ter ers to the ing Koppers cal

trol steelmaking equipment Trans to technology including

the Gasification industry.

for entrained-bed of

produce use reduction guarantees partners Synthetic facility contract project

capital steel est sales small ects replacement antees. government (Koppers-Babcock

market Japanese

engineering

plants

plants, coke

and steelmaking fuel

systems

production

volume

as

Licensing The Kop-Tech,

Current

are

industry.

Tech

volume

number

chemical

is

to

expenditures builders

in

ovens is

group

for gas

are

dependent

electric and continuous expected

products

drive

Fuels of

North

blast

one

designs.

Corporation

in

coming

for

construction and in Systems,

ores. financing

in

business

agencies and for

equipment.

pollution

North

results

arrangements

of coal

the Most

and

of a

of finl and

a is

furnaces, power-generating

Corporation process.

of Carolina

medium-Btu components,

feedstocks, joint

large

peat-to-methanol arc

synthetic engaged,

the

Construction

Koppers

Western

basic

and

construction during

gasification

related

from America negotiations

of

and

on

furnaces, casting

in

world’s from

venture

Inc.,

and

the is

for contracts,

control

and services the

actions

of

Wilcox)

steel directly

Group

repair

and

utilizing

Synthetic

basic

loan Japan,

group’s

work 1983.

use in

fuels

Hemisphere,

by-product

primary

and

through

for

installations,

for and

permit

the

largest industrial

operation

company

plants,

and

equipment

of process

and

by oxygen process, work

loan other

on

the services

based

related

related

with

development

Business

process. with

for the Japanese

has

turbines,

various

annual various

conversion

a fuels

price end

steel the

KBW

direct and design

and relatively KBW

includ the

equity

access

a

chemi

fuels,

on

con with group

mod of

of to

to

proj

to

guar

price U.S. for

for

sin

the the the

A

for

A

neering

utilize cation

well steel, Raw trical construction Large contractors. versely chased

available is

1982 Economic Engineering

Nonbuilding

proposed

expected

Sales as

Materials

wire

reinforcing

quantities

a

technology.

affected from

demonstrate

and

broad

in

and

Sectors

by

Construction

that 1983

and

No

work.

others

synthetic

Major construction

conduit

and

material

range

adequate operations of

Construction

bar, and

These

structural

or

Fuel

refractories,

beyond.

are

supplied

the

of

fuels

shortages

materials

used Koppers supplies

KBW

in

capabilities

and

1982,

(5

faculty

by

in

MIllions)

fabricated

$32.9

coal

pipe,

the

sub

ad

are will

and

engi

group’s

would gasifi

be pur

elec

it

100%

as

%

Competitive

Koppers design struction

junction construction engineering Several

Competition been in ance although tion contractor significant

sales

by-project project weather. seasonal activity

struction effects

and struction of tendency received.

between

The the Backlog larly

a ered pected for is ment struction currently

the

year

totally billings

contracts services

close

Construction

Engineering

Working

construction

during

are

intensified

world

firm, organization.

plans

companies

earlier. of

may is

large

with

to

competes companies

the

Every major

dependent schedules

under

billing to

subject

weather. of

This at

of of

rendered

factor.

be

is

and basis.

steel

the and

periods for of

of be synthetic a

customers

U.S.

amount willing 1982,

are

and

steel

capital

performed

involving

depressed

The

the varies

domestic

nearly

effort determinants

subcontracted

North

extent

way

and by

construction

sold

industry. and

Engineering

builders

to

backlog

work

Seasonal

compared currently steel

producers entire

against a

Certain

to

on to disruptions

and of

reimbursement,

and

upon employed of

lack

is

with

Construction

American

directly

all

fuels

assume

that

minimize

high

contracts financial

engineering made

is

to

industry,

of against steel

in also

backlog

of level. basically

the on

Price

increase

the was

most

other

portions the

1983. plants.

working

interest

capital

Conditions

in engineering

with

capabilities.

in by with volume have

and

plant

capital

on

has

work

$6.8

in competition,

Potential

from

and

business planning

the

construction risk

foreign

the

which

U.S.

The

but

a

Engineering

$25.9

is

construc

a

become

business

a

internal

spending

the

projects. project-

costs. million

possible of and

consid

recent

perform group’s

that in

is

function particu

not severe

backlog

invest

con

of

any

ex con

period are

million

con con

exists yet

the

con

has

and

at

a

is Additional Of filed 46 On Legal certain Court at coking construction constructed insurance recover will defenses action tion Koppers management improperly December alleging Koppers. Venue oven Lake for are In management Porte Inland million blast Koppers exceed plants. proceedings and rial $100,000. governmental Koppers, in Koppers

land’s

its

any

April

construction

not

sound to filed an

On

Koppers

Cleveland,

its Koppers

Superior for battery

furnace.

Circuit Proceedings

alleging

the

damages operations. of in

action such still result

These $41 subsidiaries August

26,

that

Indiana

10% the

an as

this

its

has to

has for

business nor

28,

defenses

designed

unpaid

1982, a million action this for

insurance

Northern

being

proceedings delay

Court, and

damages

action

in third-party believes at counterclaimed

of

and in

no will is 1982, in

Court, that

authority

Republic

7,

any

Ohio

a claim the the

involved of Harbor

the

in

reason

blast Republic

small their

1981,

legal

against by The in completed

under the the the

La or Description the current was United material

aggregate on

against

or construction

plant

East

Business Inland

District and

that financial

coke Porte, carriers amount furnace coke

total

coke to

a constructed. advisors carriers percentage Inland

Works

will

defendant

to moved

by

its consolidated in

a

in

Chicago,

that

Koppers

it resulting Steel

States

believe

coke

assets environmental cost Koppers

impose oven contracts excess oven on has oven Inland’s liability

Indiana.

of

to

in

Steel

this

of

had by seeking

are condition the

joined Ohio

to

recover

1977. Corporation to sound

believe

oven

$100

battery

battery of Koppers District battery

the

of litigation

that

contract Koppers not to

caused

of in

of Indiana, to from sanctions Corpora

a

Koppers

claim. with

Koppers against

Koppers the

the of On

its La coke

battery million.

mate basis.

any

to

$17

there

of and its was

was

at

The Safety water operations; local Environmental, occupational impacts equipment employees. total account or Koppers years. ronmental Although the tions, yet a pollution No may facilities. equipment modify, forecast impede Act. the enterprises,

chemical in materially future. gent, Koppers ness Protection chemicals testing health ing on promulgation Resource

rate

to

the

estimates

had cumulative

Company federal

chemical

premarket

funds

Koppers, Health continue regulations

Some bring

quality

will governmental these

roughly

Operating past.

Regulations

and

supplement,

of of a construction

for

with capital

control

These

environmental

businesses

be

processors material

improvements

affected some solid

in invested it

Conservation

Agency and toxic and

aspects Occupational About

a environmental and

regulations If

is

within

impacts health affected

are 1982 precision. solid comparable

the to

is

of in equivalent

subject capital

disclosure

facilities

environmental waste investments potential

safety subject Occupational equipment on

require existing substance

common

expenses stringent

available

standards

$4.4

went

adverse

waste

the satisfactory

and the

(EPA) in

of

action

replace

and

of

more

are by

base new

disposal; the

to

Company’s regulations million,

environmental

could

to

its

regulations safety to

and the

and

U.S.

chemicals. are costs to

Safety regulations operation disposal

made

of

federal with proportion

regulations Company’s impact eliminate

federal, has for manufacturing facilities

significantly effect attributable

are control;

of the

Company

applicable

for

the or

may

expected

Recovery

Environmental affect

the subsequent and or

of

many levels. cannot required

Health abandon increasing

increases

plant

more air

and

potential

6.6%, its

on

delay of regulations

Company.

under have

operations health state

and

of

have in and

certain pollution

The

new

opera Health

under other of

and

strin

Envi requir

new to 1983. busi

be

to

to and

Act to

in

the of or

not and

and

the

not

the in

at

of

cleanup has tive sites. has Koppers current investigations some each Environmental under The pany problems Liability

ments in mates against pesticides, ess, produced Presumption tions that pleted rophenol settled. reregistered, on of that tial. the preservatives. ucts rial

any

reregistration

the added plant required

Company Koppers final effect

As Thus these

While

the which

to

will location In

of additional

the

with indicate material

during

manufacturing

manufacturers

Act. related part conduct three at

It the

costs chemically

EPA sites

be

and

and

“Superfund” is the

by on existing to

wood

the

the was EPA

reregistration This

expected of small

some

Against

operating has

the Koppers—creosote, wood are the to regulations

market

arsenicals.

1983. the

expects Response and associated

EPA

Koppers that its EPA

liability matters,

in remedial begun

determine

hydrogeological will

preservatives

action

conditions

Company’s continuing received

continuing best

and all

are Company remedial

has total

has related

preservatives

impose

Re-registration” cases.

impact

sites

that and

to

will to expected available

in

or costs

tentatively

requires groundwater issued believes,

costs

Compensation

the will The actions.

negotiate 1978,

have with

Comprehensive

the

seven not users the

as businesses

and environmental

at additional Preliminary

on

review Company. waste

not

earnings. in

review

will well final

have

implementing nature should

a

“Rebuttable not may

a

these

solutions.

use the to

of

be number studies

citations

however,

number used

pentachlo

concluded not

as

conditions yet

settle result these disposal

a of

substan be Com

restric

proc quality

of notice

result inac mate prod be

all

cost been

and

or

com

and

esti the

at

of

in

of

required The Exhibits Shareholders part pany, request exhIbits Pa. vertible Exhibit 4.1 ting poration, Resolution, ment Exhibit by amended ended 3.1 herein Exhibit the sation incorporated Koppers to Exhibit for sation

Exhibit incorporated

quarter exhibit Byrom rated 1982

this

Koppers

and 15219. the to

year

forth following

of

No.

Inc.,

between Koppers herein

Unit by March Plan reference.

the

year

preference A—3. for

B—3.2 4.2 10.1

C—i to:

ended D—10.2 not

E—10.3

ended as by certain Annual

2-70174

to this

consulting dated Koppers Plan,

1982

for to Secretary,

Annual amended,

April ended Item

to presented

0.1 by herein

1 herein

31,

reference.

may Koppers

exhibits

June Directors, for

Koppers Koppers Form Koppers

Koppers

December

this terms

filed Report

Koppers Form

Agreement Koppers December 26,

1982 601

and

stock,

December

Report obtain

by

by

reference.

30,

Building,

10-0

as 1982,

services, Form

of

and of

incorporated

this

and

this Registration Koppers

10-K are

and

and Certificate here

Form

Exhibit By-Laws 1982

Koppers

filed filed Regulation

Deferred

Deferred

and 31,1981 for the

copies

reference.

reference.

filed incorporated

included

Form

16,

Fletcher dated

Report

upon

the

as as 31, and

10-0

Certificate

Pittsburgh,

filed Form

10.2

1980, as

10-K

exhibits Exhibit Com

as quarter

$10

1981 10-K

incorpo

of of

April

Compen

and exhibit Compen

for State

as herein written

to

as 10-K

L.

Incor S-K.

as the

set

con

the

for

and

26,

10.3

a

of

aries Exhibit

included of Subsidiary sidiaries, ments. Cherokee single all Eastern Broderick nificant Environmental Echols Erie The Pennsylvania Delaware

Delaware Fairfield Sim Honolulu Ivy The

Ontario, Koppers Kaiser Lycoming Koppers The Pennsylvania

Ontario-Lake Erie

The Chester Pennsylvania Easton

Gainesville Davidson of Meadow Incorporated—Georgia Delaware Corporation—Georgia North Incorporation

Tulsa Tulsa Tulsa McMichael McMichael

Corporation—Delaware

Sand J. General

listed them, Kentucky

McMichael

subsidiary,

Sand The

Stone

Harris

Brothers,

subsidiary. Sand

F—22.i

Rock

in

Bridge

Georgia Canada which Concrete Paving Rock

Engineered Wood International

and

Mack Crushed

and

Silica Carriers, below

its

Company

considered

and

Steel

Mineral

Steamship

Crushed

and

Man,

Company—Delaware consolidated

Products, Stone

Gibbons, Concrete Asphalt

Elements Gravel

Stone Co—Oklahoma

are

Company, Erie

Truck

Jurisdiction Treating Koppers

Co.—Oklahoma

Company—Delaware

Sand

lnc.—Delaware

whose would

Crushed

Products,

Gravel

Co.—Oklahoma

Stone,

Inc.—Delaware not

Inc.—Delaware

Sand

Properties,

Company,

also

Company—Kentucky

Products

Company—

Stone

Sales,

Sales

Company— Canada

in

named

Co.—Delaware

Inc—Colorado not

lnc.—New Co—Oklahoma

accounts

Corporation—

Company—Delaware

Co., has the

has

Ltd.—Canada Inc.—Delaware

Stone Inc.—Delaware

financial

constitute

Inc—Delaware

Company— Co—Oklahoma aggregate

the

Inc.—

Ltd.—Hawaii

44

here

Ltd—Canada Limited-.--

Inc.—

subsidi

other

are

York

because state

a

sub

as sig

a

Sterling Parr, Wyoming—Wyoming Sterling Sterling Sully-Miller

California

Susquehanna

Nello

Thiem

Western U.S. Colorado Delaware Company, tration the Exhibit the the Savings report

South P&K Southern California California

Corporation—North Central Carolina Romeo

Webster Nello

North lnc.—Delaware

Kansas Mid-Kansas

incorporation related

Form

Inc.—Delaware

Plastic

L.

Materials, Corporation—Delaware

dated

Statement

Paving Sand Sand

L. Teer Coast Carolina G—24.

and

Paving

Guest Engineering

10-K.

Teer

Contracting

Certified

County

Pacific Prospectus

and

January

Co.—Delaware & Profit &

Quarry

Asphalt Construction

Co.—Colorado

1

Gravel Gravel

International,

Construction Associates, Chemical

lnc.—California Consent

by

(Form

Coal Milling

Sharing

Public

reference

Co.—Pennsylvania

21,

Carolina

and

Co.—Colorado Co. Products Company—

pertaining

Company—

S-8

1983 Co.—

of

Accountants,

Corporation—

Contracting

of

Plan

Company,

#2-65753) Arthur

lnc.—North

Co.—

in

included

of

Co.—

the

to

their

Young

Koppers

Regis

Inc.—

to

and in

47

& 48 Signatures

of Pursuant undersigned, Koppers Chief Zctand>

ities has Pursuant Charles Chairman

ynBezii February

February FitzhiIh

(Chief

Richard /4, February February1l5,

ouglas 1934,

been

and

Financial

Executive

Koppers

R.

Company, to

on

M. to

LlBrown,

9fyme,’ signed 15

15,

18, of

Pullin

the

the

the Cyert,

the thereunto

1983

1983

1983

1983

Officer

requirements

requirements

dates

Board

has

below Officer)

Director/ Direct9r”(/

Inc.

Comptroller

Required

duly

/

indicated.

duly

of

by

L

caused Directors

the

authorized,

of

of

following

Section

the

—-

this

Securities

for

Form

on

13

persons

or

February

Curtis

February William

February Andrew February

10-K Nathan February Form

15(d)

Exchange

on

to

E.

H.

be of W.

W. behalf

15,

Jones,

18,

18,

15,

18,

the Knoell,

signed

Pearson, 10-K

Mathieson,

1983.

Act

1983

1983

1983

1983

\J

Securities

of

Dire

of

Koppers

C,49L% Director

on

1934,

Director -

its

DF’ector

behalf

Exchange

this

in

the

Form

by

capac

N

the

10-K Act

Area Koppers Common Pittsburgh, Koppers Symbol:

Exchange Transfer Midwest New Pacific Mellon 2 Mellon Pittsburgh, Bradford New Chicago, Harris

55 Savings Bank 111 Stock San

P. Pittsburgh 30 of Morgan Pittsburgh,

Trust Continental 231 New Chicago, 420 Wells

San Dividend Mellon Mellon Pittsburgh,

Broadway

0.

New Hawthorne

West

West

York South Code Francisco, Montgomery York,

Francisco,

York,

Box of

Company

Trust

Fargo Registrars: Stock

Square Bank

York

Square Bank KOP

America

Building Stock

Association Guaranty Agents:

Broadway

Trust Company, Stock

Ill.

Monroe

Stock

III. Listings:

Disbursing 340746P

N.Y. Pa. 412/227-2000 National Pa.

LaSalle

N.Y.

Pa.

Pa. and 60690 Illinois

N.A. 60601

Bank,

Exchange

N.A.

Street

15219

Company 15230

Exchange

15230

10004 Cal.

15230

10015 Exchange

Cal. of

Savings

National

Street Street

Trust

Chicago

National

Street

National

Bank

94105

Inc.

94144

Agent:

Company

Bank

Trust

Bank Association

and

and

General

To

a lowing complete

Assets Information Competitive Backlog Description End Energy New Fuel groups, For Seasonal Raw they

Engineering Engineered Organic Forest Road

A.

C. B.

D. judgment

E.

F.

aid

information

Accounting Annual Markets Auditors’

Capitalization Capital Board Balance Cash Changing Ceramic Chief Coal Coal relate Common Compensation Cost Orders Debt Materials Description Directors Dividend Dividend Dividends End Employment Engineered Environmental Engineering Facilities Fiber Financial Financial

Forest Foreign Future

Materials

the

Index

Products

consult

Materials

Factors listing. Markets Gasification

Properties Reductions

Flow annual Financial

of

Optics to

of

as

Meeting Conditions Metal Expenditures

and on

Products Outlook

Sheet

Is Technology

Operations individual

Directors Report

Business

Disbursing Reinvestment Stock Subject

Price

Condition Statements to

on

the an

Koppers

Policies

of Construction

Metal

and

those

Products report

the

alphabetical

Business

following:

Plans

Officer’s

Regulations

information

Information

Construction

above

Products

Koppers

Items

Agent

reader

Operations:

Plan

Letter

subjects

Index

most

operating guide

who

16-17,

5,

often

12, 26-27

as 15-19 Is 19-20

40-46

2, 3, 24-36

15-18 with

44 43 45 42 41

8-9

24 24 Interested

8-9 37

18 17 45

31 19

4-7 31 31 12 37 48

40

45 40 46

43

13 5

8

7

referred

specific

G.

I.

L

M.

0. N.

P.

0.

R.

S.

T.

V.

Genetic

Income

Inflation Investment

Labor Letter Legal Management Liquidity Market Metallurgy Officers Mineral Operating Notes Organic

Pension Patents Pollution Quarterly Product

Return Research

Road Return Safety Robotics Sales Sales Shareholder

Sources Statement Stock Taxes Subsidiaries Synthetic

Transfer 10-K Venture 10-Year

in Business

Business

to

page

(Description

general

and

Dividends Dividend Equity Shares, Shareholders Price

Matters

Relations to

Index Materials to

by

by Information

Registrars and

on Engineering on Assets

Effects

and

Materials references, information Plans Shareholders

Financial Control

Highlights

should Capital

of Business

Data

Agents Results

and

of Total Common by Fuels Segments

Segments

of Traded

Funds

Licensing subject

Information Outstanding Common

Reinvestment

Operations

Development

of

(Employment)

Investment

not

14-15, Business)

Statements

Group

Equity

areas,

it

be

Stock

Is

6-7,

22-23,

considered

based

6,

10-12,

the 6,

Plan

22-23,

18, 18,

22-23, 25,

5, 8,

8,

8,

fol

4-5,

19-21

upon 37-39

30-33 37-39

40-45

22-23 22-23

22-23 27, 12, 22-23

22-23

22-23 16-17

22-23

6-7 33

33 46 40

17 40

41 30 40 46

40 10 42 5

46

33 2

5 7

48 25 47 45

32 a 21 48

5

8 9 8

5