Ladies and gentlemen, welcome to the Koppers third quarter 2009 earnings conference call on the 5th of November, 2009. Throughout today's recorded presentation, all participants will be in a listen-only mode. After the presentation, there will be an opportunity to ask questions. (Operator instructions) I will now hand the conference over to Mike Snyder. Please go ahead, sir.

Thank you, Christine, and good morning, everyone. Welcome to our third quarter conference call. My name is Mike Snyder and I am the Director of Investor Relations for Koppers. At this time, each of you should have received a copy of our press release. If you haven’t, one is available on our website or else you can call Rose Salinsky at 412-227-2444 and we can either fax or e-mail you a copy. Before we get started, I’d like to remind all of you that certain comments made during this conference call may be characterized as forward-looking under the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be affected by certain risks and uncertainties, including risks described in the company’s filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking statements included in the company’s comments, you should not regard the inclusion of such information as a representation that its objectives, plans, and projected results will be achieved. The company’s actual results could differ materially from such forward-looking statements. I am joined on this morning’s call by Walt Turner, President and CEO of Koppers; and Brian McCurrie, Vice President and CFO. At this time, I’d like to turn over the call to Walt Turner. Walt?

Thank you, Mike and welcome, everyone to our 2009 third quarter conference call. Before we get into the financial results, I would like to update you on what we see as the current status of our end markets. As anticipated, our third quarter results reflected sequentially stronger results in our Carbon Materials and Chemicals business, while we experienced an unexpected moderation in the North American Class one railroad. Our end markets for Carbon Materials and Chemicals in North America and the Europe remained stable. Our Asian and Middle Eastern markets continued to show growth. Fuel production continues to increase slowly to provide relief on our raw materials side and although aluminum pricing has stabilized at higher levels, this is not yet translated into higher carbon pitch volumes in our North Americas and the European markets. Our expectation continues to be that it will be at least several quarters before any significant amount of smelting capacity in North America and Europe comes back online. We continue to manage our business in a conservative manner, focusing on reducing costs, emphasizing cash flow, and taking advantage of consolidation opportunities in our core businesses when they present themselves. I will talk more about these later. I continue to believe that as a market leader in our core products and end markets, we will emerge even stronger as the global economy recovers. Similar to our approach from the last call, my primary focus will be on sequential rather than year-over-year results. Brian will provide the year-over-year comparisons later on in our presentation. Although carbon pitch volumes declined 12% from the second quarter, we estimate that only about 2% is due to smelter curtailments with the remaining volumes due to timing of shipments. This decline was substantially offset by increases in refined tar and petroleum pitches…

All right. Thanks, Walt. Sales for the third quarter decreased 22% to $290 million as compared to $369 million for the prior year quarter, approximately $8 million of this decrease relating to foreign exchange. We continue to see the most significant impact of the global economic decline in our Carbon Materials and Chemicals business where we saw global volume decline lead to lower sales of 29% or $72 million, while sales in the Railroad and Utility segment decreased 6% or $7.7 million. Sales of Railroad and Utility Products decreased $7.7 million or 6.2% in the quarter to $116.7 million from $124.4 million. Higher volumes of treated crossties and treating services for the class ones were more than offset by lower volumes for untreated and commercial crossties coupled with lower volumes for utility poles. Adjusted EBIT in Railroad and Utility Products increased 38% to $9.9 million from $7.2 million in the prior year due to product mix and cost reduction efforts. Adjusted operating margins for R&UP increased to 8.6% from 5.9% due primarily to cost reduction efforts and product mix as higher sales of treating services replaced sales of untreated tires compared to the prior year quarter. We have seen significantly less spending in the export market and by the short lines in 2009 and anticipate continued pressure on volumes and margins in this part of our business as volumes for commercial tires in the first nine months of 2009 were down 47% from what was an exceptionally strong first nine months in 2008. Hopefully, the return of this end market demand will provide some upside opportunity in 2010. Third quarter sales decline in Carbon Materials and Chemicals as compared to the prior year quarter was impacted by our end markets as well as raw material availability. Decline was comprised of…

Thank you, Brian. During the third quarter of 2009, our two business segments, Carbon Materials and Chemicals and Railroad and Utility Products were 56% and 44% respectively of our total revenues. The growth in the Railroad and Utility Products segment in the first half of the year has normalized as expected in the third quarter as the demand for untreated wood crossties have reverted to program levels. As mentioned on our last call, there has been a shifting of class one volumes into the first half of the year and therefore, we have seen some moderation of buying in the first half – buying patterns in the second half, but still within program levels. Thus far, the rate of tie insertions in 2009 by our class one customers has not been significantly impacted by economic conditions. Due to the importance of crossties to the rail infrastructure, we believe that the railroads will reduce spending on ties only as a last resort. We are encouraged that at the end of September, there were 7.2 million crossties that are seasoning at our wood treating plants compared to 6.2 million at the end of 2008. As you may know, these ties, most of which are owned by the class ones, must be treated within a relatively short time after they are dry. This should be indicative of another strong trading year for us in 2010. We see this business, although having some risk for volatility in a very high uncertain economic environment, as having a more consistent performance in a market downturn. We also continued to review the government stimulus plan closely and are hopeful that infrastructure spending will have a positive impact on the railroads, although this would be likely on the commercial side of the business. Considering that we have seen…

Thank you, sir. (Operator instructions) The first question comes from Ivan Marcuse from KeyBanc Capital Markets. Please go ahead. Ivan Marcuse – KeyBanc Capital Markets: Hey guys, how are you doing?

Good morning. How are you doing? Ivan Marcuse – KeyBanc Capital Markets: All right. With your change instead of – of not brining back cash into the U.S., do you see opportunities in the near future in Europe and what’s sort of your strategy or plan looking out next six, 12 months in Europe?

I mean, I think a couple of things. I mean, the change in the tax rate is reflective not just of a change in what see as potential consolidation outlook in Europe, it’s also based on sort of the stability of the business in general. We don't need to bring the cash back. So we can position our cash for reinvestment in Europe. Ivan, I think our – we still believe that the opportunity for consolidation in Europe is pretty right. I mean, the continuing struggles in Europe we think are fairly positive signs for that, but as far as whether something can be done in six months or 12 months, that I think will remain to be seen. Ivan Marcuse – KeyBanc Capital Markets: Great. What’s your market share right now in Europe in the carbon pitch business?

The carbon pitch business is probably – well, currently it’s in the – probably the 15% to 18% range with the various smelter effects. Ivan Marcuse – KeyBanc Capital Markets: Got you. And then last question is, markets that you’ve recently entered to, were they contributors in the third quarter targets in the electrodes?

Yes, for sure. We continue to see each month an increased demand for the petroleum – petroleum products. Ivan Marcuse – KeyBanc Capital Markets: Great, thanks a lot guys.

Well, thank you.

The next question comes from Chris Shaw from Ticonderoga Securities. Please go ahead. Chris Shaw – Ticonderoga Securities: Hi, good morning, guys. How are you doing?

Good morning, Chris.

Good, Chris. How are you? Chris Shaw – Ticonderoga Securities: Good. I sort of forgot – was the drop in raw material prices meaningful in the quarter? Was that a significant contributor to the margin increase sequentially in Carbon Materials?

Well, I think you’ll see more of that as we get closer to the end of the year and into next year, Chris. Chris Shaw – Ticonderoga Securities: Right. That wasn't that meaningful?

In most – lot of our raw material contracts, we negotiate prices more on a calendar basis. Chris Shaw – Ticonderoga Securities: Okay. And then just trying to – and just when you were talking about the impact I think in the fourth quarter, the 1 million to 2 million from phthalic outage, right?

Right. Chris Shaw – Ticonderoga Securities: Was that – sales or profit? I missed that.

It’s profit. Chris Shaw – Ticonderoga Securities: Okay, profit. And then, just – just curious, the balance sheet as of the end of the quarter, that reflected all the moves in the calling of the bonds?

No. Actually, that’s a good question, Chris. The bonds were called on September 15th. They actually were not physically redeemed until October 15th. So the actual replacement of the bonds with the revolver facility and the write-off of the deferred financing costs and also the call premium will all be reflected in the fourth quarter. Chris Shaw – Ticonderoga Securities: Did you use any cash or was it all from the revolver?

It’s a bit of a combination, but I don't know that we talked about that. Bit of a combination. Chris Shaw – Ticonderoga Securities: Great. Thanks.

The next question comes from Steve Schwartz from First Analysis. Please go ahead. Steve Schwartz – First Analysis: Hi, good morning guys.

Hi, good morning, Steve. How are you? Steve Schwartz – First Analysis: Good. Brian, just to continue on Chris’ dialog, so in another words, the money you have or the liability you have in short-term debt will get transferred into long term once the fourth quarter balance sheet comes out?

Correct. I mean, some of the cash would be used to pay that down, but you’ll see at the end of the year as that will be in the revolver. Steve Schwartz – First Analysis: Okay. And then, if tie demand – there were some forecast you were saying, tie demand goes back to 18 million ties a year. At that point, what do you think your operating margin goes to? I mean, in ’05, ’06 I think you were around 7% annualized and you are now up to 8.5%, 9%. So what do you think?

I think one – I mean, I think as Walt mentioned, we are not seeing any indication from the class ones that tie demand is going to be down next year. The commercial business, that’s down about 50% this year for us. So sort of in a continuing environment, I would expect margins to probably look more like they like this year.

In fact, if you look at the third quarter as I mentioned, third quarter margins improved very nicely over 2008 and so we were doing some good things as far as plant cost controls and managing costs a little better. Steve Schwartz – First Analysis: Okay. Walt, you threw out the 7.2 million. I didn’t catch what period is that as of the end of the third quarter, 7.2 million white ties in your seasoning.

The inventory in our plants, right. That’s 1 million tie over what our inventory was at the end of 2008, which again as I mentioned, when you can see 7.2 million ties that are being air-stacked, they must be treated, as you recall, a certain times. And so that’s a good indicator for that business going forward. Steve Schwartz – First Analysis: Okay. And then, just one last one from numbers. Can you give us the SG&A split between the segments? So how does that $13 million break out?

Hold on a second. For the third quarter? Steve Schwartz – First Analysis: Yes.

It’s about $8.8 million – so say about $8.5 million for CM&C. Steve Schwartz – First Analysis: Okay.

About $4 million for R&UP. Steve Schwartz – First Analysis: Okay. And then, there was 5 – half a million, $500,000?

Which is in – yes, in the holdings company. Right. Steve Schwartz – First Analysis: Okay, very good. Okay, thank you.

Thank you.

The next question comes from Laurence Alexander from Jefferies & Company. Please go ahead. Amanda Seguin – Jefferies & Company: Hi, this is Amanda Seguin on for Laurence.

You don't sound like Laurence. Amanda Seguin – Jefferies & Company: First question. You guys – you’ve been building up some cash on the balance sheet. Just wondering what level of cash you are comfortable with going forward. And on that note, as far as uses of cash, it sounds like M&A is certainly a priority. If you could drill down a little bit into kind of the size of acquisitions and which end markets you are – which segments you are most interested in?

Yes, I don't – I mean, on the cash I think, it’s certainly not our long-term interest to hold that much cash. I mean, we still have debt, even debt under the revolver to pay down. I think as business stabilizes, what we want to make sure we have is ample access to liquidity. So for us today that means maybe cash, may be a quarter or two from now, it doesn't have to be cash, maybe there will be some other mechanism. But I think what you are seeing is more of a defensive posture right now. As far as M&A, I think for us it’s – we would like to be focused on things in our core. So not – relative conservative approach. I don't think – never say never, but there is probably not a huge desire to add an awful lot of leverage on the books right now. So small, more accretive transactions like coastal timbers or like the petroleum pitch business, they are very attractive to us. Amanda Seguin – Jefferies & Company: Okay. And just one question on the cost savings. It sounds like it was about $15 million benefit in the third quarter and so on track for the full year target. Is – what portion of that is sustainable going forward as volumes come back?

We are looking at somewhere between 20% and 25% is our goal to move forward that costs [ph] that we had this year. So at least 20%, 25% range. Amanda Seguin – Jefferies & Company: Okay, thank you.

We have a follow-up question from Chris Shaw. Please go ahead. Chris Shaw – Ticonderoga Securities: Yes, I was just curious – amongst the Buffett the other day, there was a – I guess of – Norfolk Southern was – had some news around the Crescent Corridor Project. I know they’ve been talking about it for a long time. Was there anything incremental in terms of what they are doing that was announced the other day?

Obviously, the announcement of the Burlington Northern Santa Fe with Warren Buffett, I think, is very good news for operators and even other railroad suppliers. I mean, it’s just sort of really supports and solidifies what we’ve been saying all along that the infrastructure of the railroads is going to continue to be a priority, especially on the maintenance of Way [ph] areas. I think just the strength of that really shows that the infrastructures are very key and there is going to be more freight moving from trucks to rail as we go forward. So I think it’s very good news for us as well as others.

Yes, we couldn’t build our cash balance fast enough to make a run at them. Chris Shaw – Ticonderoga Securities: Was there specific in that Crescent Corridor news that came out?

No, I think the other comment you made, the NS news on the Crescent project, I mean I think for us, these are more – they are not going to provide incremental growth in volumes for us, but I think they are more indicative of the long-term investment in infrastructure. So I think – yes, for us, I think that’s one of the reasons we are pretty bullish around what the class one railroads are doing. Chris Shaw – Ticonderoga Securities: And there is one more. Where do you report the equity income from the China JV? Is that in other or something?

Yes, it’s in other. Chris Shaw – Ticonderoga Securities: Okay, thanks.

(Operator instructions) Thank you. Mr. Turner, there appears to be no further questions. Please continue with any other points you wish to raise.

Thank you. We thank you all for attending today’s – for participation and being part of our third quarter call and appreciate your continued interest in our company. We continue to see the benefit of diversity in our products and our end markets in 2009 as the strength of our railroad business in the first half of 2009 mitigated the negative impact of the global recession on our Carbon Materials and Chemicals businesses. In the second half of this year, our expectation is that our Carbon Materials and Chemicals business will improve over the first half of the year while the railroad business slows to a more normalized seasonal program level. Although our markets remain significantly impacted, I hope you have heard our message today that we are seeing signs of stability in our aluminum and steel markets. We see continued strong demand in our end markets in the long term, particularly based on the committed aluminum capacity additions coming online in the least this year and 2010. And we are well positioned given capacity additions in China. Our balance sheet strength has and should continue to provide the potential opportunities to stimulate growth and create shareholder value. We will continue to operate the business and manage our capital structure in a conservative manner and we do believe strongly in the long-term strength of our end markets and our position as a market leader in our core businesses. And finally, we remain firmly committed to enhancing shareholder value by executing our strategy of providing our customers with the highest quality products and services, while continuing to focus on our safety, health, and environmental issues. Thank you for participating.