UPDATE 1-Koppers Q3 profit beats estimates on lower tax rate
* Q3 EPS $0.80 vs est. of $0.62
* Q3 revenue drops 22 pct, trails estimates
* Sees aluminum end-market demand improving
Nov 5 (Reuters) - Carbon-compounds maker Koppers Holdings Inc (KOP.N) posted third-quarter earnings that beat analyst's estimates, helped by a lower tax rate and the benefits of cost-cutting initiatives.
"We have seen increased stability in our aluminum end market and also some signs of improvement particularly as it relates to demand for naphthalene and carbon black feedstocks in Asian and Middle Eastern markets," Chief Executive Walter Turner said.
For the quarter, the company posted net income of $16.4 million, or 80 cents a share, compared with $25.5 million $1.24 a share, a year ago.
Koppers said the lower tax rate was due to its decision to reinvest cash in its European business rather than assume the tax consequences of repatriation.
Revenue dropped 22 percent to $289.8 million.
Analysts on average were looking for earnings of 62 cents a share, before items, on revenue of $308.5 million, according to Thomson Reuters I/B/E/S.
The Pittsburgh, Pennsylvania-based company's shares, which have almost tripled from a March low, closed at $25.70 Wednesday on the New York Stock Exchange. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Vinu Pilakkott)
