) reported profits of $15.2 million or 28 cents per share in the
second quarter of 2014, up 17.2% year over year. Earnings per
share, however, missed the Zacks Consensus Estimate by a penny.
Income from operations was $21.3 million, an increase of 5.4% year
This Pennsylvania-based pollution control company posted
revenues of $145.1 million in the reported quarter, up 3.3% year
over year. Higher sales from Activated Carbon and Service and
consumer segments were partly offset by a decline in the equipment
division. Currency translation affected sales positively by $1.7
million led by stronger British pound sterling and euro. However,
sales also missed the Zacks Consensus Estimate of $146 million.
Gross margin (before depreciation and amortization) increased to
34.4% from 33% in the prior-year quarter.
Calgon Carbon Corporation - Earnings Surprise |
Revenues from the company's core Activated Carbon and Service
segment increased 4.8% year over year to $129.9 million in the
quarter due to higher demand for activated carbon products across
municipal drinking water markets in the U.S., environmental water
and industrial process market, offset by lower demand for activated
carbon in the respirator and environmental air markets.
The Equipment division's revenues fell 17.2% year over year to
$11.8 million on lower sales of ion exchange and traditional UV
systems, partly offset by higher sales on traditional carbon
equipment and ballast water treatment system.
Sales from the Consumer segment jumped 57.9% year over year to
$3.3 million in the quarter on increased demand for activated
carbon cloth from a major customer.
Calgon Carbon ended the quarter with cash and cash equivalents
of $43 million, a roughly two fold year-over-year rise. Long-term
debt was $55.9 million, down roughly 0.3% year over year but up
around 7.4% sequentially.
Calgon Carbon expects strong earnings due to aggressive current
and future cost reduction programs and corporate initiatives.
Moreover, it expects top-line growth from increased volumes
in virgin carbon production, new contracts for supplies of
activated carbon in agreement with the EPA's mercury removal
regulation in 2015 and higher sales of improved ballast water
Calgon Carbon, which is among the prominent pollution control
companies along with CECO Environmental Corp. (
) and Donaldson Company, Inc. (
), ventured into the global market for ballast water treatment with
its acquisition of Hyde Marine in 2010. The company's ballast water
treatment business is rapidly evolving into one of the most
exciting longer-term market opportunities.
Calgon Carbon is a Zacks Rank #3 (Hold) stock.
A better ranked stock in the pollution control industry worth
considering is Metalico Inc. (
) with a Zacks Rank #2 (Buy).
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CALGON CARBON (CCC): Free Stock Analysis Report
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