Pittsburgh, Penn based
Calgon Carbon Corporation
) announced that it has entered into a 2-year contract with a
leading U.S. power generator to supply FLUEPAC brominated
powdered activated carbon (PAC). This FLUEPAC carbon will remove
mercury from the fluegas of coal-fired power plants in the
Midwest. The value of the contract is estimated between $16
million and $22 million.
Per the agreement, Calgon Carbon will offer certain electric
generating units with 100% of their activated carbon requirements
for mercury removal in the stipulated period of the contract. The
FLUEPAC carbon's price will be adjusted annually depending on
Producer Price indices published by the U.S. Bureau of Labor
The new agreement came on the heels of the previous take-or-pay
supply agreement between the two companies spanning for 5 years.
This contract also holds a provision of extension through 2015 on
FLUEPAC products from Calgon Carbon are specially designed to
meet or exceed the performance standards of the U.S. EPA's
Mercury and Air Toxic Standards (MATS). According to the
conducted full-scale tests, the newly introduced FLUEPAC carbon
outperformed the standards and proved successful in reducing
activated carbon injection rates by 50%-70% compared with the
prevailing standard products.
Calgon Carbon, which is among the prominent pollution control
Sharps Compliance Corp
Appliance Recycling Centers of America Inc.
), posted mixed fourth-quarter 2012 results few days ago.
The company's adjusted earnings (excluding a restructuring charge
of $2.3 million) of 19 cents a share for fourth-quarter 2012
exceeded the Zacks Consensus Estimate of 14 cents and the
year-ago earnings of 11 cents. Profits (as reported) surged 77.8%
to 16 cents per share in the quarter from 9 cents in the
Revenues increased 2.6% year over year to $141.8 million in the
reported quarter, but lagged the Zacks Consensus Estimate of
$143.0 million. Currency translation had a negative impact of $1
million on sales, stemming from a stronger dollar.
In 2013, Calgon Carbon expects continued growth in its
traditional business and benefit from the cost improvement
program implemented in 2012. The company remains committed to
boosting profitability through process improvement, enhanced
operating efficiencies and cost reductions.
Calgon Carbon currently retains a Zacks Rank #3 (Hold).
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