Calgon Carbon Corporation
) reported second-quarter 2013 earnings of 24 cents per share, up
roughly 26.3% from 19 cents per share in the year-ago quarter. It
exceeded the Zacks Consensus Estimate of 21 cents.
The company posted a profit of $13 million in the reported
quarter, surging roughly 19.2% from $10.9 million recorded in the
Revenues decreased roughly 5.4% year over year to $140.4
million in the reported quarter, missing the Zacks Consensus
Estimate of $142 million. Currency translation had a negative
impact of $3.2 million on sales, stemming from a weaker yen.
Margins and Expenses
Gross margin was 33% in the quarter versus 31% a year ago.
Gross margin was favored by price increase, lower plant
maintenance costs and the corporate-wide cost improvement
Selling, administrative and research (SG&R) expenses
declined 18.2% to $18.9 million and includes $0.9 million benefit
from the reduction of a multiemployer pension plan liability.
Calgon Carbon attributed the decrease to lower employee related
costs, owing to its cost reduction initiatives.
Revenues from the Activated Carbon and Service segment
declined 1.9% year over year to $124 million in the second
quarter, due to lower demand for activated carbon in the
environmental air and environmental wastewater markets, partially
offset by higher demand for activated carbon products and
services for the municipal market in Japan, and higher sales of
activated carbon for the respirator market.
Equipment revenues decreased 28.1% to $14.3 million on lower
sales from ballast water treatment systems and ion exchange
equipment, partly offset by higher sales of ultraviolet
disinfection systems and ion exchange systems.
Consumer sales decreased 1.9% to $2.1 million in the
Calgon Carbon ended the quarter with cash and cash equivalents
of $20.8 million, compared with $18.2 million as of Dec 31, 2013.
Long-term debt stood at $56 million as of Jun 30, 2013, compared
with $44.4 million as of Dec 31, 2012.
Calgon Carbon said that it will continue to execute its cost
improvement program ahead of the expected step change in sales as
compliance with mercury removal and ballast water disinfection
regulations draws near.
Calgon Carbon retains a Zacks Rank #2 (Buy).
Other companies in the pollution control industry worth
CECO Environmental Corp.
Perma-Fix Environmental Services Inc.
Pure Cycle Corporation
). While CECO retains a Zacks Rank #1 (Strong Buy), both Perma
and Pure Cycle hold a Zacks Rank #2 (Buy).
CALGON CARBON (CCC): Free Stock Analysis
CECO ENVIRNMNTL (CECE): Free Stock Analysis
PURE CYCLE CORP (PCYO): Free Stock Analysis
PERMA-FIX ENVIR (PESI): Free Stock Analysis
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