On Jul 18, we upgraded our recommendation on pollution control
Calgon Carbon Corporation
) to Outperform factoring in the benefits from its cost-cutting
actions and price increases.
Calgon Carbon's earnings for first-quarter 2013, reported on
May 6, topped the Zacks Consensus Estimate but sales missed. This
Zacks Rank #1 (Strong Buy) stock is expected to gain from its
cost reduction and pricing actions.
Following the release of the first quarter results, the Zacks
Consensus Estimate for 2013 for Calgon Carbon went up 3.7% to 84
cents per share.
Calgon Carbon, which competes with
) among others, remains confident in its ability to balance the
need for future investment with its responsibility to provide
short-term returns. The company continues to see ballast water
treatment, reactivation services and mercury removal as its basis
for sustainable growth. It remains actively focused on improving
margins across all regions.
Calgon Carbon's strategic initiatives position it for
significant growth in the longer term. Its reactivation
facilities have remarkably supported its growth and have
established its presence in several markets. The global demand
for reactivation services is expected to climb as regulations for
water quality strengthen around the world.
Calgon Carbon has also reduced its exposure to rising coal
costs by identifying new sources of supply and a variety of coals
that are effective in the manufacture of its high quality
products. It has also embarked on aggressive cost reduction
initiatives to boost margins. Calgon Carbon's cost improvement
program, which includes consolidation of operations and headcount
reductions, is expected to contribute toward margin
Calgon Carbon's price increase actions should also drive sales
and profitability. It has implemented price hikes on activated
carbon and service products which are expected have an impact of
more than $10 million in 2013.
Other Stocks to Consider
Other companies in the pollution control industry worth
CECO Environmental Corp.
Pure Cycle Corporation
). While CECO retains a Zacks Rank #1 (Strong Buy), Pure Cycle
holds a Zacks Rank #2 (Buy).
CALGON CARBON (CCC): Free Stock Analysis
CECO ENVIRNMNTL (CECE): Free Stock Analysis
MEADWESTVACO CP (MWV): Free Stock Analysis
PURE CYCLE CORP (PCYO): Free Stock Analysis
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