Calgon Carbon Corporation
), in a letter to its shareholders, has updated them on its
roadmap for value creation. The company intends to continue
exploring alternative business structures, return capital beyond
the accelerated share repurchase, and accelerate cost-cutting
initiatives while investing in key growth opportunities.
In this context, the Board of Directors has decided to expand the
share repurchase program initiated at the end of 2012 to
authorize up to an additional $100 million of stock repurchases.
This will bring the total amount authorized for share repurchase
since Nov, 2012 to $200 million, of which, $150 million is still
The Board's authorization allows share repurchases through open
market operations or otherwise. It also includes an accelerated
share repurchase, under the terms of a Rule 10b5-1 plan, in
privately negotiated transactions and in round lot or block
transactions. The share repurchase program will not hinder Calgon
Carbon's ability to fund other strategic investments.
Calgon Carbon also declared a $10 million extension of its cost
reduction program which brings the total annual cost improvements
to $40 million. The company further expects to realize annual
improvements of $30 million in 2015 and the full $40 million in
Calgon Carbon also stressed the importance of securing high
performing coal with the lowest total cost of ownership, for
producing activated carbon at its two virgin plants. The company
recently contracted two leading coal companies to supply
bituminous coal for meeting its cost/performance criteria. The
execution of both these contracts will begin soon and expire at
the end of 2018. Coal under contract for that period is roughly
Calgon Carbon has reached certain additional transformation
milestones on a number of fronts in 2013. The company saw
improvements in key operating metrics including expansion of cost
of goods sold, operating expense, earnings before interest, taxes
and depreciation (EBITDA) margin, and cash flow. These
improvements were the result of implementation of the cost
Calgon Carbon has increased the reactivation production capacity
to roughly 250 million pounds a year to solidify the company's
leadership position and enhance the growth strategy incorporated
in a highly attractive market.
Implementation of the new global regulatory framework has
benefited Calgon Carbon as the combined orders in this fiscal
year's second and third quarter have exceeded compared with the
previous two-year period. The launch of Hyde GUARDIAN Gold
Ballast Water Treatment System earlier this month should add to
Calgon Carbon carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the pollution control industry worth
Sharps Compliance Corp.
Perma-Fix Environmental Services Inc.
). While Sharps Compliance and Fuel-Tech carry a Zacks Rank #1
(Strong Buy), Perma-Fix Environmental holds a Zacks Rank #2
CALGON CARBON (CCC): Free Stock Analysis
FUEL TECH INC (FTEK): Free Stock Analysis
PERMA-FIX ENVIR (PESI): Free Stock Analysis
SHARPS COMPLIAN (SMED): Free Stock Analysis
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