Calgon Carbon Corporation
) reported third-quarter 2013 earnings of 22 cents per share
compared with a loss of 8 cents per share in the year-ago
quarter. The results were at par with the Zacks Consensus
The company posted a net income of $11.9 million in the reported
quarter compared with a net loss of $4.5 million recorded in the
prior-year quarter. The year-ago quarter's results were hurt by
restructuring charges of $8 million.
Revenues increased roughly 3% year over year to $139.4 million in
the reported quarter from $135.5 million recorded in the year-ago
quarter. It was in line with the Zacks Consensus Estimate.
Currency translation had a negative impact of $3.8 million on
sales, stemming from a weaker yen.
Margins and Expenses
Gross margin was 33.3% in the quarter, an increase from 27.3% a
year ago. Gross margin was favored by improved plant performance
and ongoing cost improvement initiatives.
Selling, administrative and research (SG&A) expenses declined
18.6% year over year to $21 million. The company attributed the
decrease to expense control efforts and presence of
Revenues from the Activated Carbon and Service segment increased
7% year over year to $123 million in the third quarter, due to
improved demand for activated carbon in the environmental water,
food and specialty carbon markets, partly offset by lesser demand
for activated carbon in the environmental air treatment market.
Equipment revenues decreased 26.3% year over year to $13.4
million on lower sales from ballast water treatment systems and
carbon adsorption equipment.
Consumer sales increased 28.2% year over year to $2.9 million in
the quarter due to higher demand for activated carbon cloth.
Calgon Carbon ended the quarter with cash and cash equivalents of
roughly $30 million, up 65% year over year. Long-term debt stood
at $48.3 million as of Sep 30, 2013, compared with $44.4 million
as of Sep 30, 2012.
Calgon Carbon, which is among the prominent pollution control
companies along with
CECO Environmental Corp.
), expects to benefit from the implementation of the cost
reduction program and corporate initiatives going forward.
The company will also continue to focus on growth opportunities
going forward to strengthen its position as a leader in the
markets it serves.
Calgon Carbon retains a Zacks Rank #2 (Buy).
Other companies in the pollution control industry worth
Sharps Compliance Corp
Perma-Fix Environmental Services Inc.
). While Sharps Compliance carries a Zacks Rank #1 (Strong Buy),
Perma-Fix Environmental retains a Zacks Rank #2 (Buy).
CALGON CARBON (CCC): Free Stock Analysis
CECO ENVIRNMNTL (CECE): Free Stock Analysis
PERMA-FIX ENVIR (PESI): Free Stock Analysis
SHARPS COMPLIAN (SMED): Free Stock Analysis
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