Calgon Carbon Corporation
) 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
Calgon Carbon, which is among the prominent pollution control
companies along with
Sharps Compliance Corp.
Appliance Recycling Centers of America Inc.
), recorded profit (as reported) of $9.1 million or 16 cents per
share in the quarter, surging roughly 84% from $4.9 million or 9
cents per share posted in the prior-year quarter.
For full-year 2012, adjusted earnings of 58 cents per share
(excluding restructuring charge of $10.2 million) topped the
Zacks Consensus Estimate of 39 cents. Profit, as reported,
totaled $23.3 million or 41 cents a share versus $39.2 million or
69 cents a share in 2011.
Revenues increased 2.6% year over year to $141.8 million in
the reported quarter, but lagged the Zacks Consensus Estimate of
$143 million. Currency translation had a negative impact of $1
million on sales, stemming from a stronger dollar.
For full-year 2012, revenues increased 3.8% to $562.3 million
from $541.5 million in 2011, but missed the Zacks Consensus
Estimate of $566 million. Unfavorable impact of currency
translation on sales was $7.5 million.
Revenues from the Activated Carbon and Service segment
increased 4.2% year over year to $127.2 million in the fourth
quarter due to higher demand for granular activated carbon used
in the drinking water treatment and in respirators.
Equipment revenues decreased 15% to $11.8 million on lower
sales from ballast water treatment systems, ion exchange
equipment and carbon adsorption systems, partly offset by higher
sales of ultraviolet systems for drinking water treatment.
Consumer sales increased 22.7% to $2.7 million in the quarter,
supported by higher demand for activated carbon cloth.
Margins and Expenses
Gross margin slightly rose to 31.2% in the quarter from 30.9%
a year ago.
Selling, administrative and research (SG&A) expenses
declined 24.1% to $20.5 million. The company attributed the
decrease to lower research and development activities related to
new products and lower legal and outside services expenses.
Calgon Carbon ended 2012 with strong liquidity position with
cash and cash equivalents increasing 33.8% to $18.2 million from
$13.6 million recorded a year ago. Long-term debt stood at $44.4
million as of Dec 31, 2012, compared with $1.1 million as of
December 31, 2011.
Calgon Carbon expects continued growth in its traditional
business in 2013 and expects to 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).
APPLIANCE RECYC (ARCI): Get Free Report
CALGON CARBON (CCC): Free Stock Analysis
MFRI INC (MFRI): Free Stock Analysis Report
SHARPS COMPLIAN (SMED): Free Stock Analysis
To read this article on Zacks.com click here.