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Calgon Carbon to Repurchase Shares - Analyst Blog
11/23/2012 11:40:00 AM
Calgon Carbon Corporation
) announced that it has entered into an accelerated share
repurchase (ASR) agreement with Morgan Stanley & Co. LLC to
buy back roughly $50 million of its stock. The company will
receive around 3.3 million shares at the beginning of the ASR
with the total number of shares to be purchased under the deal
will be decided upon the final settlement.
A few weeks ago, Calgon Carbon released its third-quarter 2012
results. The company incurred a loss of $4.5 million or 8 cents a
share in the quarter compared with a profit of $14.5 million or
25 cents a share a year ago. Excluding a restructuring charge of
$8 million, the Pennsylvania-based pollution control company
earned 6 cents a share in the quarter, which missed the Zacks
Consensus Estimate of 12 cents.
Calgon Carbon remains confident in its ability to balance the need for future investment with its responsibility to provide short-term returns. Despite some challenges, the company expects to continue to capitalize on its growth opportunities. Healthy sales gains and strategic initiatives will be beneficial in the longer term.
We, however, remain concerned about the economic challenges that it might face in the remainder of 2012. Moreover, escalating costs remain a headwind.
We currently have a long-term (more than 6 months) Neutral
recommendation on Calgon Carbon. The company, which competes with
), retains a Zacks #4 Rank that translates to a short-term (1 to
3 months) Sell rating.
CALGON CARBON (CCC): Free Stock Analysis Report
MEADWESTVACO CP (MWV): Free Stock Analysis Report
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