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Calgon Carbon Signs Water Treatment Contract in Singapore

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Calgon Carbon CorporationCCC has signed a supply contract with Sanli M&E Engineering Pte Ltd (Chye Joo-Sanli Joint Venture). Per the terms of the contract, Calgon Carbon will supply 2.9 million pounds of granular activated carbon ("GAC") for process upgrading at Choa Chu Kang Waterworks in Singapore. GAC, known for its high quality and outstanding performance, is a proven technology in treating drinking water for the removal of organic matter, taste, and odor.

Financial terms of the deal however, remain undisclosed. The deliveries under the contract are expected to start in late 2017.

The selection was made by taking into account Calgon Carbon's advanced manufacturing process which makes GAC and the performance of its products that have been installed in several drinking water treatment plants across Asia.

Calgon Carbon has underperformed the Zacks categorized Pollution Control industry in the past one year. The company's shares have declined around 8.7%, compared with roughly 21.8% gain recorded by the industry.

Despite some recovery of late, Calgon Carbon's industrial end-markets are expected to remain somewhat sluggish in the near term. The company is also seeing weak demand for activated carbon in specific markets. Demand in Europe, especially in the UK portable water market, is expected to remain sluggish in the near term. Market uncertainties are expected to sustain moving ahead.

Also, currency remains a headwind for the company. Unfavorable currency translation had a $1.9 million negative impact on its top line in first-quarter 2017. The company sees an unfavorable impact of around $1.5 million for the second quarter of 2017.

Calgon Carbon Corporation Price and Consensus

Calgon Carbon Corporation Price and Consensus | Calgon Carbon Corporation Quote

Zacks Rank and Key Picks

Calgon Carbon currently carries a Zacks Rank #4 (Sell).

Some top-ranked companies in the industrial products space include Caterpillar, Inc. CAT , Deere & Company DE and AGCO Corporation AGCO . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Caterpillar has expected long-term growth of 9.5%.

Deere & Company has expected long-term growth of 9.2%.

AGCO Corp has expected long-term growth of 12.1%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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