Calgon Carbon Reports 2013 Second Quarter Results

Calgon Carbon Reports 2013 Second Quarter Results

Q2 2013 results versus Q2 2012 results:

• Fully diluted EPS of $0.24 - up 26.3%

• Gross margin (before depreciation and amortization) 33.0% versus 31.0%

PITTSBURGH--(BUSINESS WIRE)-- Calgon Carbon Corporation (NYS: CCC) reported results for the second quarter ended June 30, 2013.

Net income for the second quarter of 2013 was $13.0 million versus $10.9 million for the comparable period of 2012, a 19.2% increase. On a fully diluted basis, net income per common share for the second quarter of 2013 was $0.24 as compared to $0.19 for the second quarter of 2012.

The company reported net sales of $140.4 million for the second quarter of 2013 versus $148.4 million for the second quarter of 2012. Currency translation had a $3.2 million negative effect on sales for the second quarter of 2013 due to the weaker yen.

For the second quarter of 2013, sales for the Activated Carbon and Service segment declined 1.9% as compared to the second quarter of 2012. The decline was primarily due to lower demand for activated carbon in the environmental air and environmental wastewater markets. Our 2013 price increase, higher demand for activated carbon products and services for the municipal market in Japan, and higher sales of activated carbon for the respirator market offset this decline.

Equipment sales for the second quarter of 2013 decreased by $5.6 million, or 28.1% versus the comparable period in 2012, due to lower revenue from ballast water treatment systems. Higher sales of traditional UV disinfection systems and ion exchange systems partially offset the decline.

Consumer sales for the second quarter of 2013 were comparable to sales in the second quarter of 2012.

For the second quarter of 2013, net sales less the cost of products sold (excluding depreciation) as a percentage of net sales was 33.0% versus 31.0% for the second quarter of 2012. The increase was attributed to our 2013 price increase, lower plant maintenance costs and the corporate-wide cost improvement initiative.

Selling, administrative and research (SA&R) expenses for the second quarter of 2013 were $18.9 million versus $23.1 million for the comparable period of 2012. The decrease was primarily due to lower employee related expenses resulting from the company's cost improvement initiatives. SA&R for the second quarter of 2013 also included a $0.9 million benefit from the reduction of a multiemployer pension plan liability.

Including the aforementioned benefit, SA&R expenses as a percentage of sales improved to 13.4% for the second quarter of 2013 versus 15.6% for the comparable quarter of 2012.

Net sales for the six months ended June 30, 2013, were $275.5 million, a 3.3% decline over the comparable period in 2012. Currency translation had a $6.2 million negative impact on sales for the first half of 2013 due to the weaker yen.

Net income for the six months ended June 30, 2013, was $22.8 million versus $18.6 million for the comparable period of 2012. Fully diluted net income per common share for the first half of 2013 was $0.42. Fully diluted net income per common share for the first half of 2012 was $0.33.

Randy Dearth, Calgon Carbon's President and Chief Executive Officer, commented on the results, "We continue to make progress with our $30 million cost improvement initiative - both the pace at which we are realizing results, as well the magnitude of the reduction in costs and expenses. I am pleased with the results of our efforts to increase our income from operations. The comparison of quarter-over-quarter and year-over-year results clearly demonstrates our success.

"We will continue to aggressively implement our cost improvement program in advance of the expected step change in sales as compliance with mercury removal and ballast water disinfection regulations draws near."

For more information about Calgon Carbon's leading activated carbon and ultraviolet technology solutions for municipalities and industries, visit www.calgoncarbon.com.

Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner.

This news release contains historical information and forward-looking statements. Forward-looking statements typically contain words such as "expect," "believe," "estimate," "anticipate," or similar words indicating that future outcomes are uncertain.Statements looking forward in time, including statements regarding future growth and profitability, price increases, cost savings, broader product lines, enhanced competitive posture and acquisitions, are included in the company's most recent Annual Reportpursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. They involve known and unknown risks and uncertainties that may cause the company's actual results in future periods to be materially different from any future performance suggested herein.Further, the company operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the company's control.Some of the factors that could affect future performance of the company are changes in, or delays in the implementation of, regulations that cause a market for our products, acquisitions, higher energy and raw material costs, costs of imports and related tariffs, labor relations, capital and environmental requirements, changes in foreign currency exchange rates, borrowing restrictions, validity of patents and other intellectual property, and pension costs.In the context of the forward-looking information provided in this news release, please refer to the discussions of risk factors and other information detailed in, as well as the other information contained in the company's most recent Annual Report.

*Before depreciation and amortization and restructuring. The 2013 quarter and year to date periods include $(18) thousand and $(42) thousand, respectively, of restructuring.