Calgon Carbon Announces First Quarter Results

Before you go, we thought you'd like these...
Before you go close icon

Calgon Carbon Announces First Quarter Results

PITTSBURGH--(BUSINESS WIRE)-- Calgon Carbon Corporation (NYS: CCC) announced results for the first quarter ended March 31, 2013.

Net sales for the first quarter of 2013 were $135.0 million, essentially flat versus the comparable period in 2012. Currency translation had a $3.1 million negative impact on sales for the first quarter of 2013 due to the weaker yen.


The company reported net income of $9.8 million for the first quarter of 2013, as compared to net income of $7.7 million for the first quarter of 2012. On a fully diluted share basis, earnings per common share for the first quarter of 2013 were $0.18 versus $0.14 for the first quarter of 2012.

For the first quarter of 2013, sales for the Activated Carbon and Service segment increased 1.4% as compared to the first quarter of 2012. The increase was due to higher demand for activated carbon products and services in the municipal and industrial process markets. These increases were largely offset by lower demand for granular activated carbon in the food market, as well as lower demand and pricing for powdered activated carbon for mercury removal from electric generating units.

Equipment sales declined 13.7% in the first quarter of 2013 versus the comparable period of 2012 due primarily to lower sales of ballast water treatment and ion exchange systems. These decreases were partially offset by higher sales of traditional UV systems and carbon adsorption equipment.

The $1.0 million, or 31.3%, decline in consumer sales was attributed to lower demand for activated carbon cloth.

Net sales less the cost of products sold (excluding depreciation and amortization), as a percentage of net sales for the first quarter of 2013 was 31.6%, versus 31.3% for the first quarter of 2012. In the first quarter of 2013, the margin rate benefited from the $0.4 million settlement of an insurance claim related to Hurricane Isaac.

Selling, administrative and research (SG&A) expenses for the first quarter of 2013 were $20.9 million versus $23.9 million for the comparable period of 2012. The decrease was due to lower employee related expenses, due in part to the company's cost reduction initiatives. SG&A as a percentage of sales improved to 15.5% as compared to 17.5% for the first quarter of 2012.

The income tax rate for the first quarter of 2013 was 30.4% versus 35% for the first quarter of 2012. The lower tax rate for the first quarter of 2013 was due to activity related to the company's Datong, China, subsidiary which was sold in March of 2013.

Commenting on the quarter, Randy Dearth, Calgon Carbon's President and Chief Executive Officer, said, "I am very pleased with the pace at which we are implementing our cost reduction initiatives and their positive impact in the first quarter, especially on operating expense.

"Although revenue was flat for the first quarter of 2013 versus last year's first quarter, the company's bottom line results showed significant improvement. Going forward we should see higher margins as we continue to implement the second phase of our cost reduction program which specifically targets margin improvement. In addition, price increases on our activated carbon products and services that we initiated earlier this year should begin to have a positive impact on both sales and margins."

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.

     
Calgon Carbon Corporation
Condensed Consolidated Statements of Comprehensive Income
(Dollars in thousands except per share data)
(Unaudited)
Quarter Ended
March 31,
20132012
 
Net Sales$135,040 $136,608 
 
Cost of Products Sold (Excluding Depreciation)92,41593,826
 
Depreciation and Amortization6,7476,513
 
Selling, Administrative & Research20,92823,946
 
Restructuring(24)-
 
Environmental and Litigation -  153 
 
 120,066  124,438 
 
Income from Operations14,97412,170
 
Interest Expense - Net(53)(7)
 
Other Expense - Net (828) (251)
 
Income Before Income Tax Provision14,09311,912
 
Income Tax Provision 4,279  4,174 
 
Net Income9,8147,738
 
Other Comprehensive Income (Loss), Net of Tax
Foreign Currency Translation(6,333)1,994
Derivatives619127
Employee Benefit Plans (378) (558)
 
Comprehensive Income$3,722 $9,301 
 
Net Income per Common Share
Basic and Diluted$.18$.14
 
Weighted Average Shares
Outstanding (Thousands)
Basic53,62056,512
 
Diluted54,20057,124
 

     
Calgon Carbon Corporation
 
 

Segment Data (unaudited):

(in thousands)
 

Segment Sales

1Q131Q12
 
Activated Carbon and Service118,897117,237
Equipment13,90816,118
Consumer 2,235 3,253
 
Net Sales$135,040$136,608
 
Segment

Operating Income*

1Q131Q12
 
Activated Carbon and Service20,92417,303
Equipment392532
Consumer 405 848
 
Income from Operations *$21,721$18,683
 
 
*Before depreciation and amortization.
 

     
Calgon Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
 
March 31,December 31,
20132012
 
Assets
 
Current assets:
 
Cash and cash equivalents$14,554$18,161
 
Receivables110,864101,918
 
Inventories105,581107,166
 
Other current assets 39,501 45,961
 
Total current assets270,500273,206
 
Property, plant and equipment, net262,078262,993
 
Other assets 40,319 41,570
 
Total assets$572,897$577,769
 
Liabilities and Shareholders' Equity
 
Current liabilities:
 
Short-term debt$16,107$19,565
 
Other current liabilities 83,032 96,085
 
Total current liabilities99,139115,650
 
Long-term debt48,05344,408
 
Other liabilities 68,356 66,414
 
Total liabilities215,548226,472
 
Total shareholders' equity 357,349 351,297
 
Total liabilities and shareholders' equity$572,897$577,769



Calgon Carbon Corporation
Gail A. Gerono, Vice President - Investor Relations and Communications, 412-787-6795
ggerono@calgoncarbon-us.com

KEYWORDS:   United States  North America  Pennsylvania

INDUSTRY KEYWORDS:

The article Calgon Carbon Announces First Quarter Results originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners