Calgon Carbon Inks New Contract - Analyst Blog
February 25 2013 - 6:30AM
Zacks
Pittsburgh, Penn based
Calgon Carbon Corporation (CCC) announced that it
has entered into a 2-year contract with a leading U.S. power
generator to supply FLUEPAC brominated powdered activated carbon
(PAC). This FLUEPAC carbon will remove mercury from the fluegas of
coal-fired power plants in the Midwest. The value of the contract
is estimated between $16 million and $22 million.
Per the agreement, Calgon Carbon will offer certain electric
generating units with 100% of their activated carbon requirements
for mercury removal in the stipulated period of the contract. The
FLUEPAC carbon’s price will be adjusted annually depending on
Producer Price indices published by the U.S. Bureau of Labor
Statistics.
The new agreement came on the heels of the previous take-or-pay
supply agreement between the two companies spanning for 5 years.
This contract also holds a provision of extension through 2015 on
requirement.
FLUEPAC products from Calgon Carbon are specially designed to meet
or exceed the performance standards of the U.S. EPA’s Mercury and
Air Toxic Standards (MATS). According to the conducted full-scale
tests, the newly introduced FLUEPAC carbon outperformed the
standards and proved successful in reducing activated carbon
injection rates by 50%–70% compared with the prevailing standard
products.
Calgon Carbon, which is among the prominent pollution control
companies including MFRI Inc. (MFRI),
Sharps Compliance Corp. (SMED) and
Appliance Recycling Centers of America Inc.
(ARCI), posted mixed fourth-quarter 2012 results few days ago.
The company’s 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 11 cents. Profits (as reported) surged 77.8% to 16
cents per share in the quarter from 9 cents in the prior-year
quarter.
Revenues increased 2.6% year over year to $141.8 million in the
reported quarter, but lagged the Zacks Consensus Estimate of $143.0
million. Currency translation had a negative impact of $1 million
on sales, stemming from a stronger dollar.
In 2013, Calgon Carbon expects
continued growth in its traditional business and 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 Report
MFRI INC (MFRI): Free Stock Analysis Report
SHARPS COMPLIAN (SMED): Free Stock Analysis Report
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