Mixed 4Q from Calgon Carbon - Analyst Blog
February 22 2013 - 6:00AM
Zacks
Calgon Carbon
Corporation’s (CCC) 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.
Calgon Carbon, which is among the
prominent pollution control companies along with MFRI
Inc. (MFRI), Sharps Compliance Corp.
(SMED) and Appliance Recycling Centers of America
Inc. (ARCI), recorded profit (as reported) of $9.1 million
or 16 cents per share in the quarter, surging roughly 84% from $4.9
million or 9 cents per share posted in the prior-year quarter.
For full-year 2012, adjusted
earnings of 58 cents per share (excluding restructuring charge of
$10.2 million) topped the Zacks Consensus Estimate of 39 cents.
Profit, as reported, totaled $23.3 million or 41 cents a share
versus $39.2 million or 69 cents a share in 2011.
Revenues
Revenues increased 2.6% year over
year to $141.8 million in the reported quarter, but lagged the
Zacks Consensus Estimate of $143 million. Currency translation had
a negative impact of $1 million on sales, stemming from a stronger
dollar.
For full-year 2012, revenues
increased 3.8% to $562.3 million from $541.5 million in 2011, but
missed the Zacks Consensus Estimate of $566 million. Unfavorable
impact of currency translation on sales was $7.5 million.
Revenues from the Activated Carbon
and Service segment increased 4.2% year over year to $127.2 million
in the fourth quarter due to higher demand for granular activated
carbon used in the drinking water treatment and in respirators.
Equipment revenues decreased 15% to
$11.8 million on lower sales from ballast water treatment systems,
ion exchange equipment and carbon adsorption systems, partly offset
by higher sales of ultraviolet systems for drinking water
treatment. Consumer sales increased 22.7% to $2.7 million in the
quarter, supported by higher demand for activated carbon cloth.
Margins and
Expenses
Gross margin slightly rose to 31.2%
in the quarter from 30.9% a year ago.
Selling, administrative and
research (SG&A) expenses declined 24.1% to $20.5 million. The
company attributed the decrease to lower research and development
activities related to new products and lower legal and outside
services expenses.
Financial
Position
Calgon Carbon ended 2012 with
strong liquidity position with cash and cash equivalents increasing
33.8% to $18.2 million from $13.6 million recorded a year ago.
Long-term debt stood at $44.4 million as of Dec 31, 2012, compared
with $1.1 million as of December 31, 2011.
Outlook
Calgon Carbon expects continued
growth in its traditional business in 2013 and expects to 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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