Calgon Carbon Corporation (CCC) announced that it expects to
report a loss for the third quarter of 2012. This result is primarily
due to charges associated with the companys previously announced cost
reduction program, including severance and an impairment charge for the
permanent closure of its activated carbon manufacturing facility in
Datong, China. Also contributing to the loss were lower gross margin
before depreciation and amortization as discussed below; pension
charges; and an agreement reached in July with the companys former CEO.
Sales in the third quarter which are expected to be approximately $135
million were adversely affected by reduced utilization of activated
carbon for the mercury removal market and delays in deliveries of
activated carbon for the municipal and wastewater markets.
The companys gross margin before depreciation and amortization for the
third quarter of 2012 is expected to be approximately 27% versus 31% for
the second quarter of 2012. The decline in gross margin was due to
operational issues at the companys Pearl River plant, unfavorable sales
mix, and the write-off of inventory that was determined to be obsolete.
The issues at Pearl River included maintenance, a capital improvement
project, and damage caused by Hurricane Isaac. As a result of these
issues, the plant did not operate as planned for most of the third
quarter of 2012.
Commenting on the announcement, Randy Dearth, Calgon Carbons president
and chief executive officer, said, "We aggressively pursued our cost
reduction program in the third quarter, and all components of Phase I
are now in place. The Pearl River plant is operating, and the process
improvements that were implemented should be a key factor in lowering
manufacturing costs in 2013."
Calgon Carbon will announce third quarter results and will webcast its
quarterly conference call on Friday, November 2, 2012.
Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is
a global leader in services and solutions for making water and air safer
For more information about Calgon Carbons leading activated carbon and
ultraviolet technology solutions for municipalities and industries,
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
companys most recent Annual Report pursuant 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
companys 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 companys
control. Some of the factors that could affect future performance of the
company are 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 companys most recent Annual Report.
SOURCE: Calgon Carbon Corporation
Calgon Carbon Corporation
Gail A. Gerono, 412-787-6795