Calgon Carbon Corp. reported results for the third quarter ended Sept. 30, 2013.
For the third quarter of 2013, the company reported net income of $0.22 per fully diluted share, as compared to a net loss of $0.08 per fully diluted share for the third quarter of 2012.
Net income for the third quarter of 2013 was $11.9 million versus a net loss of $4.5 million for the comparable period of 2012. The 2012 results included a pre-tax restructuring charge of $8 million.
Net sales for the third quarter of 2013 were $139.4 million versus third quarter 2012 sales of $135.5 million, an increase of 2.9%. Currency translation had a $3.8 million negative impact on sales for the third quarter of 2013 due primarily to the weaker yen.
For the third quarter of 2013, sales of activated carbon and service increased by 7%, as compared to the third quarter of 2012. The increase was primarily due to higher demand for activated carbon in the environmental water, food and specialty carbon markets. These increases were partially offset by lower demand for activated carbon in the environmental air treatment market.
Equipment sales decreased by 26.3% versus the third quarter of 2012 due to lower sales of ballast water treatment systems and, to a lesser extent, on carbon adsorption systems. Third quarter 2013 consumer sales increased 28.2% over the comparable period of 2012 due to higher demand for activated carbon cloth.
For the third quarter of 2013, net sales less the cost of products sold as a percentage of net sales (excluding depreciation) was 33.3%, versus 27.3% for the third quarter of 2012. The improvement was attributable to better plant performance and lower costs. In addition, the 2012 period was characterized by maintenance issues, delays associated with a capital project, and hurricane damage at the company’s Pearl River plant, which increased the cost of products sold by $2.5 million. A $1.7 million write-off of obsolete inventory also contributed unfavorably to 2012’s costs.
Selling, administrative and research expenses for the third quarter of 2013 were $21.0 million, as compared to $25.8 million for the third quarter of 2012. The decrease relates to expense control efforts as well as the absence of charges in 2012, including $3.4 million in employee-related expenses.
Net sales for the nine months ended Sept. 30, 2013 were $414.8 million, a 1.3% decrease over the comparable period of 2012. Revenue from ballast water treatment systems was $14.8 million lower than in the comparable period of 2012. In addition, currency translation had a $10.0 million negative effect on sales for the nine months ended Sept. 30, 2013, primarily due to the weaker yen.
Net income for the first nine months of 2013, was $34.7 million versus $14.2 million for the comparable period of 2012. Income from operations for the first nine months of 2013 was $53.1 million as compared to $25.1 million for nine months ended Sept. 30, 2012. The 111.1% increase includes a significant positive impact from the company’s cost improvement initiatives.
Fully diluted net income per common share for the nine months ended Sept. 30, 2013, was $0.64 as compared to $0.25 for the comparable period of 2012.
“The results for the quarter and year-to-date periods clearly show the significant benefits from our corporate initiatives,” said Randy Dearth, Calgon Carbon’s president and CEO. “Going forward, these initiatives along with our focus on growth opportunities will strengthen our position as a leader in the mark
Source: Calgon Carbon Corp.
