PITTSBURGH, Oct. 31 /PRNewswire-FirstCall/ -- Calgon Carbon Corporation
(NYSE: CCC) announced results for the third quarter ended September 30, 2008.
The company reported net income of $6.3 million for the third quarter of
2008, as compared to net income of $4.9 million for the third quarter of 2007.
On a fully diluted basis, net income per common share for the third quarter of
2008 was $0.12, as compared to fully diluted net income per common share of
$0.10 for the third quarter of 2007.
Income from operations for the third quarter of 2008 was $12.3 million
versus income from operations of $6.5 million for the comparable period in
2007.
Net sales for the third quarter of 2008, were $99.1 million versus third
quarter 2007 sales of $84.9 million, an increase of 16.7%. Currency
translation had a $1.0-million positive impact on sales for the third quarter
of 2008 due to the strong Euro.
For the third quarter of 2008, sales of the Activated Carbon and Service
segment increased by 17.8% versus the third quarter of 2007. The increase was
due to higher pricing and volume for activated carbon products and services in
the environmental water treatment, potable water treatment, and food
industries. Equipment sales increased 26.0% versus the third quarter of 2007.
The increase resulted from higher demand for carbon adsorption and odor
control equipment and from systems that utilize ultraviolet light for
disinfection of drinking water. A 33.4% decrease in Consumer sales for the
third quarter of 2008 was attributable to lower demand for activated carbon
cloth in the medical sector and for the company's PreZerve(R) products.
Net sales less the cost of products sold as a percentage of net sales for
the third quarter of 2008 was 33.9% versus 32.1% for the third quarter of
2007. The increase was due primarily to higher pricing on certain activated
carbon and service products.
Selling, administrative and research expenses for the third quarter of
2008 increased 6.4% versus the third quarter of 2007. The increase was
principally due to higher legal expenses related to the Department of
Commerce's administrative review of its April 2007 anti-dumping order on
certain activated carbon products from China. Selling, administrative and
research expenses as a percentage of sales were 17.5% as compared to 19.2% for
the third quarter of 2007.
For the third quarter of 2008, the company's tax provision was $4.0
million versus $0.4 million for the comparable period in 2007. The third
quarter tax rates for 2008 and 2007 were 38.0% and 8.0%, respectively. The
tax rate for the third quarter of 2007 was favorably impacted by the reversal
of uncertain tax position liabilities due to statute expirations. The company
estimates that its 2008 full-year effective tax rate to be 36.0%
Calgon Carbon's board of directors did not declare a quarterly dividend.
Net income for the nine months ended September 30, 2008 was $30.5 million
versus $11.4 million for the comparable period of 2007.
