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Profits, sales drop at Calgon Carbon

post-gazette.com    5/10/2016 10:39:00 AM    ReadCount:553

Calgon Carbon said today earnings and sales fell in the first quarter, results that fell shy of analyst estimates.
 
The Moon environmental products and services firm reported net income of $5.5 million, or 11 cents per share, down 51 percent from the year-ago quarter.
 
Sales fell 11 percent to $120.2 million. Analysts had forecast earnings of 16 cents per share on sales of $126 million.
 
The results reflect $1.6 million in expenses related to the company’s planned acquisition of the European activated carbon and filtration media business of CECA. The $160.1 million acquisition was announced last month and is expected to be completed in the fourth quarter.
 
The company blamed the drop in sales on lower revenue from the potable water market, which recorded several large orders for activated carbon in the year-ago quarter. Low natural gas prices and a warm winter caused a drop in sales of activated carbon used to remove harmful emissions from coal-fired power plants, the company said.
 
“Although we anticipate challenging global market conditions to continue, we are confident that our second-quarter revenue will improve sequentially,” chairman, president and CEO Randy Dearth said in a statement.
 
The results were disclosed before Wall Street opened. Calgon Carbon shares closed Wednesday at $15.79, off 4 cents. They are down 8 percent this year.
 
By Len Boselovic / Pittsburgh Post-Gazette