Calgon Carbon Falls as Profit Impacted by Slowdown, Rising Costs
Calgon Carbon Corp. (CCC), a Pittsburgh- based water-purification company, said second-quarter profit fell almost 4 percent, hurt by the economic slowdown and rising costs of raw materials.
The shares slid as much as 9.6 percent, the most since 2009, after Calgon Carbon reported net income of $10.9 million, down from $11.3 million for the year-earlier period. The stock has fallen 14 percent this year compared with a 13 percent gain by the 17-member Bloomberg World Water Index.
Calgon Carbon reported quarterly earnings per share of 19 cents today versus analysts’ 20 cents per share estimate. Net sales of $148.4 million were almost 10 percent higher than the year-earlier quarter, the company said today in a statement.
Equipment sales climbed 70 percent from the year-earlier period, aided by “higher revenue recognition from ballast water treatment systems,” Calgon Carbon said. No quarterly dividend was declared and a cost-reduction program is being implemented, it said.
“Several factors, including the global economic slowdown, rising raw material and maintenance costs, and delays in implementation of environmental regulations have created a challenging business environment,” Calgon Carbon Chief Executive Officer Randy Dearth said in the statement.
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