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Calgon Carbon Announces First Quarter Results

May 4, 2009

PITTSBURGH, May 4 /PRNewswire-FirstCall/ — Calgon Carbon Corporation (NYSE: CCC) announced results for the first quarter ended March 31, 2009.

The company reported net income of $6.0 million for the first quarter of 2009, as compared to net income of $10.4 million for the first quarter of 2008. On a fully diluted share basis, earnings per common share for the first quarter of 2009 were $0.11 versus $0.20 for the first quarter of 2008.

Included in the results for the first quarter of 2008 was a non-recurring after-tax gain of $5.7 million, or $0.11 per common share on a fully diluted share basis, from the settlement of a lawsuit.

Net sales for the first quarter of 2009 were $90.6 million, a slight increase over net sales of $90.3 million for the first quarter 2008. Because of the stronger U.S. dollar, currency translation had a $5.3-million, or 5.5%, negative impact on sales for the first quarter of 2009.

For the first quarter of 2009, sales for the Activated Carbon and Service segment increased slightly as compared to the first quarter of 2008. The 1.1% increase was primarily due to higher pricing for certain carbon products and services in the food and municipal drinking water markets, which was partially offset by lower demand in other market segments. Equipment sales increased by 12.4% in the first quarter of 2009 versus the comparable period in 2008, principally due to higher revenue for ultraviolet light and ion exchange systems. This increase was partially offset by lower revenue for carbon adsorption and odor control systems. A decline of 47.2% in Consumer sales for the first quarter of 2009 was primarily attributable to lower demand for carbon cloth products.

Net sales less the cost of products sold (excluding depreciation and amortization), as a percentage of net sales for the first quarter of 2009 was 32.5% versus 31.6% for the first quarter of 2008. Higher pricing on certain carbon and service products accounted for the increase by more than offsetting increases in activated carbon product costs.

Selling, administrative and research (SG&A) expenses for the first quarter of 2009 increased by 2.5% versus the comparable period in 2008. The increase was principally due to higher pension expense.

Interest income was $0.1 million for the first quarter of 2009. This compares with interest expense of $1.7 million for the first quarter of 2008. The change is due to the lower amount of debt outstanding during the first quarter of 2009 as a result of the company redeeming $69.0 million of its 5% Senior Convertible Notes in the second half of 2008.

Calgon Carbon’s board of directors did not declare a quarterly dividend.

Commenting on the quarter, John Stanik, Calgon Carbon’s chairman, president and chief executive officer, said, “The weak global economy had a significant negative impact on volume sold during the first quarter. Lower demand in many of our end markets resulted in a considerable decline in activated carbon and service sales volume.

Considering this, I am relatively pleased with the company’s performance in the first quarter. Despite the decline in volume, earnings per share showed improvement over last year, excluding the non-recurring gain in the first quarter of 2008. This improvement was achieved primarily through pricing on certain activated carbon and service products, lower interest expense, and tight expense control.”

Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner.

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 company’s 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 company’s 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 company’s 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 company’s most recent Annual Report.

                       Calgon Carbon Corporation
              Condensed Consolidated Statement of Income
             (Dollars in thousands except per share data)
                              (Unaudited)

                                                          Quarter Ended
                                                            March 31,
                                                            ---------
                                                        2009          2008*
                                                        ----          ----

    Net Sales                                        $90,633       $90,331
                                                     -------       -------

    Cost of Products Sold                             61,214        61,765

    Depreciation and Amortization                      3,776         3,926

    Selling, Administrative & Research                16,707        16,291

    Gain from AST Settlement                               -        (9,250)
                                                         ---        ------

                                                      81,697        72,732
                                                      ------        ------

    Income from Operations                             8,936        17,599

    Interest Income (Expense) - Net                      106        (1,655)

    Other Expense - Net                                 (428)          (90)
                                                        ----           ---

    Income From Operations Before Income Tax and
     Equity in Income from Equity Investments          8,614        15,854

    Income Tax Provision                               3,081         5,919
                                                       -----         -----

    Income from Operations Before Equity in
     Income from Equity Investments                    5,533         9,935

    Equity in Income from Equity Investments             441           438
                                                         ---           ---

    Net Income                                        $5,974       $10,373
                                                      ======       =======

    Net Income per Common Share
        Basic                                           $.11          $.26
        Diluted                                         $.11          $.20

    Weighted Average Shares Outstanding (Thousands)
        Basic                                         54,117        40,240
        Diluted                                       56,079        51,756

    * Results have been retrospectively restated to incorporate the adoption
      of FASB Staff Position APB 14-1, "Accounting for Convertible Debt
      Instruments That May Be Settled in Cash upon Conversion (Including
      Partial Cash Settlement)".

                 Calgon Carbon Corporation

    Segment Data:
    -------------

    Segment Sales                        1Q09     1Q08  YTD 2009  YTD 2008
    -------------                        ----     ----  --------  --------

    Activated Carbon and Service        77,763   76,898   77,763    76,898
    Equipment                           10,899    9,697   10,899     9,697
    Consumer                             1,971    3,736    1,971     3,736
                                         -----    -----    -----     -----

    Total Sales (thousands)            $90,633  $90,331  $90,633   $90,331

    Segment
    Operating Income (loss)*             1Q09     1Q08  YTD 2008  YTD 2007
    ------------------------             ----     ----  --------  --------

    Activated Carbon and Service        11,882   17,376   11,882    17,376
    Equipment                              975    3,443      975     3,443
    Consumer                              (145)     706     (145)      706
                                          ----      ---     ----       ---

    Income from Operations (thousands) $12,712  $21,525  $12,712   $21,525

    * Before depreciation and amortization.  The 2008 period includes the
      $9.3 million gain on AST settlement ($5.3 million Activated Carbon
      and Service and $4.0 million Equipment).

                           Calgon Carbon Corporation
                      Condensed Consolidated Balance Sheet
                             (Dollars in thousands)
                                  (Unaudited)

                                                    March 31,  December 31,
                                                        2009          2008*
                                                        ----          ----

                        ASSETS

    Current assets:

        Cash and cash equivalents                    $13,874       $16,750

        Receivables                                   65,018        64,515

        Inventories                                   98,731        93,725

        Other current assets                          20,423        25,598
                                                      ------        ------

            Total current assets                     198,046       200,588

    Property, plant and equipment, net               130,575       122,960

    Other assets                                      62,780        63,714
                                                      ------        ------

            Total assets                            $391,401      $387,262
                                                    ========      ========

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities:

        Short-term debt                               $1,608        $1,605

        Current portion of long-term debt              7,994         7,903

        Other current liabilities                     57,364        56,036
                                                      ------        ------

            Total current liabilities                 66,966        65,544

    Long-term debt                                         -             -

    Other liabilities                                 68,313        68,441
                                                      ------        ------

            Total liabilities                        135,279       133,985

    Total shareholders' equity                       256,122       253,277
                                                     -------       -------

        Total liabilities and shareholders'
         equity                                     $391,401      $387,262
                                                    ========      ========

    * Results have been retrospectively restated to incorporate the
      adoption of FASB Staff Position APB 14-1,  "Accounting for Convertible
      Debt Instruments That May Be Settled in Cash upon Conversion
      (Including Partial Cash Settlement)".

SOURCE Calgon Carbon Corporation


Source: newswire



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