Calgon Carbon Corporation (CCC - Analyst Report) has been awarded with a granular activated carbon (GAC) supply contract by DaeWoo Engineering and Construction Co. Ltd. Calgon Carbon will be supplying 5.6 million pounds of GAC to the Gu Eui Municipal Drinking Water Plant in Seoul City, South Korea, for drinking water treatment.
The Gu Eui plant supplies 119 million gallons of potable water per day to roughly 600,000 residents in GwangJin-gu, Seoul, South Korea. The newly constructed carbon filters at the plant will be installed with GAC, which will help in removing unpleasant taste and odor from the plant’s source water.
Based on Calgon Carbon’s rigorous product quality assurance procedure and the excellent long-term performance of its products that have been installed in several other municipal drinking water treatment plants in Korea, the company was selected for the contract.
Calgon Carbon released its fourth-quarter 2013 results on Feb 19. The company’s earnings for the quarter were 20 cents per share, up from 16 cents per share in the year-ago quarter. The quarterly results beat the Zacks Consensus Estimate by a penny.
Calgon Carbon posted net income of $11 million in the reported quarter compared with $9.1 million recorded in the prior-year quarter. The year-ago quarter’s results were hurt by restructuring charges of $2.3 million.
Revenues decreased roughly 6.1% year over year to $133.1 million in the reported quarter from $141.8 million recorded in the year-ago quarter. It lagged the Zacks Consensus Estimate of $138 million.
The decline in sales was due to lower sales of activated carbon in Asia, including Japan, and lower demand for mercury removal carbon in the U.S. Currency translation had a negative impact of $1.6 million on sales, stemming from a strong U.S. dollar.
Calgon Carbon expects to benefit from the implementation of its cost reduction program and corporate initiatives, going forward. The company will continue to capitalize on opportunities for revenue growth from environmental regulations for mercury removal from coal-fired power plants and for ballast water treatment.
Calgon Carbon’s Board has approved $85 million for capital spending for 2014 that is expected to increase carbon production capacity while reducing costs.
Calgon Carbon has a Zacks Rank #5 (Sell).
Other companies in the pollution control industry worth considering include Sharps Compliance Corp (SMED - Snapshot Report), Tetra Tech Inc. (TTEK - Analyst Report) and Pure Cycle Corp. (PCYO - Snapshot Report). While Sharps Compliance carries a Zacks Rank #1 (Strong Buy), Tetra Tech and Pure Cycle have a Zacks Rank #2 (Buy).