Conditional Approval for Calgon

Recently, Calgon Carbon Corporation (CCC - Analyst Report) announced that its Ultraviolet (UV) Technologies Division received a conditional approval from the California Department of Public Health (CDPH) for its wastewater disinfection system, C3500D (earlier known as C3500). The conditional acceptance will allow the sale of UV products in those places, where water reuse activity is expected to occur.

According to the Water Recycling Committee (WRC), a drinking program of the CDPH, the C3500D UV disinfection system has met the criteria defined in the California Code of Regulations (CCR) for recycled waters, thus gaining the approval.

The WRC scrutinized whether C3500D Wastewater met the microbiological standards and were in adherence with the 2003 Ultraviolet Disinfection Guidelines for Drinking Water and Water Reuse. Moreover, recycled waters, which meet these stringent microbiological standards, can be used not only for the irrigation of crops but also in golf courses, recreational waters, and other non-potable applications.

The shortage of water coupled with rising demand is driving growth for the water reuse market. Therefore, through this approval, Calgon Carbon’s C3500D can establish its foothold in different markets.

The company is slated to release its fourth-quarter and full-year 2011 results on  February 22, 2012. In the third quarter of 2011, Calgon reported a profit of 25 cents per share compared with 18 cents in the year-ago quarter, surpassing the Zacks Consensus Estimate of 22 cents. Sales in the third quarter increased 15.5% to $143.6 million. Currency translation had a positive impact of $5.1 million on sales for the third quarter due to the weak dollar.

Currently, the company maintains a Zacks #3 Rank (short-term “Hold” recommendation). Calgon mainly competes with MeadWestvaco Corporation (MWV - Analyst Report) and ITT Water & Wastewater Herford GmbH.

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