Calgon Carbon Corporation (CCC - Analyst Report) announced that its wholly owned subsidiary, Calgon Carbon Japan has won a contract to supply about 5.3 million pounds of activated carbon to BlueScope Steel in Australia for removal of sulfur oxide (SOx) and nitrogen oxide (NOx) from exhaust gases at one of its steel manufacturing facilities. The companies did not disclose the terms of the deal.
The process of removing sulfur dioxide and nitrogen dioxide involves absorption and catalytic functionality of an activated carbon specifically designed for this application and is known as DeSOx/DeNOx. The activated carbon is regenerated, and this process can also recover SOx as sulfuric acid.
The delivery of activated carbon to BlueScope Steel’s Port Kembla, New South Wales, Australia facility is expected to begin immediately and continue till 2013. Blue Scope Steel is a leading steel company in Australia and New Zealand, supplying a large percentage of all flat steel products.
Headquartered in Pittsburgh, Pennsylvania, Calgon Carbon Corporation is a global leader in services and solutions for making safe and clean water and air. The company released its second quarter 2012 results in the last month. The company’s earnings of 19 cents a share for the quarter trailed the Zacks Consensus Estimate as well as the year-ago earnings by a penny. The company reported a 3.5% year-over-year decline in profits to $10.9 million in the quarter as higher costs more than offset top-line growth.
Revenues climbed 9.7% year over year to $148.4 million, beating the Zacks Consensus Estimate of $147.0 million. Currency translation had a negative impact of $3.1 million on sales, due to strengthening of dollar.
The company, which competes with MeadWestvaco Corporation , retains a Zacks #3 Rank, which translates into a short-term Hold rating. We currently have a long-term Neutral recommendation on the shares of Calgon Carbon.