Calgon Carbon Corporation (CCC - Free Report) and RC Foster Corporation have inked a system supply contract worth $2.3 million under which the former will provide granular activated carbon (GAC) and related equipment systems for the removal of 1,2,3-Trichloropropane (1,2,3-TCP) from groundwater in the city of Chino, CA.
Per the terms of the deal, Calgon Carbon will supply 320,000 pounds of Filtrasorb 400 GAC and 16 GAC adsorption vessels to the Eastside Treatment Plant and the Benson Treatment Plant. These systems, at each site, will treat up to 5 million gallons of water per day.
Calgon Carbon, a pioneer in activated carbon treatment technologies and contaminant removal, has over three decades of experience in providing GAC adsorption systems, which helps to remove 1,2,3-TCP from water. It is touted to be the Best Available Technology (BAT) for 1,2,3-TCP treatment.
Notably,in 1992, pursuant to Safe Drinking Water and Toxic Enforcement Act, 1,2,3-TCP — a colorless, manmade, chlorinated hydrocarbon — was added to the list of chemicals known to the state of California to cause cancer. In July, the California State Water Resources Control Board adopted a maximum contaminant level (MCL) for 1,2,3-TCP of 5 parts per trillion.
According to RC Foster Corporation, the installation of GAC adsorption systems will help the city of Chino to meet the new MCL standards.
Shares of Calgon Carbon have declined 6.1% in the last six months versus the 1.7% growth of its industry.
Q2 Performance & Outlook
Calgon Carbon reported net income of $5.9 million or 12 cents per share in second-quarter 2017, compared with a profit of $7.9 million or 15 cents per share recorded a year ago. Barring one-time items, adjusted earnings were 14 cents per share that were in line with the Zacks Consensus Estimate.
Net sales increased around 15.4% year over year to $153 million, beating the Zacks Consensus Estimate of $150.6 million.
Calgon Carbon, in its second-quarter earnings call, noted that its performance benefited from improved year-over-year demand of activated carbon products and services, steady execution from New Business to achieve robust quarterly sales growth and the company’s diverse end markets. The company is also optimistic about its industrial sector customers.
Calgon Carbon expects sales and profitability to improve in the second half of 2017. The company also expects growth in its legacy business sales for the full year, which is expected to benefit from improved demand of activated carbon products in North America.
Zacks Rank & Key Picks
Calgon Carbon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products space are Caterpillar, Inc. (CAT - Free Report) , China National Materials Company Limited (CASDY - Free Report) and Terex Corporation (TEX - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Caterpillar has an expected long-term earnings growth rate of 9.5%.
China National Materials has an expected long-term earnings growth rate of 20%.
Terex has an expected long-term earnings growth rate of 19.7%.
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