Calgon Carbon Corporation (CCC - Analyst Report) has announced that the antidumping order on steam activated carbon imported into the U.S. from China has been extended by at least another five years by the U.S. International Trade Commission (ITC).
Once the Chinese activated carbon enter the U.S. markets, the importers will have to make cash deposits of estimated anti dumping tariffs. The tariff rates will be determined by the U.S. Department of Commerce (DOC). At the end of the fifth year, the DOC and ITC will further review if the order can be extended.
Current average tariff rate, as announced in Nov 2012, is 47 cents per pound and this will be maintained for a year till Nov 2013. Calgon Carbon’s tariff on activated carbon imported into the U.S. from China is currently nil.
Calgon Carbon released its third-quarter 2012 results in Nov 2012. The company incurred a loss of $4.5 million or 8 cents a share in the quarter compared with a profit of $14.5 million or 25 cents a share a year ago.
Excluding a restructuring charge of $8 million, the Pennsylvania-based pollution control company earned 6 cents a share in the quarter, which missed the Zacks Consensus Estimate of 12 cents.
Revenues fell 5.6% year over year to $135.5 million, and missed the Zacks Consensus Estimate of $143.0 million. Currency translation had a negative impact of $3.2 million on sales, stemming from a stronger dollar.
Calgon Carbon remains confident in its ability to balance the need for future investment with its responsibility to provide short-term returns.
Despite some challenges, the company expects to continue to capitalize on its growth opportunities. The company’s healthy sales gains and strategic initiatives will be beneficial in the long term.
Calgon Carbon currently retains a Zacks Rank#3 (Hold).
Other companies in the pollution control industry having a favorable Zacks rank are CECO Environmental Corp. (CECE - Snapshot Report) , MFRI Inc. and Progressive Waste Solutions Ltd. . While CECO Environmental Corp. carries Zacks Rank #1 (Strong Buy), MFRI and Progressive Waste carry a Zacks Rank #2 (Buy).