Calgon Carbon Announces Second Quarter Results

PITTSBURGH, July 31 /PRNewswire-FirstCall/ -- Calgon Carbon Corporation
(NYSE: CCC) announced results for the second quarter ended June 30, 2008.
The company reported net income of $13.3 million for the second quarter of
2008, as compared to net income of $4.5 million for the second quarter of
2007. Net income for the second quarter of 2008 consisted of income from
continuing operations of $9.8 million and income from discontinued operations
of $3.5 million which represents the final adjustment to the sale price of the
company's charcoal business that was sold in the first quarter of 2006. On a
fully diluted basis, net income per common share for the second quarter of
2008 was $0.25, consisting of $0.19 from continuing operations and $0.06 from
discontinued operations. This compares with fully diluted net income per
common share of $0.09 for the second quarter of 2007, all of which was from
continuing operations.
Income from operations for the second quarter of 2008 was $16.1 million
versus income from operations of $8.6 million for the comparable period in
2007.
Net sales for the second quarter of 2008, were $108.5 million versus
second quarter 2007 sales of $88.4 million, an increase of 22.7%. Currency
translation had a $3.5-million positive impact on sales for the second quarter
of 2008 due to the strong Euro.
For the second quarter of 2008, sales of the Activated Carbon and Service
segment increased by 27.5% versus the second quarter of 2007. The increase
was primarily due to higher demand and pricing in the food, potable water, and
environmental air treatment markets, and higher pricing in the environmental
water treatment and industrial process markets. Equipment sales were
comparable to the second quarter of 2007. A 19.6% decrease in consumer sales
for the second quarter of 2008 was attributable to lower demand for the
company's PreZerve(R) products.
Net sales less the cost of products sold as a percentage of net sales for
the second quarter of 2008 was 34.5% versus 32.7% for the second quarter of
2007. The increase was due primarily to higher pricing on certain activated
carbon and service products.
Selling, administrative and research expenses for the second quarter of
2008 increased 7.8% versus the second quarter of 2007, principally due to
higher employee-related costs which were partially offset by a decrease in bad
debt expense. Selling, administrative and research expenses as a percentage
of sales were 15.8% as compared to 18.0% for the second quarter of 2007.
Calgon Carbon's board of directors did not declare a quarterly dividend.
Net income for the six months ended June 30, 2008 was $24.1 million versus
$6.5 million for the comparable period of 2007. Net income for the first half
of 2008 included a non-recurring after-tax gain of $5.7 million from the
settlement of a lawsuit and a non-recurring after-tax gain of $3.5 million
related to the sale of the company's charcoal business. Fully diluted net
income per common share for the first half of 2008 was $0.47, which consisted
of $0.40 from continuing operations and $0.07 from discontinued operations.
Fully diluted net income per common share for the first half of 2007 was
$0.14, all of which was from continuing operations.
Income from operations for the six months ended June 30, 2008 was $33.7
million as compared to income from operations of $13.5 million for the first
half of 2007.
Commenting on the results, John Stanik, Calgon Carbon's chairman,
president and chief executive officer said, "We are pleased with the results.
Sales for the second quarter were the highest quarterly sales in our company's
23-year history. Gross margin showed significant improvement - both year-
over-year and sequentially. In addition, we made solid progress toward our
strategic goal of reducing SG&A as a percentage of sales. These metrics
reflect our continued success in obtaining higher value for our activated
carbon products and services."
Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a
global leader in services and solutions for making water and air safer and
cleaner.
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. This document contains certain
statements that are forward-looking relative to the company's future strategy
and performance. They involve known and unknown risks and uncertainties that
may cause the company's actual results in future periods to be materially
different from any future performance.

Calgon Carbon Corporation
Condensed Consolidated Statement of Income
(Dollars in thousands except per share data)
(Unaudited)

Quarter Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007

Net Sales $108,476 $88,428 $198,807 $171,458

Cost of Products Sold 71,021 59,556 132,786 117,980

Depreciation and Amortization 4,199 4,331 8,125 8,592

Selling, Administrative & Research 17,154 15,916 33,445 31,350

Gain from AST Settlement - - (9,250) -

92,374 79,803 165,106 157,922

Income from Operations 16,102 8,625 33,701 13,536

Interest Expense - Net (779) (1,010) (1,618) (2,158)

Other Expense - Net (480) (408) (570) (811)

Income From Continuing Operations
Before Income Tax and Equity in
Income (Loss) from Equity
Investments 14,843 7,207 31,513 10,567

Income Tax Provision 4,887 3,147 11,121 5,527

Income from Continuing Operations
Before Equity in Income (Loss)
from Equity Investments 9,956 4,060 20,392 5,040

Equity in Income (Loss) from Equity
Investments (139) 402 299 1,456

Income from Continuing Operations 9,817 4,462 20,691 6,496

Income from Discontinued Operations 3,447 - 3,447 -

Net Income $13,264 $4,462 $24,138 $6,496

Net Income per Common Share
Basic:
Income from Continuing
Operations $.24 $.11 $.51 $.16
Income from Discontinued
Operations $.09 $- $.09 $-
Total $.33 $.11 $.60 $.16

Diluted:
Income from Continuing
Operations $.19 $.09 $.40 $.14
Income from Discontinued
Operations $.06 $- $.07 $-
Total $.25 $.09 $.47 $.14

Weighted Average Shares
Outstanding (Thousands)
Basic 40,559 40,291 40,400 40,258

Diluted 52,025 47,745 51,891 45,807

Calgon Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)

June 30, December 31,
2008 2007

ASSETS

Current assets:

Cash and cash equivalents $38,549 $30,304

Receivables 66,430 57,548

Inventories 86,729 81,280

Other current assets 23,227 20,546

Total current assets 214,935 189,678

Property, plant and equipment, net 112,260 105,512

Other assets 53,867 52,950

Total assets $381,062 $348,140

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term debt $1,600 $1,504

Current portion of long-term debt 65,744 62,507

Other current liabilities 55,317 55,750

Total current liabilities 122,661 119,761

Long-term debt 10,000 12,925

Other liabilities 41,668 43,205

Total liabilities 174,329 175,891

Total shareholders' equity 206,733 172,249

Total liabilities and shareholders'
equity $381,062 $348,140

Calgon Carbon Corporation

Segment Data:

Segment Sales 2Q08 2Q07 YTD 2008 YTD 2007

Activated Carbon and Service 95,284 74,723 172,182 143,406
Equipment 10,742 10,658 20,439 21,624
Consumer 2,450 3,047 6,186 6,428

Total Sales (thousands) $108,476 $88,428 $198,807 $171,458

Segment
Operating Income (loss)* 2Q08 2Q07 YTD 2008 YTD 2007

Activated Carbon and Service 19,766 13,015 37,142 21,488
Equipment 519 (607) 3,962 (736)
Consumer 16 548 722 1,376

Income from Operations (thousands) $20,301 $12,956 $41,826 $22,128

*Before depreciation and amortization

SOURCE Calgon Carbon Corporation

Gail A. Gerono of Calgon Carbon Corporation, +1-412-787-6795