Calgon Carbon Corporation (NYSE: CCC) announced that it expects to report sales of approximately $138 million for the fourth quarter of 2011 and that earnings for the quarter will be adversely affected by the following:
- Expense of $2.2 million related to previously announced management changes in the leadership of its Europe and Asia regions;
- Unexpected expense of $1.7 million due to equipment failures during start-up of its new reactivation facilities in Europe and Asia; and
- An unfavorable impact of $1.7 million due to a much higher than expected proportion of sales of outsourced products in Japan at low margins.
The quarter will also be adversely affected by approximately $1.0 million of additional costs in connection with the Company’s growth initiatives including staffing at Hyde Marine and product testing for the mercury removal market and another $1.0 million of costs from accelerated asset depreciation and the final disposition of the company’s former PreZerve product line.
Commenting on the announcement, John S. Stanik, Calgon Carbon’s president and chief executive officer, said, “Our reactivation facilities in Feluy and China are expected to be fully operational by the first and second quarters of 2012, respectively. Management changes in Japan and the installation of SAP, which was completed in the first quarter of 2012, should support our efforts to better manage the mix of business in Japan.”
Mr. Stanik continued, “These fourth quarter charges had a negative impact on the company’s performance. The equipment failures were unexpected, but we remain committed to the implementation of our reactivation expansion strategy and to strengthening our position in ballast water treatment and mercury removal.”Calgon Carbon is finalizing its fourth quarter results and expects to announce fourth quarter and full-year 2011 results on February 27, 2012. For more information about Calgon Carbon's leading activated carbon and ultraviolet technology solutions for municipalities and industries, visit www.calgoncarbon.com. Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts