Selling, administrative and research expenses for the second quarter of 2012 were $23.1 million as compared to $22.5 million for the second quarter of 2011. The increase was principally due to expenses related to the testing of new activated carbon products. Selling, administrative and research expenses as a percentage of sales improved to 15.6% for the second quarter of 2012 versus 16.6% for the second quarter of 2011.
Calgon Carbon’s board of directors did not declare a quarterly dividend.
Net sales for the six months ended June 30, 2012, were $285.0 million, a $25.3 million, or a 9.8%, increase over the comparable period in 2011. Currency translation had a $3.3 million negative impact on sales for the first half of 2012 due to the stronger dollar.
Net income for the six months ended June 30, 2012, was $18.6 million versus $19.8 million for the comparable period of 2011. Fully diluted net income per common share for the first half of 2012 was $0.33. Fully diluted net income per common share for the first half of 2011 was $0.35.Randy Dearth, Calgon Carbon’s president and chief executive officer, commented on the results, “Calgon Carbon is a company with strong fundamentals and unprecedented opportunities as a provider of environmental solutions. Several factors, including the global economic slowdown, rising raw material and maintenance costs, and delays in implementation of environmental regulations, have created a challenging business environment for the company. In response, Calgon Carbon’s management has initiated a program which, I believe, will result in annual cost savings in excess of $10 million.” “As I assume leadership of the company, my first priority will be to fully implement this cost reduction program as quickly as possible. I am also committed to identifying additional initiatives that will further strengthen the company’s competitive position. I believe that these efforts should result in significant and sustained earnings growth.”