Calgon Carbon Corporation (NYSE: CCC) announced results for the first quarter ended March 31, 2014.
Income from operations for the first quarter of 2014 was $15.6 million versus $15.0 million for the first quarter of 2013. Net income of $9.8 million for the first quarter of 2014 was comparable to net income for the first quarter of 2013. On a fully diluted share basis, earnings per common share for both the first quarter of 2014 and the first quarter of 2013 were $0.18.
Net sales for the first quarter of 2014 were $131.6 million, versus $135.0 million for the comparable period in 2013, a decline of 2.5%. Currency translation had a $0.5 million negative impact on sales for the first quarter of 2014 due to the weaker yen.
For the first quarter of 2014, sales for the Activated Carbon and Service segment declined 1.0% as compared to the first quarter of 2013. The slight decrease was due to lower sales of activated carbon products and services in the municipal drinking water market in the U.S., the environmental air market in Asia, and the industrial process market in Europe. These decreases were largely offset by higher demand in all three regions for granular activated carbon in the food market. Sales of activated carbon used in respirators also increased in the first quarter of 2014.Equipment sales declined 24.7% in the first quarter of 2014 versus the comparable period of 2013 due to lower revenue from ballast water treatment and traditional UV systems. The $1.2 million, or 54.0%, increase in consumer sales for the first quarter of 2014 was attributed to higher demand for the Company’s activated carbon cloth from a single, large customer. Net sales less the cost of products sold (excluding depreciation and amortization), as a percentage of net sales for the first quarter of 2014 was 33.6%, versus 31.6% for the first quarter of 2013. The improvement was attributable to several factors, including price increases on activated carbon and service products that were initiated in 2013 and the positive impact of the Company’s global cost improvement program.