Monday, Calgon Carbon Corporation (CCC), a provider of water and air purification solutions, reported a decline in first-quarter earnings, absent a gain recorded in the prior-year period from the settlement of a lawsuit.
Net income for the quarter fell to $6.0 million from $10.4 million in the same period last year. Earnings per share declined to $0.11 from $0.20 in the corresponding period last year.
On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude special items.
Results for the prior-year quarter included a non-recurring after-tax gain of $5.7 million, or $0.11 per share, related to the settlement of a lawsuit.
First-quarter net sales increased slightly to $90.6 million from $90.3 million in the year-ago quarter. Eight Street analysts expected the company to report revenues of $95.72 million for the quarter.
Currency translation, due to stronger U.S. dollar, negatively impacted sales by $5.3 million during the first quarter of 2009.
Activated Carbon and Service segment sales increased 1.1%, primarily due to higher pricing for certain carbon products and services in the food and municipal drinking water markets, partially offset by lower demand in other market segments.
Equipment sales increased by 12.4% mainly due to higher revenue for ultraviolet light and ion exchange systems. This increase was partially offset by lower revenue for carbon adsorption and odor control systems.
Consumer sales segment witnessed a 47.2% decline in sales primarily due to lower demand for carbon cloth products.
John Stanik, Calgon Carbon's chairman, president and chief executive officer, said, "Despite the decline in volume, earnings per share showed improvement over last year, excluding the non-recurring gain in the first quarter of 2008. This improvement was achieved primarily through pricing on certain activated carbon and service products, lower interest expense, and tight expense control."
The company also said that its board of directors did not declare a quarterly dividend.
CCC closed Friday's regular trading session at $17.07.
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