News Release


Calgon Carbon Announces Second Quarter Results

PITTSBURGH, Aug 03, 2010 (BUSINESS WIRE) -- Calgon Carbon Corporation (NYSE: CCC) announced results for the second quarter ended June 30, 2010.

The company reported net income of $2.9 million for the second quarter of 2010, as compared to net income of $6.1 million for the second quarter of 2009. On a fully diluted basis, net income per common share for the second quarter of 2010 was $0.05, as compared to $0.11 for the second quarter of 2009.

Income from operations for the second quarter of 2010 was $4.3 million, versus $10.2 million for the comparable period in 2009.

Both income from operations and net income for the second quarter of 2010 included a $11.5-million charge resulting from a verdict against the company in a breach of contract lawsuit.

Net sales for the second quarter of 2010 were $123.6 million, a $20.5-million, or 19.9%, increase over the comparable period in 2009. For the second quarter of 2010, the net effect on sales from acquisitions completed in 2010 was $9.9 million. Currency translation had a $1.4-million negative impact on sales for the second quarter due to the stronger dollar.

For the second quarter of 2010, sales for the Activated Carbon and Service segment increased 23.5% as compared to the second quarter of 2009. The increase was due principally to higher demand for certain activated carbon and service products in the potable water and environmental air treatment markets. Higher demand in the environmental water treatment and specialty carbon markets also contributed to the increase.

Equipment sales for the second quarter of 2010 were comparable to the second quarter of 2009. For the second quarter of 2010, Consumer sales declined 13.3% versus the second quarter of 2009. This was principally due to lower demand for activated carbon cloth.

Net sales less the cost of products sold as a percentage of net sales for the second quarter of 2010 was 34.8% versus 31.8% for the second quarter of 2009. The increase was due to a higher volume of carbon and service products sold during the second quarter of 2010.

Selling, administrative and research expenses for the second quarter of 2010 were $22.0 million versus $18.6 million for the comparable period in 2009, and included $3.6 million related to acquisitions completed in the first quarter of 2010. Excluding those expenses, selling administrative and research expenses for the second quarter of 2010 were comparable to the second quarter of 2009.

Calgon Carbon's board of directors did not declare a quarterly dividend.

Net sales for the six months ended June 30, 2010 were $226.5 million, a $32.8-million, or 16.9%, increase over the comparable period in 2009. For the first half of 2010, the net effect on sales from acquisitions completed in 2010 was $8.1 million. Currency translation had $0.7-million positive impact on sales for the first half due to a weaker dollar.

The gain on acquisitions of $3.1 million for the six months ended June 30, 2010 relates to acquisitions that occurred during the first quarter and includes a retrospective adjustment of approximately $0.9 million.

Net income for the six months ended June 30, 2010 was $12.8 million versus $12.1 million for the comparable period of 2009. Fully diluted net income per common share for the first half of 2010 was $0.23. Fully diluted net income per common share for the first half of 2009 was $0.21.

Commenting on the quarter, John Stanik, Calgon Carbon's chairman, president and chief executive officer, said, "Excluding the outcome of the litigation, the quarter was strong. I am especially pleased with the revenue growth, as it indicates that some of the markets Calgon Carbon serves are participating in the economic recovery. During the quarter, we also made excellent progress in integrating three acquisitions completed earlier this year. The process increases operating expenses in the short term, but when full integration is achieved, the acquisitions are expected to contribute to both top- and bottom-line growth. Most importantly, during the first half of the year we made significant progress in the execution of our strategic plan which is the key to meeting our long-term growth objectives for the company.

For more information about Calgon Carbon's leading activated carbon and ultraviolet technology solutions for municipalities and industries, visit http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.calgoncarbon.com&esheet=6382196&lan=en-US&anchor=www.calgoncarbon.com&index=1&md5=c313a1770fb8a134d08471ec2e2faadd.

Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner.

This news release contains historical information and forward-looking statements. Forward-looking statements typically contain words such as "expect," "believe," "estimate," "anticipate," or similar words indicating that future outcomes are uncertain. Statements looking forward in time, including statements regarding future growth and profitability, price increases, cost savings, broader product lines, enhanced competitive posture and acquisitions, are included in the company's most recent Annual Report pursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. 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 suggested herein. Further, the company operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the company's control. Some of the factors that could affect future performance of the company are higher energy and raw material costs, costs of imports and related tariffs, labor relations, capital and environmental requirements, changes in foreign currency exchange rates, borrowing restrictions, validity of patents and other intellectual property, and pension costs. In the context of the forward-looking information provided in this news release, please refer to the discussions of risk factors and other information detailed in, as well as the other information contained in the company's most recent Annual Report.

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,
2010 2009 2010 2009
Net Sales $ 123,574 $ 103,090 $ 226,501 $ 193,723
Cost of Products Sold 80,512 70,319 146,303 131,533
Depreciation and Amortization 5,261 3,972 10,338 7,748
Selling, Administrative & Research 22,044 18,626 41,695 35,333
Litigation Contingency 11,500 - 11,500 -
119,317 92,917 209,836 174,614
Income from Operations 4,257 10,173 16,665 19,109
Interest - Net 2 (109 ) 110 (3 )
Gain on Acquisitions - - 3,119 -
Other Expense - Net (172 ) (1,500 ) (475 ) (1,928 )

Income From Operations Before Income Tax and Equity in Income from Equity Investments

4,087 8,564 19,419 17,178
Income Tax Provision 1,171 2,893 6,686 5,974

Income from Operations Before Equity in Income from Equity Investments

2,916 5,671 12,733 11,204
Equity in Income from Equity Investments - 427 112 868
Net Income $ 2,916 $ 6,098 $ 12,845 $ 12,072
Net Income per Common Share
Basic $ .05 $ .11 $ .23 $ .22
Diluted $ .05 $ .11 $ .23 $ .21

Weighted Average Shares Outstanding (Thousands)

Basic 55,830 54,331 55,770 54,225
Diluted 56,748 56,285 56,737 56,183
Calgon Carbon Corporation

Segment Data:

Segment Sales

2Q10 2Q09 YTD 2010 YTD 2009
Activated Carbon and Service 110,381 89,383 200,833 167,146
Equipment 11,129 11,327 21,289 22,226
Consumer 2,064 2,380 4,379 4,351
Total Sales (thousands) $ 123,574 $ 103,090 $ 226,501 $ 193,723
Segment

Operating Income (loss)*

2Q10 2Q09 YTD 2010 YTD 2009
Activated Carbon and Service 9,275 13,200 26,962 25,082
Equipment 243 962 (72 ) 1,937
Consumer - (17 ) 113 (162 )
Income from Operations (thousands) $ 9,518 $ 14,145 $ 27,003 $ 26,857

*Before depreciation and amortization. The Activated Carbon and Service segment includes a charge of $11.5 million related to the litigation contingency.

Calgon Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
June 30, December 31,
2010 2009
Assets
Current assets:
Cash and cash equivalents $ 45,035 $ 38,029
Restricted cash 1,333 5,556
Receivables 84,189 64,304
Inventories 96,750 84,587
Other current assets 33,263 29,369
Total current assets 260,570 221,845
Property, plant and equipment, net 163,404 155,100
Other assets 44,207 48,773
Total assets $ 468,181 $ 425,718
Liabilities and Shareholders' Equity
Current liabilities:
Short-term debt $ 16,156 $ -
Current portion of long-term debt 2,711 -
Other current liabilities 79,843 62,021
Total current liabilities 98,710 62,021
Long-term debt 4,766 -
Other liabilities 49,657 56,611
Total liabilities 153,133 118,632
Redeemable Non-Controlling Interest 1,618 -
Total shareholders' equity 313,430 307,086
Total liabilities and shareholders' equity $ 468,181 $ 425,718

SOURCE: Calgon Carbon Corporation

Calgon Carbon Corporation
Gail A. Gerono, 412-787-6795
www.calgoncarbon.com