Calgon Carbon Corporation Discusses First Quarter Progress

Apr 03, 2001, 01:00 ET from Calgon Carbon Corporation

    NEW YORK, April 3 /PRNewswire/ -- Calgon Carbon (NYSE:   CCC) announced
 early 2001 results at the Schwab Capital Markets Global Water Conference,
 noting that financial results should continue to improve throughout the year.
 Sales results through the first quarter and current business conditions were
 discussed.
     "Our new direction of growing shareholder value begun in 2000 will
 continue in 2001," said Jim Cederna, president and chief executive officer.
 "Our business fundamentals are strong and our competitive position is
 strengthening," Cederna added.  "We are focusing our efforts on sales growth,
 and we expect to continue to make significant progress in earning our cost of
 capital," Cederna said.
     Calgon Carbon's 2000 Annual Report mailed to shareholders last week
 describes in detail the new direction in shareholder value growth.
 Specifically, a 57% improvement in economic profit was achieved through cost
 and capital reduction.  Actions taken to streamline for growth and
 implementation of market-based strategies were explained in the report.  New
 investment plans to grow both service and solutions sales geographically were
 also outlined.
     First quarter earnings, which will be released around May 1, 2001, will be
 in line with the Company's previous forecast and in the range of $0.05 - $0.07
 per share.  Earnings per share are expected to continue to improve as the
 Company achieves targeted sales growth throughout the year.
     During the first quarter, the Company saw higher raw material and energy
 costs balanced by productivity gains and lower expenses.  As a percentage of
 costs, natural gas and coal increased by 3.9% and 1.3% respectively.  However,
 a 4% gain in productivity nearly offset the increases in costs.  Most fixed
 assets ran at capacity; working capital was down; and prices trended upward.
     In the first quarter of 2001, sales by segment were:  Activated Carbon -
 44%; Service - 32%; Engineered Solutions - 17%; and Consumer Health - 7%.
 "First quarter sales of $67 million are on par with the first quarter of
 2000," Cederna said, "but the real significance is the new service and
 solutions sales.  These results show real progress toward our vision of making
 our value more visible as a leading service and solutions provider," added
 Cederna.
     Some of Calgon Carbon's sales highlights for the first quarter of 2001
 that were discussed included:
 
     --  A $14.4 million contract for Calgon Carbon's ISEP+(TM) engineered
         solutions system for perchlorate removal and destruction, the single
         largest equipment order ever received by the company.
 
     --  An operating permit issued to the La Puente Valley Water District for
         the ISEP(R) and Rayox(R) systems provided by Calgon Carbon that are,
         respectively, removing perchlorate and NDMA from groundwater in the
         San Gabriel Basin.  With this permit, the District is providing the
         purified drinking water to its customers.  The permit also opens the
         door for further use by other water providers.
 
     --  Price increases for select activated carbon products and services.
 
     --  $2.5 million of new service projects.
 
     --  Successful launch of the PreZerve(TM) jewelry box, for tarnish
         protection, through QVC, Inc.
 
     --  Backlogs doubled as compared to the first quarter a year ago.
 
     --  Overall, new business was 23% of total sales in the first quarter of
         2001.
 
     "These first quarter successes illustrate the kind of new businesses that
 will be growth engines for Calgon Carbon," Cederna concluded.  "With continued
 growth in our Engineered Solutions, Service, and Consumer businesses and
 strong activated carbon business fundamentals, we expect to continue our new
 direction of shareholder value growth."
     Calgon Carbon Corporation (www.calgoncarbon.com), headquartered in
 Pittsburgh, Pennsylvania, is a global leader in services and solutions for
 making air and water cleaner and safer.  The company employs approximately
 1,000 people at 13 operating facilities and 12 sales and service centers.
     The Private Securities Litigation Reform Act of 1995 provides a "safe
 harbor" for forward-looking statements.  This document contains certain
 statements that are forward-looking relative to the company's future strategy
 and performance.  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 in this document.  Further,
 the company operates in an industry where it may be influenced by economic and
 other factors beyond the company's control.
 
 

SOURCE Calgon Carbon Corporation
    NEW YORK, April 3 /PRNewswire/ -- Calgon Carbon (NYSE:   CCC) announced
 early 2001 results at the Schwab Capital Markets Global Water Conference,
 noting that financial results should continue to improve throughout the year.
 Sales results through the first quarter and current business conditions were
 discussed.
     "Our new direction of growing shareholder value begun in 2000 will
 continue in 2001," said Jim Cederna, president and chief executive officer.
 "Our business fundamentals are strong and our competitive position is
 strengthening," Cederna added.  "We are focusing our efforts on sales growth,
 and we expect to continue to make significant progress in earning our cost of
 capital," Cederna said.
     Calgon Carbon's 2000 Annual Report mailed to shareholders last week
 describes in detail the new direction in shareholder value growth.
 Specifically, a 57% improvement in economic profit was achieved through cost
 and capital reduction.  Actions taken to streamline for growth and
 implementation of market-based strategies were explained in the report.  New
 investment plans to grow both service and solutions sales geographically were
 also outlined.
     First quarter earnings, which will be released around May 1, 2001, will be
 in line with the Company's previous forecast and in the range of $0.05 - $0.07
 per share.  Earnings per share are expected to continue to improve as the
 Company achieves targeted sales growth throughout the year.
     During the first quarter, the Company saw higher raw material and energy
 costs balanced by productivity gains and lower expenses.  As a percentage of
 costs, natural gas and coal increased by 3.9% and 1.3% respectively.  However,
 a 4% gain in productivity nearly offset the increases in costs.  Most fixed
 assets ran at capacity; working capital was down; and prices trended upward.
     In the first quarter of 2001, sales by segment were:  Activated Carbon -
 44%; Service - 32%; Engineered Solutions - 17%; and Consumer Health - 7%.
 "First quarter sales of $67 million are on par with the first quarter of
 2000," Cederna said, "but the real significance is the new service and
 solutions sales.  These results show real progress toward our vision of making
 our value more visible as a leading service and solutions provider," added
 Cederna.
     Some of Calgon Carbon's sales highlights for the first quarter of 2001
 that were discussed included:
 
     --  A $14.4 million contract for Calgon Carbon's ISEP+(TM) engineered
         solutions system for perchlorate removal and destruction, the single
         largest equipment order ever received by the company.
 
     --  An operating permit issued to the La Puente Valley Water District for
         the ISEP(R) and Rayox(R) systems provided by Calgon Carbon that are,
         respectively, removing perchlorate and NDMA from groundwater in the
         San Gabriel Basin.  With this permit, the District is providing the
         purified drinking water to its customers.  The permit also opens the
         door for further use by other water providers.
 
     --  Price increases for select activated carbon products and services.
 
     --  $2.5 million of new service projects.
 
     --  Successful launch of the PreZerve(TM) jewelry box, for tarnish
         protection, through QVC, Inc.
 
     --  Backlogs doubled as compared to the first quarter a year ago.
 
     --  Overall, new business was 23% of total sales in the first quarter of
         2001.
 
     "These first quarter successes illustrate the kind of new businesses that
 will be growth engines for Calgon Carbon," Cederna concluded.  "With continued
 growth in our Engineered Solutions, Service, and Consumer businesses and
 strong activated carbon business fundamentals, we expect to continue our new
 direction of shareholder value growth."
     Calgon Carbon Corporation (www.calgoncarbon.com), headquartered in
 Pittsburgh, Pennsylvania, is a global leader in services and solutions for
 making air and water cleaner and safer.  The company employs approximately
 1,000 people at 13 operating facilities and 12 sales and service centers.
     The Private Securities Litigation Reform Act of 1995 provides a "safe
 harbor" for forward-looking statements.  This document contains certain
 statements that are forward-looking relative to the company's future strategy
 and performance.  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 in this document.  Further,
 the company operates in an industry where it may be influenced by economic and
 other factors beyond the company's control.
 
 SOURCE  Calgon Carbon Corporation