Calgon Carbon Corporation (CCC) acquired the remaining 20% stake in Calgon Carbon Japan KK (CCJ), its joint venture with Mitsubishi Chemical Corporation (MCC).
Based on some negotiations with MCC, Calgon acquired the final 20% without any additional cash. CCJ is now a fully owned subsidiary of Calgon Carbon.
Exactly a year ago, the company increased its stake in the joint venture from 49% to 80% through the redemption of MCC shares and had changed the name to Calgon Carbon Japan KK.
Last month the company released its financial results and reported a profit of $12.5 million or 22 cents per share in the fourth quarter of 2010, compared with 23 cents in the year-ago quarter. It also beat the Zacks Consensus Estimate of 17 cents.
Sales increased 18.8% year over year to $131.5 million, beating the Zacks Consensus Estimate of $124 million.
Fourth quarter results represented a significant year-over-year improvement and positioned the company for continued growth in 2011 and beyond. The company expects to improve its top-line growth and margin.
Calgon Carbon Corporation is a Pittsburgh, Pennsylvania-based pollution control company that manufactures products and provides services to decontaminate and deodorize liquids and gases. The company has three operating segments based on product line and associated services − Activated Carbon and Service, Equipment and Consumer.
Currently, Calgon has a Zacks #3 Rank (Hold) for the short term (1 to 3 months), and a Neutral recommendation for the long term (6 months and higher).
Calgon carbon faces stiff competition from MeadWestvaco Corporation (MWV).
CALGON CARBON (CCC): Free Stock Analysis Report
MEADWESTVACO CP (MWV): Free Stock Analysis Report
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