Shares of Calgon Carbon rose 7 percent Thursday after the Moon environmental products and services firm announced a 10 percent increase in fourth quarter profits and said it will pay a quarterly dividend for the first time since 2005. The company also announced a new round of cost-cutting that eventually will save $10 million annually.
Net income totaled $12.1 million, or 23 cents per share, on sales of $140.6 million. vs. earnings of $11 million, or 20 cents per share, and sales of $133.1 million in the year-ago quarter.
Analysts had expected the company to report quarterly earnings of 24 cents per share on sales of $140 million.
The company credited increased demand for its granular activated carbon used to treat water in industrial processes and to remove mercury from power plant emissions as the primary reasons for the jump in sales. The company said it received fourth quarter orders from power plants for mercury removal systems that should generate tens of millions of dollars of sales over coming years.
For the full year, net income rose 8 percent to $49.4 million, or 92 cents per share. Sales rose 1 percent to $555.1 million.
Calgon Carbon said it will pay a 5-cent-per-share quarterly dividend March 15 to shareholders of record March 5. Chairman, president and CEO Randy Dearth said the dividend “reflects confidence that we have transformed Calgon Carbon into a company with exciting growth opportunities, sustainable earnings and solid cash flows.”
Mr. Dearth told analysts and investors on a conference call that the new cost saving initiative will realize annualized savings of $10 million by 2017. The company is wrapping up a previous efficiency initiative that will generate $40 million in annualized savings next year, he said.
Calgon Carbon shares finished Thursday at $21.37, up $1.49. They are up 3 percent this year.
First Published: February 19, 2015, 2:16 p.m.
Updated: February 19, 2015, 3:18 p.m.