Calgon Carbon on Friday reported a 26 percent drop in second quarter profits despite a 15 increase in sales, as higher interest costs from debt used to make the purchase dented the Moon environmental products and services concern’s bottom line.
The company reported net income of $5.9 million, or 12 cents per share, on sales of $153 million vs. earnings of $7.9 million, or 15 cents per share, and sales of $132.6 million in the year-ago quarter.
Analysts had forecast earnings of 14 cents per share on sales of $151 million.
Calgon Carbon said most of the sales increase was contributed by an activated carbon and filtration business that the company acquired from the French company Arkema Group. Sales from legacy businesses declined during the quarter, the company said.
“I’m disappointed in our second quarter gross margin performance, which was below our expectations,” chairman president and CEO Randy Dearth said in a statement. Mr. Dearth said he expects sales and profitability to improve in the second half.
The results were announced before Wall Street opened. Calgon Carbon shares finished Thursday at $15.45, down 25 cents. They are off 9 percent this year.
First Published: August 4, 2017, 1:33 p.m.