Calgon Carbon 8-K Calgon Carbon Announces Fourth Quarter Results

      P. O. BOX 717     PITTSBURGH, PA   15230-0717     (412) 787-6700

CALGON CARBON ANNOUNCES FOURTH QUARTER RESULTS

PITTSBURGH, PA – February 27, 2009 – Calgon Carbon Corporation

(NYSE: CCC) announced results for the fourth quarter and year ended December 31, 2008.

The company reported net income of $7.9 million or $0.14 ($0.15 from continuing operations) per common share on a fully diluted basis for the fourth quarter of 2008.  Net income for the fourth quarter of 2007 was $3.8 million or $0.08 per common share on a fully diluted basis.

Net sales from continuing operations for the fourth quarter of 2008 were $102.4 million versus fourth quarter 2007 sales of $94.8 million, an increase of 8.0%.  Currency translation had a $5.2-million negative impact on sales for the fourth quarter of 2008 due to the stronger U.S. dollar.

For the fourth quarter of 2008, sales for the Activated Carbon and Service segment increased by 6.3% versus the fourth quarter of 2007.  The increase was primarily due to higher pricing for certain activated carbon products and services in the environmental air treatment, food, and industrial process markets. Equipment sales increased by 45.3%, due to higher demand for ion exchange, carbon adsorption, odor control, and ultraviolet light systems.   Consumer sales for the fourth quarter of 2008 declined by 49.0% due to production problems that limited the output of activated carbon cloth and due to lower demand for both carbon cloth and PreZerve® products.

Net sales less the cost of products sold (excluding depreciation and amortization) as a percentage of net sales for the fourth quarter of 2008 was 33.0%, versus 29.7% for the fourth quarter of 2007.  The increase was primarily due to higher pricing for certain activated carbon products and services.

Net sales from continuing operations for the year ended December 31, 2008 were $400.3 million, versus $351.1 million for the comparable period in 2007, an increase of 14.0%.  For the year, foreign currency translation had a $1.9 million positive impact on sales due to the stronger Euro.

For the year ended December 31, 2008, net income was $38.4 million, which consisted of income from continuing operations of $35.6 million and income of $2.8 million from discontinued operations.  Results for the full year 2008 also included a non-recurring after-tax gain of $5.7 million from the settlement of a lawsuit.  For the year ended December 31, 2007, the Company reported net income of $15.3 million which consisted of $15.5 million from continuing operations and a loss of $0.2 million from discontinued operations.

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Fully diluted earnings per share for the year ended December 31, 2008 were $0.72, which consisted of $0.67 from continuing operations and $0.05 from discontinued operations.  For 2007, earnings per share on a fully diluted basis were $0.31, all from continuing operations.

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

Commenting on the results for the quarter, John S. Stanik, Calgon Carbon’s president and chief executive officer said, “We are very pleased with the growth in sales and earnings in the fourth quarter and for the full year which was achieved through a combination of price increases, higher demand for activated carbon, and expense control. “

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.

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Calgon Carbon Corporation

Condensed Consolidated Statement of Income

(Dollars in thousands except per share data)

(Unaudited)

	Quarter Ended						Twelve Months Ended
	December 31,						December 31,
	2008			2007			2008			2007
Net Sales	$	102,394		$	94,805		$	400,270		$	351,124
Cost of Products Sold		68,638			66,651			266,885			242,273
Depreciation and Amortization		4,513			4,229			16,674			17,248
Selling, Administrative & Research		17,522			17,425			68,278			65,047
Gain from AST Settlement		-			-			(9,250	)		-
		90,673			88,305			342,587			324,568
Income from Operations		11,721			6,500			57,683			26,556
Interest Income (Expense) - Net		31			(747	)		(2,169	)		(3,813	)
Other Expense - Net		(976	)		(148	)		(2,703	)		(1,441	)
Income From Continuing Operations Before Income Tax and		10,776			5,605			52,811			21,302
Equity in Income from Equity Investments
Income Tax Provision		2,956			1,903			18,101			7,826
Income  from Continuing Operations Before Equity in
Income from Equity Investments		7,820			3,702			34,710			13,476
Equity in Income from Equity Investments		517			211			854			1,977
Income from Continuing Operations		8,337			3,913			35,564			15,453
Income (Loss) from Discontinued Operations		(443	)		(70	)		2,793			(166	)
Net Income	$	7,894		$	3,843		$	38,357		$	15,287
Net Income per Common Share Basic:
Income from Continuing Operations	$	.16		$	.10		$	.80		$	.39
Income (Loss) from Discontinued Operations	$	(.01	)	$	-		$	.06		$	-
Total	$	.15		$	.10		$	.86		$	.39
Diluted:
Income from Continuing Operations	$	.15		$	.08		$	.67		$	.31
Income (Loss) from Discontinued Operations	$	(.01	)	$	-		$	.05		$	-
Total	$	.14		$	.08		$	.72		$	.31
Weighted Average Shares
Outstanding (Thousands)
Basic		53,247			39,959			44,679			39,788
Diluted		55,662			51,102			53,385			50,557

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Calgon Carbon Corporation

Condensed Consolidated Balance Sheet

(Dollars in thousands)

(Unaudited)

	December 31,		December 31,
	2008		2007
ASSETS
Current assets:
Cash and cash equivalents	$	16,750	$	30,304
Receivables		64,515		57,548
Inventories		93,725		81,280
Other current assets		26,454		20,546
Total current assets		201,444		189,678
Property, plant and equipment, net		122,960		105,512
Other assets		61,945		52,950
Total assets	$	386,349	$	348,140
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	1,605	$	1,504
Current portion of long-term debt		8,776		62,507
Other current liabilities		56,036		55,750
Total current liabilities		66,417		119,761
Long-term debt		-		12,925
Other liabilities		67,194		43,205
Total liabilities		133,611		175,891
Total shareholders' equity		252,738		172,249
Total liabilities and shareholders' equity	$	386,349	$	348,140

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Calgon Carbon Corporation

Segment Data:
Segment Sales		4Q08			4Q07		YTD 2008		YTD 2007
Activated Carbon and Service		84,925			79,880			342,326		295,608
Equipment		15,187			10,449			47,288		41,328
Consumer		2,282			4,476			10,656		14,188
Total Sales (thousands)	$	102,394		$	94,805		$	400,270	$	351,124
Segment
Operating Income (loss)*		4Q08			4Q07		YTD 2008		YTD 2007
Activated Carbon and Service		14,139			10,383			67,222		42,580
Equipment		2,465			(132	)		7,015		(1,087	)
Consumer		(370	)		478			120		2,311
Income from Operations (thousands)	$	16,234		$	10,729		$	74,357	$	43,804

*Before depreciation and amortization

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