Calgon Carbon 8-K Calgon Carbon Announces Full Year and Fourth Quarter Results

Exhibit 99.1

Calgon Carbon Announces Full Year and Fourth Quarter Results

PITTSBURGH--(BUSINESS WIRE)--February 27, 2012--Calgon Carbon Corporation (NYSE: CCC) announced results for the full-year and fourth quarter ended December 31, 2011.

For the year ended December 31, 2011, the company reported net income of $39.2 million, a 12.6% increase over net income for the comparable period in 2010. Earnings per common share on a fully diluted basis were $0.69 for the year ended December 31, 2011, as compared to $0.61 per common share for the year ended December 31, 2010.

Net sales for the year ended December 31, 2011, were $541.5 million, an increase of 12.3% over the comparable period in 2010. The increase from Calgon Carbon Japan’s (CCJ) first quarter 2011 sales was $17.9 million. CCJ was not reported on a consolidated basis until March 31, 2010. For the year, foreign currency translation had a $13.9 million positive impact on sales due to the weaker U.S. dollar.

Net income for the fourth quarter of 2011 was $4.9 million, or $0.09 per common share, on a fully diluted basis, versus $12.5 million, or $0.22 per common share, on a fully diluted basis for the fourth quarter of 2010.

Net sales for the fourth quarter of 2011 were $138.2 million, an increase of 5.1% versus fourth quarter 2010 sales of $131.5 million. Currency translation had a $1.3 million positive impact on sales for the fourth quarter of 2011, all of which were related to CCJ’s sales.

For the fourth quarter of 2011, sales for the Activated Carbon and Service segment were $122.0 million versus $116.9 million for the fourth quarter of 2010, a 4.4% increase. CCJ’s sales for the fourth quarter accounted for $22.4 million, which represents a $3.9 million increase over the comparable period of 2010.

Excluding CCJ’s contribution, sales growth for the fourth quarter of 2011 was attributed to higher prices for activated carbon products and services in the U. S. and Europe. In those two regions, sales increased in the wastewater, food, and environmental air markets versus the fourth quarter of 2010. These increases were, for the most part, offset by a decline in sales to the respirator and potable water markets.

Equipment sales increased by 10.3% versus the fourth quarter of 2010. The growth in this segment was due solely to the company’s UV businesses, especially Hyde Marine, and was partially offset by weak demand for carbon adsorption equipment.

In the Consumer segment, sales of activated carbon cloth offset the effect of the final disposition of the company’s former PreZerve product line.

Net sales less the cost of products sold as a percentage of net sales for the fourth quarter of 2011 was 30.9%, versus 33.0% for the fourth quarter of 2010. Sales of low-margin outsourced products, particularly at CCJ, as well as expenses related to equipment failures during the start-up of the company’s new reactivation facilities in Europe and China, had an adverse impact on margins in the fourth quarter of 2011.

Selling, administrative and research expenses for the fourth quarter of 2011 were $5.4 million higher than for the comparable period of 2010. The increase was primarily due to $2.2 million in severance expense related to management changes in Europe and Asia; testing costs associated with advanced products for mercury removal; and staff additions at Hyde Marine.

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

Commenting on the results, John Stanik, Calgon Carbon’s chairman, president and chief executive officer, said, “After three quarters of solid performance, the fourth quarter proved to be quite challenging. Fortunately, most of the problems were temporary and are being resolved.”

“For the long term, our outlook and our strategy have not changed, and I am confident that our new organization will better allow us to capitalize on our growth opportunities. We will continue to look to ballast water treatment, reactivation services, disinfection by-products, and mercury removal for sustained growth throughout the decade.”

For more information about Calgon Carbon’s leading activated carbon and ultraviolet technology solutions for municipalities and industries, visit www.calgoncarbon.com.

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.

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,
	2011			2010			2011			2010
Net Sales	$	138,200		$	131,469		$	541,472		$	482,341
Cost of Products Sold		95,501			88,139			364,384			316,884
Depreciation and Amortization		7,015			6,253			24,337			22,082
Selling, Administrative & Research		27,015			21,574			95,856			85,071
Environmental and Litigation Contingencies		420			500			(337	)		12,000
		129,951			116,466			484,240			436,037
Income from Operations		8,249			15,003			57,232			46,304
Interest - Net		160			233			467			323
Gain on Acquisitions		-			-			-			2,666
Other Expense - Net		(818	)		(210	)		(1,309	)		(1,395	)
Income From Operations Before Income Tax and Equity in Income from Equity Investments		7,591			15,026			56,390			47,898
Income Tax Provision		2,650			2,520			17,166			13,160
Income from Operations Before Equity in Income from Equity Investments		4,941			12,506			39,224			34,738
Equity in Income from Equity Investments		-			-			-			112
Net Income	$	4,941		$	12,506		$	39,224		$	34,850
Net Income per Common Share
Basic	$	.09		$	.22		$	.70		$	.62
Diluted	$	.09		$	.22		$	.69		$	.61
Weighted Average Shares Outstanding (Thousands)
Basic		56,381			56,020			56,243			55,867
Diluted		57,032			56,816			56,994			56,742

Calgon Carbon Corporation
Segment Data:
Segment Sales	4Q11			4Q10			YTD 2011			YTD 2010
Activated Carbon and Service		122,046			116,879			486,468			427,713
Equipment		13,913			12,615			46,274			46,010
Consumer		2,241			1,975			8,730			8,618
Total Sales (thousands)	$	138,200		$	131,469		$	541,472		$	482,341
Segment
Operating Income (loss)*	4Q11			4Q10			YTD 2011			YTD 2010
Activated Carbon and Service		16,351			23,446			85,990			69,584
Equipment		(629	)		1,112			(2,172	)		1,990
Consumer		(458	)		(3,302	)		(2,249	)		(3,188	)
Income from Operations (thousands)	$	15,264		$	21,256		$	81,569		$	68,386

*Before depreciation and amortization. The 2011 year includes $2.2 million of charges related to the former PreZerve product line in the Consumer segment. The 2010 year for the Activated Carbon and Service segment includes charges of $12.0 million related to environmental and litigation and contingencies.

Calgon Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
	December 31,		December 31,
	2011		2010
Assets
Current assets:
Cash and cash equivalents	$	13,574	$	33,992
Restricted cash		1,152		1,173
Receivables		102,540		94,354
Inventories		118,348		101,693
Other current assets		42,327		40,836
Total current assets		277,941		272,048
Property, plant and equipment, net		234,549		186,834
Other assets		40,500		42,681
Total assets	$	552,990	$	501,563
Liabilities and Shareholders' Equity
Current liabilities:
Short-term debt	$	22,894	$	21,442
Current portion of long-term debt		3,372		3,203
Other current liabilities		89,721		80,529
Total current liabilities		115,987		105,174
Long-term debt		1,103		3,721
Other liabilities		58,783		49,430
Total liabilities		175,873		158,325
Redeemable non-controlling interest		-		274
Total shareholders' equity		377,117		342,964
Total liabilities and shareholders' equity	$	552,990	$	501,563

CONTACT:
Calgon Carbon Corporation
Gail A. Gerono, 412-787-6795