Calgon Carbon 8-K Calgon Carbon Announces Fourth Quarter Results

Exhibit 99.1

P.O. Box 717 Pittsburgh, PA 15230-0717 (412) 787-6700

From:	Gail A. Gerono
	Vice President, Investor Relations
	412 787-6795

— NEWS RELEASE –

CALGON CARBON ANNOUNCES FOURTH QUARTER RESULTS

Board Declares Dividend

PITTSBURGH, PA – February 7, 2005 – Calgon Carbon Corporation (NYSE: CCC) announced results for the fourth quarter ended December 31, 2004.

Sales for the fourth quarter were $85.2 million versus fourth quarter 2003 sales of $69.6 million, an increase of 22.4%. Foreign currency translation had a $2.4-million positive effect on sales for the quarter due to the stronger Euro and the British Pound Sterling.

Operating income for the fourth quarter of 2004 was $1.8 million versus $1.5 million for the comparable period in 2003, an increase of 20.3%. Net income for the fourth quarter of 2004 was $0.9 million, as compared to $2.0 million for the fourth quarter of 2003, a 54.6% decrease. Fully diluted earnings per share for the fourth quarter of 2004 were $0.02, as compared to $0.05 for the fourth quarter of 2003.

For the fourth quarter of 2004, sales from the Activated Carbon and Service segment increased 18.8% versus the comparable period in 2003 due to increased demand for specialty carbons used in respirators and for service in the environmental water treatment market. Equipment sales increased 41.7% in the fourth quarter of 2004 as compared to the fourth quarter of 2003 due to higher sales of solvent recovery systems. An 18.1% increase in Consumer sales for the fourth quarter of 2004 was primarily due to increased seasonal demand for PreZerve^® products for tarnish prevention. Sales of activated carbon cloth and charcoal also showed increases over the comparable period in 2003.

Consolidated gross profit before depreciation and amortization as a percentage of net sales was 28.6%, versus 28.8% for the fourth quarter of 2003. The slight decline in margin was primarily attributable to lower-margin equipment sales.

Operating expenses for the fourth quarter of 2004, including $1.9 million related to the former Specialty Products Division of Waterlink, Inc. (Waterlink) which Calgon Carbon acquired in February 2004, increased 26.5%. Excluding Waterlink, operating expenses increased 11.5% quarter-over-quarter. The increase was due to additional investment to further develop the company’s ultraviolet light disinfection product line; higher legal expenses related to enforcing its UV patent; consulting fees for Sarbanes-Oxley compliance; and higher integration costs related to the Waterlink acquisition.

A tax benefit of $0.4 million was recorded in the fourth quarter of 2004 to bring the company’s overall annual effective tax rate to 2.8%. The tax benefit primarily related to an exclusion provided under U.S. income tax laws on certain foreign trading gross receipts.

Sales for the twelve months ended December 31, 2004, were $336.6 million versus $278.3 million for the twelve months ended December 31, 2003, an increase of 20.9%. For the year, foreign currency translation had a positive impact of $10.8 million on sales.

For the twelve months ended December 31, 2004, the company reported net income of $5.9 million, versus $4.5 million for the comparable period of 2003, an increase of 31.3%. Earnings per share on a diluted basis for the 12 months ended December 31, 2004 were $0.15, versus $0.11 for the comparable period in 2003.

Calgon Carbon’s board of directors declared a dividend of $0.03 per share. Dividends will be payable to shareholders of record as of February 23, 2005 and will be payable on March 9, 2005.

Commenting on the results, John Stanik, president and chief executive officer of Calgon Carbon, said, “The fourth quarter included some significant, atypical costs that masked the true performance of the business. While earnings for the fourth quarter of 2004 were below 2003’s fourth quarter earnings, I am pleased with the significant improvement in both quarter-over-quarter and year-over-year operating income, and I am convinced we are on a positive track.”

Mr. Stanik continued, “In 2004, we dealt with the continuing challenges of competitive price pressure and rising costs. More importantly, significant effort was devoted to establishing a direction for Calgon Carbon that should result in sustainable profit improvement in the future.”

To achieve that improvement, the company is implementing a series of changes to maximize margins by refocusing its commercial and logistical strategies; adjusting its asset and administrative cost base; and initiating the process of divesting certain non-core assets.

Calgon Carbon will incur a charge of $4-to-$5 million related to these changes during 2005, the majority in the first quarter. However, when the program is fully implemented, operating income is expected to improve by approximately $10 million on an annualized basis.

Mr. Stanik concluded, “We will continue to analyze the outlook for our businesses and make changes as required to achieve maximum performance levels. We enter 2005 a stronger company, and I believe that the actions we are taking will result in improved profitability and a more intense focus on our core businesses.”

Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making air and water cleaner and safer. The company employs approximately 1,200 people at 18 operating facilities and 27 sales and service centers worldwide.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This document contains certain statements that are forward-looking relative to the company’s future strategy and performance. 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.

Calgon Carbon Corporation

Condensed Consolidated Statement of Income

(Dollars in thousands except per share data)

(Unaudited)

	Quarter Ended December 31,						Twelve Months Ended December 31,
	2004			2003			2004			2003
Net Sales	$	85,201		$	69,624		$	336,567		$	278,322
Cost of Products Sold		60,829			49,578			240,452			195,113
Depreciation and Amortization		6,327			5,255			23,139			19,789
Selling, Administrative & Research		16,285			12,876			62,114			55,826
Restructuring Charge		—			452			—			452
		83,441			68,161			325,705			271,180
Income from Operations		1,760			1,463			10,862			7,142
Interest Income (Expense) - Net		(809	)		(283	)		(2,712	)		(1,555	)
Equity Income in Calgon Mitsubishi Chemical Corporation		152			391			1,000			429
Other Income (Expense) - Net		(575	)		(155	)		(3,158	)		(1,646	)
Income Before Income Taxes and Minority Interest		528			1,416			5,992			4,370
Provision (benefit) for Income Taxes		(376	)		(586	)		170			64
Income Before Minority Interest		904			2,002			5,822			4,306
Minority Interest		18			31			66			179
Net Income	$	922		$	2,033		$	5,888		$	4,485
Net Income per Common Share
Basic and Diluted	$	.02		$	.05		$	.15		$	.11
Weighted Average Shares Outstanding (Thousands)
Basic		39,103			39,006			39,054			39,000
Diluted		39,771			39,258			39,456			39,157

Calgon Carbon Corporation

Condensed Consolidated Balance Sheet

(Dollars in thousands)

(Unaudited)

	December 31, 2004		December 31, 2003
ASSETS
Current assets:
Cash and cash equivalents	$	8,780	$	8,954
Receivables		61,598		46,133
Inventories		64,843		51,811
Other current assets		23,874		24,210
Total current assets		159,095		131,108
Property, plant and equipment, net		129,285		128,956
Other assets		75,518		42,131
Total assets	$	363,898	$	302,195
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	—	$	604
Other current liabilities		63,376		51,851
Total current liabilities		63,376		52,455
Long-term debt		84,600		53,600
Other liabilities		48,018		33,988
Total liabilities		195,994		140,043
Minority interest		—		279
Total shareholders’ equity		167,904		161,873
Total liabilities and shareholders’ equity	$	363,898	$	302,195

Calgon Carbon Corporation

Segment Data

Segment Sales	4Q04			4Q03			YTD 2004			YTD 2003
Carbon and Service		61,626			51,855			245,500			212,186
Equipment		15,557			10,980			55,466			33,162
Consumer		8,018			6,789			35,601			32,974
Total Sales (thousands)	$	85,201		$	69,624		$	336,567		$	278,322
Segment Operating Income (loss)*	4Q04			4Q03			YTD 2004			YTD 2003
Carbon and Service		7,313			6,917			32,293			28,058
Equipment		(429	)		468			(1,283	)		(1,816	)
Consumer		1,203			(215	)		2,991			1,141
Total Income from operations (thousands)	$	8,087		$	7,170		$	34,001		$	27,383

* Before depreciation, amortization, and restructuring charges