Calgon Carbon Corporation (CCC) announced that the Department of Commerce (DOC) has issued new tariffs on steam activated carbon imports from China. The tariffs range from 1.8 cents to $1.10 per pound (lb). The new rates are based on a review of prices of Chinese activated carbon imported into the U.S. within the timeframe of Apr 1, 2012, to Mar 31, 2013.
The average tariff rate of 7 cents per lb is now replaced by an average duty of 1.8 cents per lb. The revision has two effects, one being that the new rates become the cash deposit rate applied to future imports. The second one is that if a company has paid lesser than the new tariff rate during the review period, it will have to pay the additional amount and on the other hand if it paid more it will get a refund.
The new tariffs are imposed to enable fair competition and fair prices that reflect demand and manufacturing costs for activated carbon products.
Calgon carbon, the world’s largest producer of granular activated carbon, released its third-quarter 2014 results on Nov 5. The company reported profits of $12.2 million or 23 cents per share in the quarter, up 2.5% year over year. Earnings per share, however, missed the Zacks Consensus Estimate of 25 cents. Income from operations was $18.9 million in the third quarter, an increase of 5.6% year over year.
This Pennsylvania-based pollution control company posted revenues of $137.7 million in the third quarter, down 1.2% year over year. Lower sales in the Equipment division were partly offset by a slight increase in the Activated Carbon and Service division. Currency translation affected sales positively by $0.6 million, led by the stronger British pound sterling. Sales also missed the Zacks Consensus Estimate of $141 million.
Calgon Carbon is a Zacks Rank #3 (Hold) stock.
Better-ranked stocks in the pollution control industry are Progressive Waste Solutions Ltd. (BIN), Perma-Fix Environmental Services Inc. (PESI) and Heritage-Crystal Clean, Inc (HCCI). While Progressive Waste Solutions and Perma-Fix Environmental hold a Zacks Rank #1 (Strong Buy), Heritage-Crystal Clean carries a Zacks Rank #2 (Buy).
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