Press Release

Calgon Carbon Announces Third Quarter Results

PITTSBURGH, PA  –  11/03/2011

Calgon Carbon Corporation (NYSE: CCC) reported results for the third quarter ended September 30, 2011.

For the third quarter of 2011, the company reported income from operations of $18.2 million, as compared to $14.6 million for the third quarter of 2010.

Net income for the third quarter of 2011 was $14.5 million versus $10.0 million for the comparable period of 2010. On a fully diluted basis, net income per common share for the third quarter of 2011 was $0.25 as compared to $0.18 for the comparable quarter of 2010. Results for the third quarter of 2011 included $2.8 million of income due to the reversal of an uncertain tax position liability. Results for the third quarter of 2010 included $0.8 million of income, primarily from the reversal of a valuation allowance on foreign tax credits.

Net sales for the third quarter of 2011 were $143.6 million versus third quarter 2010 sales of $124.4 million, an increase of 15.5%. Currency translation had a $5.1 million positive impact on sales for the third quarter of 2011 due to the weaker U.S. dollar.

For the third quarter of 2011, sales of Activated Carbon and Service increased by 18.2%, as compared to the third quarter of 2010. Sales increased versus the comparable quarter of 2010 in five of the company’s six market segments with the largest increases in potable water (including supply of a large quantity of activated carbon for a new treatment facility), wastewater, and environmental air treatment. These increases were due primarily to higher demand for activated carbon products and services and were partially offset by lower demand for activated carbon products in the food market.

Equipment sales declined 4.5% versus the third quarter of 2010, due to lower revenue from traditional carbon adsorption equipment. The substantial increase in revenue for UV systems in the third quarter of 2011 did not offset this decline. An 11.0% decline in Consumer sales for the third quarter of 2011 was due to lower sales of PreZerve® products. The company had previously disclosed that it was discontinuing that product line.

Net sales less the cost of products sold as a percentage of net sales was 33.8% for the third quarter of 2011 versus 33.7% for the third quarter of 2010.

Selling, administrative and research expenses for the third quarter of 2011 were $24.0 million as compared to $21.8 million for the third quarter of 2010. Selling, administrative and research expenses as a percentage of revenue were 16.7% for the third quarter of 2011 versus 17.5% for the comparable quarter in 2010.

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

Net sales for the nine months ended September 30, 2011 were $403.3 million, a $52.4 million, or a 14.9%, increase over the comparable period of 2010. Of this increase, $17.9 million is attributable to an additional three months of Calgon Carbon Japan net revenue, since its results were fully consolidated on April 1, 2010.

Net income for the nine months ended September 30, 2011, was $34.3 million versus $22.3 million for the comparable period of 2010. Results for the nine months ended September 30, 2011, included the previously noted tax adjustment as well as a $1.3 million reduction in the estimate to complete a remediation project at one of the company’s plants. Results for the nine months ended September 30, 2010, included a $2.7 million gain on acquisitions and an $11.5 million litigation contingency charge.

Fully diluted net income per common share for the nine months ended September 30, 2011, was $0.60 as compared to $0.39 for the comparable period of 2010.

Commenting on the results, John Stanik, Calgon Carbon’s chairman, president and chief executive officer, said, «Our company’s performance for the third quarter was solid, despite the challenges of rising raw material costs and aggressive competition for sales of activated carbon in certain market segments. Activity in the ballast water treatment market, both sales and level of inquiries, continued to be strong, and we are very pleased with our position in this burgeoning market.»

«The completion of our 2011 reactivation expansion initiatives should have a positive impact on results in the short term. The continued pursuit of other growth opportunities, in conjunction with our recurring base business, should drive improvement in Calgon Carbon’s performance over time.»

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

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, availability of capital and environmental requirements as they relate both to our operations and to our customers, 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.

*Before depreciation and amortization. The 2011 quarter and year to date periods include a $0.6 million and $1.9 million charge related to the PreZerve product line in the Consumer Segment. The year to date period also includes a $1.3 million reduction in an environmental liability in the Activated Carbon and Service segment. The 2010 year to date period for the Activated Carbon and Service segment includes a charge of $11.5 million related to a litigation contingency.