Sharp drops in equipment and consumer products sales, combined with higher product and selling costs led Calgon Carbon Corp. to fourth-quarter and full-year losses, the company reported Wednesday.
The poor showing comes on the heels of the Robinson-based carbon purification products maker acknowledging in Securities and Exchange Commission documents that it will restate its quarterly results for 2005's first three quarters. The restatement comes after an internal investigation discovered former General Counsel Michael Mocniak's failure to process $1.4 million in invoices.
For the final three months of last year, Calgon Carbon's net loss totaled more than $5.6 million, or 14 cents per diluted share, vs. net income of $922,000, or 2 cents a share one year earlier.
Fourth-quarter net sales dropped 7.1 percent to $71.3 million, from $76.7 million, while product costs rose to $55.1 million from $54.2 million, and selling, administrative and research expenses climbed to $16.9 million from $15.4 million.
"The fourth quarter was a difficult one," said John Stanik, Calgon Carbon's president and chief executive, in a statement. "Disappointing sales, particularly in the equipment segment, inflationary cost increases, legal expenses primarily associated with UV (ultraviolet), and expenses related to our re-engineering plan all adversely affected the quarterly performance."
For all of 2005, net sales dropped $5 million to $290.8 million while total costs jumped by more than $14.5 million, to $280.4 million. Net loss for last year was $7.4 million, or 19 cents per diluted share, vs. net income of $5.9 million, or 15 cents a share in 2004.
