Good morning, my name is Brandy and I’ll be your conference operator today. At this time I would like to welcome everyone to the Calgon Carbon Corporation’s Third Quarter, 2013 Results Conference Call. All lines have been place on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. (Operator Instructions) Thank you Miss Gail Gerono, you may begin your conference.

Thanks very much. Good morning and thank you for joining us. Our speakers today are Randy Dearth, Calgon Carbon’s CEO; Bob O’Brien, our Chief Operating Officer; and Steve Schott, our CFO. The presentations will follow our standard format, opening remarks from Randy review the third quarter financials by Steve. And operations report from Bob, then Q&A. Today’s presentations will be brief, there will be an in-depth discussion during our webcast on Thursday November 7th in conjunction with our 2013 Analyst Day. The webcast will begin at 10:00 am Eastern Standard Time. You can access the link to the webcast on the For Investors section of our website www.calgoncarbon.com. Before we begin the formal presentations I would like to remind you that the Private Securities Litigation Reform Act of 1995 provides a Safe Harbor for forward-looking statements. Today’s presentations or perhaps some of the comments that Calgon Carbon’s executives make during the Q&A may contain statements that are forward-looking. 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, 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 during this webcast. 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 or changes in or delays in the implementation of regulations that cause the market for our products, acquisitions, higher energy and raw materials 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 call and webcast, please refer to the discussions of risks and other information detailed in, as well as the other information contained in the company’s most recent Annual Report. Randy?

Thanks, Gail and welcome everybody. As Gail said, today we will be focusing on our third quarter earnings. So we will limit our remarks to that subject. We look forward to seeing many of you later this week here in Phoenix where we’ll have the opportunity to discuss a range of topics in connection with value creation to Calgon Carbon. With that said let’s talk about Q3, Calgon Carbon had another very solid quarter. And I’m pleased our performance as with the first two quarters of 2013, our cost improvement and price increase programs contributed to our success. Since initiating our restructured initiatives that began about a year ago, we have significantly improved the financial profile of the company. Later on the call we’ll provide some insight regarding those initiatives. The first, Steve will discuss the financials, followed by Bob with comments on operations. Steve?

Thanks, Randy and good morning everyone. Total sales for the third quarter of 2013 were $139.4 million versus $135.5 million in the third quarter of 2012, an increase of $3.9 million or 2.9%. Currency translation had a negative impact of $3.8 million on the Activated Carbon and Service sales for the third quarter of 2013 due to the weaker yen. Regarding our segments, sales in the Activated Carbon and Service segment increased $8.1 million or 7% for the third quarter of 2013 compared to 2012’s third quarter. The increase was primarily due to higher demand for activated carbon products and services in the environmental water treatment, food, and specialty carbon markets. Sales in our environmental air, flue gas sub segment were equal year-over-year. Currency translation had a negative impact of $3.8 million on sales for the third quarter of 2013, again, due to the weaker yen. Equipment sales declined $4.8 million or 26.3% for the third quarter of 2013 compared to 2012’s third quarter. This was due to lower revenues for ballast water treatment systems which declined by $4.2 million. Sales for the Consumer segment increased approximately $600,000 or 28.3% for the third quarter of 2013 compared to 2012’s third quarter. The higher sales were due to increased demand for activated carbon cloth. Consolidated gross profit before depreciation and amortization as a percent of net sales was 33.3% in the third quarter of 2013 compared to 27.3% in the third quarter of 2012, an increase of 6 percentage points. The increase was in the Activated Carbon and Service segment due to improved plant performance and ongoing cost improvement initiatives. The 2012 quarter and year-to-date periods included $2.5 million of cost related to the Pearl River facility as well as a $1.7 million write up of obsolete inventory. Depreciation and amortization…

Thanks Steve. Bob’s up next. Bob? Rob O’Brien: Okay, Gail. Once again our carbon manufacturing facilities trended well during this quarter. We continue to realize benefits from the upgrades that we made at our Pearl River, Mississippi plant last year. Both of our activated carbon production facilities ran at full capacity in the third quarter. With respect to our price increase and activated carbon and reactive products as I reported on the last quarter’s call, we expect to realize our $10 million target for 2013. Next I’ll touch on emerging markets. I will cover this topic in more depth on Thursday’s webcast. Let’s begin with disinfection byproducts. In prior calls we were in negotiations for a ten-year contract with the city of City of Glendale, Arizona to provide reactivation services for carbon used to treat the city’s drinking water. This contract has now been signed and the terms are identical to the contracts with Phoenix and Scottsdale. The reactivation of the carbon is being performed at our Gila Bend facility. The value of the contract will depend on the amount of spent activated carbon that is reactivated annually which is expected to be 1.3 million pounds. Calgon Carbon supplied the initial virgin carbon to Glendale and we have been reactivating their carbon under a former agreement since 2008. In fact they were our first portable water custom reactivation customer in the United States. In the third quarter of 2013 we are also awarded two contracts for equipment valued at $1.5 million and three customers who are using granular activated carbon to be in compliance with the disinfection byproduct rules converted to custom reactivation. Next, mercury removal from electric generating units. We saw an uptick in activity in this market in the third quarter. Bid activity is slowly increasing and we…

Thank you very much. Steve?

Regarding our fourth quarter first sales. We expect our fourth quarter sales to be better than our first quarter of 2013 but slightly lower sequentially. Contributing to the small sequential decline our Calgon Carbon Japan sales as some of their expected fourth quarter sales were accelerated into earlier periods this year. Margins, we expect our gross profit before depreciation and amortization as a percent of sales to also decline slightly sequentially. Our expected lower sequential sales and costs related to our improvement initiatives should negatively impact this metric. Operating expenses, we expect our operating expenses to be higher sequentially and estimate they may approach 16% of sales. There will be higher spending on corporate initiatives and our cost improvement programs during the fourth quarter.

Thanks, Steve. Randy’s up next.

Thanks. Well first I would like to bring you up-to-date on a few developments. On September 30th we completed our $50 million accelerated share repurchase program. The final number of shares we purchased under the program was 2,935,668 and our outstanding share count has been reduced accordingly. As you may recall our board authorized share repurchases up to a $100 million and we will continue to evaluate share repurchase programs as a way to return value to shareholders. In another development Calgon Carbon with Department of Justice reached a settlement related to the 2005 inspection of our Big Sandy plant. As a result of that inspection the EPA sited violations of Black Rock and a clean water act related to waste management. A way of background the government was initially seeking a $13 million civil penalty and the closing of our storage lagoons at the plant. This would have cost us an additional $10 million. The signed consent decree calls for the following. First, we have agreed to pay a settlement of $1.6 million. We make no admission of any violations of any law or any regulation. Our onsite storage lagoons will not be deemed hazardous in the material lagoons maybe handle of the solid waste. No capital expenditures related to the lagoons will be required. We have agreed to conduct limited testing on certain sediments in groundwater. The consent decree was filed with the court on October 28th, the Department of Justice will publish the consent decree on its website. There will be a 30 day public comment period and after 30 days EPA will respond to public comments. And last, the court would enter the consent decree as a binding court order. We have made significant improvements to both our environmental staff and process since the 2005 inspection. EPA in Kentucky conducted a comprehensive inspection in 2010 and found no continued violations. This is a very good result for us and we’re happy with the outcome. Having concluded our remarks on the third quarter, let me give you an overview of what to expect at Thursday’s Investor Day. First you will have the opportunity to learn more about our markets both our traditional businesses as well as much more detail around our three emerging markets. We will also provide more detail on our cost improvement program and other initiatives. If you can’t join us either in person or via the webcast look for the presentation on the Investor page of our website. It should be a great day and I look forward sharing our story. So that concludes our presentation and we will now take your questions. Again given Thursday’s full agenda I would ask you to focus your questions on the third quarter call. Gail?

As a reminder connecting audio questions. (Operator Instructions) Your first question comes from the line of Dan Mannes of Avondale.

Thanks, good morning everyone.

Good morning Dan.

Good morning Dan.

A couple of quick follow-ups first and just to clarify Steve your comments were you indicating that the gross margin for the fourth quarter were actually going to be, were actually going to be a little bit lower than the third I was just trying to understand the way you stated that – little bit of more degradation.

Yeah. There would be a slight but we expect a slight decline in our gross margins for two reasons one of course we forecast this slightly lower sales and then second as we work on our cost improvement initiatives there are costs we’re incurring related to them. And we expect that will also burden the fourth quarter a little bit.

Sure. And then second and this may be answered more fully on Thursday but the piece on ballast water, it’s kind of like a lot of small orders during the third quarter, any feedback on that as it relates to maybe some, some changes on the international front in terms of maybe a longer schedule for iron ore [ph] compliance potentially? Rob O’Brien: Dan this is Bob. Certainly the market is being impacted by the IMO pending ratification and as you know its continued to drag. And our current estimate now we don’t expect approval of that or ratification until mid-2014 and then after that’s ratified there’s still a year until ships, owners require to actually comply with the regulation so that is being a drag on the market. We continue to see new ship building being slow and we’re just starting to see the impact of the Coast Guard regulations in the US as such we don’t really see the ballast water opportunity for us now really beginning to pick up speed until late in 2014 and then into 2015.

Dan this is Randy we have John Platz on the agenda for Thursday so you’ll get to see a presentation from John, John’s our Head of the UV Division and he’ll provide a lot more insight into this market.

I figure that was the case Cammell’s going to hold off on the mercury question for Thursday too. My only other question was since you mentioned completion of the ASR and again this may be premature as well, you’ve obviously had a large investor come out saying you probably should do $150 million, $200 million of buybacks. Can you maybe address what some of your thoughts are as you look at little forward in terms of being able to do some more on the buyback front. And then maybe any constraints you feel in terms of our target capital structure or again am I kind of going towards what you’re looking at for Thursday.

We are going to address Thursday our case for value creation so that it really would the appropriate time to do so but that being said and I have said this on previous calls, I value when I get the input from shareholders and ideas, we take the ideas back we beat them amongst the management team, we take some of these to the board and discuss them. So I think that’s an important part of the process and we value that and like you said Thursday we’ll present our case and we’ll address some of those concerns.

Thanks, much I appreciate it.

(Operator Instructions) Your next question comes from the line of Jinming Liu of Ardour Capital.

Good morning. Thanks for taking my question.

Good morning. Rob O’Brien: Good morning.

Good morning.

Recently there is acquisition of one of the coconut active carbon producer. I understand you export a lot of imports a lot of coconut carbon into the country. Is there any impact on your business or in terms of that acquisition? Rob O’Brien: This is Bob we don’t really see any, certainly immediate impact to our business we’re a large distributor of coconut carbon on a global basis not only the US. And certainly it’s a market where we face competition and we do relatively well there. So we don’t really see any immediate impact of that purchase.

Okay just related to the – your resale business how much was the resale percentage of the resale in your total sales in third quarter?

I don’t think we normally report that. Rob O’Brien: No we don’t that’s, that’s not a number that we give out.

Okay, got that. Thanks a lot. Rob O’Brien: You’re welcome.

Your next question comes from the line of Steve Schwartz with First Analysis.

Hi good morning everyone.

Morning Steve. Rob O’Brien: Good morning.

I think you mentioned in your prepared remarks there was an improvement in food carbon and we’ve heard for so long that, that market was declining for you. Can you talk a little bit about what’s behind that? Rob O’Brien: This is Bob. Food, it’s, our improvement quarter-to-quarter included in the sweetener market which we marked as both cane sugar and corn sweeteners. And that could be affected by whether a new fill is taking place. So there are some ups and downs in that market and I think what we are basically seeing there is there were some initial fills with new plants going online that helped increase our sales.

New plant, okay it sounds good, Bob. Alright that’s it for me, see you on Thursday.

See you then thanks. Rob O’Brien: See you Steve.

(Operator Instructions) Your next question comes from the line of Christopher Butler with Sidoti & Company.

Hey, good morning, everyone.

Good morning Chris.

Good morning. Rob O’Brien: Good morning.

I’m sorry if I missed it. Did you indicate what the volume growth was in the quarter and for activated carbon and what the impact of that shift from Japan was?

As it relates to Japan, are you referring, Chris, to my fourth quarter comment where I said some sales have been moved forward?

Right, exactly.

We did not give the impact I can tell you in US dollars, it’s probably on balance about $4 million that had been moved into earlier quarters. And thus the expectation our fourth quarter will be slightly less than the third quarter. Volume was strong and I think moved in sync with the markets that we discussed as having increased, environmental water, food, and potable water so but volume was definitely up, I don’t have the percentage in front of me but no question in the Carbon and Service segment it was a very good quarter for us.

And just to quickly follow-up, it sounds as if that shift wasn’t just the third quarter but the first half of the year as well that saw some of the benefits.

Yeah volume’s been good this year. Obviously we’ve had headwinds with FX particularly in Japan and that will persist through the fourth quarter but now the carbon and service business has grown for us during the year and we’re pleased with what we’re seeing this year.

I appreciate your time.

Sure.

(Operator Instructions). There appear to be no other questions. I would like to hand the floor back over to Randy for any closing or additional comments.

Thanks Brandy. As I mentioned in my opening remarks we’re pleased with the results for the quarter. And we’re also pleased with progress we’ve made on improving our cost structure and our gross margin during the first nine months of this year. So improvements in those two areas are going to remain focused throughout the rest of the year and into 2014. That concludes my remarks and the remarks of my colleagues. We look forward again to having the discussion with all of you on Thursday. Thank you.

Thank you. That concludes today’s conference. You may now disconnect.