Many projects, mergers and acquisitions are detailed in monthly updates in the Market Report’s Chapters under Industry Analysis. Click on the links below to view current updates for each industry.

Housing starts declined 10.0 percent from the prior month, to 593,000. This was 7.8 percent above the May 2009 level. Single-family housing starts in May were at a rate of 468,000; this is 17.2 percent below the revised April figure of 565,000. The May rate for units in buildings with five units or more was 112,000.

Building permits in May 2010 were 574,000, a decrease of 5.9 percent from April, but 4.4 percent above the May 2009 estimate. Single-family authorizations in May were at a rate of 438,000; this is 9.9 percent below the revised April figure of 486,000. Authorizations of units in buildings with five units or more were at a rate of 117,000 in May.

Canadian housing starts fell by a larger-than-expected 6.3 percent in May from April.

Housing starts fell in May to a seasonally adjusted annualized rate of 189,100 units from a revised 201,800 in April, Canada Mortgage and Housing Corp (CMHC) said.

Urban housing starts declined in most parts of the country, falling 21.8 percent in the Prairie region, 13 percent in Quebec, 12.9 percent in British Columbia, and 2.7 percent in Ontario. Urban starts increased 23.3 percent in Atlantic Canada.

Rural starts were estimated at a seasonally adjusted annual rate of 23,900 units in May.

FINANCIALS

Ahlstrom Interim Report January-March 2010: Recovery in Demand Continued

The outlook on the EBIT remains unchanged. EBIT excluding non-recurring items is expected to increase from 2009.

Calgon Carbon Announces First Quarter Results

Calgon Carbon Corporation (NYSE: CCC) announced results for the first quarter ended March 31, 2010.

The company reported net income of $9.0 million for the first quarter of 2010, as compared to net income of $6.0 million for the first quarter of 2009.

Net sales for the first quarter of 2010 were $102.9 million, a 13.6 percent increase over net sales of $90.6 million for the first quarter of 2009.

For the first quarter of 2010, sales for the Activated Carbon and Service segment increased 16.3 percent as compared to the first quarter of 2009, primarily due to higher demand for activated carbon products in the environmental air treatment market. Higher demand for activated carbon products in the municipal and respirator markets also contributed to the increase. Equipment sales declined by 6.8 percent in the first quarter of 2010 versus the comparable period in 2009, principally due to lower revenue for ion exchange systems. An increase of 17.5 percent in Consumer sales for the first quarter of 2010 versus the comparable period in 2009 was attributable to higher demand for activated carbon cloth products.

Net sales less the cost of products sold (excluding depreciation and amortization), as a percentage of net sales for the first quarter of 2010 was 36.1 percent versus 32.5 percent for the first quarter of 2009. A combination of higher volume and pricing on certain carbon and service products accounted for the increase.

Commenting on the quarter, John Stanik, Calgon Carbon’s chairman, president and chief executive officer, said, "We are off to a good start in 2010, given that the first quarter is typically the weakest of the year. We are encouraged by the increase in demand for activated carbon in the first quarter, especially in the municipal market, as it may signal that a recovery is underway in one of our important traditional markets.

"We are also pleased with the additions we made to our company in the first quarter. The acquisition of Zwicky Denmark and Sweden and the increase in our ownership of Calgon Carbon Japan strengthen our position in the activated carbon industry in Europe and Asia. The addition of Hyde Marine expands our capability in ultraviolet light technology and provides immediate entry into the new global market for ballast water disinfection."

Clarcor Reports Fiscal Second Quarter 2010 Results

Clarcor Inc. (NYSE: CLC) reported operating profit increased 44 percent to $36.2 million, and net earnings rose 42 percent to $23.9 million for the second quarter ended May 29, 2010 as compared with the same period in 2009.

Net sales were $ 257.9 million for the quarter, a 12 percent increase compared to the second quarter of 2009. Net sales were $473 million for 6 months ended 5/29/2010.

Norm Johnson, Clarcor’s Chairman and Chief Executive Officer, said, “All of our business segments contributed to our success in the second quarter. Operating profit at each segment climbed significantly from last year. The increase at our Engine/Mobile Filtration segment was the result of higher sales of heavy-duty engine filters both in the U.S. and internationally. The increase at our Industrial/Environmental Filtration segment was driven by lower costs at our HVAC filter operations and incremental sales to oil drilling, aerospace and other industrial markets, and the increase at our Packaging segment was the result of higher sales primarily to the smokeless tobacco industry.”

“The ranges of expected annual 2010 sales growth rates from 2009 and expected 2010

COMPANY NEWS

AAF Secures Gas Turbine Contract at UK Facility

Air filtration firm AAF recently reported its Cramlington, England location has won a multi-million pound contract to supply equipment to Venezuela, which will help support sales growth of 10 percent this year.

The company, which employs more than 200 staff at its Bassington Lane base, will provide 16 units of gas turbine air filtration and noise control equipment for a power generation project in the South American country.

AAF, which also has an office in Dubai, says the new contract will help boost its annual turnover to around £65m.

The contract will represent a quarter of the total volume of work done at the Cramlington factory until early next year, although some elements of the project will be subcontracted to facilities in Mexico.

AAF is the British arm of AAF International, which employs more than 2,600 in 22 countries. AAF International’s parent company is manufacturing company Daikin Industries, which is based in Osaka, Japan.

AAF International general manager Robert Carling, who is based in the Cramlington office, said demand for gas turbine systems was “growing around the world”.

He said: “A lot of people are looking for power and countries are increasing their demand. One of the ways to do it is to put gas turbines in. We’ve not missed the economic crisis but it hasn’t hit us in Cramlington that badly. We’re still on the lookout for engineers.”

The company primarily targets the power generation, oil, gas and air pollution control industries, but also undertakes repairs and is focusing on installing gas turbines on offshore oil and gas platforms.

It has about 20 contracts at any one time, including work in America, China, Europe and the Middle East. It also has a research and development programme operating in Cramlington looking at new products.

Mr Carling said that the company had its difficulties during the downturn, but had managed to restrict cuts to around six staff.

He said: “You have to win against the competition and we’ve been reasonably successful. There’s a demand around the world. The challenge is to execute the projects within a fast time and at the right quality.

“We did some trimming but it was minimal. We’ve got all the core staff still there, and we’ve kept on 95 percent of the workforce.”

Mr. Carling said the company looks to employ 10 people this year, from engineers to accountants. He went on to say the company is “investing quite heavily in R&D”.

He added: “We’re developing in the Middle East at the moment and have an office in Dubai with about 12 people, which has come from nothing in 18 months.

“The Cramlington base is a performing business that’s been here for many years. As long as we keep getting orders and executing them efficiently there’s a long-term future for us. Our parent company is investing in us too, which is good news.”

Updates on H&V’s New European Meltblown Line and AQF Acquisition

Hollingsworth & Vose announced that it started the civil work for the new meltblown line in Hatzfeld, Germany. The investment is on track to start commercial production in the fourth quarter of 2010. This state-of-the-art line will expand H&V’s technical capabilities and will add capacity to supply the European market with high-performance synthetic filtration materials for air and liquid applications. The new line will have the capability to process a variety of different polymers and manufacture single and multi-layer designs.

Hollingsworth & Vose announced on January 26, 2010 the acquisition of Fiberweb’s AQF line of business. The AQF line is currently being installed in H&V’s Floyd, Virginia, facility to complement its meltblown and carded technologies. The line will allow the company to better serve the growing global need for gas phase filter media in the automotive and HVAC/IAQ market sectors. Commercial manufacturing is expected to commence by October 1, 2010. Once up and running, the line will primarily service H&V’s customers in the Americas and Asia Pacific region. H&V’s line in Hatzfeld, Germany, AFM (Adsorbent Filter Media) will continue to service the European market. The AFM line will continue to support H&V’s customers around the globe until the AQF line is fully commissioned. Sales efforts are being led by the current H&V sales team. This group is currently working close with all customers to determine their priorities for the AQF start-up. For more information please contact Per.Lindblom@hovo.com or 508-850-2261.

Met-Pro’s Strobic Air Subsidiary Receives $600,000 International Equipment Order Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro Corporation

(NYSE:MPR), announced recently that the Company's Strobic Air subsidiary in Harleysville, Pennsylvania, received an order totaling approximately $600,000 from a nanotechnology laboratory in Western Europe. This order, which is for ten (10) Tri-Stack™ fans to be used for laboratory exhaust, is expected to ship in the third quarter of the Company’s current fiscal year.

For this project, Strobic Air will supply six (6) fans mounted on three (3) Energy Recovery Units, which will not only exhaust fumes, but will also extract exhaust heat for heating or cooling conditioned makeup air in the laboratory, drastically lowering the laboratory’s energy costs. These systems will also utilize Strobic Air's patented Acoustical Silencer Nozzle and Acoustical Windband technology. The remaining four (4) fans, which will be mounted on two (2) custom plenums, will be used for a combination of acid exhaust and high-temperature clean room smoke exhaust.

Strobic Air was awarded this contract based on their best-in-class reputation for supplying low profile exhaust systems that are specifically designed to handle the complex issues of laboratory exhaust. “This order is another excellent example of Strobic Air’s diverse portfolio of energy-efficient, environmentally-friendly solutions and products,” stated De Hont. “Together with a steady level of customer interest and quotation activity for similar type projects, it allows us to remain optimistic about our prospects for future orders of this type at Strobic Air.”

Met-Pro Corporation, with headquarters at 160 Cassell Road, Harleysville, Pennsylvania, is a leading niche-oriented global provider of product recovery, pollution control and fluid handling solutions. The Company’s diverse and synergistic solutions and products address the world’s growing need to meet more stringent emission regulations, reduce energy consumption and employ green technology. Through its global sales organization, internationally recognized brands, and operations in the United States, Canada, Europe and The People's Republic of China, Met-Pro’s solutions, products and systems are sold to a well-diversified cross-section of customers and markets around the world. www.met-pro.com

Calgon Carbon Awarded U.S. Army Air Filtration Contract

Calgon Carbon Corporation (NYSE: CCC) announced recently that it has been awarded a federal contract by the U.S. Army Contracting Command, Rock Island, Illinois, for general purpose air filtration machinery. The contract is valued at a minimum of $1.9 million with a potential value of $5.1 million over a period of three years.

Calgon Carbon has over fifteen years of experience in supplying filter housings and "V"-bed activated carbon filters for indoor air purification, industrial air purification and military applications.

Commenting on this announcement, Robert O'Brien, Calgon Carbon's executive vice president of the Americas said, "We are pleased that the U.S. Army Contracting Command chose Calgon Carbon for this particular air filtration product. This award exemplifies our successful efforts to grow the air filtration market including containment and indoor air quality products and services."

Noveko Air-Filtration Deal with Bombardier Opens Vast New Market

Noveko International Inc., a Montreal firm specializing in antimicrobial technology, has joined Bombardier Inc. for a joint project that opens a potentially immense market for its air-filtration systems.

The partnership gives Noveko access to mainline trains, subway cars, light rail vehicles and locomotives worldwide.

"The agreement we have just signed with Bombardier is the outcome of the many discussions we held confirming that our strategy of teaming up with a leading partner in its market is the key to success in order to fully develop the potential of our filtration technologies in the rail transportation industry," Alain Bolduc, company president and CEO, said in a statement.

Noveko's products enable users to achieve energy savings related to their ventilation systems and to reduce the number of filters used, resulting in major cost savings.

The filtration solutions to be developed and offered to the clients of Bombardier Transportation will include an antimicrobial property based on patented Noveko technology and could become an addition to the transportation giant's new healthy transit initiative that includes an antimicrobial surface treatment program.

Ahlstrom Donates €500 000 to Aalto University

Finnish filter media manufacturer Ahlstrom Corp is giving €500 000 to the Aalto University foundation in Finland.

Ahlstrom says that it is looking forward to a mutually fruitful cooperation with Aalto University, and regards this as a good opportunity to participate in an international network of institutions, universities and companies.

Hollingsworth & Vose Increases Prices on High Efficiency & Specialty Filtration Products

Filter media manufacturer Hollingsworth & Vose is planning a price increase of up to 9 percent for its High Efficiency & Specialty Filtration business due to rising raw material and freight costs.

The new Hollingsworth & Vose prices will be effective from 15 July 2010 or as contracts allow. The increase will vary by product, grade and region.

Metso Turns Tamfelt Into Fabrics Business Line

Metso Corp’s recently acquired Tamfelt Corp is now the Fabrics business line within Metso’s Paper and Fiber Technology.

Tamfelt Corp has been renamed Metso Fabrics Corp. Metso Fabrics Corp’s subsidiaries Tamfelt PMC Corp, Tamfelt Filtration Corp and Tamfelt Kiinteistöt Oy continue under their current names.

Reima Kerttula, who was president and CEO of Tamfelt Corp, has been appointed as the President of the Fabrics business line.

Tamfelt was delisted from the stock exchange on 4 May 2010 after Metso had acquired all of Tamfelt’s shares.

NEW PRODUCTS

Samsung Introduces Air Conditioner and Air Purifier with Virus Doctor Technology

Samsung Electronics Co., Ltd. has unveiled its new range of premium air conditioners and an ionizer device in Middle East and North Africa region which feature cutting edge Virus Doctor air filtration technology.

Virus Doctor technology has been incorporated in both, an air purifying electronic device of the same name and the Crystal air conditioners. The technology improves indoor air quality and kills more than 99.9 percent of harmful airborne viruses including SARS and H1N1 to guarantee contamination-free indoor air.

"Recent outbreaks of infectious diseases such as Avian Influenza, SARS and H1N1 have brought increasing attention to the health hazards posed by indoor air pollution. Samsung has therefore invested heavily in R&D and leveraged our technological innovation to develop the groundbreaking Virus Doctor technology, which is featured in both these products, to address a growing need for protection against airborne infections," said Myungsoo Koo, Regional Senior Manager of the Digital Air Solutions, Middle East and North Africa Headquarter, Samsung Electronics.

Samsung's Virus Doctor technology neutralizes dust mites, moulds and viruses that cause skin irritation and respiratory problems, fungi, high-allergen agents that cause allergies, active oxygen that speeds up the skin-aging process, airborne bacteria and viruses such as influenza, chicken pox and life-threatening viruses including H1N1 and SARS.

Samsung's Plasma Ionizer Virus Doctor device generates Hydrogen and Oxygen ions to convert biological contaminants like bacteria and viruses into harmless water vapor. Virus Doctor will efficiently decrease the exposure level of H1N1 and prevent it from spreading. The cleaning properties of the Virus Doctor Ionizer have been recognized by various authentication authorities across the US, UK, Japan and South Korea.

Lydall Performance Materials Launches Filtration Media Series

The LyPore Defender-C microglass filtration series is designed to achieve maximum filtration performance while eliminating static discharge in hydraulic, lube oil and fuel system filtration processes.

LyPore Defender-C, from Lydall, is an extension of the Lypore Defender filter media series. LyPore Defender-C combines the performance characteristics of the LyPore Defender series with a proprietary blend of fibres designed to dissipate electrostatic energy. The filter media contains no metals and eliminates the need for additives, after-treatments or continuous electrostatic oil cleaners. LyPore Defender-C conductive filter media is available in 3, 6, 10 and 20 micron efficiencies with acrylic latex binder or an optional high performance epoxy binder for expanded fluid compatibility and higher working temperatures.

Stu Krupnick, market manager for Lydall's Fluid Power and Transportation Filtration Markets, said: “Due to the growing use of low conductivity synthetic oils by our customers, static discharge has become an increasing problem. Our customers have asked us for a filter media solution to eliminate damaging static discharge. That is exactly what LyPore Defender-C is designed to deliver. We are excited about this breakthrough in media design which addresses a long standing problem for our customers.”

	2010 Estimated Sales Growth	2010 Estimated Operating Margin
Engine/Mobile Filtration	14% - 16%	20.0% - 21.0%
Industrial/Environmental Filtration	4% - 5%	8.0% - 9.0%
Packaging	19% - 20%	7.5% - 8.5%
Clarcor	9% - 11%	13.0% - 14.0%

CONSTRUCTION

U.S. Housing Starts Decline in May

Canada Housing Starts Fall in May