(RTTNews) - Tuesday after the bell, water treatment solutions provider Nalco Holding, Co. (NLC: News ) reported a sharp decline in profit for the third quarter, as sales fell 14%, reflecting weak sales in all its segments.

Profit attributable to Nalco decreased to $28.0 million from $57.4 million in the year-ago period. On a per share basis, net income declined to $0.20 from $0.41 in the last year.

Pro forma earnings per share fell 14% to $0.31 from $0.36 in the prior-year period. Pro forma earnings are adjusted for a 2008 divestiture gain, a 2009 pension settlement charge and restructuring actions both periods. The company said its results were also hurt by a high 45% tax rate due to valuation allowances resulting in part from European restructuring actions.

On an average, 15 analysts polled by Thomson Reuters expected earnings of $0.25 for the quarter. Analysts' estimates typically exclude one-time items.

Nalco's net sales declined 14.2% to $957 million from $1.11 billion; including a 9.9% organic sales decline and 3.5% currency impact. Analysts' expected revenue of $961.26 million for the quarter.
Segment-wise, Energy Services sales declined 8%, impacted by a 44% drop in Adomite well-service revenue, due to customer inventory reductions and other sales delays in West Africa. Water Services sales was down 10% organically as mining, metals, manufacturing and air protection end markets were down, while Paper Services sales were off 13% organically.

For the nine-month period, net income declined to $22.0 million or $0.16 per share, from $130.8 million or $0.92 in the year-ago quarter. Year-to-date net sales went down to $2.73 billion from $3.18 billion last year.

Looking ahead, chairman and CEO Erik Fyrwald, said, "Our focus on generating sales gains is starting to show progress in China, India and the Middle East. Technology gains were led by Nalco's 3D TRASAR(R) Cooling Water Technology, for which the 10,000th unit was sold."

NLC stock closed Tuesday's regular trading session at $20.84, up $0.22, on the NYSE.

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by RTT Staff Writer

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