Nalco Holding Co. (NLC) posted third quarter net income of $28.0 million or $0.20 per share, compared to $57.4 million or $0.41 per share in the prior year period. Pro forma earnings attributable to the company was $0.31 per share, compared to $0.36 per share in the preceding year period.
On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share. Analysts' estimates typically exclude special items.
Pro forma results adjust for a 2008 divestiture gain, a 2009 pension settlement charge and restructuring actions in both periods. Net income and earnings per share were also impacted by a high 45 percent tax rate due to valuation allowances resulting in part from European restructuring actions.
Third quarter revenues declined 14.2% to $0.95 billion from $1.11 billion in the same period last year. Eleven Wall Street analysts expected revenues of $961.26 million.
Further, the company said that a revised pension benefit structure in the United States would result in remaining defined benefit program participants moving to the company's defined contribution programs for service after January 1, 2010.
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