Water treatment solutions provider Nalco Holding Co. (NLC) reported a profit for the fourth quarter, mainly due to the absence of a goodwill impairment charge recorded last year. Earnings were in line with analysts expectations and revenues topped estimates.
Net earnings attributable to the company was $38.5 million or $0.28 per share, compared with a loss of $473.4 million or $3.45 per share last year. Pro forma earnings per share, adjusted for restructuring expenses and unusual items, was $0.30 for the recent fourth quarter, compared with $0.36 in the prior year period, the company said. Year earlier fourth quarter included a impairment of goodwill charge of $544.2 million or $3.70 per share.
On average, 13 analysts polled by Thomson Reuters expected the company to report a profit of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales came down slightly to $1.01 billion from $1.03 billion last year. Analysts had expected revenues of $980.91 million for the quarter.
On segment basis, the company's major revenue contributing segment, water services revenue came down slightly to $451.7 million from $453.4 million a year earlier. Energy services revenue, another major revenue contributing segments revenue slipped to $376.2 million from $406.1 million a year-ago.
On the other hand, the company's paper services revenue rose to $180.4 million from $171.4 million in the same period last year.
Commenting on the fourth quarter results, Erik Fyrwald, Chairman and Chief Executive Officer said "Outside of the mature Japan and Australia/New Zealand markets, Nalco'sAsia business grew at very strong rates in the quarter as markets that were hard hit in late 2008 were the first to recover this year. Latin America -- with double-digit growth -- continued to deliver as they have done all year."
Full year net income was $60.5 million or $0.44 per share, compared with net loss of $342.6 million or $2.44 per share last year. Pro forma full year earnings per share was $0.92, compared with $1.24 in 2008.
Net sales for the full year were $3.75 billion, down from $4.22 billion a year earlier.
Analysts expected the company to report earnings of $0.87 per share on revenues of $3.72 billion for the full year.
Looking ahead for 2010, the company targets to return to growth with organic revenues expected to increase to a mid-single-digit rate. The company expects pro forma EBITDA to exceed $700 million. With improving tax rate the company targets to achieve earnings per share more than $1.25.
"We continue to make progress toward our stated goal of achieving 6 to 8 percent organic sales growth as a run rate by the end of 2011 and will be working to get closer to that mark as we go through 2010," Fyrwald said.
Analysts currently expect the company to report earnings of $1.30 per share on revenues of $3.92 billion for the next fiscal year.
Tuesday, NALCO closed at $24.51, up $0.17 or 0.70% on a volume of 0.94 million shares on the NYSE.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.