08 October 2008 02:50 [Source: ICIS news]
HOUSTON (ICIS news)--Nalco will likely take a $10m (€7.4m) hit in its third-quarter pre-tax income as a result of hurricanes Gustav and Ike, the US water-treatment-chemicals producer said on Tuesday.
Fourth-quarter pre-tax income should also drop by $2m, the company said.
For the year, the hurricanes will likely cost Nalco $8m-9m in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), the company said.
"These hurricane impacts, atop increases in raw material costs, threaten our attainment of our previously communicated target of 8% growth in adjusted EBITDA for the year," Nalco's chief financial officer Bradley Bell said in a statement.
Nalco missed sales and paid more for raw materials and freight because of the hurricanes, the company said. Nalco also paid expenses for plant closings and wrote off inventory.
Nalco's insurance covers hurricanes, and it is reviewing possible recoveries from storm damages, the company said.
($1 = €0.74)
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