US Nalco Q3 profit slips 51% on reduced revenues

27 October 2009 22:09  [Source: ICIS news]

HOUSTON (ICIS news)--Nalco posted a third-quarter net profit of $28m (€18.8m), down 51% from a profit of $57.4m in the year-ago quarter due to lower sales and 2008 divestment gains, the US water-chemicals producer said on Tuesday.

Revenues declined 14.2% due to the economic slowdown and unfavourable currency exchange rates, the company said. However, revenues rose 4.8% from the second quarter based on improving conditions in mining, manufacturing and paper markets, Nalco said.

By region, sequential sales were up 15% in Latin America, 9% in Asia and 8% in Europe, Africa and the Middle East, while holding flat in North America.

“The business is starting to return to a growth path as economies recover,” chief executive Erik Fyrwald said.

By segment, sales declined 8% year over year in energy services, 10% in water services and 13% in paper services, Nalco said.

Looking forward, the company said production among most of its customers appeared to be recovering. Nalco said it expects Asia to return to year-over-year growth in the fourth quarter, with the rest of the regions getting there in 2010.

($1 = €0.67)

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By: Ben DuBose
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