Nalco profit dips, continues to streamline

Naperville-based Nalco Holding Co. has continued its streamlining efforts, including a smaller global work force that helped its save $27 million during the first quarter.

But it wasn't enough to keep profits from slipping.

The global water treatment company Thursday said first-quarter profits were $24.8 million, compared to $30.6 million for the same period the year before. Sales were $868.4 million, or 17 cents a share, compared to about $1 billion, or 20 cents a share, the year before.

"We plan to grow this company," said Nalco Chief Executive Officer J. Erik Fyrwald.

Nalco now has $146 million in cash, compared to about $43 million in the same period a year ago.

That stock pile of cash will help the company buffer the worsening economy, he said. It also will be available to purchase new, smaller companies to help expand its product offerings.

Such new purchases could be similar to last month's acquisition of south suburban Glenwood-based Crossbow Water, a regional high-purity water and water pre-treatment company. So it aims to garner more clients in the Midwest.

In the meantime, Nalco continues to streamline.

Over the last eight months, it has eliminated 400 positions worldwide, which included attrition and retirements. It also cut loose many consultants, reduced business travel, cut hours and overtime at many of its plants worldwide, Fyrwald said.

The company then hired about 200 more workers in strategic growth areas, including in China, India, and yes, the United States. It currently has about 11,500 workers worldwide.

North America remains at the top of the list for growth and Fyrwald aims to have Nalco ready to move, even as the economy remains tough.

"Since we cannot tell how bad this economy will get, we feel we're ready for any scenario," said Fyrwald.