Business

Nalco shares tumble after weak 2011 forecast

Posted February 01, 2011 10:00 pm

Associated Press

NAPERVILLE — Shares of Nalco Holding Co., a maker of chemicals used in water treatment and other industrial processes, tumbled 12 percent Wednesday after forecasting adjusted earnings for this year that were below Wall Street expectations.

After the market closed Tuesday, Nalco reported its net income for the three months ended Dec. 31 rose to $55.4 million, or 40 cents per share, from $38.5 million, or 28 cents per share, a year earlier. Adjusted earnings were 56 cents per share in the latest quarter.

Analysts polled by FactSet were expecting adjusted earnings of 42 cents per share .

Its revenue rose 11 percent to $1.12 billion from $1.01 billion. Analysts expected $1.08 billion.

But the company also said it expects adjusted earnings of $1.70 per share for 2011. Analysts had expected $1.86 per share.

Shares fell $3.85, or 12.4 percent, to $27.09 in trading Wednesday. The stock has traded in the 52-week range of $20.15 and $32.62.

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