Nalco reports strong 2Q results

PRNewswire

NAPERVILLE — Nalco reported record sales of $1.2 billion for the second quarter of 2011, according to the company’s financial statement.

The sales numbers were up were up 8 percent over last year. Excluding approximately $70 million in sales from the Gulf of Mexico emergency response in the year ago period, sales grew 16 percent. A 3 percent increase n price is reflected in the strong performance as well as 8 percent volume growth and a favorable currency impact of 5 percent.

“Our strong performance with high revenue growth and accelerated price escalation, delivered solid earnings growth and positions us well for the second half of 2011 and into 2012,” said Erik Fyrwald, Nalco chairman and chief executive officer. “I’m very proud of how our sales professionals, supported by the rest of our team, are working to deliver and share value with our customers in an environment of record raw material costs.”

Last month, Minnesota-based Ecolab announced it would be acquiring Nalco later this year.

“Our planned merger with Ecolab will create even more value as our companies come together — combining Ecolab’s leading capabilities in cleaning and sanitization with our leading positions in water, process and energy services,” Fyrwald said. “In addition to $150 million in previously stated cost synergies, we see significant revenue synergy opportunities including taking advantage of Ecolab’s very strong positions in Food & Beverage and Institutional markets where Nalco has strong offerings and attractive margins but a smaller position.

“Together we can accelerate growth of our water services business in these markets. We also see opportunities to further improve profitability and earnings consistency through corporate account management, business execution, strategic sourcing and other approaches that Ecolab has effectively demonstrated through the years,” he said.

Diluted earnings per share were 42 cents compared to 41 cents in the year-ago quarter.