Nalco 3Q sales up 15 percent on strong demand

Naperville-based Nalco Corp. reported third quarter sales were up 15 percent over the same period last year as a result of strong growth among all of its segments.

The company said its water and energy business reported double digit growth, excluding a one time sales from the 2010 BP oil spill in the Gulf of Mexico.

“Our double-digit revenue and EPS growth underscores the stability and strength of our core markets as well as our ability to deliver strong results despite challenging economic environments,” Nalco Chairman and Chief Executive Officer Erik Fyrwald said in a statement. “Our industry-leading technology and service expertise enabled us to grow both price and volume in the face of significant raw material cost inflation this quarter, and we are well-positioned to continue delivering strong gains in the fourth quarter and into 2012,”

The company reported its planned merger for Minnesota-based Ecolab is still on track to be completed by the end of the year.

“Our planned merger with Ecolab will create even more growth potential as we combine Ecolab's significant capabilities in cleaning and sanitization with our leading global positions in water, process and energy services,” Frywald said. “We see significant revenue synergy opportunities leveraging Ecolab's very strong positions in food & beverage and institutional markets where Nalco's water services business has strong offerings and attractive margins but a smaller position. Our teams are excited and planning is progressing toward a fourth quarter close.”

Nalco reported diluted earning per share for the quarter were 55 cents, up 31 percent from the same period last year. Adjusted earnings per share were 53 cents, up 15 percent.