Printer Friendly

NALCO REPORTS SOLID FIRST QUARTER SALES AND EARNINGS AND A 7 PERCENT DIVIDEND INCREASE

 NAPERVILLE, Ill. April 23 /PRNewswire/ -- Nalco Chemical Company (NYSE: NLC) reported that first quarter sales increased 4 percent and earnings grew 6 percent, before one-time charges for postretirement benefits and prepayment of long-term debt.
 The company also declared a 7 percent increase in its dividend rate, to 22.5 cents per share payable June 10, 1993, to shareholders of record May 20, 1993.
 Sales reached $339.0 million versus $326.4 million for the first quarter a year ago, a 4 percent increase.
 Earnings for the first quarter were $35.1 million, or 43 cents a share on a fully diluted basis, before one-time charges for post- retirement benefit expenses and a loss on prepayment of long-term debt. This was an increase of 6 percent over earnings of $33.0 million or 41 cents a share a year ago. A one-time charge of $56.5 million was incurred for postretirement medical benefits, and an extraordinary loss of $10.6 million was recorded for prepayment of long-term debt. This resulted in a net loss for the quarter of $32.0 million, or 42 cents a share versus net earnings of $33.0 million from year-ago results.
 In the U.S., strong double-digit sales gains were recorded by the Pulp and Paper Chemicals, Absorbent Chemicals, RPC Chemicals and UNISOLV Groups. The Basic Industry Group had a good increase and showed improved strength as the quarter progressed. In the Nalco Europe Division, local currency gains were up 10 percent for the quarter with operations in the United Kingdom, Italy, France, Saudi Arabia and Austria reporting double-digit gains. However translation rates had an unfavorable impact on sales compared to a year ago. Nalco Pacific continued its strong showing with impressive double-digit sales increases in South East Asia, Indonesia, Japan and Taiwan. Nalco operations in Argentina, Brazil and Chile led the way in Latin America with good results.
 Commenting on operations, Nalco Chairman and Chief Executive Officer W. H. Clark said: "We continue to gain new business around the world, especially in our core water treatment segment which covers the water treatment needs of the steel, chemical, petroleum, refinery and pulp and paper industries. In addition, our refinery process business and the pulp and paper process chemicals business were especially strong in the first quarter. We are proceeding with our worldwide expansion program and recently opened a sales office in Poland where we will serve the refining, steel, fertilizer, mining and pulp and paper industries.
 "Last month, our Applied Services Group received ISO 9001 certification. Nalco is the first and only water treatment specialty chemicals company to have its automation, feeding and monitoring equipment ISO certified. Nalco now has 25 sites around the world ISO certified. This includes our major manufacturing facilities as well as our corporate quality assurance, purchasing and customer service functions.
 "We finished the quarter with very strong sales in the U.S., Latin America and the Pacific Rim. We expect this momentum to build throughout the second quarter which could result in strong and sustained sales growth."
 NALCO CHEMICAL COMPANY
 Summaries of Consolidated Earnings
 (in millions except per share figures)
 Three months ended March 31, 1993 1992
 NET SALES 339.0 326.4
 OPERATING COSTS AND EXPENSES
 COST OF PRODUCTS SOLD 150.1 146.7
 OPERATING EXPENSES 125.8 118.8
 TOTAL 275.9 265.5
 OPERATING EARNINGS 63.1 60.9
 OTHER INCOME (EXPENSE) (4.9) (6.1)
 EARNINGS BEFORE INCOME TAXES 58.2 54.8
 INCOME TAXES 23.1 21.8
 EARNINGS BEFORE EXTRAORDINARY LOSS AND
 EFFECTS OF ACCOUNTING CHANGES 35.1 33.0
 EXTRAORDINARY LOSS FROM RETIREMENT OF
 DEBT, NET OF TAXES (10.6) --
 CUMULATIVE EFFECT OF ACCOUNTING CHANGES,
 NET OF TAXES (56.5) --
 NET EARNINGS (LOSS) (32.0) 33.0
 PER COMMON SHARE
 EARNINGS - PRIMARY
 BEFORE EXTRAORDINARY LOSS AND
 ACCOUNTING CHANGES .46 .43
 EXTRAORDINARY LOSS AND ACCOUNTING
 CHANGES (.95) --
 NET EARNINGS (LOSS) (.49) .43
 EARNINGS - FULLY DILUTED
 BEFORE EXTRAORDINARY LOSS AND
 ACCOUNTING CHANGES .43 .41
 EXTRAORDINARY LOSS AND ACCOUNTING
 CHANGES (.85) --
 NET EARNINGS (LOSS) (.42) .41
 CASH DIVIDENDS .21 .21
 AVERAGE PRIMARY SHARES OUTSTANDING
 (IN THOUSANDS) 70,409 70,966
 AVERAGE FULLY DILUTED SHARES OUTSTANDING
 (IN THOUSANDS) 78,624 79,243
 -0- 4/23/93
 /CONTACT: Paul Cholette, 708-305-1147, or Charles A. Goding, 708-305-1276, both of Nalco Chemical Co.
 (NLC)


CO: Nalco Chemical Company ST: Illinois IN: CHM SU: ERN

SH -- NY069 -- 0115 04/23/93 13:40 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 23, 1993
Words:732
Previous Article:SILICON VALLEY ENTREPRENEUR TO HEAD IBM SUBSIDIARY; ED ZSCHAU NAMED CHAIRMAN AND CEO OF IBM'S ADSTAR UNIT
Next Article:TURNER RESIGNS AS PRESIDENT AND CEO OF PRINCETON DIAGNOSTIC LABORATORIES OF AMERICA INC.; RECOMMENDS MAJEK AS SUCCESSOR
Topics:


Related Articles
NALCO REPORTS HIGHER SECOND QUARTER SALES/EARNINGS
NALCO REPORTS INCREASED THIRD QUARTER SALES AND EARNINGS
NALCO REPORTS RECORD FOURTH QUARTER SALES AND EARNINGS
NALCO CHEMICAL COMPANY REPORTS STRONG THIRD QUARTER SALES AND EARNINGS
NALCO REPORTS FOURTH QUARTER SALES AND EARNINGS
NALCO REPORTS STRONG FIRST QUARTER SALES AND EARNINGS AND A DIVIDEND INCREASE
NALCO REPORTS STRONG SECOND QUARTER SALES AND EARNINGS RESULTS
Nalco Chemical Company Reports Record Sales And Earnings For The Third Quarter And First Nine Months
Nalco Chemical Company Reports Record First Quarter Sales and Earnings.
Nalco Chemical Company Reports Record First Quarter Sales and Earnings.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters