Nalco sees growth; hiring expected
Naperville-based Nalco Holding Co. said Tuesday profits were up nearly 50 percent in the first quarter, and it plans to hire more workers in high-growth markets and to seek more acquisitions.
The global water treatment firm said its energy saving products and services have helped boost profits globally. To keep that momentum up, Nalco plans to introduce more products worldwide and focus on high-growth markets, including China, India, Brazil and Russia, Nalco Chief Executive Officer J. Erik Fyrwald said during an interview.
"Sales growth was about 10 percent in North America, and that's very strong, considering the challenges in the economy," Fyrwald said.
Nalco, which focuses on saving energy, water and other natural resources for customers worldwide, has gone through several transitions in recent years. It was bought in 1999 by Paris-based Suez SA, which then merged it with other smaller acquisitions. In 2003, New York investors bought then-named Ondeo Nalco Co. for about $4.2 billion and returned it as a publicly traded company in 2004.
On Tuesday, Nalco posted net income of $29.2 million, or 20 cents a share, compared to $19.6 million, or 13 cents, a year ago. Sales were about $1 billion in the first quarter -- up about 10 percent -- from $909 million in the same period a year ago.
After some losses and layoffs, the company has been rebounding and plans to hire several hundred workers, including sales representatives. Nalco now has a work force of about 11,500, and Fyrwald said he wants to boost it to about 12,000 by the end of this year.
"We are going to continue to drive our energy business by carrying more technology and plan to keep the high growth going and strengthen our growth in Asia," said Fyrwald.
Nalco recently completed the acquisition of Veranum Tempus Engenharia, a Brazilian indoor climate control company. Nalco plans to make similar acquisitions, but Fyrwald declined to say which company could be next.
"We will consider more acquisitions that can enhance our technology and offerings to our customers," he said.