J.P. Morgan Raises Nalco Estimates

Nalco Holding Company's NLC profits continued to increase in the third quarter, reflecting strong top-line growth, which was primarily volume-based, J.P. Morgan reports. “Consolidated sales improved 14% (13% organically); operating earnings increased 12%,” J.P. Morgan writes. “Excluding approximately $19M of dispersant sales which are unlikely to repeat in the future periods, sales grew 11% organically.” “We raised our 2011 EPS forecast from $1.55 to $1.70 and our 2012 EPS projection from $1.80 to $1.85,” J.P. Morgan adds, noting that Nalco is rated Neutral. “Our new Q4:10 EPS estimate is $0.41 vs. $0.34 before.” Nalco closed Friday at $30.07.