Global sanitation major,
) extended its support for the Alliance for Water Stewardship
("AWS") through its agreement with World Wildlife Fund ("WWF").
Together, their goal is to improve the worldwide quality of water
used in industries for economic, social and environmental
Ecolab has got an excellent opportunity, via this global
commitment, to market its expertise in water management. It has
agreed to provide technical as well as financial aid to test the
drafted AWS standards for two consecutive years.
Revenues in the recently reported quarter from the company's
Global Water sales, in terms of constant currency, were $498
million. Sales were supported by growth in metals, mining, and food
and beverage industries. Total revenues of $2,810.9 million (a
quarterly record) topped the Zacks Consensus Estimate.
Per the agreement, Ecolab is entitled to assess the proposed AWS
standard in the field and to gather practical information necessary
to modify and refine the draft. The company also needs to promote
awareness about the necessity of adhering to the standard to lower
risks of polluting industrial water.
A total of 10 organizations form the AWS and WWF is one of them.
Sponsored by the AWS, the Global Water Roundtable is engaged in
finalizing the International Water Stewardship Standard draft.
The final AWS International Water Stewardship Standard will
contain detailed guidelines for optimal usage of water in
industries and certain water stewardship principles. It will
provide water stewards with certain rules for managing watershed
level and assessing water at a site so that minimum water is
Recently, Nalco Holdings, a subsidiary of Ecolab, was
declared the "2012 Water Technology Company of the Year" during the
2012 Global Water Awards, held in Rome. Ecolab, in December 2011,
closed its $8.3 billion acquisition of Illinois-based water
treatment services major Nalco Holding.
Ecolab offers its products and services to the hospitality,
foodservice, institutional and industrial markets across more than
160 countries. The company continues to invest in strategic areas
such as product innovation, health care, water and energy and
global pest elimination to spur growth.
Although we are impressed with Ecolab's strong international
exposure, we remain cautious about aggressive competition from the
Church & Dwight
). Raw material price inflation also remains a headwind.
We currently have a long-term Neutral recommendation on Ecolab,
which is supported by a short-term Zacks #3 Rank (Hold).
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