) revealed that its Russian arm, Master Chemicals Nalco Champion,
a chemical solutions and technologies provider, has opened a
21,500-square-foot research and development (R&D) center and
regional headquarters in Kazan, Tatarsta. The R&D facility's
4,000 square feet of laboratory space will be utilized for
oilfield chemical research and development of chemical solutions
for other industries in Russia.
The R&D facility is the outcome of Ecolab's decision to
combine its energy services operations across Russia in Kazan in
April this year. Currently, Kazan is the heart of Russia's oil
and gas industry.
Master Chemicals Nalco Champion, formed by combining Nalco,
Champion Technologies and Master Chemicals in April this year,
helps Russia's oil and gas industry boost productivity and lower
operating costs for every part of the upstream and downstream oil
and gas value chain. It also helps its oil and gas clients to
improve fluid quality, flow assurance and system integrity.
The new R&D facility will use advanced quality assurance
systems to develop products for flow assurance, integrity,
separation and water management. Further, it will develop product
lines that will help the oil and gas sector to process
hydrocarbons, such as heavy crudes, shale oil and offshore
Ecolab posted adjusted earnings per share of 86 cents for the
second quarter of 2013, which were 2 cents ahead of the Zacks
Consensus Estimate and represented a 19% rise from the year-ago
earnings on the back of solid top-line growth and an improved
operating margin. The newly acquired Champion Technologies also
contributed significantly in the quarter. The results also
surpassed the company's previously announced guidance of 81-85
Revenues grew 13% year over year (14% at constant exchange rate
or CER) to $3,337.8 million, a record high for the company.
Excluding acquisitions and divestitures, adjusted fixed currency
revenues increased 6%. However, revenues were lower than the
Zacks Consensus Estimate of $3,410 million.
Following the impressive second quarter results, ECL raised its
guidance for 2013, which includes the impact of the acquisition
of Champion Technologies. It anticipates 2013 adjusted EPS in a
range of $3.48−$3.56 (earlier $3.45−$3.55), representing a
17%−19% (earlier 16%-19%) year-over-year rise. For the third
quarter of 2013, ECL anticipates adjusted earnings in a range of
$1.00-$1.05 per share, up 15%-21% year over year.
Ecolab currently carries a Zacks Rank #3 (Hold). While we remain
on the sidelines regarding Ecolab, companies from the specialty
chemicals sector such as
) with a Zacks Rank #1 (Strong Buy), and
Minerals Technologies Inc.
Sensient Technologies Corporation
), both with a Zacks Rank #2 (Buy), are expected to do well.
ECOLAB INC (ECL): Free Stock Analysis Report
FERRO CORP (FOE): Free Stock Analysis Report
MINERAL TECH (MTX): Free Stock Analysis
SENSIENT TECH (SXT): Free Stock Analysis
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