Ecolab 3Q Earnings Rise 15% On Higher Margins, Fewer Charges
DOW JONES NEWSWIRES
Ecolab Inc. (ECL) third-quarter earnings rose 15% as the cleaning and pest-
control services company posted fewer charges and higher margins, more than
offsetting a revenue decline.
The company has said its markets continue to suffer despite signs of recovery
elsewhere in the economy. However, Ecolab said it isn't relying on recovery to
post strong growth, saying it is working aggressively to gain market share and
keep costs under control.
Ecolab posted a profit of $145 million, or 60 cents a share, from $126.2
million, or 50 cents per share, a year earlier. Excluding restructuring costs,
earnings rose to 61 cents from 55 cents. In July, the company predicted 58 cents
to 61 cents a share.
Revenue decreased 4.9% to $1.55 billion. Analysts surveyed by Thomson Reuters
recently anticipated $1.56 billion.
Gross margin rose to 50.6% from 48.7%.
Revenue for Ecolab's core business, U.S. cleaning and sanitizing, was down
0.3% while earnings climbed 17%. Other U.S. revenue fell 5.7%. International
revenue jumped 1.2% on a fixed-currency basis.
Looking ahead, the company said earnings in the current quarter will be
between 54 cents to 57 cents a share. Analysts see 57 cents a share. Ecolab
estimated gross margin between 50% to 51%.
Shares in Ecolab, which also narrowed its 2009 earnings target, closed Monday
at $45.93 and weren't active premarket. Having hit a four-year low in March, the
stock is up 31% for the year.
-By Joan E. Solsman and John Kell, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com
(END) Dow Jones Newswires
10-27-090922ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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