Secret Site Map
Saturday, May 30, 2015

Home News Ecolab Q2 Profit Rises 16%

Ecolab Q2 Profit Rises 16%

Business

Ecolab reported a profit of $213.1 million, or 69 cents a share, versus a year-earlier profit of $184.5 million, or 62 cents a share.

| August 5, 2013

Ecolab's second-quarter earnings rose 16% as the company recorded improving revenue and stronger-than-expected results from chemical maker Champion Technologies, which it acquired late last year.

"We successfully strengthened our underlying business momentum through good new business gains, effective deployment of new program launches which enabled us to further help our customers meet their operating and sustainability goals, and continued delivery of committed synergies," said Chief Executive Douglas M. Baker Jr. "In addition, our newly-acquired Champion business performed above our expectations which added to an already strong performance."

Ecolab reported a profit of $213.1 million, or 69 cents a share, versus a year-earlier profit of $184.5 million, or 62 cents a share. Excluding special gains and charges and discrete tax items, earnings were up at 86 cents from 72 cents. The company in April had projected adjusted per-share earnings of 81 cents to 85 cents.

Revenue rose 13% to $3.34 billion. Analysts polled by Thomson Reuters recently projected revenue of $3.39 billion.

Gross margin narrowed to 10.6% from 11%. Input costs rose 13% while interest expense rose 3.6%.

Ecolab agreed late last year to buy Champion Technologies for roughly $2.16 billion in a deal that will push the cleaning-products company deeper into the chemical market for the energy industry. Earlier this year, Ecolab said it would sell part of Champion to Clariant AG (CLN.VX) under an agreement with the U.S. Justice Department aimed at maintaining a competitive market for chemicals used in oil and gas wells in the Gulf of Mexico.

On Tuesday, Ecolab again raised its view for the year, and now expects adjusted per-share earnings between $3.48 and $3.56, compared with its prior forecast for per-share earnings of $3.45 to $3.55. For the current quarter, the company forecast adjusted per-share earnings of $1 to $1.05, in line with the $1.03 recently expected by analysts.

Minnesota-based Ecolab's traditional product lines include disinfectants and detergents for restaurants, hospitals and other institutions. The company expanded into water treatment chemicals used by the energy industry and paper industry with its $5.6 billion-purchase of Nalco in 2011. Ecolab viewed the purchase of Houston-based Champion as an extension of Nalco's earnings business.

Shares of Ecolab closed Monday at $92.10 and were inactive premarket. The stock has risen 28% since the start of the year.

Visit http://djnweurope.ar.wilink.com/?ticker=US2788651006

Top news

Industry Icon Blanton Whitmire Dies

Whitmire, whose contributions to the pest control industry include founding Whitmire Research Laboratories (a BASF legacy company) and developing the innovative “crack and crevice” aerosol technology, died on Sunday, at 97.

Bayer Announces Three Marketing Team Changes

Jennifer Poore was announced as the new marketing communications manager for the professional pest management business, Ray Daniels as the general insect control product manager and Kristen Fielding as the bait and termite product manager.

Four Rentokil Brands Team Up to Serve Community

Eden, Alpha Ecological, Ambius, and Green Choice colleagues provided in-need items to the Ronald McDonald East House in Portland.

Fund Established to Help Family of Texas Service Technician

Absolute Pest Management’s Doug Copeland passed away at age 39.

Harry Katz Turns 100

Renowned entomologist and former PCT columnist hits milestone birthday.

x