Ecolab Cutting 1,000 Jobs in Restructuring

ST. PAUL, Minn. - Ecolab Inc., which provides cleaning and pest-control services, said Wednesday it will cut 4 percent of its work force in a restructuring move, but backed its prior 2008 profit outlook.

The company expects to cut 1,000 positions, or 4 percent of staff, while taking other cost cutting measures. It expects a charge during the fourth quarter of about $19 million and between $65 million and $75 million in 2009. But the company expects the move to eventually save it between $70 million and $80 million annually.

"While we are confident these steps are the right ones for Ecolab, we regret that circumstances required associates to leave the company," said Chairman and Chief Executive Douglas M. Baker, in a statement. "We appreciate their contributions and we've worked hard to do this in a respectful way, but understand the pain it causes as well."

For 2008, the company still expects to report a profit between $1.85 and $1.87 per share, while analysts polled by Thomson Reuters expect profit of $1.86 per share.

In 2009, it expects profit between $1.95 and $2.05. Analysts expect $2 for the year.

Shares of Ecolab rose 32 cents to $33.33 in after-hours trading, after falling 79 cents, or 2.3 percent, to close at $33.01 during the regular session.

Source: Yahoo News