DOW JONES NEWSWIRES
Ecolab Inc.'s (ECL) first-quarter profit rose 66%, in part on
prior-year charges, as revenue grew around the globe and the
company cut costs.
The cleaning and pest-control services provider also raised
projected 2010 earnings of $2.21 to $2.26 a share from $2.17 to
$2.25 as it forecast second-quarter earnings of 54 cents to 57
cents a share. Analysts surveyed by Thomson Reuters, on average,
expected 56 cents.
Recently, the company's business has suffered amid massive
cost-cutting among corporate clients during the economic downturn.
But in recent quarters, Ecolab has seen recovery in sales as it
introduced cost-saving solutions for clients.
"We once again outperformed our end markets, and through our
aggressive sales efforts, cost savings and efficiency actions, we
turned in a strong earnings gain that exceeded the top end of our
forecast range," said President and Chief Executive Douglas Baker
Jr.
Ecolab posted a profit of $95.5 million, or 40 cents a share, up
from $57.4 million, or 24 cents per share, a year earlier.
Excluding restructuring charges and other impacts, earnings rose to
41 cents from 33 cents, above the company's February forecast of 36
cents to 40 cents.
Revenue increased 6% to $1.4 billion, slightly falling short of
analysts' average estimate of $1.42 billion. Revenue increased 2%
on a fixed-currency basis.
Gross margin rose to 50% from 47.5%.
Revenue for Ecolab's core business, U.S. cleaning and
sanitizing, was up 2% while earnings climbed 11%.
Shares closed Monday at $47.71 and weren't active premarket.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com