Ecolab Inc.'s (ECL) third-quarter profit jumped 20%, in part on
investment gains, while revenue and margin improved.
The maker of sanitation and infection-prevention products also
narrowed its full-year profit target as it projected fourth-quarter
earnings of 59 cents to 61 cents a share. Analysts on average
estimated 62 cents, according to Thomson Reuters.
Results at Ecolab have been improving in the past several
quarters on strength in its U.S. cleaning-and-sanitizing business.
Revenue has benefited as the company introduced new products and
expanded its offerings.
Chairman and Chief Executive Douglas Baker Jr. said Tuesday the
company continues "aggressively pursuing new accounts, leveraging
our product innovation and improving our efficiency, while making
the strategic investments and acquisitions." Ecolab in September
agreed to acquire Campbell Brothers Ltd.'s (CPB.AU) Cleantec
cleaning and hygiene products business to expand its operations in
Australia.
Ecolab reported a third-quarter profit of $174.2 million, or 74
cents a share, up from $145 million, or 60 cents a share, a year
earlier. Excluding gains on investment sales and asset write-downs,
earnings rose to 66 cents from 61 cents. July's forecast was 64
cents to 66 cents.
Revenue increased 1% to $1.56 billion, and rose 3% excluding
currency changes. Analysts had most recently estimated $1.59
billion.
Gross margin rose to 51.1% from 50.6%.
Sales in its U.S cleaning-and-sanitizing segment, its largest
business in the U.S. by revenue, increased 4% and profit climbed
5%. International sales rose 3% and profit grew 1%.
Shares closed at $52.12 Monday and didn't trade premarket. The
stock has risen 17% this year.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037; jodi.xu@dowjones.com