Ecolab Inc.'s (ECL) first-quarter earnings fell 2% as revenue
increased but the results were stung by restructuring charges.
The company also raised its current-year forecast to earnings of
$2.49 to $2.53 a share. The company had previously forecast
earnings of $2.47 to $2.53. Ecolab also forecast current-quarter
earnings of 62 cents to 64 cents a share. Analysts surveyed by
Thomson Reuters expect 63 cents.
"Our end markets and sales momentum are improving," said
Chairman and Chief Executive Douglas M. Baker Jr.
Ecolab -- which provides cleaning, sanitation and pest-control
products and services -- has posted improved results recently,
helped by strength in its U.S. cleaning and sanitizing unit and
rising overall revenue.
Ecolab reported a profit of $93.6 million, down from $95.5
million a year earlier. Per-share earnings were flat at 40 cents.
The most-recent quarter included $15.4 million of charges, mostly
for restructuring, while the year-earlier quarter included a net
$3.5 million of charges. Adjusted for the items, earnings were 45
cents a share. The company had forecast earnings of 42 cents to 45
cents a share.
Revenue increased 6% to $1.52 billion. Analysts had most
recently expected $1.49 billion.
Gross margin edged lower to 49.3% from 50%.
Sales in the company's U.S. cleaning and sanitizing segment, its
biggest by revenue, rose 7.8% while profit fell 1.3%. International
sales rose 5.1%, while profit rose 12%.
Shares were down 0.4% in early trading to $51.82. The stock has
risen 8.6% the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;